DOJ: Schoharie County Woman Sentenced for $200,000 Fraud

• Blood used SARL funds for personal expenses including a luxury cruise, flights, hotels, and purchases at Amazon and Walmart.
• SARL had to cancel its 2024 annual conference and conduct emergency fundraising due to the theft.

Sarah Blood, former executive director of SARL, was sentenced to 5 years’ probation, including 8 months’ home detention, for embezzling $203,941.54 from SARL between July 2020 and August 2023. She used SARL’s bank account and debit card for unauthorized personal transactions, including booking a luxury cruise and making purchases at Amazon and Walmart.

SARL, a not-for-profit organization funded by the United States Food and Drug Administration, had to cancel its 2024 annual conference and initiate emergency fundraising as a result of the theft. Blood is required to make restitution in the amount of $203,941.54. The FBI investigated the case, and Blood previously pled guilty in April 2026.

• $203,941.54 total amount stolen from SARL
• 5 years’ probation sentence imposed
• 8 months’ home detention home detention term

• Review SARL’s financial management controls and access to bank accounts for vulnerabilities.
• Update monitoring procedures for organizations receiving United States Food and Drug Administration funding.
• Assess SARL’s emergency fundraising and conference cancellation for potential AML/CFT red flags.

This case highlights the risks of internal fraud within not-for-profit organizations, especially those receiving federal funds. Compliance officers should be alert to unauthorized transactions, misuse of organizational accounts, and sudden changes in organizational activities such as emergency fundraising or event cancellations. The restitution order and sentencing underscore the importance of robust financial controls and monitoring to prevent and detect embezzlement, which can disrupt operations and damage trust in federally funded entities.