Showing posts with label school embezzlers. Show all posts
Showing posts with label school embezzlers. Show all posts

Monday, September 30, 2013

School funds go astray in La Jolla, Mira Mesa and Chula Vista--but the events in Chula Vista didn't make it into the news

In Sweetwater Union High School District, Mary Anne Weegar insisted that funds be spent for their intended purpose. The result? She lost her job. The superintendent was the notorious Ed Brand.

At another district in Chula Vista, two separate embezzlements occurred, in 1997 and 2005 at Castle Park Elementary, but the district was able to keep it hushed up. For some reason, it seems that school embezzlements in all other parts of the county manage to make it into the news.


$250,000 in San Diego student money misspent by staff, says audit
Staff breakfasts, popcorn machine among items
Mitch Blacher
ABC News
09/23/2013

SAN DIEGO - A quarter million dollars meant for Mira Mesa High School students was "misspent" by school administrators on things such as staff breakfasts, personal expenses for school coaching staff, a popcorn machine, sound system, office furniture and more, according to an audit by the San Diego Unified School District.

The money originated from a fund for the "Associated Student Body" and was raised in part by students and also tax dollars mandated by the state.

The district audit shows 22 examples of money meant for students that was instead spent by staff.

((See Team 10 question the district today on 10News At 5:00.))

"Some people may view this as hundreds of thousands of dollars in misspent money," said SDUSD spokesman Jack Brandais.

The audit shows $20,785 raised by graduation tickets was misappropriated, and it shows Mira Mesa HS Principal Scott Guisti spent $41,666 from the student fund for office furniture.

Brandais said the district is not placing blame on any person for the misspending because the district did not properly train staff on how to use money from certain accounts, and, in fact, approved the spending.

The audit also shows the basketball and cross country coach using $3,058.37 for "personal gain."

"It was going to coaches' clinics, and student funds can't be used for that," Brandais said.

The audit revealed money spent on gift cards for staff.

It also shows the principal spent more than $37,000 on a sound system, ice machine, printer, portable stage and popcorn machine.

"We made errors," Guisti wrote in response to the audit. "I disagree with several of the auditor's findings."

Internal emails between Guisti and school district staff show the district itself authorized the expenditures.

"According to this report, we have a lot of work to do to do better," Brandais said.

Brandais said since the audit, SDUSD principals have been through new training detailing how to handle money meant for student causes.

This is not the first time San Diego student funds have been spent misspent. In July 2013, another district audit revealed $25,000 wrongly taken from a student fund at La Jolla High School.



UPDATED: La Jolla High clerk responsible for more than $25,000 in missing ASB funds
A former La Jolla High School clerk is under investigation for accounting irregularities. La Jolla school board representative Scott Barnett said he would likely ask the district attorney's office to open an investigation.
District calls 52-page audit of associated student body accounts worst the department has encountered.
To read the 52-page audit, click here.
By Pat Sherman
La Jolla Light
July 18, 2013

An auditor with the San Diego Unified School District says his 52-page audit of La Jolla High School’s associated student body funds is the longest and most negative the district has ever encountered, according to U-T San Diego, which first reported the story July 15.

Chief among the 60 negative findings in the July 2 report is that a school clerk, who resigned in February when the audit began, removed more than $25,000 in funds earmarked for student activities, using accounting ruses to cover up the loss.

Nine checks from The Foundation of La Jolla High School, totaling almost $14,000, were used to cover missing money from the various accounts, according to the audit of $1 million raised and $915,000 spent during the 2011-2012 school year (July 1, 2011 to June 30, 2012).

The report says $26,925 in unaccounted funds in the ASB accounts is only a “minimum amount.”

The financial clerk, whose name was withheld by district officials, might have done the same thing in a previous district post not identified in the report, it shows.

Asked to comment about the loss and other questionable ASB accounting practices detailed in the report, the school district issued the following statement from Superintendent Cindy Marten on Wednesday, July 17.

