Burlington, Vermont - The United States Attorney’s Office stated that Tracy Thibodeau, 46, of Windsor, Vermont, pleaded not guilty today in United States District Court in Burlington to a charge of credit union fraud. United States Magistrate Judge Kevin J. Doyle released Thibodeau on conditions pending trial, which has not been scheduled.
According to court records, on Feb. 22, 2023, a federal grand jury in Rutland returned a one-count indictment charging Thibodeau, who at the time was known as Tracy Hill, with defrauding her former employer, the Vermont VA Federal Credit Union. The VVAFCU is a small credit union that has one office in White River Junction. Thibodeau began working at the credit union in 2015 and was promoted to branch manager in around 2016. The credit union offered VVAFCU VISA credit cards to members and employees.
The indictment charges that in April 2019, Thibodeau misused her authority at the bank to open a personal VVVAFCU credit card account without proper authorization from her superiors. Later in 2019, it is alleged, Thibodeau again misused her access to the credit union’s credit card processing software to grant herself, without authorization, privileged statuses on her card account. Those privileges eliminated maximum account limits; excused her from paying late fees and penalties on overdue balances; and also eliminated monthly minimum payments. Between April 2019 and February 2021, Thibodeau used her credit card to make purchases in excess of $140,000. During that period, Thibodeau made only small monthly payments toward her large account balance. The indictment further alleges that Thibodeau concealed her procurement and misuse of the credit card by manipulating internal credit card journal reports to hide from her superiors the existence of a large balance in her account. The credit union discovered the fraud in April 2022 and promptly fired Thibodeau. At that time, the outstanding balance on her account was more than $137,000. That loss has been absorbed by the credit union and its insurer.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that Thibodeau is presumed innocent unless and until she is proven guilty.
If convicted, Thibodeau faces a maximum penalty of 30 years in prison and a fine of up to $1,000,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the United States Secret Service and the Hartford, Vermont Police Department.
Thibodeau is represented by Robert Katims, Esq. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Source: U.S. Department of Justice, Office of the United States Attorneys