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

• Gambling News
• 17 September 2025

After confessing to stealing about $533,000 from Gregg Township while serving as the secretary and treasurer of the local government, a Pennsylvania woman will serve at least the next two years in state prison.

Pamela Hackenburg, 56, of Union County, was given a maximum sentence of four years in jail and two years of probation by Centre County Judge Katie Oliver.  After 24 months, she will be eligible for parole.

Hackenberg acknowledged stealing at least $532,747.67 from the minuscule township, which had a population of little over 2,300, when she was employed there.  She claimed to have a gambling addiction and to have stolen money from her job to support it.

“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.

Spending by DraftKings

According to the prosecution, Hackenburg made $322,185 in transactions on her DraftKings account during the course of law enforcement's investigation.  In Pennsylvania, DraftKings provides online casino games and sports betting.

The money trail also revealed that Hackenburg paid for other personal costs using the stolen funds, such as a Florida vacation, nail salons, and wine and liquor stores.  Hackenburg entered a guilty plea to charges of identity theft, access device fraud, and theft.

The Gregg Township treasurer and secretary at the time, according to the prosecution, had complete authority over the town's finances.  Hackenburg was placed on unpaid leave in March 2024 while the inquiry was ongoing, but the theft started just two months after she was hired in March 2019.  In December, she lost her job.

The supervisors of the town had little control over the secretary-treasurer and were unaware of the disappearance of funds.  When a bank statement she typically opened was opened by another township employee, the theft was discovered.

What tax preparer Rhonda Sweely described as "looking like a tornado blew through" was revealed during a later audit.

Hackenburg used the township's credit cards for personal expenses, including her DraftKings account, more than 3,600 times, according to the audit. 

Restitution is unlikely 

In addition to her jail sentence, Oliver mandated that Hackenburg reimburse the township $615,580.78.  She claims she is "committed to making diligent efforts to repay the amounts taken," even if she does not have the money.

Although Hackenburg is a Christian, she admitted to the court that this "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.”

According to Gregg officials, the township is currently having trouble obtaining loans to finish necessary road repairs.

There will probably be a casino operating in State College, close to Penn State University, after Hackenburg is freed from prison.  The Happy Valley Casino will be located fewer than 50 miles east of her home in Union County.

Hackenburg is not included in the Pennsylvania Gaming Control Board's online list of those who have been involuntary excluded from the state's physical casinos.  Although operators may decide not to take her on, her iGaming access has also not been withdrawn.

She claims that she is going to Gamblers Anonymous meetings in an effort to kick her addiction.