NJ School PTO Treasurer Accused of Stealing Over $50,000

A Parent-Teacher Organization treasurer in Somerset County has been arrested and charged with theft after allegedly embezzling more than $50,000 from the school organization’s funds over a two-year period. The investigation revealed the money was diverted through a sophisticated scheme involving fraudulent reimbursements and unauthorized cash withdrawals.

Jennifer Matthews, 42, of Hillsborough, faces second-degree theft charges after financial discrepancies were discovered during an annual audit of the Hillsborough Elementary School PTO’s accounts, according to New Jersey 101.5.

Source: NJBreakingNews.com

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Discovery of Financial Irregularities

The theft came to light when the PTO’s new executive board took office in April and requested a financial review before assuming responsibility for the accounts. An independent audit revealed numerous unauthorized transactions dating back to September 2023, when Matthews first assumed the role of treasurer.

“The audit uncovered a pattern of discrepancies between reported expenses and actual bank records,” said Somerset County Prosecutor John McDonald. “There were numerous instances of reimbursement requests for fictitious expenses and direct cash withdrawals that had no legitimate organizational purpose.”

According to court documents, Matthews allegedly created fake invoices for school events and supplies, then wrote checks to herself for reimbursement. She also allegedly made over 30 unauthorized ATM withdrawals from the PTO’s bank account, according to MyCentralJersey.com.

Impact on School Programs

The financial loss has significantly impacted planned school activities and educational support programs. Hillsborough Elementary School Principal Susan Reynolds expressed deep disappointment over the situation in a letter sent to parents on Wednesday.

“This is a devastating betrayal of trust that affects our entire school community, but especially our students,” Principal Reynolds wrote. “Several end-of-year events, field trips, and our technology upgrade initiative will unfortunately need to be scaled back or postponed as we address this financial setback.”

The PTO had been fundraising for new playground equipment and classroom technology upgrades, projects that will now be delayed indefinitely. The organization typically raises between $75,000 and $100,000 annually through various fundraisers to support enrichment programs not covered by the district’s budget.

Legal Proceedings and Charges

Matthews was arrested on Tuesday after turning herself in at the Somerset County Prosecutor’s Office. She was charged with second-degree theft by deception, which carries potential penalties of 5-10 years in state prison and fines up to $150,000 if convicted.

“Financial crimes involving educational and youth organizations are particularly troubling,” said Prosecutor McDonald. “These funds were intended to benefit children and enhance their educational experience, making this alleged theft all the more egregious.”

Matthews was released on her own recognizance with conditions including surrendering her passport and maintaining no contact with PTO members. Her first court appearance is scheduled for next Thursday at Somerset County Superior Court, according to Patch.com.

Source: NJBreakingNews.com

Community Response

The revelation has sent shockwaves through the tight-knit Hillsborough community, where Matthews had been an active parent volunteer for several years before becoming treasurer. Many parents expressed disbelief and anger at Wednesday night’s emergency PTO meeting.

“We trusted her completely with our fundraising money—money we all worked so hard to raise for our kids,” said Maria Sanchez, parent of a third-grader. “It’s heartbreaking to think that someone would steal from children.”

The PTO has already implemented new financial safeguards, including requiring two signatures on all checks, monthly financial reviews by multiple board members, and engagement of an outside accounting firm to conduct quarterly audits.

Hillsborough School Superintendent Dr. James Peterson announced that the district will contribute $15,000 to help the PTO continue essential programs while recovery efforts proceed. Additionally, several local businesses have pledged donations to help offset some of the losses.

“While we cannot immediately replace all the stolen funds, our community is already coming together to ensure our students don’t miss out on important educational opportunities,” Dr. Peterson said during a press conference Thursday morning.

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