EXCLUSIVE: Alameda swim team mom and president arrested on embezzlement charges

ALAMEDA, Calif. (KGO) -- Police have arrested the president of a youth swim team in the East Bay city of Alameda. They say she embezzled more than $50,000 and that's having a big impact on the nonprofit club.

Parents from the Alameda Gators asked I-Team reporter Dan Noyes to investigate. They say because of this missing money, they've had to fire two long-time coaches, and now, the kids are holding fundraisers to keep the team afloat.

When 45-year-old Sarah Lynn New became president of the Alameda Gators swim team in September of last year, she received a debit card with a PIN number for the club's Chase checking account. A witness told police that New used an ATM to embezzle cash from the team - hundreds, sometimes thousands of dollars at a clip - for a total of $51,440 over seven months.

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Team parent, Matthew Borkow, told the I-Team, "I was shocked, shocked, surprised."

Her arrest comes as a tremendous disappointment to the team's parents, especially in such a small, tight-knit community.

"It's hard to imagine what kind of person would sink to that level of depravity," Borkow said. "To steal not just from a charity, but a charity where they were in charge and one where their kids are participating. It's hard to imagine someone would be that selfish."

New surrendered to Alameda Police on July 2. They detained her in handcuffs for three felony counts of embezzlement and transported her to Santa Rita Jail. She was booked and released on $30,000 bail. The Gators nonprofit board discovered the missing money only after firing New as president, because she refused to pay monthly dues for her own kids to participate on the swim teams, according to the police report.

Dan Noyes: "Sarah, I'm Dan Noyes from Channel 7. Where is the Gator's money?"
Sarah New: "Go away."
Noyes: "Go away?"

Noyes called, texted, and emailed New and her husband, and messaged them on their social media, but no response. So, we met her outside the gym in Alameda where she's a Pilates instructor.

Noyes asked, "You're accused of embezzlement. Are you going to pay the money back?"

No answer.

We reached her lawyer, Rabin Nabizadeh, Senior Trial Attorney at Summit Defense. He emailed, "We intend to fight these charges to the fullest extent possible and will, therefore, not be providing any sort of statement to any news agency."

New left the Gators club in financial turmoil, so team parents are scrambling to replenish the club's bank account. They are raising dues by 20 percent. They're asking swimmers to fundraise for the team, and they have fired two veteran coaches even though they had nothing to do with any financial impropriety. Bret Garvine coached for the Gators for 20 years and he told us, "It was heartbreaking. It was not what I expected, not what should happen. It's terrible for the community, for the swimmers, for the legacy that we've worked hard to build."

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Garvine is struggling to replace his $32,500 coach's salary; it was the second job he worked each day to help make ends meet.

"I have bills to pay," he said. "Young children, daycare. Everything's expensive these days. We know that. And not having that income has been very difficult. I'm looking for anything I can to replace it with at the moment."

Gators parents reached out to the I-Team to investigate because it's been three weeks since the arrest and the case is now in the hands of Alameda County District Attorney Pamela Price.

No charging decision yet. Gators parents have been emailing the DA's office urging them to prosecute New.

One parent wrote, "Sarah's actions have disrupted this positive environment, and we believe that holding her accountable to the fullest extent of the law is essential for justice and for the future integrity of the team."

Another wrote, "The local community is outraged by what has transpired here and her actions should not be swept aside via a plea deal."

"It's absolutely essential that charges be pressed to the fullest extent of the law," Garvine said. "This kind of tragedy cannot be swept away with a plea deal or anything like that. We need to send a message to youth sports all over the place that this is completely intolerable."

Sarah New's attorney confirmed that the DA has not made a charging decision yet, and Pamela Price's office tells us they don't have a timeline for when a decision might be made.

EDITOR'S NOTE: Please note that the "Sarah Lynn New" mentioned in this article is not the same Sarah Rose New who also resides in Alameda, CA. Any references or statements made in the article pertain solely to the individual involved and do not relate to, nor should they be attributed to, Sarah Rose New of Alameda, CA.