Missing money leads to a criminal investigation into a nonprofit leader.

The District Attorney’s Office has launched an investigation into the former executive director of the Monterey County Bar Association amid allegations she embezzled more than $100,000 from the nonprofit.

Chief Assistant District Attorney Berkley Brannon says that sometime in December, representatives of the bar association asked prosecutors to examine whether Jennifer Dalton, currently the top staffer at the nonprofit Gathering for Women, stole the strangely exact amount of $106,242.25 during her time as the association’s executive director. There’s no timing on when the DA’s investigation might be complete.

“We need a forensic accounting and we don’t have one yet,” Brannon says. “Usually the victim provides that.”

The investigation request came around the same time as the bar association’s annual December luncheon. At the meeting, then-president Chris Panetta announced a few things in front of about 200 lawyers and judges: the association was now solvent; auditors had been through the books with a fine-tooth comb; a certified public accountant would keep an eye on the books; and the former executive director had repaid the association $107,000, according to multiple sources who attended.

There’s a lot about this situation that remains unclear, mostly because everyone is freaked out about talking about it. For example, did the bar accept repayment before reporting the alleged theft? Who exactly reported the alleged theft? With so many lawyers on the board, was there a duty to report the alleged theft earlier?

Also, who in their right mind pilfers that much money from lawyers, who aren’t exactly known for their forgiving nature?

“It looks like the board wasn’t even looking at the budget,” one of those attorneys, who asked to remain anonymous, tells me. “How the hell could they not be looking at the bank statements?”

Dalton, who was at the bar association from 2014 to 2017, says she reached a civil agreement with the bar association “many, many months ago.” As of Jan. 28, she was unaware of the District Attorney’s investigation. “There is no criminal investigation,” she says. Informed of Brannon’s comments, made Jan. 23, she referred questions to her attorney, Dan Barton, a criminal defense specialist based in Palo Alto. Barton did not respond to multiple requests for comment.

That the Monterey County Bar Association had been in financial turmoil was no great secret. That struggle dates back to 2017, when Panetta told attendees at that year’s December meeting the board had discovered the association was in debt, one source says. In an interview, Panetta declined to discuss the repayment, but said the bar association discovered there were financial issues after Rob Ward, an accountant, joined the board. The board ran an audit, eliminated the executive director position and began running the organization on its own.

After that 2017 meeting, Panetta began asking for financial assistance to bolster the association’s coffers, and several larger firms – including Fenton & Keller, where he’s a shareholder – contributed. Christine Kemp, a firm member at Noland, Hamerly, Etienne & Hoss, says her firm wrote a check, although she declines to state the amount. And Jeff Gilles, managing partner at JRG, says his firm agreed to contribute $15,000 over three years and asked for more oversight. That came in the form of two JRG attorneys being placed on the association’s board.

“I got a call from [Panetta] and he was taking an active role in trying to restore the reputation and professionalism of the bar,” Gilles says. “I trust Chris… that he reached out to me and was willing to provide us with board presence was enough for me to make the investment.”

Gathering for Women, which launched in 2014, focuses on homeless services for women on the Monterey Peninsula. Gathering board president Amy Sands, in a written response to questions, says she is unable to comment on whether the board was aware of the civil agreement between Dalton and the bar association.

“Jennifer currently remains employed as executive director,” Sands writes.

On Wednesday afternoon Jan. 30, a few hours before the print edition of the Weekly was set to be distributed, a letter signed by the board of directors of Gathering for Women and addressed to "volunteers, donors, community partners and friends" went out advising them of this story, and highlighting many of the nonprofit's recent achievements. 

"We expect there to be an article in this week's Monterey County Weekly about Jennifer Dalton, our executive director, regarding her former employment with the Monterey County Bar Association," it reads. "Our board of directors has taken steps to ensure the fiscal integrity and security of the organization and is actively overseeing all aspects of the organization…

"The board wants to assure our friends, supporters and community that the Gathering for Women is committed to being good stewards of the funds we raise and we are focused on building on the achievements of this year to help the homeless women of our community improve their options and their lives."

MARY DUAN writes Local Spin for Monterey County Weekly. Reach her at mary@mcweekly.com or follow her at twitter.com/maryrduan