“The public can be assured that the San Diego Unified School District takes very seriously our responsibility to properly spend funds from taxpayers and donors alike.

“As Superintendent, my expectations are that all district employees understand and follow our district policies, procedures, and the law. It is the district’s responsibility to provide relevant, timely and clear information and training to our employees for this important function.

“In cases where an audit has shown that policies or the law are not followed, all appropriate action will be taken. Due to employee privacy rules, we are not always at liberty to share the consequences with the public. However, the district will follow through with appropriate discipline/legal action as required.

Our students, parents and the community can trust my full attention to these issues.”

Other irregularities detailed in the report include:

• More than $200,000 in spending unaccounted for by receipts or other required documentation.

• The school used ASB funds to pay a retired employee and Advanced Placement test monitors, which also should be paid with district money.

• When paying a construction company for football field repairs, Principal Dana Shelburne transferred $26,000 from an ASB account to his own discretionary account. The work, including construction of a wall, drainage and waterproofing, should have been covered by district funds.

• ASB money was used to purchase fireworks for a homecoming event (the district prohibits pyrotechnics on school grounds), and to pay almost $100,000 to the publisher of the school yearbook (awarded the job without it first going out to bid).

• La Jolla High accepted a grant for $26,386 from UC San Diego, which it deposited into the ASB checking account, instead of the district account.

• Unaccounted funds, included: $1,982 in senior dues for the class of 2012 and ASB Ball income totalling $3,360.

• The ASB received a $1,500 check from the La Jolla Kiwanis Foundation for football, though it was deposited to an account where basketball game proceeds are collected — to cover a deficiency in that account.

Don Hodges of the Kiwanis foundation told La Jolla Light the $1,500 is only a small part of what the foundation gives to the school annually (this year it awarded $15,000 to La Jolla High’s scholarship foundation to award student scholarships at local community colleges.

However, Hodges added, “any funds that are given for a specific purpose we would expect that those funds are used for that purpose. … If the funds go to other purposes, that would be a concern to us.”

Speaking with Light on July 17, Scott Barnett, a school board member whose district includes La Jolla High, said the board would likely ask the district attorney’s office to open an investigation.

“There are many times in an audit where it appears that there are accounting errors or sloppiness or mistakes, but the absolutely egregious level of missing funds is extremely worrisome here and I believe warrants the district attorney to investigate to find out who is responsible, and where those funds are,” Barnett said.

Steve Walker, a representative for District Attorney Bonnie Dumanis, said the office’s special operations division routinely investigates cases in which there has been a misuse of public funds. The District Attorney’s office won’t confirm whether a case has been opened until charges are filed, Walker said.

On Friday, July 19, Principal Shelburne issued the following statement to La Jolla High parents:

“The findings of that report focused mainly on monies allegedly misappropriated by means of accounting manipulations. The District’s auditors apprised me of their findings in May.

“We have been audited several times in past years without incident. This audit, however, revealed a fairly sophisticated, inappropriate series of monetary transfers that resulted in the loss of school funds. It is important to note the audit found the contributions of the Foundation of La Jolla High School to be completely lawful and above reproach. And while I am pursuing resolution to disagreements about acceptable use of ASB funds, please be assured we have instituted new safeguards to ensure monetary manipulation can never recur.”

Foundation of La Jolla High President Jeffrey Macelli, also released a statement in response to the audit:

“In light of the recent article in the San Diego Union-Tribune, the Foundation of La Jolla High School has been asked to clarify its role and position in the community.

The Foundation is a credentialed 501C(3)and is more than twenty-five years old. Its stated Mission is ‘to enhance the overall educational experience of LJHS students and programs by raising, managing and disbursing funds to support academic, athletic, building and grounds, and other needs of the school for which funding is not sufficient.’ The Foundation is a separate entity, distinct from La Jolla High School, the ASB, and San Diego Unified School District.

The Foundation provides funds to support or supplement activities and initiatives that adhere to rules and guidelines established by the Foundation, and which are acceptable to and approved by La Jolla High School. The Foundation delivers funding after a thorough review and vetting process that requires supporting documentation and LJHS administrative approvals.

