A former financial officer at a New York-based nonprofit that supports research into genetic illnesses was arrested Monday night on suspicion of embezzling more than $1.8-million from the organization, reports The New York Times. Karen Alameddine served for more than eight years as controller of the Hereditary Disease Foundation, exercising primary responsibility for paying the charity's bills and delivering grant funds for medical studies.
A federal criminal complaint unsealed Tuesday alleges Ms. Alameddine, 57, disguised transfers to bank accounts she controlled as grant payments in the foundation's accounting software. Prosecutors said that the charity uncovered the phony transactions after Ms. Alameddine, who in recent years had worked from her home in Perris, Calif., resigned in January. She was charged with one count of wire fraud and five counts of tax evasion.