Susan Morris Stillwaggon of Pennsauken is accused of persuading fellow moms of his Camden County Elementary School soccer team to hold cupcake sales and bingo nights to collect money.
Stillwaggon, 35, also posted regular Facebook updates on his "condition." Friends say Stillwaggon claimed her son had colon cancer.
"You mention that a child has cancer, everyone's more than willing to help," Pennsauken Police Lt. Michael Probasco said.
Suspicious school staff tipped police anonymously about the mother of 4.
Probasco said Stillwaggon's husband had no idea about what was happening.
Stillwaggon was arrested on Thursday, charged with third-degree theft by deception, third-degree forgery and second-degree endangering the welfare of a child.
Investigators are not sure how much money she received during the duration of the scam.
She also faces a charge of second degree using a juvenile to commit a criminal offense.
A woman identifying herself as Stillwaggon's mother told reporters her daughter is being treated at a psychiatric ward.