Theft investigation triggers big changes at Vt. DCF

Theft investigation triggers big changes at Vt. DCF

Theft investigation triggers big changes at Vt. DCF Local News More>>Search for missing S. Burlington manUVM weighs a tuition hikeTests zero in on Tritium leakStudents create tribute to former school secretaryVermont Toyota dealers prepare for recallsPerennial plunger to retireStorm backs up airportsPolice capture double-murder suspect Anthony PavoneAbate admits to misconductVt. man pleads guilty in dog's shooting deathMontpelier, Vermont - February 3, 2010

"It's kind of the worst nightmare," said Steve Dale, the commissioner of the Vt. Dept. of Children and Families.

The nightmare for DCF started in October, says Dale, when a bank called his office worried someone was trying to cash state checks for personal purposes.

"Our first step was to see what happened here and what we can do to prevent it," Dale explained.

A federal probe was launched into the financial dealings of Kathy Lantagne. A check of public records shows Lantagne was earning nearly $58,000 as the director of the Newport Reach-Up office of the Department of Children and Families serving needy Vermonters. But an IRS agent says that salary apparently wasn't enough for the 19 year state employee.

A federal application for a search warrant for records handled by Lantagne accuses her of writing $500,000 in checks to herself and to relatives over a 5-year period.

"There need to be proper checks and balances," Dale said.

Dale says DCF has added additional review of where checks are going and has built in limits on dollar amounts individuals can approve. He also tells WCAX News he expects an auditor's report soon on possible weaknesses in his department's financial systems.

"He's spent the last couple of months looking at all our systems," Dale said.

"I think people are going to get very angry about this one," said David Orrick, a criminologist at Norwich University.

Orrick says embezzlers believe people won't be hurt by their crimes and rationalize their behavior by telling themselves they handle so much money, small piles of cash won't be missed. He thinks embezzlement is more common than anyone knows.

"A private corporation doesn't always want to admit it's been the victim of embezzlement and may do a lot to make it go away. The state can't do that," Orrick explained. "The popular theory now is that the people who do it don't have self-control."

That lack of self-control may have tripped up Kathy Lantagne. Court papers say she approved more than 250 suspicious checks-- money meant to help low-income Vermonters get to work and improve their lives.

"I don't think anyone can say because that money was taken, a specific other person didn't receive funds. But, it adds to the overall burden we all carry," Dale said.

We asked Commissioner Dale about the IRS agent's claim the theft took more than 5 years to detect. Dale would only say he hopes to find out more about that when and if the federal investigation results in criminal charges.

As of right now, Kathy Lantagne has not been charged with anything. Lantagne lives in West Charleston. We're told by other residents of West Charleston that she's the Kathy behind Kathy's Corner Store there. We called the store Tuesday night and were hung up on. We also called Lantagne's sister's house in Newport-- she's named in the federal papers. We got hung up on there, too.

Jack Thurston - WCAX News

http://www.wcax.com/Global/story.asp?S=11929035