Bradford, VT – Katie Stygles, 29, of Piermont, New Hampshire, is facing serious federal charges after allegedly using her position as office manager at ARC Mechanical Contractors to fund a personal business venture. Stygles pleaded not guilty today in Burlington’s United States District Court to counts of wire fraud and access device fraud, a scheme prosecutors say drained over $73,000 from the Vermont-based company.
The indictment, handed down by a federal grand jury on September 28th, details a brazen pattern of abuse. Stygles, employed by ARC Mechanical since 2010 and promoted to office manager in 2016, had access to the company credit card. Beginning in August 2016, she allegedly began racking up approximately 130 fraudulent purchases, ordering tack, barn supplies, and provisions for horses, dogs, and other livestock – all for KMS Stables, a business she owned.
The purchases weren’t subtle. Stygles reportedly used ARC Mechanical’s phones and computers to place the orders with a vendor in Ohio. The scheme extended beyond the credit card. Prosecutors allege Stygles diverted customer payments intended for ARC Mechanical into a PayPal account linked to KMS Stables. She further compounded the fraud by utilizing ARC Mechanical’s United Parcel Service account to ship goods to her customers, effectively turning a company account into a personal shipping service.
Federal authorities, a joint effort between the Bradford Police Department and the U.S. Secret Service, uncovered the alleged scheme after Stygles was terminated from ARC Mechanical in early May 2017. The investigation revealed the scale of the operation, totaling more than $73,000 in fraudulent charges and diverted funds. The U.S. Attorney’s Office for the District of Vermont is handling the prosecution, led by Assistant U.S. Attorney Gregory Waples.
Stygles, represented by Assistant Federal Defender Steven Barth, was released on conditions pending trial, the date of which has not yet been set. While she maintains her innocence, a conviction on these charges could land her behind bars for up to 20 years and carry a fine of up to $250,000. The final sentence, however, will be dictated by federal sentencing guidelines.
The U.S. Attorney’s Office stressed that the indictment contains only accusations and that Stygles is presumed innocent until proven guilty in a court of law. This case highlights the vulnerability of businesses to internal fraud and the thorough investigations conducted by the Secret Service and local law enforcement when financial crimes are committed.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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