An embezzler who stole about $350,000 from the Lucile Packard Foundation for Children's Health over a five-year period has been reported to authorities for possible prosecution, the foundation announced.

The loss is covered by insurance, and a check shows that all donations have gone to areas specified by the donors, foundation President and CEO David Alexander, M.D., said in a statement.

The missing funds were discovered through routine accounting procedures and confirmed by independent investigators, he said.

Only one person was involved in the embezzlement, he said.

"We have filed reports with the appropriate authorities, and our insurance will cover our financial losses," he said.

The foundation raises funds on behalf of the Packard Children's Hospital and for children-related programs in the Stanford School of Medicine. The foundation's community grants program and its information program were not affected, Alexander said.

"We are disappointed by and regret this breach of trust, and we have taken steps to strengthen our systems to prevent a reoccurence," he said, expressing appreciation to donors for their support.

— Jay Thorwaldson