It was like a scene out of a Hollywood movie: an organization dedicated to the wellbeing of sick children discovered that one of its own had left the organization and absconded with company money.

The Lucile Packard Foundation for Children’s Health reported last month that one of its former employees embezzled approximately $350,000 from the charity over the course of five years.

The foundation, a public charitable organization that works to raise funds for pediatric research and care — using grants made to the School of Medicine — uncovered the embezzlement during a routine accounting check and released a statement to the public on Sept. 20.

The Packard Foundation said it confirmed that all donations made in support of the School of Medicine were accounted for and were not affected by the theft.

David Alexander, President and CEO of the Packard Foundation, said in a telephone interview with The Daily that company policy barred him from disclosing the identity of the former employee. He did, however, confirm that the suspected individual held a position of authority in the foundation, which allowed him or her to transfer and manipulate records for funds within the organization.

“Basically, we had an individual who, because of the responsibilities of their position, was able to transfer funds from our accounts to their own accounts and then cover up the transaction,” Alexander said.

According to Alexander, after the suspect stole nearly $350,000 from the foundation, he or she left the company in June of this year. Then, in late August, during a regular check of the foundation’s accounting processes, major discrepancies appeared in the accounts.

The organization’s consultants, Deloitte & Touche USA, traced the discrepancies back to the former employee.

Both the name of the suspect and the information obtained through the investigation have been handed over to the Palo Alto Police Department, Alexander said. A criminal investigation is now underway.

The funds taken from the foundation are covered by insurance. In the meantime, the foundation is looking to prevent future embezzlement by enacting changes to policies and procedures involving handling of funds.

“There’s a number of suggestions that have come through to us from Deloitte,” Alexander said. “Obviously, we will be acting on every one of their recommendations.”

The Lucile Packard Foundation for Children’s Health, located in Palo Alto, makes contributions to nonprofit medical organizations throughout Santa Clara and San Mateo counties in addition to the School of Medicine.