Pet Network Humane Society in Incline Village says it has uncovered suspected fraud involving more than $2.5 million in missing funds, reports KUNR Public Radio.

The nonprofit’s board announced the finding Thursday, September 17, after meeting in an emergency session earlier in the week.

The board says the problem surfaced after an unexpected discrepancy in the organization’s IRS status. A follow-up investigation found falsified financial records, accounting irregularities, and potentially missing funds dating back several years.

One employee has been fired, and the board believes that person acted alone. The employee has not been named publicly.

Executive Director Simi Balter offered to resign, but the board declined the offer. The board says it found no evidence that Balter knew about or took part in the suspected activity.

Pet Network says it is pursuing civil and criminal legal action to recover the money.

South Tahoe Now reported that the Washoe County Sheriff’s Office has an open investigation, and that no further comment is available while the case remains open.

The organization also plans to put stricter financial protocols in place and to bring in an independent third-party review. It says it remains financially viable and fully operational.

Pet Network focuses on pet adoptions, compassionate care, and feeding pets in need. Its shelter and community veterinary hospital are located at 401 Village Boulevard in Incline Village.

The nonprofit has placed more than 10,000 animals into homes since its founding. Its new agreement with Washoe County Regional Animal Services covers temporary care for lost and found dogs and cats in the Incline Village area.