Former Vermont Branch Manager Faces Sentencing for Bank Fraud

Tracy Thibodeau, a former branch manager of a Vermont credit union, is expected to be sentenced in February for bank fraud.

According to a plea agreement filed in U.S. District Court in Burlington last month, she admitted to stealing more than $140,000 from the $30.2 million Vermont VA Federal Credit Union (VVAFCU) in White River Junction.

Thibodeau was hired at the credit union in 2015 and was promoted to branch manager in 2016. Starting in April 2019 through February 2021, she used VVAFCU’s credit card processing software, and without authorization, opened and issued a credit card in her name.

The former branch manager 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.

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

While she usually made small monthly payments toward her outstanding credit card balance, they totaled only several thousand dollars.

VVAFCU detected the fraud and fired her in April 2022.

The credit union was merged into the $392 million 802 Credit Union in Barre, Vt., earlier this year.

At the end of the second quarter, VVAFCU recorded a loss of $661,106, and a net worth of 5.20%, according to NCUA financial performance reports. In the first quarter, the credit union posted a gain of $23,756 and a net worth of 7.01%.

At the end of last year, VVAFCU showed a loss of $229,894 and a net worth of 6.90%, according to NCUA financial performance reports.