A former employee of a company whose subsidiary publishes Hawaii Business, Honolulu Magazine and other periodicals stole more than $3.8 million from her former employer by depositing checks from advertisers into accounts of phony businesses she created, according to a federal grand jury indictment.

The indictment charges Johanne P. Jarlego with 32 counts of bank fraud and four counts of filing a false tax return. A grand jury returned the indictment Wednesday, but a judge ordered it filed under seal until Jarlego’s arrest.

Jarlego appeared in U.S. District Court on Monday and pleaded not guilty.

U.S. Magistrate Judge Kevin S.C. Chang ordered Jarlego released on a $50,000 unsecured, signature bond, co-signed by her husband, pending her trial in August.

According to the indictment, Jarlego opened business accounts at American Savings Bank for Ala Moana Trinkets, Books and Magazines, and for Honolulu Trinkets, Books and Magazines.

Jarlego also registered Ala Moana Trinkets LLC and Honolulu Trinkets, Books and Magazines with the state Department of Commerce and Consumer Affairs, and listed her Ewa Beach home as their business address.

Then, from 2009 to 2014, she deposited checks from advertisers of Ala Moana Shopping Magazine and Hono­lulu Magazine into the bank accounts of the phony businesses she created, the indictment says.

Pacific Basin Communications publishes a number of magazines, including Hawaii Business, Hawaii Magazine, Honolulu Magazine and, until 2012, Ala Moana Shopping Magazine. Pacific Basin’s parent company is AIO LLC.

According to the indictment, Jarlego worked as a credit analyst for AIO, where she handled accounts receivable.

To conceal her scheme and keep it alive, Jarlego used about $2.4 million of the money she stole to make repayments to Pacific Basin, the indictment says. Despite that, the government plans to recover the entire $3,833,640 Jarlego allegedly stole.

Jarlego is also charged with filing four false tax returns and failing to list the stolen money as income.

Representatives of Honolulu Magazine, Pacific Basin Communications and AIO did not respond to requests for comment.

A representative for American Savings said the bank cannot comment on ongoing criminal investigations but that in situations like this it works with legal authorities and affected parties to ensure those responsible are held accountable.