UPDATE: An arrest warrant has been issued for Margie Thompson, the chief financial officer of the Keith Kelley Club, amid shocking allegations of embezzling approximately $43,000. The San Jose Police Department confirmed the investigation just hours ago, following a volunteer’s report of financial discrepancies that surfaced in March 2024.
The nonprofit, established to support injured police officers and their families, is facing serious financial turmoil, having reported deficits over the past several years. While the organization has received consistent donations averaging $114,000 annually, it has struggled financially, with its assets plummeting from about $123,000 in 2020 to just $29,000 in 2024.
Thompson, the nonprofit’s only paid employee, drew a salary of approximately $42,000 in 2024, a significant increase from her 2020 earnings. The Keith Kelley Club, designated as a 501(c)(4), is allowed to engage in political activity but contributions to the organization are not tax-deductible.
Detectives from the SJPD Financial Crimes Unit have indicated that the alleged embezzlement occurred between January 2020 and January 2025, during which time the organization sustained increasing financial losses of $37,000, $42,000, $4,600, and $10,000 in subsequent years.
In a statement, police officials noted, “The investigation is active and ongoing,” and declined to provide further comments. As of now, Thompson’s whereabouts are unknown, and it remains unclear whether she has secured legal representation.
The Keith Kelley Club was founded in honor of Keith Webster Kelley, a former San Jose police officer who lost his life during World War II. The organization was created to provide assistance to injured officers and families of those who have died in service.
This developing situation raises significant concerns about the integrity of nonprofits and their fiscal management, especially those dedicated to supporting law enforcement. As authorities continue their investigation, community members are left wondering about the future of the organization and the support it provides to local heroes and their families.
Stay tuned for more updates as this story unfolds.
