Top Execs From South Bay Nonprofit Accused Of Grand Theft

SAN JOSE (CBS SF) — The former top executives of Santa Clara County’s Mexican American Community Services Agency have been charged with felony grand theft for illegally diverting funds from employee retirement accounts, the district attorney’s office announced Thursday.

District Attorney Jeff Rosen said at a news conference Thursday morning that the former MACSA chief executive officer, Olivia Soza-Mendiola, and former chief financial officer, Benjamin Tan, knowingly diverted more than $1 million meant for employee retirement accounts.

The diverted funds were used to pay for other expenses at MACSA like debts, supplies and salaries, the district attorney said.

Arrest warrants have been issued for Soza-Mendiola, 53, of San Jose and Tan, 61, of South San Francisco, Rosen said.

Rosen Thursday called the findings “sad and tragic.”

“The victims were dedicated, hard-working employees who truly believed in MACSA’s mission in the community. Many of them would have donated their own money to help MACSA out, if needed,” Deputy District Attorney John Chase said in a statement.

The charges are the culmination of a two-and-a-half year investigation into MACSA, the district attorney said.

Prosecutors allege that the theft took place between 2004 and 2009 and that the defendants diverted the funds while knowing that the employees’ paycheck stubs falsely showed that the money was being paid to the retirement accounts.

If convicted, they defendants face up to three years in jail and a $10,000 fine. They will also be ordered to pay back the amount they took to employees.

(Copyright 2012 by CBS San Francisco and Bay City News Service. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments

Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS San Francisco

Get The New CBS SF Bay Area Local App
Got Our Weather App?

Listen Live