The former treasurer of the PTA at John Muir Elementary School was arrested and is facing felony embezzlement charges on suspicion of misappropriating more than $80,000 in funds raised for the San Bruno school community.
San Bruno police officers arrested Lani D’Arcy on a warrant Wednesday, Oct. 30, under suspicion of swindling money from an account she oversaw at the school located at 130 Cambridge Lane.
The San Bruno resident pleaded not guilty to felony embezzlement charges the following day, said District Attorney Steve Wagstaffe, who expected she is due back for an initial court appearance in December before a preliminary hearing is set to begin in January.
Wagstaffe said $83,000 was believed to be embezzled over a two-year period when D’Arcy, 42, wrote checks to the travel agency she runs, then deposited them into her personal account.
D’Arcy served as treasurer of the association from June 2017 to 2019. When her successor was selected, D’Arcy avoided handing over records, said Wagstaffe. Eventually she attempted to write a $16,000 check to repay the account for some missing funds, said Wagstaffe, but the check bounced.
San Bruno police Detective Sgt. Mike Blundell said the investigation took about one month to complete following initial reports received in late August.
School district officials instructed the school’s PTA to halt all fundraising, spending and additional financial activity last month, following police announcing their investigation into the association’s finances.
Superintendent Sharon Kamberg has noted the PTA is an independent agency operating separately from the district, which maintains limited oversight over the association’s business practices or other activity.
Rather than reporting to the local school district, Kamberg said the association from each site is required to report its finances and other activities to regional and national PTA branches.
Recognizing the association’s independence from the district, John Muir Principal Michelle Graham said the issue is out of the hands of school officials.
“As unfortunate as this incident is, it is now a matter within the judicial system,” she said in a prepared statement. “Our only goal is to support the families and students of our amazing community.”
Kamberg had said previously the association is expected to report general financial details annually to the district school board, illustrating fundraising details as well as evidence that the organization is in good financial standing.
Blundell said D’Arcy is the only suspect identified so far in the investigation which included interviews with victims and witnesses, searches and document analysis.
Regarding the money, Blundell said it is common for the court system to require suspects pay back the embezzled amount as part of sentencing, but the money could not be recovered by police.
Following word of the investigation spreading through the community, district officials held a series of discussions at the school to address the PTA and seek ways to assure students are offered adequate resources while the association’s finances were frozen.
Looking ahead, Graham said officials are solely focused on preserving a healthy school environment.
“We remain committed to working closely with our parent community to enhance the educational experience at each of our schools. We stand with the many hard-working and dedicated parents of our San Bruno students who volunteer and support our schools every day,” she said.
Daily Journal reporter Anna Schuessler contributed to this article.
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