William C. Embrey, a former town treasurer and bank president in Remington, Va., has pleaded guilty to a felony charge of misappropriating $36,000 in public funds from the tiny town's payroll.

At the same time, a grand jury returned a forgery indictment against Embrey in connection with charges that he took about $360,000 from the State Bank of Remington, which he once headed, by forging the names of two relatives and a bank customer to loan documents.

Embrey, 36, could be sentenced to as long as 10 years in prison on each of the two misappropriation charges, Sentencing is scheduled for May.

According to Assistant Fauquier County Commonwealth's Attorney Roger Inger, Embrey had in effect overpaid himself for seven years from the treasury of Remington, a town of 350 persons 50 miles west of Washington. tHe used the money to invest in real estate, Inger said, and repaid the town government with the proceeds from the sale of that real estate.

"No one has lost a penny on this -- absolutely no one," said Inger. He said an investigation jury failed to turn up any evidence that Embrey's investment partners were aware of the sources of his funds.

The FBI is still conducting a federal investigation into the disappearance of the bank funds, which came to light last fall when Embrey told both town officials and reporters for the Washington Post what he had done. Since that time, Inger said, Embrey has also paid back the bank from real estate sales.

The forgery indictment handed down Monday stems from allegations that Embrey obtained a promissory note for $27,000 from the local bank and signed his father's name to it.

Inger said it is likely that Embrey will receive a light sentence because he is a first offender and has repaid the money.