Stephanie L. Roberts, age 55 and a resident of Gastonia, was sentenced to 18 months in federal prison for embezzling funds from Cancer Services of Gaston County, a nonprofit organization dedicated to supporting cancer patients.
In addition to her prison term, she was ordered to serve two years of supervised release and to pay restitution totaling $157,722.69 to the nonprofit and $62,612 to the Internal Revenue Service (IRS).
Roberts served as the executive director of the nonprofit and, according to court documents, began embezzling funds as early as January 08, 2016, continuing through January 21, 2022. Over this period, she stole more than $136,000 from the organization.
Beyond the embezzlement, Roberts also failed to remit over $200,000 in federal income, Medicare, and Social Security taxes that had been withheld from employee paychecks. She further compounded her misconduct by submitting false U.S. Income Tax Returns, under penalty of perjury, which misrepresented the amount of tax withheld from her wages and falsely claimed that these amounts had been paid to the IRS.
Roberts pled guilty on March 22, 2024, to three federal offenses: theft in connection with health care, failure to truthfully account for and pay over trust fund taxes, and making and subscribing a false tax return. She will report to the Federal Bureau of Prisons once a facility is designated.
The case was investigated by the IRS Criminal Investigation Division, the U.S. Postal Inspection Service, and the Gastonia Police Department. Assistant U.S. Attorney Michael E. Savage prosecuted the case. Acting U.S. Attorney Lawrence J. Cameron emphasized the gravity of Roberts' actions, stating that she exploited a nonprofit meant to aid cancer patients for personal gain and would now face the consequences of her actions.
Source: https://www.justice.gov/usao-wdnc/pr/former-executive-director-sentenced-stealing-thousands-dollars-gastonia-non-profit
Commentary
Quoting the press release:
"Roberts treated a nonprofit organization meant to support cancer patients as her personal piggy bank, stealing funds intended to help those in need of resources and services during a health crisis. Roberts will now be held accountable for her reprehensible actions," said Acting U.S. Attorney Cameron.
To prevent your organization from becoming the personal piggy bank of an employee, several key practices and controls should be implemented to ensure transparency, accountability, and oversight.
First, organizations should establish strong internal controls. This includes segregation of duties, where no single employee has control over all aspects of a financial transaction. For example, the person who approves expenses should not be the same person who processes payments or reconciles bank statements. Regular and independent audits - both internal and external - are essential to detect irregularities early and deter fraudulent behavior.
Second, financial transparency should be a priority. This means maintaining clear, accessible records of all financial transactions and ensuring that financial reports are reviewed regularly by leadership or a board of directors. Nonprofits should have finance or audit committees that oversee financial practices and ensure compliance with regulations.
Third, organizations should implement robust whistleblower policies and encourage a culture where employees feel safe reporting suspicious behavior. Anonymous reporting mechanisms can be especially effective in surfacing concerns that might otherwise go unreported.
Fourth, background checks and reference verifications during hiring - especially for roles involving financial responsibilities - can help identify red flags before someone is placed in a position of trust. Once hired, ongoing training in ethics and compliance reinforces expectations and helps employees recognize and avoid unethical behavior.
Finally, leveraging technology such as accounting software with built-in audit trails, access controls, and automated alerts for unusual transactions can significantly reduce the risk of embezzlement. These systems can flag duplicate payments, unauthorized changes, or transactions that exceed predefined thresholds.
