A former employee who has since vanished might have embezzled money from the financially beleaguered Center for Contemporary Arts early this year.

The possible misappropriation was confirmed Tuesday by John S. Gordon, interim executive director of CCA.

"It does appear that CCA may have been the target of a former staff member," Gordon said by phone. "We are cooperating with the authorities who are conducting the investigation. We've long been insured to protect our organization and our donors and the Santa Fe community against this kind of unforeseen loss — if indeed it has occurred."

Gordon said Steven J. Spector, chief financial officer and treasurer of the 30-year-old nonprofit, confirmed some financial "irregularities" in early February after a staff member discovered them. CCA then filed a police report.

A spokesman for the Santa Fe Police Department confirmed that a report was filed, but declined to give further information because the investigation is ongoing.

Gordon said he wasn't sure of the amount, nor was he willing to name the employee because "one is innocent until proven guilty." But, he added, the employee in question has since disappeared.

He added that CCA wanted to be open about the fraud in an effort to display financial transparency.

CCA — founded by Bob Gaylor and Linda Klosky in 1979 — has had a history of financial woes. It had trouble paying rent — to its landlord, the Department of Cultural Affairs — through much of last year, and also racked up unpaid construction bills (which have since been settled). CCA is currently up to date on its rent, Gordon said. Department of Cultural Affairs Secretary Stuart Ashman did not return a call seeking comment.

Late last year, CCA announced it would close for good unless someone could help it with operating costs and managing a debt in the $800,000 range. Two anonymous donors came forward shortly thereafter with a monetary gift, that, Gordon said, "would run us through April."

Since then, board members, donors and an active fundraising effort on the part of CCA have put it on "stable footing," Gordon said.

In addition, an anonymous source has offered to personally take on about $400,000 of the debt, Gordon said. With the help of CCA's bank, Century Bank, that financial transaction should take place by the end of April.

Likewise, CCA downsized its annual budget to about $500,000 for this coming fiscal year, he noted.

In December, CCA announced that Lea Rekow, who served as executive director for a year, was stepping down. (Rekow is not the former employee linked to the possible embezzlement.) Gordon agreed to take on the interim directorship, starting in January, for up to six months.

"We will definitely be hiring a new director," Gordon said. "Can we afford it? We don't have a choice — we must afford it. If the community really values this center, I'm pretty sure we'll be able to get the resources we need to move forward with that search."

Likewise, CCA has been reshaping its board membership since late last year. It currently has nine board members; Gordon said it hopes to have 12 soon. Those members have been "very responsive to requests for funds," he said.

CCA is planning a series of visual-arts events beginning later this month. Those exhibitions include a juried show of work by University of New Mexico graduates, a water-based installation called The Rain Machine by Eric Tillinghast, and CCA's annual Collect 8 community exhibition.

"We're doing the best we can with the resources we have," Gordon said. "Everybody feels we are going to be here for the foreseeable future."

Contact Robert Nott at 986-3021 or rnott@sfnewmexican.com.