"These allegations go to the very heart of the trust that we rely on in our community," Cappy wrote. "While this is a very disturbing incident, all of us appreciate how our staff, faculty, and students work together every day to create a college of the highest possible integrity."
Update: The Poughkeepsie Journal posted an article on the arrest, naming Arthur H. Fisher, who worked as project manager from 2005-2010, as the former employee arrested. The police charged him and his wife, Jennifer, with first degree larceny following a search of their Ossining home. The Fishers are currently in Dutchess County Jail.
Update #2: Mid-Huson News has more information: "Poughkeepsie Town Police alleged the couple set up a phony construction company and deposited the money in that company’s bank account. The US Postal Service also assisted in the investigation."