Former Vermont state tax employee admits embezzlement

A former tax examiner for the Vermont Department of Taxes who admitted to stealing money from the state will face 90 days of house arrest and three years of probation.

On Friday, Oct. 18, Chelsea Hoadley, of Greensboro Bend, pleaded guilty to one felony count of embezzlement, according to a news release from the Vermont Attorney General's Office.

"A State, county, town, or municipal officer....who embezzles or fraudulently converts to his or her own use money or other property belonging to the state...shall be guilty of larceny," the statute states.

During her time as tax examiner, Hoadley was alleged to have transferred state payments into her personal bank account from October to December 2018.

Hoadley was arraigned at Vermont Superior Court in Barre in January, when she initially pleaded not guilty to four counts of embezzlement and four counts of identity theft, totaling to $15,773. She had faced up to 52 years in prison and fines up to $24,000, according to a press release at the time. 

In the past, Vermont has seen its fair share of embezzlement cases. In 2015, the state was ranked No.1 in the country for riskiest state for major embezzlement in a report by Marquet International.

The biggest Vermont embezzlement case occurred in 2013, and involved more than $600,000 stolen from the Border Credit Union in Derby Line by a former manager.

Contact Ethan Bakuli at (802) 556-1804 or ebakuli@freepressmedia.com. Follow him on Twitter @BakuliEthan.