We are aware of the SDUSD Audit dated July 2, 2013 that was made public on Tuesday, July 16, however it is outside our area of purview.”

Tuesday, September 17, 2013

Rialto Unified superintendent and deputy placed on leave to make sure investigation of embezzlement is unbiased

Something similar to this happened at my school, Castle Park Elementary. The PTA president embezzled $20,000 but she wasn't charged. The San Diego DA seems to have a special, and odd, relationship with the south county. (So does the media in San Diego.) Stories about embezzlements in other parts of the county are common, but south country seemed to lie in a zone of silence. But while embarrassing embezzlements weren't allowed to roil the waters of Republican school board members like Cheryl Cox, the DA's Public Integrity Unit has focused on Democratic officials in South County.


Rialto Unified School District Superintendent Harold Cebrun, right, denies any criminal wrongdoing during a school board meeting at Preston Elementary School in Rialto on Aug. 14, 2013. He and Deputy Superintendent James Wallace, left, were placed on paid administrative leave... (Rachel Luna/Staff Photographer)

Rialto Unified superintendent and deputy placed on leave
By Beau Yarbrough
The Sun
09/12/13

Schools Superintendent Harold Cebrun has been placed on administrative leave in connection with the investigation into a former district accountant accused of embezzling from the district.

The Rialto Unified school board made the decision in closed session at its meeting Wednesday night.

Cebrun’s chief of staff, Assistant Superintendent of Student Services James Wallace, was also placed on administrative leave.

“The superintendent and the deputy superintendent are on administrative leave with pay,” district spokeswoman Syeda Jafri said Thursday. “The board of education will make its recommendation after the conclusion of the investigation.”

The investigation in question revolves around Judith Oakes, the former Rialto Unified accountant recorded on video stuffing school lunch money into her bra. She was arrested on Aug. 7 on suspicion of embezzlement.

Associate Superintendent of Business Services Mohammad Z. Islam was appointed acting superintendent for the district, according to Jafri.

When reached for comment Thursday evening, Cebrun said he agreed with the board’s decision.

“They wanted the investigation to be fair and clean and, especially if I was around, or Jim was around, the public might think it would be tainted in (some) way,” he said. “No one can say I interfered or offered any barriers to them getting what they needed to do.”

The Rialto Police Department, San Bernardino County District Attorney’s Office San Bernardino County Superintendent of Schools Office and a private investigation firm hired by the Rialto Unified school board are all conducting audits of Rialto Unified’s Nutrition Services Department.

The board expects to receive the audit from Rancho Cucamonga-based Stewart Investigative Services Inc. in time for its Sept. 25 meeting.

“That’s what we’re waiting for, that next report, to guide us in the right direction,” board President Joe Ayala said. “Then we’ll be in a better position to make a decision.”

At the board’s Aug. 14 meeting, Cebrun hotly denied any involvement in Oakes’ alleged crimes.

“I have not violated any district policy,” he said. “I have not committed a crime, been associated with a crime or had knowledge of a crime.”

No charges had been filed against Oakes as of Thursday afternoon.

The board also voted on independent legal counsel for board members behind closed doors.

“On issues where (the school board) may need guidance and advice on legal issues ... if there are attorneys representing the district, there can be a conflict of interest at times, depending on circumstances,” board member Nancy O’Kelley said Thursday. “It’s very common for boards to have separate legal counsel.”

Cebrun’s absence from the district office isn’t new. He’s been out on bereavement leave since Aug. 21, according to Jafri.



Judith Oakes

Search warrant: Rialto Unified accountant stuffed money in her bra
By Joe Nelson
San Bernardino Sun
08/30/13

A former Rialto Unified School District accountant suspected of stealing thousands of dollars in student lunch money was caught on video surveillance on at least two occasions stuffing large amounts of cash into her bra, according to a search warrant affidavit.

