Gambling Addict Who Embezzled $533K From Pennsylvania Town Sentenced to Prison

• A former township official has been sentenced to prison for theft
• The secretary and treasurer admitted to stealing to fund her gambling addiction

A Pennsylvania woman will spend at least the next two years in state prison after she admitted to stealing almost $533,000 from Gregg Township while she worked for the local municipality as its secretary and treasurer.

Centre County Judge Katie Oliver sentenced Pamela Hackenburg, 56, of Union County, to the maximum of four years in prison, followed by two years of probation. She will be eligible for parole after serving 24 months.

Hackenberg admitted to using her job to embezzle at least $532,747.67 from the small township that is home to a little more than 2,300 people. She said she is a gambling addict and funded her habit by stealing from her employer.

“She didn’t just steal from the employees of Gregg Township. She stole from each and every taxpayer of Gregg Township,” said Centre County Deputy District Attorney Crystal Hundt.

DraftKings Expenditures

Prosecutors detailed that law enforcement’s investigation into Hackenburg found that she made $322,185 in transactions on her DraftKings account. DraftKings offers both online sports betting and casino games in Pennsylvania.

The money trail also included evidence that Hackenburg used the stolen money to cover other personal expenses, including purchases at wine and spirits stores, nail salons, and a vacation in Florida. Hackenburg pleaded guilty to theft, identity theft, and access device fraud.

The town’s supervisors had minimal oversight over the secretary-treasurer and failed to notice that funds were disappearing. The theft was uncovered when a bank statement she would usually open was opened by another township employee.

A subsequent audit exposed what tax preparer Rhonda Sweely said “looked like a tornado blew through.”

The audit revealed that Hackenburg used the township’s credit cards more than 3,600 times for personal expenses, including for her DraftKings account. 

Restitution Unlikely 

Along with her prison time, Oliver ordered Hackenburg to pay $615,580.78 in restitution to the township. She says she doesn’t have the money, but is “committed to making diligent efforts to repay the amounts taken.”

Hackenburg told the court that she’s a Christian, but that “doesn’t mean I don’t make mistakes.”

It was never my intention to hurt you all,” she told Gregg Township residents. “I pray some of you might find it in your hearts to forgive me.”

Gregg officials say the township is now struggling to secure loans to complete critical road repairs.

Once Hackenburg is released from prison, a casino will likely be up and running in State College, near Penn State University. Her Union County home is less than 50 miles east of where the Happy Valley Casino will operate.

The Pennsylvania Gaming Control Board’s online listing of Involuntary Excluded persons from the state’s physical casinos does not include Hackenburg. Her iGaming access has also not been revoked, though operators may choose not to accept her business.

She says she’s working to overcome her addiction by attending Gamblers Anonymous meetings.