A Windsor woman who served as a branch manager for the Vermont VA Federal Credit Union has been indicted on a charge of credit union fraud, according to federal prosecutors in Vermont.

Tracy Thibodeau, 46, pleaded not guilty on Friday in U.S. District Court in Burlington to the felony charge, according to a press release from the U.S. Attorney’s Office in Vermont. She was released on conditions pending trial, which has not yet been set.

The one-count indictment returned Feb. 22 by a federal grand jury sitting in Rutland charges Thibodeau with credit union fraud from her former employer, the Vermont VA Federal Credit Union, at its one office in White River Junction, the release stated.

Thibodeau, according to the release, started working at the credit union in 2015 and was promoted to branch manager around 2016.

The indictment alleged that Thibodeau misused her authority to open a personal credit card at the financial institution without obtaining the proper authorization from her superiors.

“Thibodeau again misused her access to the credit union’s credit card processing software to grant herself, without authorization, privileged statuses on her card account,” the press release stated.

“Those privileges,” according to the release, “eliminated maximum account limits; excused her from paying late fees and penalties on overdue balances; and also eliminated monthly minimum payments.”

Between April 2019 and February 2021, Thibodeau used the card to make more than $140,000 in purchases, during which time she made only small monthly payments toward her large account balance, the release stated.

“The indictment further alleges that Thibodeau concealed her procurement and misuse of the credit card by manipulating internal credit card journal reports to hide from her superiors the existence of a large balance in her account,” according to the release.

The credit union discovered the alleged fraud in April 2022 and fired Thibodeau. The balance on her account at that time was more than $137,000, according to the release.

The not-for-profit financial institution is open to membership from employees of the VA Hospital in White River Junction and their families as well people who “live, work, worship or attend school in Windsor and Orange counties in Vermont along with Grafton and Sullivan counties in New Hampshire,” according to the credit union’s website.

Thibodeau faces a maximum penalty of 30 years in prison and a fine of up to $1,000,000, if convicted. Messages sent Tuesday to a phone number and email address under her name seeking comment were not returned.

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