T he headlines can be shocking— allegedly embezzled recently from the nonprofit Sonoma County Farm Bureau by a staff member, according to an ongoing investigation by the Sonoma County Sheriff’s Office. So why are nonprofit organizations sometimes ripe for embezzlement more than other types of businesses? Fraud can happen in every kind of industry and company, but nonprofits tend to be somewhat more vulnerable to theft. According to a report released in 2024 by the Association of Certified Fraud Examiners (ACFE), 10% of all occupational fraud cases nationally were among nonprofits, and the median loss from those thefts was approximately $76,000. Average losses can go significantly higher, it added. More than half of occupational thefts happen because of a lack of internal controls, the ACFE points out, or when “Nonprofit Embezzled by Trusted Employee”—and the dollar amounts staggering. For instance, $375,000 was
grand theft and obtaining money under false pretenses.” She was arrested in mid-October after being fired from the organization. The case is still under investigation. In 2023, a longtime employee of the now-defunct Social Advocates for Youth (SAY) was sentenced to three years’ probation and four months in the county jail for defrauding the nonprofit to the tune of $53,000. Lisa Fatu, the former director of youth crisis services for the nonprofit, had worked there for 20 years. Authorities at the time said the losses could reach more than $70,000, embezzled over a span of nearly five years. In addition to her sentence, she was also ordered to pay $50,000 in restitution to the organization. SAY, which served homeless and at-risk youth, declared bankruptcy and closed permanently in 2024. In Sonoma in 2018, the former executive director of the nonprofit Finnish American Home Association, Daniel Broin, was found guilty of grand theft for stealing more than $100,000 from the organization that provides affordable housing to seniors in two facilities. These are just three examples of North Bay cases that grabbed headlines in recent years and shined a spotlight on the vulnerabilities of nonprofits to theft by employees.
existing internal controls are shrugged off. “All nonprofits should have internal controls to ensure the financial security of the organization,” says Daryl Reese, founding attorney with the Daryl Reese Law Group in Santa Rosa, which specializes in representing nonprofit organizations. “With a lack of internal controls, an employee in a nonprofit may end up in a situation where they justify stealing, say, $100. Even though that’s just plain wrong, they may be tempted to get away with a small theft if they’ve figured out the organization is an easy target.” For-profit businesses generally operate with more robust financial oversight, while nonprofits may be more focused at times on their mission.
File charges—or not? Reporting an embezzlement to authorities can be fraught with complications, says Reese. “Maybe the nonprofit doesn’t want to sue someone because it can cost a lot, but it’s also possible their insurance carrier won’t file a claim without a police report.” In the case of his own clients, he says, it would depend on if they are looking to get their money back or send someone to jail. “There are two ways to hold a suspected embezzler accountable—by filing criminal charges, because it’s a crime against society, or to sue them in civil court. In that case, the organization is bringing a lawsuit for ‘conversion,’
Daryl Reese, founding attorney of Daryl Reese Law Group.
This can lead to a more relaxed environment regarding finances, causing irregularities in the books to go unnoticed and the losses adding up over time. The ACFE, which operates several chapters in California, says up to 43% of occupational fraud cases are the result of a tipster coming forward to report their suspicions. In addition, the organization’s “Occupational Fraud 2025” study showed that 84% of all fraudsters had at least one behavioral red flag. One such behavior is being possessive of the financial information of the organization. Other possible signs of embezzlement can be missing cash, missing financial documents, vendors saying they weren’t paid and customers saying they already paid their bills. Local cases in the headlines A high-profile embezzlement case currently in the news involves the Sonoma County Farm Bureau and the Farm Bureau Foundation of Sonoma County, which was allegedly defrauded by a member of a trusted family who had guided the organization for decades. The alleged theft of $375,000 by Samantha Piehoff led to charges of “suspicion of forgery,
as in the embezzler converted the organization’s assets into their own. The downside of civil complaints is they tend to take a long time to resolve.” If the nonprofit has government funding, that adds another layer of complexity, because state and federal law enforcement may need to get involved, says Reese. Some organizations might want to avoid reporting the theft altogether because they are embarrassed. “Because as soon as word gets out, it could cause a major funder to become cautious and choose to not write that next big check. Suppose you run a $5 million organization and the embezzler stole $200,000, but you have a fundraising campaign coming up. Do you put all the people you serve at risk for publishing that you were embezzled?” Reese is currently working on an embezzlement case for a nonprofit client outside of the North Bay. “We’ve started walking down the road to move ahead with a case. The organization brought in a forensic accountant to see what they could actually assert, then we went to law enforcement. If a nonprofit comes to me with a serious theft involving a large amount of money, I will want to report it and then the
32 NorthBaybiz
January 2026
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