A manager for a Petaluma medical office supply company has been arrested for allegedly embezzling approximately $1 million from the company.

Bibbero Systems Inc. owner Mike Buckley reacted with shock, explaining that the accused 43-year-old John Sheehan, of Rohnert Park, has been with his company for more than 15 years and had become a trusted employee.

"We've gone from 150 employees down to 77 over the past five years because of our finances," Buckley said. "To realize that the whole time we were trying to keep people and stay afloat, someone may have been stealing from us, is very distressing."

Petaluma police said that the embezzlement, which first began six years ago, was reported on July 26. Investigating Detective Paul Gilman said that the scheme was elaborate.

"This one was pretty well-thought out," Gilman said.

According to police, Sheehan was arrested on Aug. 2nd and is being held in county jail on a $1 million bail. He has been charged with eight felony counts, including grand theft and possession of stolen property.

Sheehan is scheduled to appear in court on Aug. 10 for a preliminary and bail reduction hearing.

According to Buckley, Bibbero Systems, which specializes in medical office files, paper charts and other supplies, has been struggling ever since medical offices began converting to electronic files.

"It's terribly sad that a struggling company, that has been trying to keep employees as long as possible, has someone it trusts pull the rug out from underneath it," Buckley added somberly.

(Contact Janelle Wetzstein at Janelle.wetzstein@arguscourier.com)