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CUSD Foundation in Capistrano, CA, sues former director of embezzling $50,000.

Kenneth Patrick Gaughan, 40, is accused of theft from the Catholic-run school system. As the assistant superintendent of a system, Gaughan handled invoices and dealings with contractors. Gaughan made invoices for anti-bullying and crisis intervention programs and had the money sent to fraudulent bank accounts that he set up for himself. The bank accounts were tied to entities Gaughan incorporated with names that were almost identical to those of real companies. In one case, Gaughan created a company that was supposed to provide anti-bullying initiatives for the school system called Solutions Counseling for Youth, the indictment states. Gaughan sent fraudulent invoices and persuaded his employer to make payments for services that he knew would not be provided. Gaughan then had the checks sent to virtual and private mailboxes before depositing them into his bank account and used the money for personal expenses. Gaughan was released under supervision pending trial and could face up to 60 years in prison, prosecutors said.