Gregg Township on Wednesday received reimbursement for most of the more than $500,000 in losses it incurred as a result of a former employee’s years of theft of public money.
Travelers Casualty and Surety Company, which held the bond policy covering liability for former secretary Pamela Hackenburg, delivered an initial payment of $528,617.66 to the rural Centre County municipality, according to a news release provided by township solicitor David Gaines.
The payment represents 99.22% of the $532,747.67 claimed by the township, which expects to receive a second payment that will cover legal and accounting fees and other costs.
“The Board of Supervisors is happy with the amount awarded and thankful for the tireless work of everyone who assisted with this process,” the release stated. “The Township will provide updates as more information becomes available on the second, and hopefully final, payment.”
Hackenburg, 56, pleaded guilty in July to felony charges of theft, identity theft and access device fraud for stealing more than $500,000 from the township during her time as secretary between 2019 and early 2024. She made thousands of transactions using township funds to pay for online sports gambling, vacations and personal expenses, maintaining sole control over municipal accounts and fabricating documentation to hide the theft.
She was sentenced in September to at least two years in prison and ordered to pay $615,580.78 in restitution.
A township supervisor said at her sentencing that Hackenburg “betrayed us all.” Employees recounted nearly losing health insurance because of Hackenburg’s mismanagement, and said the township was having trouble securing a loan for road repairs, Spotlight PA reported.
Since the theft was uncovered, the township has updated its oversight policies, including regular review of bank statements by supervisors and annual background checks for staff.
Hackenburg, meanwhile, is facing new charges in a similar case in Union County.
She is accused of stealing more than $50,000 from an American Legion post in Mifflinburg during her time as volunteer bookkeeper/treasurer from 2023 to 2024. According to a criminal complaint filed in September, Hackenburg concealed documents and provided financial reports hiding the theft, depleting the club’s account to the point that members took out personal loans to keep it afloat.
Hackenburg allegedly admitted to stealing money from the post to support her gambling addiction. She faces three felony and three misdemeanor charges in that case. A preliminary hearing is scheduled for Oct. 21.
