This nonprofit operated the El Portal Leadership Academy charter school in Gilroy and the Academia Calmecac charter school in San Jose, along with youth programs, elder care and low-cost housing program. County education officials revoked those schools' charters in 2009 amid allegations that MACSA had cheated 50 to 100 MACSA employees out of more than $1 million promised for their retirement by diverting money from teacher pension accounts.
--------------------------------------------------------------------------------------------
“San Jose: Former officials of nonprofit MACSA plead guilty, agree to repay diverted retirement funds.” San Jose Mercury News (CA), 2/15/2013
SAN JOSE -- In a case that outraged many in the community and cast a black eye on one of San Jose's oldest and largest Latino nonprofits, two former top officials of the Mexican American Community Services Agency will personally pay back -- with interest -- more than $110,000 they illegally diverted from employees who thought the money was going toward retirement funds.As part of a deal reached with the Santa Clara County District Attorney's Office, former MACSA Chief Executive Olivia Soza Mendiola, 56, and ex-chief financial officer Benjamin Tan, 62, will give workers $170,000. They have three months to do so or face jail time, as part of their guilty pleas to grand theft charges on Friday...According to the basis of the guilty plea filed with the court, "the diversion of employee funds was done with no intent to personally gain, with the knowledge of other persons and some board members at MACSA, and with the intent and expectation, based on proposals and plans to liquidate other MACSA assets, that MACSA would pay in full all deferred payments to the employees' retirement accounts."While Friday's settlement takes care of the money that was not included in employee checks, the question of who is responsible for promised company matches remains undecided.Chase said that amounts to $620,000 that should have been contributed, per union agreements...MACSA is a nearly 50-year-old nonprofit that runs youth programs, elder care and low-cost housing programs. It also used to run two charter schools...
==========================================================
“DA: Two ex- MACSA officials charged with illegally diverting $1 million in pension funds.” San Jose Mercury News (CA), 4/19/2012
Prosecutors on Thursday charged two former top officials at San Jose's Mexican American Community Services Agency with felony grand theft, accusing them of steering money promised for employee retirement into operating costs for food, sports, computers, office supplies -- even their own pay.The charges against Olivia Soza-Mendiola, MACSA's past chief executive officer, and Benjamin Tan, the former chief financial officer, wrap up an investigation that began after employees three years ago complained the nonprofit had shortchanged their retirement accounts."This case is about hardworking people whose retirement money is gone," Santa Clara County District Attorney Jeff Rosen told reporters Thursday.Prosecutors allege Soza-Mendiola, 53, and Tan, 61, cheated 50 to 100 MACSA employees out of more than $1 million promised for their retirement. Employees included teachers and other workers at the almost 50-year-old nonprofit that runs youth programs, elder care, low-cost housing and, until recently, two charter schools...MACSA's pension-shorting scandal arose in late 2008. According to a February 2009 Gilroy Dispatch article, a teacher at its El Portal Leadership Academy charter school in Gilroy had tried to get his retirement money and found the funds weren't there, prompting school district inquiries.At that time, Soza-Mendiola and Tan told the paper that MACSA used the retirement money to cover operating costs, not only at El Portal but also at their Academia Calmecac charter school in San Jose. They said the pension money was needed to avoid staff and program cuts but would be repaid.But a 19-page affidavit by district attorney investigator Michael Sterner released Thursday said the scope of retirement fund diversion was more than twice the $400,000 that Tan suggested three years ago. It further alleged MACSA had the money to cover promised pension payments but spent it on seemingly secondary needs including $13,000 for office supplies, $7,000 for food, $7,000 for new computers, $1,200 for sports tournament fees and $1,000 for a YMCA membership.What's more, the affidavit alleged Soza-Mendiola and Tan personally benefited from the diverted pension payments. Soza-Mendiola, Sterner said, stopped making her own pension contributions in late June 2007, then received 3-percent raises on July 1 of that year and the following year...
==========================================================
“San Jose agency sues former leaders, alleging financial misappropriation.” Oakland Tribune (CA), 1/13/2011
San Jose's troubled Mexican American Community Services Agency has sued its former chief executive, financial officer, accountant and unnamed other staffers over alleged financial misappropriation that has been the subject of a yearlong criminal probe.The case is set for a hearing Jan. 25, but recent MACSA court filings suggest a trial is a long way off because of the "complex accounting and factual issues" and unresolved criminal investigation into the alleged diversion of more than $1 million promised for employees' retirement toward operating expenses…The nearly 50-year-old nonprofit on Sinclair Drive in East San Jose has provided youth programs to steer children away from gangs, adult day care for the elderly, affordable housing and, until recently, two charter schools in San Jose and Gilroy for 150 students.County education officials revoked those schools' charters in 2009 amid allegations that MACSA had diverted money from teacher pension accounts. MACSA's board in March of that year reprimanded Mendiola and told her to fire Tan over the matter. She resigned her $124,000 position soon after. A state audit later that year called the diversion of retirement money an "apparent misappropriation of funds" that "appears to be an illegal fiscal practice."Who made the decision to divert the money remains the subject of a criminal investigation into possible felony misappropriation of public funds and grand theft. An affidavit in support of an October search warrant said employee union agents told investigators that Mendiola acknowledged she and Tan had made the decision to "keep MACSA running" and that she "regretted the decision."…The lawsuit seeks unspecified damages for its costs of dealing with the investigation, repaying employee retirement funds and federal payroll taxes, loss of reputation that has jeopardized fundraising and other losses.
0 comments:
Post a Comment