Subaru Office Mgr. Embezzled Nearly $200K From Dealer, “It’s a Shame That an Employee of 22 Years Could Betray Our Trust Like That”

Just because someone has worked for a company for over twenty years does not mean they are loyal. Here is a sobering story of a Subaru dealer in Vermont who had an employee embezzle nearly $200,000. 

Vermont loves Subaru, but Subaru doesn't love all Vermonters. 

Subaru has the most loyal customers in the state of Vermont. I recently wrote a report revealing Subaru has the highest ownership rate of any automaker in Vermont. There is a quote from a Subaru media representative saying that Subaru is "The official car of Vermont."

Subaru may have the most loyal customers in Vermont, but one Subaru dealer found the state does not always have the most loyal employees. 

Automotive News (by subscription) reports that "Jennifer LaBonte, a former office manager at Burlington Subaru in Vermont, pleaded guilty to one count of wire fraud for embezzling $191,000 over the course of 11 years by stealing customer cash receipts and issuing herself unauthorized checks."

It would be a devastating blow that have an employee of 22 years betray trust like that. Dave Birmingham, dealer principal, expressed to Automotive News, his shock and disbelief ar what happened.

AN says LaBonte, of Essex Junction, Vermont, worked at the Subaru dealership starting in 2001 and gained full control over accounting matters after becoming manager in 2012. 

According to the U.S. attorney's office in Vermont, she tried to conceal the thefts by falsifying transaction records in the dealerships' computerized system.

A dealership officer discovered the fraud in January, leading to LaBonte's immediate termination. She has since repaid the total amount to the dealerships.

The criminal fraud crossed state lines as LaBonte used the Auto/Mate dealership management system to manipulate financial records stored outside Vermont. This led to a federal wire fraud investigation by the FBI.

LaBonte faces up to 20 years in prison and a fine of up to $250,000, or double the amount of ($382,000) the dealership lost due to her embezzlement. 

On September 27, she signed a plea agreement admitting guilt, with sentencing scheduled for March 4 in Vermont District Court. If she abides by the plea agreement, the U.S. attorney's office may recommend that LaBonte face the sentencing guidelines' lower end.

"It's a shame that an employee of 22 years could betray our trust like that," Dave Birmingham, dealer principal, told Automotive News.

He said he believes his stores were among the fortunate ones, underlining the uncertainty and vulnerability of the situation.

"We were able to prove much of what she took," he said. "But we don't know if we were able to find everything," the dealer principal admitted, the lingering effects of the crime evident.

Brooks McArthur, LaBonte's lawyer at Gravel & Shea in Burlington, Vermont, declined to comment on LaBonte's behalf the AN report said.

Subaru has the most loyal customers in Vermont and is the unofficial car brand of the state, but not all Subaru dealers' employees are loyal. Burlington Subaru found out the hard way. 

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I am Denis Flierl, a Senior Torque News Reporter since 2012. My 30+ year tenure in the automotive industry, initially in a consulting role with every major car brand and later as a freelance journalist test-driving new vehicles, has equipped me with a wealth of knowledge. I specialize in reporting the latest automotive news and providing expert analysis on Subaru, which you'll find here, ensuring that you, as a reader, are always well-informed and up-to-date. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.

Photo credit: Denis Flierl via Burlington Subaru