Gregory Colley is being held in San Francisco County Jail after pleading not guilty to charges he embezzled $3.9 million from the nonprofit Music Community Concourse Partnership.
Prosecutors say while Colley worked as the chief financial officer of the group he transferred money from the nonprofit's bank account to his personal account.
Before being fired from his job in March, Colley told officials he had borrowed the money to invest in the stock market.
He said he was unable to pay back the money when the market took a downturn.
The 48-year-Colley is scheduled to return to San Francisco Superior Court Thursday to set a preliminary hearing date.
