Ex-Waterbury Employee Denied Probation in $15K Embezzlement Case

TORRINGTON, Conn. — A former Waterbury city employee accused of embezzling over $15,000 and stealing coworkers’ credit cards was denied accelerated rehabilitation this week — a special probation program that could have wiped her record clean.

Phyllis Labarge, 67, of Middletown, appeared in Superior Court on Tuesday where a judge rejected her application for the program, reserved for first-time, non-violent offenders. The reasons for the denial were not discussed in court.

Labarge also received a plea offer from prosecutors, though the terms — including whether prison time is involved — were not disclosed. She is scheduled to return to court July 22, when she’s expected to accept or reject the deal.

The Charges

This Article Includes

1 The Charges
2 Background and Fallout

Labarge faces multiple charges, including:

First-degree larceny
First-degree forgery
First-degree computer crime
Two counts of payment card theft
Two counts of illegal use of a payment card
Fourth- and sixth-degree larceny

The charges stem from two separate investigations:

Credit Card Theft: In December 2023, two Waterbury employees reported their credit cards stolen and used for $2,163 in unauthorized purchases at stores like Dick’s Sporting Goods, Kohl’s, and TJ Maxx. Police say Labarge was caught on surveillance video using the cards.
Embezzlement: Labarge is accused of stealing $15,579 in restitution payments made to the city between 2019 and 2023. Investigators allege she altered or deleted digital payment records and that a software audit revealed missing deposits and erased files marked with her initials.

Although records show $20,005 was unaccounted for, prosecutors are limited to pursuing embezzlement from 2019 onward due to the five-year statute of limitations.

Background and Fallout

Labarge, a licensed adjuster, worked for the city since 2013. She was the sole employee handling cash, check, and money order payments for restitution. She resigned on Jan. 4, 2024, before her February arrest.

Because of potential conflicts of interest within Waterbury’s Corporation Counsel’s Office, the case was transferred to Torrington Superior Court.

Labarge has not yet entered a formal plea. If convicted, she could face serious penalties, especially for first-degree larceny, a Class B felony carrying up to 20 years in prison.

Her next court date is July 22.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.