UPDATE: A warrant has been issued for the arrest of Margie Thompson, chief financial officer of the Keith Kelley Club, amid allegations of embezzling approximately $43,000 from the nonprofit that supports injured San Jose police officers and their families. The San Jose Police Department confirmed the investigation following a volunteer’s report of financial discrepancies earlier this year.
The arrest warrant was secured after detectives from the SJPD Financial Crimes Unit discovered evidence of misconduct between January 2020 and January 2025. The nonprofit has been operating at a deficit for several years, raising concerns about its financial management. Police officials stated, “the investigation is active and ongoing,” and declined to provide further comments.
Thompson, the organization’s only paid employee, earns $42,000 annually, a significant increase from her $21,000 salary in 2020. She has served over two decades in several roles, including treasurer and office manager. The Keith Kelley Club, founded to honor a fallen officer, has suffered financial losses, averaging $37,000 in deficits annually since 2020.
Tax filings reveal troubling trends: the club’s assets plummeted from about $123,000 in 2020 to roughly $29,000 in 2024. The last year of profit was 2020, coinciding with the onset of the COVID-19 pandemic, when expenses were significantly lower.
The legacy of Keith Webster Kelley, a San Jose police officer presumed dead during WWII, underscores the emotional weight of these allegations. The nonprofit was established with the noble aim of supporting officers and their families during challenging times.
As the investigation unfolds, the community watches closely for developments regarding Thompson’s legal representation and the future of the Keith Kelley Club. Police have not disclosed whether Thompson has retained an attorney.
Stay tuned for updates on this ongoing situation that impacts the San Jose community and its law enforcement families.
