CARLSBAD — A bookkeeper and consultant with the Agua Hedionda Lagoon Foundation has been arrested on suspicion of embezzling approximately $85,000 from the organization, authorities said.
Chelsea M. Applegate, 39, was arrested on Jan. 30 on an embezzlement charge, according to arrest records released by the Carlsbad Police Department.
Applegate is suspected of misappropriating the funds from the nonprofit foundation following an internal investigation that lasted several weeks, according to Lisa Rodman, the foundation’s president and CEO.
After discovering the funds were missing on Jan. 14, the foundation emailed its members a few days later, confirming that funds were missing and that an investigation was underway in cooperation with authorities.
“We recently discovered missing funds at the Agua Hedionda Lagoon Foundation. We take this matter very seriously and have filed a police report,” the foundation’s Jan. 17 email read. “A formal investigation is underway, and we are cooperating fully with the Carlsbad Police Department. We are committed to prosecuting this matter to the fullest extent of the law.
“While we cannot address questions during the investigation, please rest assured this will not impact our programs or operations now or in the future. Our mission to serve the community and protect the lagoon remains unwavering. Thank you for your support.”
On Feb. 3, the foundation board sent an internal follow-up email confirming that the Carlsbad Police Department had arrested a suspect in connection with the missing funds.
Applegate was a “contract vendor” hired on a part-time consultant basis, Rodman told The Coast News, but she did not specify how long she had worked with the foundation or the exact services she performed.
The foundation will not comment until the Carlsbad police provide additional details or formal charges are filed.
“We’re keeping our membership and board of directors informed and giving them updates as we can, until this person is arraigned and their prosecution happens,” Rodman said.
According to her LinkedIn profile, Applegate is a professional bookkeeper who appears to run a private practice based in Carlsbad. Following her arrest, she was released on bail and is scheduled to return to court on Feb. 6, when the exact charges will be announced, according to Tanya Sierra, a spokesperson for the San Diego County District Attorney’s Office.
Former Carlsbad mayor Matt Hall, a longtime supporter of the foundation, said the organization’s transparency regarding the alleged embezzlement reflects its strength.
“The fact that they were forthcoming about this was huge, so I don’t think this will really impact their work going forward,” Hall said. “I’ve dealt with situations like these in my personal life, and I can tell you that it’s always better to be proactive than reactive, and that’s what they’ve been doing here, which is good.”
Hall added that he is confident the foundation’s board will thoroughly investigate how the alleged crime occurred to prevent similar incidents in the future. He also expressed confidence that the case’s publicity would not affect donor support.
Founded in 1990, the nonprofit focuses on preserving and enhancing the Agua Hedionda Lagoon, a 400-acre coastal wetland in Carlsbad. The foundation promotes environmental conservation, education, and recreation, and it aims to maintain the lagoon as an ecological and cultural resource, its website states.
According to tax filings, the Agua Hedionda Lagoon Foundation reported approximately $1.45 million in revenue in 2023.
