SACRAMENTO, Calif. — Federal investigators are looking into alleged mismanagement of as much as $100 million in California Army National Guard funds intended for recruitment of new and returning soldiers.

The investigation was launched after a Guard auditor uncovered the scope of the problem and reported it to the FBI and Internal Revenue Service.

An investigation revealed Master Sgt. Toni Jaffe is accused of processing student loan repayments and cash bonuses to entice recruits, even though some didn't qualify. Jaffe also allegedly gave others more than the allotted amount — sometimes tens of thousands more.

Jaffe has since retired. She has denied the allegations.