Lying to the Feds can get you 10 years and I am trusting that's not the only penalty when a nonprofit exec does bad things and policies and procedures don't limit what could go wrong. 

According to Thursday's New York Times, "A former chief financial officer of a Westchester, NY nonprofit group the Institute for Cancer Prevention admitted in Federal District Court on Wednesday that he lied to federal agents who were checking on the use of grants awarded to the organization, prosecutors said....He faces up to 10 years in prison."

And what about the nonprofit?  Have they lost money?  Have they put policies in place to avoid this in the future?  Do they have bonding and/or insurance to cover losses?  This is not just an FBI matter (although serious enough) there are policies, procedures and practices to be addressed by the Exec and the Governing board.