Indictment Alleges Former Vermont Branch Manager Siphoned $140,000

A federal indictment alleged a former branch manager for a Vermont credit union stole more than $140,000 using an unauthorized credit card.

Tracy Thibodeau, formerly known as Tracy Hill, is scheduled to be arraigned on a bank fraud charge in U.S. District Court in Burlington, Vt., on Friday, according to court documents.

She began working at the $32.3 million Vermont VA Federal Credit Union in White River Junction in 2015 and was promoted to branch manager in 2016. Starting in April 2019, however, Thibodeau used VVAFCU’s credit card processing software, and without authorization, she opened and issued a credit card in her name.

The former branch manager allegedly manipulated the processing software to grant herself privileges such as removing dollar limits on her credit card balances, excusing her from late fees and interest penalties on overdue balances, and eliminating requirements that she make minimum payment toward any unpaid balances, according to the indictment.

She also allegedly manipulated the credit union’s internal cardholder journal reports to conceal the fraud from her supervisors.

From April 2019 to February 2021, Thibodeau allegedly used her fraudulently obtained credit card to make more than $140,000 in charges. While she usually made small monthly payments toward her outstanding credit card balance, they totaled only several thousand dollars.

After the fraud was detected by VVAFCU, which led to Thibodeau’s termination in April 2022, the credit card outstanding balance was more than $137,000, according to the indictment.

Her attorney did not respond to CU Times‘ request for comment.

VVAFCU President/CEO Thomas Crapo declined to comment on the criminal case, but he added it will not affect VVAFCU’s plans to merge with the $375 million 802 Credit Union in Barre, Vt. A special member meeting to vote on the proposed consolidation has been scheduled for May 23.