Griswold Woman Embezzled Thousands From Employer: Police

GRISWOLD, CT — A local woman is accused of embezzling more than $300,000 from her long-time employer and then using the money toward her mortgage and personal expenses.

State police on Monday arrested Katey M. Lanphear, 49, of 617 Voluntown Rd., on a warrant.

Lanphear was charged with first-degree larceny, first-degree identity theft, and illegal use of a payment card.

Her former employer, a Griswold business owner, contacted state police to report the theft in October 2025. Police did not release the identity of the business.

The Eastern District Major Crime squad initiated an investigation.

According to an arrest warrant affidavit, Lanphear had worked at the business since 2002, and she oversaw its finances.

An employee first noticed financial issues, such as unauthorized charges on a company credit card. Lanphear was confronted and terminated, the warrant shows.

According to police, an investigation showed the thefts occurred over the course of several years. Money was diverted from the company to pay for Lanphear’s mortgage, bills and other personal expenses, police said.

According to the warrant, as of September 2026, a financial audit showed a loss of $301,083 in funds that belonged to the company, but had been taken by Lanphear.

An accountant indicated the victim business owner was being pushed to bankruptcy because of the amount of money stolen, the warrant shows.

Lanphear was taken into custody without incident. She was released on a $100,000 court-set bond, and she is scheduled to appear in Superior Court in Norwich on Nov. 19.