Former CU Branch Manager Pleads Not Guilty to Bank Fraud

Tracy Thibodeau, a former branch manager of a Vermont credit union, may be facing a jury trial later this year after she pleaded not guilty last week to one felony count of bank fraud in U.S. District Court in Burlington.

A federal indictment alleged Thibodeau stole more than $140,000 using an unauthorized credit card when she worked for the $32.3 million Vermont VA Federal Credit Union in White River Junction.

Starting in April 2019, Thibodeau allegedly 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.

After the fraud was detected by VVAFCU, Thibodeau was terminated in April 2022.