A former executive of a nonprofit camp for children with serious medical conditions is accused of embezzling more than $5 million from the organization and tampering with computer records to hide his crimes, according to prosecutors.
Lake Hughes-based organization the Painted Turtle, co-founded by actor Paul Newman in 1999, is a year-round camp that offers free programming for children struggling with medical challenges and relies on donations from individuals, corporations and foundations.
Offering outdoor activities and in-hospital games, the Painted Turtle describes itself as place where youth with life-threatening and chronic illnesses can “sing, dance, laugh, grow and discover their potential.”
In a statement released Monday, the Los Angeles County District Attorney’s office said former Painted Turtle chief executive Christopher L. Butler faces 15 felony counts, including grand theft and fraud. If convicted on all charges, Butler could serve more than 18 years in prison.
The $5.2-million fraud, prosecutors say, took place over the course of his seven-year tenure. A spokesperson for the Painted Turtle said Butler left the organization around July, and the district attorney filed the case in late December.
Prior to leaving the organization, Butler had acted as the organization’s controller, or supervisor of accounting, which would allow him to conceal his alleged embezzlement over the years, according to the official complaint.
Prosecutors say that a controller hired after Butler’s departure was the first to notify authorities of the alleged fraud.
In the complaint, prosecutors say that Butler embezzled the nonprofit of hundreds of thousands each year since he was hired, steadily increasing his illicit take to the highest point in 2022, when he allegedly stole nearly $1 million.
Butler wrote thousands in fraudulent checks in addition to the existing embezzlement, the complaint says.
In the last year of his suspected scheme, authorities accuse Butler of changing data on company computers to access money and destroy evidence relating to his fraud.
The fraud fell apart in August, when authorities say the new controller discovered “irregularities” in the financial records dating back to 2018, Butler’s first year with the organization.
That month, prosecutors say, Butler allegedly took drastic action that led to a grand theft charge: stealing the organization’s computers. The complaint also details that an additional $50,000 worth of the nonprofit’s property was stolen or damaged during this time.
Butler is being held on a $835,000 bail with his arraignment set for Thursday.
The Painted Turtle said in a statement that “serious financial crimes were committed by a former employee.” The organization says that it conducted investigations by independent auditors and cooperated with law enforcement.
“This was a shocking and saddening discovery for us. Our primary commitment is always to the children and families that we serve,” the organization stated.
The Painted Turtle spokesperson Glenn Bozarth says that the nonprofit plans to continue its programming after the investigation, although the fraud has left behind questions about whether lost funds and damages could be recovered.
“We all have the same question,” Bozarth said. “How can someone do this?”
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