Woman ordered to pay $73K in restitution after stealing from Fort Harrison wellness fund

A Helena woman was sentenced Monday and ordered to repay the U.S. Department of Defense more than $73,000 after she pleaded guilty to stealing from a fund at Fort Harrison used to support social activities for service members and veterans.

Lettie Suzanne Frederick, 33, was sentenced by U.S. District Court of Montana Judge Brian Morris to five years of probation and ordered to repay $73,286.29 in restitution, most of the money she was originally accused of stealing from the Morale, Welfare and Recreation Fund at Fort Harrison while she was a budget analyst for the Montana Department of Military Affairs, which oversaw the account.

The account utilizes grant money and revenue that comes in from an RV park at Fort Harrison to help support service members' and veterans’ mental health and wellness by putting on activities.

According to court records, the fund has never been fully replenished since the missing money was discovered in 2023, which has caused Fort Harrison to scale back or postpone some initiatives. A pre-sentence memo says Frederick’s restitution payments will allow officials to start rebuilding the fund so it can restore the services.

Frederick was charged by criminal information on Sept. 16, 2025, and pleaded guilty to the one count of theft of government money at her arraignment on Oct. 14.

The embezzlement happened between September 2020 and July 2023, according to court records. Frederick managed the Morale, Welfare and Recreation Fund, which was linked in with an account at Intrepid Credit Union.

Earnings from the RV park would be deposited in that account, and there was a petty cash box at Fort Harrison where some non-deposited money would go to reimburse volunteers for out-of-pocket costs. Frederick was an authorized signatory on the bank account and controlled the petty cash box, according to the information.

Over the years, Frederick lied multiple times to officials about how much money was in the bank account by between $20,000 and $60,000, but the missing money was not discovered at the time. Frederick would make cash withdrawals from the bank account that came with no corresponding receipt.

In 2023, officials decided to transfer the fund from the Department of Military Affairs oversight to the U.S. Property and Fiscal Officer operating through the National Guard office, and needed to remove Frederick as the authorized individual overseeing the account.

They asked her to meet them at the credit union, and that day, an attorney contacted Fort Harrison officials telling them Frederick would not be there and that there were “problems” with the account.

The government undertook an internal review of the account and found there should have been $73,872.42 in the petty cash box assuming that withdrawals from the bank account had been placed into the box.

They found $4.26 in the box and just $2,835.43 in the bank account, according to records.

A pre-sentence memo states that at some point during the investigation or ahead of her guilty plea, Frederick admitted to having gambling problems from May 2020 until June 2023.

In court documents, her attorney said Frederick was “deeply sorry for her actions and the effects it had on veterans and families.”

“She understands the seriousness of her offense and is committed to paying back every dollar that she stole from the Department of Defense Health and Wellness Program that trusted her as an employee,” the document states. “She is also committed to setting a better example for her children.”

The judge considered seven letters of support written on her behalf from some family members and the law office where she currently works. He also considered a victim impact statement written by Col. Kyle Halseth, U.S. Army National Guard Bureau and U.S. property and fiscal officer for Montana.

Halseth wrote that Frederick’s theft of the money has had a “profound” impact on the organization and service members it supports and has disrupted the government’s ability to fulfill its mission, including helping veterans and active-duty service members through its wellness program. Halseth added that the ripple effects have negatively affected the morale of service members and their families who need respite from the challenges of the military.

“Beyond the financial impact, this crime has eroded trust within our organization and the community we serve. The MWR Fund relies on the integrity and accountability of those entrusted with its management. Ms. Frederick’s actions have undermined that trust, creating a sense of betrayal and disappointment among our members and stakeholders,” Halseth wrote. “It is disheartening to know that someone would exploit a fund dedicated to supporting those who sacrifice so much for our country.”