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CHULA VISTA, Calif. (KGTV) -- A new report from a state audit agency shows there is enough evidence that fraud or misappropriation of funds may have occurred within the Sweetwater Union High School District.The 79-page audit, conducted by the independent state agency Fiscal Crisis Management Assistance Team (FCMAT), was presented during Monday’s school board meeting.According to the report, the district’s school board relied on inaccurate financial information when they approved salary increases for district employees, resulting in pay raises they could not afford.RELATED: SUHSD: 90 bus drivers paid over 0K in overtime during 2017, database saysThe agency’s investigation also found the district kept borrowing from capital projects, such as Mello-Roos funds, to pay for operations without a method of repaying that money back into the fund.The report also stated Sweetwater misled rating agencies and bond insurers by “deliberate omissions of material information.”San Diego County Superintendent of Schools Dr. Paul Gothold said, "In short, after investigation of the district’s practices, FCMAT concluded that there is significant evidence to indicate that fraud, misappropriation of funds and/or assets, or other illegal fiscal practices may have occurred by current and former employees."RELATED COVERAGE:-- Sweetwater Union High School District votes to cut over 200 jobs-- State fiscal team reviews Sweetwater Union High School District's finances-- District approves interim budget with million shortfall-- Report: Sweetwater Union High School District incorrectly reported debtThe Sweetwater Union High School District has faced budget troubles dating back to September 2018, when they self-reported a million budget shortfall. Since then, teachers have been cut, bus routes were eliminated, and class sizes have increased.FCMAT recommends the state controller and local district attorney be notified of its findings.Frances Martinez, the former internal auditor for the district, told Team 10 the "people who purposely did wrong should be held accountable." Martinez said she raised the red flag regarding financial issues at the district, but was not taken seriously. She said when it came to some of the district's financial accounts, "that's how the reconciled. They just made up stuff and made a balance."Martinez said she was sitting next to Superintendent Karen Janney when the multimillion-dollar deficit was discovered. "She said, hey it's the business system. It's old, huh? Just making up stuff. I've heard about six different versions of the truth and none of them have been truthful."The former Chief Financial Officer Karen Michel would not participate in the audit. The team also could not make contact with Doug Martens, the director of fiscal services.With the release of the FCMAT report, it will be up to the District Attorney, State Superintendent of Public Instruction, and State Controller to determine if fraud did in fact occur within the Sweetwater District.The district was given 15 days to respond to the audit's findings with its "proposed action."One teacher in the district, who did not want to be identified, said the audit's findings were sad, but not surprising. "Hopefully, the positive that can come out of this is that we become more transparent and have more oversight and this will never happen again," the teacher said. On Tueday, SUHSD spokesman Manny Rubio provided this statement to 10News on behalf of the district: "The Sweetwater Union High School District is currently reviewing the report from FCMAT and its findings and recommendations. The District takes this report very seriously and will be determining next steps. Given that this matter is still pending, we will refrain from any additional comment at this time."The District Attorney's office said they are reviewing the audit. There is also an investigation into the district by the Securities and Exchange Commission. An agency spokesperson would not comment. 4002

CHULA VISTA, Calif. (KGTV) - Southwestern College in Chula Vista was briefly put on lockdown Tuesday after a student reported hearing shots fired at the campus library.The student contacted officers about hearing two gunshots on the third floor of the library just before 1 p.m. at the college on 900 Otay Lakes Rd.Chula Vista Police responded to campus and evacuated the building, according to Southwestern officials. The campus was also placed on lockdown.After a thorough search of the library, police determined there was no threat in the building and nothing suspicious was found.The lockdown was lifted about 1:45 p.m. and all operations resumed as normal.Chula Vista Police said a construction project at the library may have been confused with gunfire.Watch Sky10 above campus: 793

CHULA VISTA, Calif. (KGTV) - Lakers star Kyle Kuzma appeared at the Buffalo Wild Wings at Otay Ranch Center for a Boys & Girls Club fundraiser.Kuzma appeared at the Buffalo Wild Wings restaurant at Otay Ranch Town Center to meet fans and sell some of his exclusive “Kuzmania” merchandise.The Laker then had dinner at the restaurant with fans who purchased special event tickets.A percentage of the proceeds from the ticket sales will go to the Boys & Girls Club of America as part of Buffalo Wild Wings’ “Community Day”.The 22-year-old Kuzma just finished his rookie season with the Lakers. He was among the team’s leaders in points per game and rebounding this season. 710

CHULA VISTA, Calif. (KGTV) — Popular South Bay brewery Novo Brazil is expanding its footprint in Chula Vista this month.Novo Brazil Brewery will hold a grand opening for its new brewpub on Dec. 11 in Otay Ranch Town Center.The 12,000-square-foot spot can host more than 950 guests and features a 300-seat restaurant, full bar, indoor and outdoor beer garden, two 14-foot-by-10-foot televisions, shuffleboard tables, and a kid's area with ping-pong tables, video games, and other activities.RELATED: Ballast Point purchased by Chicago-based brewerOn the production side, the brewpub boasts 60 taps with about 40 of those dispensing beer and the rest a combination of Novo's kombucha and hard seltzer creations. Canned cocktails are also in the works for the brewery. In addition to the restaurant and bar, the location will also house a five-barrel brewing system and fermentation tanks.“Our goal is to shift the axis of brewing tourism to southern San Diego attracting downtown and northern San Diego residents and tourists to experience our work and our community. With other local breweries we can put Chula Vista on the map as an official destination of the beer and gastronomic map,” said Tiago Carneiro, founder of Novo Brazil Brewery.Carneiro says they intend to brew more than 100 different beers using the massive system in their first year alone. The new brewery will allow Novo to brew specialty beers and test new recipes. RELATED: San Diego craft beer study shows craft brewery, economic impact growthA small retail section inside to brewpub will also offer Brazilian products, like coffee, to buy.To capture Brazil's colorful flair, Novo's owners hired Brazilian architect, Gustavo Penna, to help develop the brewpub's design. The result is a black and white wave pattern across the building — inside and out— representative of Rio de Janeiro's Copacabana Beach. The bar, which owners say is the longest in the South Bay, curls around the facility and guests can kick back in furniture made from Brazilian wood around unique murals from Brazilian artists.“Our story began in Brazil, where we learned the art of brewing and created the most awarded brewery in South America," Carneiro said. "We believe our difference is our Brazilian way of showing the colorful culture and happiness of four homelands. We were fortunate to find a sister city in South Bay, named after our hometown of Belo Horizonte (Beautiful Horizon), where we were warmly welcomed by the entire community."RELATED: Craft beer scene brewing in Chula VistaCarneiro says that Brazilian style of brewing is what earned his family the most awarded beers in Brazil and 17 international beer awards just three years after opening their first South Bay spot.Novo's original location also continues to serve fans on Lane Avenue in Chula Vista. 2825

CHULA VISTA, Calif. (KGTV) – A 13-year-old boy was taken to the hospital after police said he was driving a SUV that rolled over at a Chula Vista rock quarry.Police said the incident happened at around 2 a.m. Wednesday in an area off Hard Rock Road, near Heritage Road.According to police, an SUV driven by the teen crashed through a gate at a rock quarry and then rolled over. Witnesses reported seeing several juveniles get out of the wreckage and run away from the scene.The 13-year-old driver remained with the SUV and was questioned by police before being transported to the hospital. It is unknown if the teen suffered any serious injuries.ABC 10News learned police launched a drone to search for the passengers but could not locate them.Police are trying to determine who owns the SUV, how the teen ended up behind the wheel, and if the vehicle was stolen. 871

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