FROM: Amy Cornell, Public Information Officer   CONTACT PERSON: Erin West, Deputy District Attorney (408) 792-2976   For release on July 2, 2008   FORMER EMPLOYEE OF LUCILE PACKARD FOUNDATION FOR CHILDREN’S HEALTH ARRESTED FOR STEALING HUNDREDS OF THOUSANDS OF DOLLARS FROM THE COMPANY   Following a six month investigation by the Palo Alto Police Department, the Santa Clara District Attorney’s Office has filed charges today against 68-year old Marilyn Machalowski, a former employee of the Lucile Packard Foundation for Children’s Health. Machalowski is charged with one count of grand theft, along with an allegation that she embezzled amounts in excess of $200,000. It is estimated Machalowski took over $350,000 during an eight year period.   From 1999 to 2007, when the embezzlement took place, Machalowski was employed as an Accounting Manager and Payroll/Benefit Administrator. Her job duties included control and accounting, cash management, taxation, accounts payable, purchasing, payroll, and benefits. She also had the authority to issue checks for the Foundation. Machalowski often wrote company checks to her daughter, and then deposited them in their joint account. She also wired money from the Foundation’s account into her own account, as well as putting additional money towards her 401K. To conceal the embezzlement, Machalowski recorded much lower dollar amounts in the check register than what she had actually written.   The Foundation hired the services of Deloitte FAS, a forensic accounting firm, to assist them in conducting a forensic audit.  Palo Alto Police credit Deloitte FAS for completing a comprehensive audit of the Foundation’s financials, which was vital in this case.   Machalowski faces a maximum sentence of five years in state prison. She is scheduled to be arraigned on August 7, 2008 at 9:00 a.m.   The Lucile Packard Foundation for Children’s Health helps raise awareness and promote children’s health through fundraising, grants and education. The organization, which began in 1996, serves Santa Clara and San Mateo Counties.   ###

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