The arraignment of a Danbury woman charged with embezzling from her employer, Mullen Construction Co. of New Milford, brought allegations from the defendant that the firm is using "undocumented, illegal workers."

Olga Sibilia-Espinal, 32, was arraigned Monday in state Superior Court in Bantam on a charge of first-degree larceny for allegedly stealing $65,788 from Elan Construction Co., a company subcontracted through Mullen Construction.

Ms. Sibilia-Espinal, of Stadley Rough Road, worked as an administrative assistant at Mullen Construction, which is based in the Gaylordsville section of New Milford.

She did not enter a plea and remains free on $10,000 bond with a return court date of Aug. 10.

Litchfield County State's Attorney David Shepack's office received the arrest warrant affidavit with court documentation regarding the Sibilia-Espinal case Tuesday.

It would not comment on whether her allegations against the company would be investigated.

Kerry Ann Mullen, the Mullen Construction office manager, declined comment on the claims Tuesday after consulting her attorney, Edward Hannafin.

However, her mother, Carolyn Mullen, a former Mullen Construction employee now living in Florida, strongly refuted the allegations.

"We absolutely do not have any undocumented employees," Ms. Mullen said in a telephone interview Wednesday.

"She (Ms. Sibilia-Espinal) is saying whatever she needs to say to try to get off," Ms. Mullen claimed.

Ms. Sibilia-Espinal allegedly began stealing money in August 2008 and continued doing so through April 2010, according to Kerry Ann Mullen in an April statement to New Milford police.

Ms. Sibilia-Espinal allegedly was making out company checks for cash and depositing the money in her personal account at the People's United Bank branch in New Milford, according to court documents.

While Ms. Sibilia-Espinal reportedly admitted taking $10,000 when questioned by police in April, she also implicated her employer in alleged illegal activities, according to court documents.

According to documents, Ms. Sibilia-Espinal told police the company she worked for has two parts, "Elan Construction, which utilizes union workers, and Mullen Construction, which utilizes illegal and undocumented workers."

Both companies are owned by Thomas Mullen Sr., she told police.

Ms. Sibilia-Espinal said she would draw money through checks made out to cash from the Webster Bank account held by Mullen Construction and "then turn this cash over to (Kerry Ann) Mullen, who would pay the undocumented workers in cash," court documents say.

"Kerry Ann would say the cash was for office petty cash," Ms. Espinal told police.

Kerry Ann Mullen told police in April, when swearing out the affidavit against Ms. Sibilia-Espinal, "Olga had nothing to do with the Mullen Construction bank account," according to court documents.