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SAN DIEGO (KGTV) -- The Sweetwater Union High School District Board of Trustees on Thursday responded to a scathing audit that alleged evidence of fraud or misappropriation of funds leading to a multi-million dollar deficit.In their response to the audit, the district’s Board of Trustees acknowledged the importance of an independent state agency’s audit and said they “intend to cooperate fully with these agencies should they require additional information.”“We acknowledge that, as required, you notified the local district attorney, State Superintendent of Public Instruction, and State Controller that the FCMAT AB 139 report found there is sufficient evidence to demonstrate that fraud, misappropriation of funds, or other illegal fiscal activities may have occurred," the Board of Trustees said."We understand the importance of having these agencies review the report and intend to cooperate fully with these agencies should they require additional information," said the board.The 79-page audit, conducted by the independent state agency Fiscal Crisis Management Assistance Team (FCMAT), was made public June 22. 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.The audit also reportedly found the district kept borrowing from capital projects in the South Bay, such as Mello-Roos funds, to pay for operations without a method of repaying that money back into the fund.The board said that individuals and outside entities identified by FCMAT as having enough evidence to suggest they were engaged in illegal acts are "either no longer employed by the District or are removed from all involvement in the District’s current operations."RELATED: SUHSD: 90 bus drivers paid over 0K in overtime during 2017, database saysThe board also said that since the audit, they’ve taken other actions based on recommendations from the FCMAT, including:The district will be implementing the INFOR financial module in the 12 to 18 months. The new system replaces the one the FMCAT said said led to accounting errors and will interface with the County Office of Education for monitoring.The District will provide Board and leadership training to enhance awareness of fraud, including detection and prevention. An anonymous hotline for reporting fraud will continue to be available internally and to the public.The District staff will ensure that the Board and County receive updates on the progress to address the recommendations set forth in this report.“As a Board and as acting superintendent, we are committed to ensuring we implement and improve our systems and supports to best serve our community and understand that this process starts with the superintendent and the Board,” said the board.The response was signed by current trustees Nicholas Segura, Board Vice President; Arturo Solis, Board Member; Paula Hall, Board Member; Kevin J. Pike, Board Member; Frank A. Tarantino, Board Member;and Moisés G. Aguirre, Ed.D Acting Superintendent.On June 24, two days after the release of the FCMAT audit, the district voted to cut more than 220 educators. The board also voted 4-1 to place its beleaguered superintendent Dr. Karen Janney on paid administrative leave.Janney had been under public pressure to step down following a multi-million dollar budget shortfall in 2018 which prompted an investigation. Since then, the district's budget crisis spiraled into teachers and programs being cut, bus routes eliminated, and increased class sizes. The board previously said its action against Janney is not disciplinary but it is to support and ensure an efficient investigation of the concerns raised in the FCMAT audit.With the release of the FCMAT audit, 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 San Diego County 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.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 debt 4505

SAN DIEGO (KGTV) -- The Poway man at the center of a multimillion-dollar Ponzi scheme was sentenced Wednesday to 12 years in prison. Numerous victims spoke to Dougherty via video conferencing due to COVID-19 protocols.In a plea deal, Christopher Dougherty pleaded guilty to grand theft and securities fraud back in March. He also received a white-collar crime enhancement, according to the District Attorney’s office. Prosecutors say there were nearly 50 victims, many who were elderly.He originally faced more than 80 felony counts after his arrest in April 2019.Team 10 first spoke to several alleged victims of Dougherty early last year. They said he stole the money he was supposed to invest for them. Some of his victims met Dougherty through their jobs as educators while he worked as an investment advisor with various school districts.“The lessons we learned from you were beyond the academic acumen. They are about the dark side of life,” said victim Cheryl Biagi during victim impact statements Wednesday afternoon.Biagi said Dougherty not only took money from her, but also her niece and her 91-year-old mother who has since passed away.“We know you are guilty of so much more than securities fraud and grand theft, but we hope when you get out of prison, you make every effort to repay every dime to those people who believed in you,” Biagi said.Investigators said Dougherty offered victims investment opportunities in companies he owned, then used some of their funds for his personal expenses like home remodeling, travel, and college tuition.For the first time, Dougherty spoke about his crimes. He offered an apology that lasted roughly 17 seconds.“To everyone, I accept full responsibility for my actions. I want to sincerely apologize to you and your family members and I also want to let you know I did make a mistake and I will not do this in the future. I extremely apologize,” Dougherty said in court.It is an apology that falls short for many victims. Jerry and Diane Cole told Team 10 they lost more than .6 million in the scheme.“This wasn’t money that basically fell out of the sky to us. This was the product of 50 years of our married life together… of working, saving, putting away money,” Cole said.Cole said they have been able to survive, thanks to their children and close friends. They believe Dougherty has no remorse for his crimes.Although Dougherty is ordered to pay restitution, many victims are doubtful they will see their money again.Deputy District Attorney Michael Zachry called this case “extremely egregious.” Zachry said there was over million dollars taken in with million net loss to victims.“It’s more than just money. It’s really their entire lives,” Zachry said. 2731