Judith Oakes, 48, resigned from her job as accountant for the school district’s Nutrition Services Department the day after her Aug. 8 arrest on suspicion of grand theft, embezzlement and burglary. Police allege that Oakes had been stealing money from the district since June, possibly longer.

Oakes had worked for the school district for 16 years.

Derek Harris, the school district’s risk manager, called police on Aug. 7 after Oakes’ supervisor, Cindi Stone, told him she saw Oakes on video surveillance on at least two occasions concealing large amounts of cash in her bra, according to the affidavit, filed Wednesday in San Bernardino Superior Court.

Thousands of dollars in student lunch money passed through Oakes’ hands daily as it was collected from district schools and sent to her to inventory and deposit into the district’s bank account. Daily bank deposit slips dating back to June, obtained in the initial stages of the police investigation, noted a discrepancy of $2,000, according to the affidavit.

Oakes had a private office with access to a department-issued desktop computer, according to the search warrant affidavit, but police on Friday said it was premature to suspect Oakes of fudging the Nutrition Services Department’s accounting records.

Rialto police Capt. Randy DeAnda said his team of detectives working the case are awaiting an audit of the Nutrition Services Department from the school district before making that determination.

“We’re hoping to find out if there were any other financial discrepancies,” DeAnda said Friday. “That’s what the forensic audit will reveal — if there are any abnormalities or discrepancies in the accounting in which Judy Oakes would be responsible for.” v The District Attorney’s Office is conducting a forensic audit of its own, and the San Bernardino County Superintendent of Schools Office announced this week that it too would be conducting an audit of the school district’s Nutrition Services Department.

Police received authorization from Judge John Tomberlin to search Oakes’ San Bernardino home, the Nutrition Services Department and Oakes’ personal banking records at Arrowhead Credit Union, where, according to the search warrant, she has an account for herself and joint accounts with her two sons.

Oakes had a large amount of cash in her possession the day she was arrested, and a subsequent search of her home turned up more cash and other evidence related to her position with the school district, police said.

Police seized from Arrowhead Credit Union a CD containing Oakes’ financial records that could be useful in their investigation, according to the search warrant affidavit.

A police inventory of what was seized during the search of the school district’s Nutrition Services Department remained under seal with the court.

Tuesday, August 30, 2011

Former Baseball Coach Sentenced For Embezzlement

It's interesting that folks who embezzle from schools get prosecuted all over San Diego County, but Chula Vista Elementary School District embezzlers get a pass. The PTA president of Castle Park Elementary was arrested for embezzling $20,000, but Bonnie Dumanis chose not to prosecute. Perhaps Bonnie didn't want to bring attention to all the problems at Castle Park Elementary. That certainly wouldn't have helped Cheryl Cox politically.

Former Baseball Coach Sentenced For Embezzlement
Larry Rinehart, 59, Guilty Of Embezzling Funds From Monte Vista High School
Channel 10 News
August 30, 2011

EL CAJON, Calif. -- A former Monte Vista High School baseball coach who stole $16,000 in team funds, which he used to gamble at county casinos, was sentenced Tuesday to 240 days in jail.

Larry Rinehart, 59, was convicted Aug. 2 of two felony counts related to embezzling team funds from 2005 to 2007.

In addition to the jail term, El Cajon Judge Lantz Lewis sentenced Rinehart to five years probation and ordered him to take anti-theft classes and stay away from casinos. He initially faced as much as three years in prison before Lewis opted for the lower sentence.

"You abused your position of trust," Lantz said to Rinehart, citing what he called "repeated acts of deceit," including more than 100 transactions involving team money that Rinehart used for gambling at local casinos.

The judge said he had to balance the criminal act against the fact that Rinehart spent his entire adult life teaching and coaching young people, and had no prior criminal record.

Rinehart did not speak at his sentencing, but his attorney read his words aloud: "To the community, students, administration and staff of Monte Vista High School, I apologize to all of you for betraying your trust."

