This story was produced by the State College regional bureau of Spotlight PA, an independent, nonpartisan newsroom dedicated to investigative and public-service journalism for Pennsylvania. Sign up for Talk of the Town, a weekly newsletter of local stories that dig deep, events, and more from north-central PA, at spotlightpa.org/newsletters/talkofthetown.
GREGG TOWNSHIP — Pamela Hackenburg knew her way around QuickBooks and had an associate’s degree in finance and accounting. This made her the top candidate in 2019 when she was hired to be this rural township’s new secretary and treasurer.
It also allegedly helped her perpetrate a massive scam spanning years.
Hackenburg stands accused of stealing almost $533,000 in public dollars, beginning just a few months after she took the job until earlier this year. By the time Gregg Township in Centre County sent outside accountants to clean out her locked office, it was a complete “mess,” with piles of papers and uncashed checks strewn everywhere, according to a charging document.
She’s been charged by Pennsylvania State Police with theft, receiving stolen property, identity theft, and access device fraud — all felonies. Hackenburg, who did not respond to requests for comment, has not entered a plea. The preliminary hearing in the state’s case against her has been continued until Jan. 2 to allow her time to find an attorney.
Now, for the first time, a Spotlight PA investigation reveals in meticulous detail how the alleged scheme ballooned from a few small purchases into a slush fund for sports betting, and how it was hidden from unwitting local officials under the thinnest of veils.
The bulk of the alleged theft was perpetrated using township credit cards that Hackenburg paid off with taxpayer money. Records obtained by Spotlight PA show transactions on DraftKings, a sports betting platform, totaled $322,185. Money spent via Venmo reached $149,335.25. Other personal purchases, like spending at restaurants, resorts, clothing stores, and more, climbed to $48,893.42.
In fact, township supervisors were never more than one look at credit card statements away from discovering the unauthorized spending. Suspicion was raised only when one of those statements was accidentally sent to another employee.
“We didn’t see those. We didn’t see credit card statements,” Gregg Township Supervisor Ben Haupt said in an August public meeting, adding that has changed. “We’re seeing everything. OK?”
The case is a cautionary tale for Pennsylvania’s more than 2,500 local governments and the taxpayers who entrust them with their money. Many municipalities are similarly run by a small number of public employees who can exercise unchecked authority over public finances.
“Sometimes there needs to be a look in the mirror of … ‘We were charged [to govern] with oversight, and this occurred under our watch,’” said Scott Koman, a certified fraud examiner.
Pat Leary, a Gregg Township supervisor from 2005 to 2013, told Spotlight PA that the current board has shown a lack of diligence.
“Ignorance is no excuse,” he said.
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