SAN DIEGO (KGTV) – The San Diego Padres have acquired Mike Clevinger from the Cleveland Indians, who is considered by many baseball analysts as one of the top starting pitchers in the league.According to MLB Network’s Ken Rosenthal, the Padres acquired Clevinger, Greg Allen, and a player to be named later for a package that includes three major league players -- catcher Austin Hedges, pitcher Cal Quantrill and OF/1B Josh Naylor -- and minor league prospects pitcher Joey Cantillo, SS Gabriel Arias, IF Owen Miller.Clevinger, 29, is 1-1 on the season with a 3.18 earned run average.Allen, 27, is a switch-hitting outfielder who grew up in San Diego. He attended Hilltop High School in Chula Vista and went on to star at San Diego State University.Monday's trade, made about five hours before MLB's trade deadline, was the Padres' fifth deal in the past three days.Since Saturday, the Friars have brought in DH Mitch Moreland (trade with Boston Red Sox); closer Trevor Rosenthal (trade with Kansas City Royals); catcher Jason Castro (trade with LA Angels); catcher Austin Nola, pitchers Dan Altavilla and Austin Adams (trade with Seattle Mariners). 1158

SAN DIEGO (KGTV) - The views from atop of the old light house at Point Loma are off limits to virtually everyone most of the year except two particular twin sisters.Kim Falhlen and Karen Scanlon are volunteers at Cabrillo National Monument.The 67-year-old sisters are tasked with cleaning the rare glass lenses at the top of the lighthouse among other duties for the open tower days held only 3 days a year.“It’s almost in a constant need of repair,” said Kim Fahlen, “the tower wasn’t built for today’s activity.”The sisters grew up in Ohio and say they plan on helping at the tower as long as the park rangers at Cabrillo will let them.“We’re good for a while,” said Karen Scanlon, “we’ll keep doing this until they make us take a desk job.” 756

SAN DIEGO (KGTV) — The Port of San Diego is taking extra precautions with cruise lines amid heightened awareness surrounding the coronavirus.About 38 ships are expected to dock in San Diego through May, some shops that rely on travelers are concerned business may slow down if cruises are canceled.Some say they've already noticed a change.The Port of San Diego says they installed these hand washing stations once the coronavirus concerns started rising. More stations arrived in San Diego Friday ahead of a ship's expected arrival on Saturday.RELATED COVERAGE:San Diego event organizers temper coronavirus fears21 on cruise ship off California test positive for virusIt's common to see tourists flocking to Seaport Village, providing local businesses with much of their revenue."They like to travel through the stores and we get a lot of business from them," Marion Smart, who has worked at Eclipse Sunglasses for 16 years, says. "This is a tourist community, very much so."But recently Smart says she's noticed business is slowing down and concerns over the coronavirus might be to blame."As you can see it's kind of empty right now," Smart said. "Being that people try these on, I always spray them I disinfect them and this is the solution."Smart usually sees a boost in business when cruise ships dock in San Diego. Saturday, the Holland America Oosterdam is expected to arrive with more than 2,000 passengers on board.RELATED COVERAGE:San Diego County officials urge coronavirus preparednessMiami cancels two music festivals scheduled for later this month amid fears of the coronavirusBut, as reports circulate about the White House considering to warn travelers from going on cruises, the Port says San Diego's economy could take a big hit. Each ship homeported here brings in an estimated million through the roughly nine-month season."Our market specifically is the Mexican Rivera," said Joel Valenzuela, the maritime director for Port. "That's almost 0 million in economic impact to the region."Valenzuela says before boarding, passengers are screened and once off the ship, precautions are in place."We've done things such as increasing sanitation areas within the port facilities, as well as setting aside some prescreening and quarantine areas in case the cruise lines would need it," Valenzuela said.For Smart, she's just hoping more questions about the coronavirus will be answered and things can finally get back to what they once were."I don't know how bad it's gonna get, how good it's going to get but hopefully it passes," Valenzuela said.The Port says so far none of the cruises have been canceled, but that could change at any moment. 2671

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