Insurer pays small Centre County township nearly $529K after employee theft

A small township in Centre County received a nearly $529,000 payment Monday from its insurer, a sum that covers nearly the entire amount stolen by its former secretary and treasurer.

Gregg Township said in a press release it received 99.2% of the $532,747 it sought from Travelers. It was the first of what is expected to be two payments the rural municipality receives from its insurer.

The second would reimburse the township for legal fees, accounting fees and other costs tied to the thefts of former township employee Pamela D. Hackenburg.

“The Board of Supervisors is happy with the amount awarded and thankful for the tireless work of everyone who assisted with this process,” Gregg Township said in a statement. “The Township will provide updates as more information becomes available on the second, and hopefully final, payment.”

Hackenburg, 56, of Union County, pleaded guilty in July to felony counts of theft, identity theft and access device fraud. Centre County prosecutors said she stole the public money to fund a gambling addiction and cover personal expenses.

She was sentenced last month to two to four years in state prison, followed by two years of probation. She was also ordered to pay more than $615,000 in restitution, which included the stolen money, payroll tax penalties and more.

Travelers would receive any restitution payments up to the amount it has paid, township Solicitor David S. Gaines Jr. told the Centre Daily Times. A message left with the insurer Wednesday morning was not immediately returned.

Hackenburg had exclusive access to the township’s bank accounts, was adept in accounting and operated with minimal oversight from township supervisors who were not familiar with financial matters.

A state police at Rockview investigation found she exploited her position of trust by isolating herself and obfuscating or fabricating financial information to ensure her crimes went unnoticed.

The fraud spanned nearly her entire tenure, from March 2019 until May 2024. She was formally fired in December.

Supervisor Vicky Vanada said during Hackenburg’s sentencing that the township is still struggling to complete road repairs that had to be delayed because of the thefts. Other residents spoke of stress and distrust in the community of about 2,260.

After facing questions if the board was lax in its oversight, Chair Ben Haupt has expressed confidence he and his fellow supervisors have taken appropriate steps in response. Among other measures, supervisors now regularly review bank and credit card statements and are required to pass an annual background check.

Hackenburg is incarcerated at the Centre County Correctional Facility. Less than a week after she was sentenced in Centre County, she was charged in Union County with felony counts of theft for allegedly stealing more than $50,000 from an American Legion in Mifflinburg where she volunteered as a treasurer and bookkeeper.

Her preliminary hearing in that case is scheduled for Oct. 21. Gregg Township’s next board of supervisors meeting is scheduled for Thursday.

Bret Pallotto

Centre Daily Times

814-231-4648

Bret Pallotto primarily reports on courts and crime for the Centre Daily Times. He was raised in Mifflin County and graduated from Lock Haven University.