Same problems here! I got the presidency by default, the previous pres quit "to be more involved with his children", and I was the vice-pres. The treasurer was a 2 year treasurer and a good friend, but was open about a history of being accused of taking $ from the Girl Scouts and a previous employer. We all trused her. A red flag finally came up when she claimed she was too busy to hand over the books to the new treasurer and stated "there really aren't any books". I ended up stalking and threatening her to get the books, and sure enough, the balance was short!
To shorten the story, she never deposted the book fair cash. We were able to get that total from Scholastic. Then we noticed she never made a deposite for 4 months, so there went the monthly movie night profits, about $80-$100 a night for 4 months. She did take the cash home at the end of the night and we all trusted her to deposite it.
She finally confessed when we got the police involved, because she wouldn't answer any phone calls, or letters sent home in her daughter's back pack. Her husband was my new vice-president and didn't help in any way to get the books handed over. He was made aware when the police became involved. I had him removed through a message I left on her phone, saying either she tells him he is done, or I will have to be honest about everything. The principal has been very supportive, but wants to be peaceful. But, I now have a "pit bull" as a treasurer.
The new treasurer is a County Cop and wants her prosecuted. She did make up a payment plan for only the $ we can account for ($1,600 book fair). We received $250 check and it didn't bounce. I has now been 3 months with no payment, so we are back to police involvement.
We now have a great, active group, with cash! But I prefer to not spend PTO $ on lawyers fees! The past treasurer and her husband, the ex-vice pres, did a lot of volunteering and have since "disappeared", but still have a 3rd grade daughter in the school. It was easy to get the word out about what they have done, because the current treasurer listed their check as a deposite for "cash owed by "Smith family". I didn't have to say a thing.
I SO feel your pain. I have lost a friend, and lost A LOT of sleep over this, but hopefully there will be an end in sight. I do hope yours comes to an end soon, with good results. Keep in mind, "revenge through better living". I had a successful fundraiser and we now have a SMART Board in every classroom. Enhancing education is a great goal!