Former Vermont State Worker Indicted On Charges She Misappropriated Nearly $500K

Kathy J. Lantagne, 46, of Charleston, Vermont, has been indicted on charges she embezzled some $490,000 from the Vermont Department of Children and Families where she had served as a supervisor in its economic services division. According to the indictment, over a five year period between August 2004 and October 2009, Lantagne caused at least 250 checks to be issued to parties that were not owed funds and subsequently mailed them to her sister, Deborah Tuller, 54, of Newport, Vermont, who then deposited them into accounts the two controlled. They then used the misappropriated funds to pay for personal expenses. Tuller has reportedly reached a plea agreement with prosecutors in the case. Lantagne reportedly had been an employee of Vermont's Agency of Human Services, in which the Department of Children and Families lies, for 19 years.

Read the story here, here and here.

Update (10/11/10): Lantagne pleaded not guilty last week to the charges.

Update (2/18/11): Deborah Tuller, Lantagne's sister, was sentenced to 13 months in prison for her role in this embezzlement scheme. Tuller pleaded guilty to mail fraud and filing a false tax return.

Update (3/3/11): Lantagne is now expected to plead guilty, according to her attorney, Mark Kaplan.

Update (4/25/11): The Burlington Fee Press' Nancy Remsen has done a terrific spread on the Lantagne case in their current paper. Read the whole article here.

Update (6/30/11): Lantagne, now 47, has been sentenced to 33 months in prison plus three years of probation.  She and her sister, Deborah Tuller, must also pay restitution of $490,471.