Tracy Thibodeau Pleads Not Guilty to Credit Union Fraud, Burlington VT, 2023

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Local Woman Embroiled in Credit Union Scandal

Burlington, VT – Tracy Thibodeau, a 46-year-old resident of Windsor, Vermont, has pleaded not guilty to a charge of credit union fraud in United States District Court. The charge stems from her alleged misuse of authority at the Vermont VA Federal Credit Union, where she worked as a branch manager from 2015 to 2022.

According to court records, Thibodeau opened a personal VVAFCU credit card account without proper authorization from her superiors in April 2019. She later misused her access to the credit union’s credit card processing software to grant herself privileged statuses on her card account, eliminating maximum account limits, excusing her from paying late fees and penalties, and eliminating monthly minimum payments.

Between April 2019 and February 2021, Thibodeau used her credit card to make purchases in excess of $140,000, making only small monthly payments toward her large account balance. The credit union discovered the fraud in April 2022 and promptly fired Thibodeau, who had amassed an outstanding balance of over $137,000 on her account.

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 case was investigated by the United States Secret Service and the Hartford, Vermont Police Department. Thibodeau is represented by Robert Katims, Esq., while Assistant U.S. Attorney Gregory Waples serves as the prosecutor.

Thibodeau’s trial has not been scheduled, and she has been released on conditions pending the outcome. The VVAFCU has absorbed the loss and its insurer has covered the remaining balance. This incident serves as a reminder of the importance of accountability in the financial sector and the consequences of such actions.