The statement went on to say how Rinehart has paid a steep price for the decisions he made, losing his teaching credentials and being forced to resign from Mount Helix High, where he taught money matters and personal finance classes. It also said he will get help for both his depression and gambling "issues."

Rinehart's attorney argued that he should get probation, but Deputy District Attorney Daniel Shim argued that prison time was warranted because this was a long-term embezzlement scheme, impacting dozens of players on his team.

A representative for the Grossmont Union High School District read a statement to the judge: "As one of the largest school districts in the nation, I believe it is incumbent upon me as a representative of the district to let this court know that at any time, the loss of public funds creates a crisis it has a deep financial impact on student programs and results in a lack of confidence in the larger school community, which hurts all of us deeply. And in a time of fiscal crisis -- like that which we are currently experiencing -- the effect becomes even more profound on our students' opportunities."

The statement concludes: "It is our hope that all the monies will be returned as quickly as possible. Thank you for acting on behalf of our kids."

Rinehart was ordered to pay the money back in increments of at least $100 per month after his release from jail. At that rate, Shim said it would take 41 years to get full restitution.

Outside the courtroom, two parents of former players were disappointed with the sentence.

"It doesn't really send the message I was hoping it would send," said parent Kirk Gentry. "He's definitely betrayed the trust of the public, of the players, the school, the school district. It's very disappointing that they only gave him a short period of time in custody."

Gentry was one of the parents who helped investigators track the money, which he said Rinehart had placed in a hidden account.

Katherine Vance said a stronger sentence was warranted and she wants the embezzled money returned as soon as possible.

"I think that he should have to sell his house and pay back all the money," said Vance.

Rinehart's wife, Margaret, now faces two criminal counts of receiving stolen property and aiding and abetting a criminal act. Her trial date is fast approaching.

Prior to his arrest, Rinehart taught accounting, money matters and personal finance classes at Helix High School. He coached baseball at Monte Vista High from 2003 to 2007.

Sunday, August 03, 2008

Verdict: students win retaliation suit against school administrators

The illegal spending habits of President Priscilla Slade of Texas Southern University were exposed by three students.

Slade was indicted and agreed to pay back part of the almost $5 million she had used for home improvements and clothing.

This is news because most people in power get clean away with their wrongdoing. The person in power destroys the livelihoods and reputations of the whistleblowers, and the public is left believing that the whistleblowers were disgruntled troublemakers who were causing problems for good leaders.

In the Priscilla Slade case, the three students who exposed her wrongdoing were expelled from the school and arrested.

In San Diego, schools that have Dan Shinoff as their lawyer exhibit similar behavior. The list of people who have been fired for exposing wrongdoing is long, including Mary Anne Weegar and Coach James "Ted" Carter. Examples of complainers who were arrested are David Alberts and Claudia Houston (that I know of). But the list of people that Shinoff tried to get arrested is even longer: Lindsey Stewart, Julie Hatoff (during the Victoria Richart scandal at MiraCosta College), and me.

Happily, the Priscilla Slade case ended differently. A federal jury has decided that school officials had retaliated against the three students, William Hudson, Justin Jordan and Oliver Brown. Next week the jury will decide on punitive damages.

Score one for the justice system.

Saturday, November 25, 2006

Castle Park Elementary isn't the only place PTA funds went missing

Castle Park Elementary in Chula Vista Elementary School District isn't the only PTA with embezzlement problems.

(SOURCE--Ricci Graham/Daily Review)

Hayward, California PTA theft

Five people were arrested on suspicion of embezzling $56,000 in PTA funds at Lorin Eden Elementary School. Former principal Mable Haskins, 58, agreed to turn herself in after learning that Hayward police had issued a $30,000 warrant for her arrest on three counts of grand theft by embezzlement....Others arrested were former PTA president Janet Castillo, 58; former PTA president Denise Chew, 41; Chew's husband, Johnny Chew, 31, and son, Derick Thompson, 22; and Steven Airo, 31. All are Hayward residents, and Airo is a close friend of the Chew family.