Charity Probes Alleged Theft

The chief financial officer for Orangewood Children’s Foundation is suspected of embezzling an estimated $900,000 over a seven-year period, foundation officials said Thursday.

Tracy L. Salcido, 36, of Yorba Linda is believed to have forged the signatures of foundation officials on checks written to a company of which her father-in-law is a board member and she is bookkeeper, said Phillip W. Green, the foundation’s attorney. She was recently fired.

The foundation filed a civil lawsuit Thursday against Salcido, her husband and other defendants in an attempt to recoup the money.

“This has been a difficult time for us,” said Gene Howard, the foundation’s chief executive officer. “It’s a horrible thing to have happen with an organization whose sole purpose is to help kids.”

Founded in 1981 as a nonprofit, the Santa Ana foundation was established as the fundraising arm of the Orangewood Children’s Home in Orange, an emergency shelter for abused or neglected children. The foundation provides programs on child-abuse prevention, care, emancipation of foster youths and public awareness. It has about 60 employees and a $7-million annual budget.

The alleged embezzlement was discovered last month when an accounting supervisor noticed a $4,650 check to United Convenience Stores LLC, a company he did not recognize.

A subsequent audit discovered that since 1998, more than $900,000 in forged checks had been written primarily to United Convenience Stores, officials said. Most were for amounts less than $5,000.

Santa Ana police are investigating, but no criminal charges have been filed and no suspects have been named. Salcido could not be reached for comment Thursday. Her husband said there was no evidence against her and declined to comment further.

When Howard confronted Salcido with the checks, she agreed they were forgeries but denied any role in the alleged embezzlement, he said. Her father-in-law is a partner in United Convenience Stores and she serves as its bookkeeper, but the foundation never had a contract with the business, Green said.

The Fullerton company connects independent convenience stores with manufacturers and suppliers.

Salcido wrote checks and handled finances for the foundation but did not have check-signing authority, officials said. She was hired in 1994 as the controller and promoted to chief financial officer in 2000. She previously worked at the accounting firm that conducts the foundation’s audits, Howard said.

Tom Montanio, listed by the secretary of state’s office as United Convenience Stores’ main contact, said Thursday that he was shocked by the allegations. He said that he did not believe his company received any foundation checks. “We have nothing to hide,” Montanio said.

The business formed four years ago, he said. It was unclear whether the business might have been operating under a different name before 2001.

Art Salcido, Tracy Salcido’s father-in-law, did not return telephone calls seeking comment.

It is unclear what effect the scandal may have on the foundation.

In the meantime, its work will continue, Howard said. “We ... are financially sound. This is not going to stop us from doing the work we’ve been doing.”

This year, the foundation has awarded $600,000 in college scholarships to more than 250 young adults formerly in Orange County foster care, he said.

“We may get a black eye from this,” said board Chairman David E. Ritchie, “but we will learn from this.”

Last year, the foundation received about $4.5 million in private donations. The board formed oversight committees to review the foundation’s internal policies and daily financial practices after the audit was conducted.

“We value the trust the public has given us, and we have to look at what we do and make it better,” Ritchie said.