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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
Choosing the best way to pay for something — credit or cash — can make a real dollar difference for you. So knowing when to do which is key.Personal finance experts say it’s especially smart to avoid using cash for these five types of purchases: 253

CHULA VISTA, Calif. (KGTV) - Tuesday is transformation day at the Otay Ranch Town Center in Chula Vista. The open-air center converts to a bustling farmers market, playing host to dozens of vendors. 10News anchor Kimberly Hunt spent an afternoon with a welcoming group of local artisans, whose love of food, culture and community shines through. As you walk through the market, your senses are hit with amazing aromas and live music. On this day, the sound of live guitar followed visitors throughout. See complete coverage of Life in Chula VistaThe variety of food vendors is enough to send your taste buds into a frenzy. Kimberly sampled Kenyan cuisine, devouring melt in your mouth chicken. She also stopped by a sushi stand, making savory rice bowls with tempura shrimp. Next was South Bay Salsas, a beautiful blend of fresh, seasonal Mexican/American fusion. “Every week, it's a little different. Mangoes are fresh, sometimes a little more ripe. You take it like it is”, says South Bay Salsas owner Scott Strickland. Strickland and his wife have grown their booming Chula Vista business by adding to their seasonal selections. New to the farmers market this day was Frida’s street tacos. Owner Robert Ayala tried for 3 years to get a stand at the farmers market. Ayala says his first day was a great success. “Serving our people, our community, with our tacos," Ayala said.The love each of these vendors brings to their cooking comes through in every bite. It wouldn’t be a farmers market without farm to table produce. Remberto Cepera owns a produce stand, selling fresh fruit grown on his land. On this day, he has fresh picked prickly pears.“We picked these yesterday," Cepera said.The devotion to his craft is evident. He has seen these beautiful fruits through winter’s frost and summer’s heat. The taste is extraordinary.“It's delicious, and it's good for you," said Cepera. There is a lot more to this farmers market than the farm. There is something for people of all ages. You can take a trip back in time with bomber jackets or flashy disco jackets. A balloon artist delights children while their parents shop.“A lot of people come here for a good time with the family. Tons of great food, tons of great art” said Leo, a balloon artist who has lived in Chula Vista his whole life. He has performed at the farmers market for the past decade. The farmers market is open every Tuesday from 4 p.m. to 8 p.m. 2426
CHULA VISTA, Calif. (KGTV) - A South Bay public official is doubling down on anti-Muslim comments as he prepares a campaign to become Chula Vista's mayor.Hector Gastelum resisted calls to resign from the Otay District Water Board in 2017 after his tweets referred to Muslims as sub-human scum. He just qualified for the June run-off to become the Mayor of Chula Vista, the county's second largest city.In an interview, Gastelum said he isn't backing down from his prior controversial comments. "How can you not condemn rape? How can you not condemn pedophilia? Or throwing gays from the roof," Gastelum said, clarifying he is not referring to all Muslims. "If people don't like what I stand for, they can vote for the person that's going to take more taxes from them."Hanif Mohebi, who runs the San Diego chapter of the Council of American Islamic Relations, called Gastelum's comments bigoted and hateful."Are we referring to other criminals by their religion?" he said. "(Charleston church shooter) Dylan Roof and many others. Are we referring to others by their religion? If not, then why are we singling out this community and referring to them by their religion."Gastelum is running against Incumbent Mary Salas, teacher Arthur Kende, and Parks Supervisor Daniel Schreck for the seat. The top two vote-getters in June move on to a November runoff. Gastelum's campaign statement has no anti-Muslim comments. Instead, it talks about cutting taxes, eliminating Chula Vista's welcoming city program, and bringing Amazon back to the table to put its headquarters here. The Otay Water District board censured Gastelum last year. The Chula Vista City Council also called for him to resign. Gastelum's term on the board goes through 2020. 1778
China said Friday it will temporarily reduce tariffs on imports of American-made cars as it tries to negotiate a trade deal with the United States.Citing the meeting earlier this month between US President Donald Trump and Chinese leader Xi Jinping, the Chinese Finance Ministry said in a statement that it will remove the additional 25% tariffs on car imports from the United States for three months starting January 1. That will bring China's tariffs on American-made cars to 15%, in line with those for cars made in other countries.China also said it would suspend its 5% tariff on 67 other auto parts.China imposed the additional tariffs on US cars in July and on some auto parts in September as part of its retaliation in the trade war between the two countries.At their meeting in Argentina, Trump and Xi agreed to a temporary truce while they try to negotiate a broad trade deal over the next 90 days.In its statement Friday, the Finance Ministry described the decision to remove the tariffs as a "concrete action" aimed at helping to bring about a "mutually beneficial new Sino-US trade order."Xi pledged in April that China would cut tariffs on imported cars this year. His government delivered on that promise in July, reducing import taxes from 25% to 15%.But just days later, China imposed new additional tariffs of 25% on American-made passenger vehicles as the trade war with the United States escalated.The tariffs hurt profits of major automakers that ship cars to China from the United States. Germany's BMW and Daimler, the owner of Mercedes-Benz, have been hit particularly hard. Shares of BMW (BMWYY) and Daimler (DDAIF) both trimmed early Friday losses on the news.The stocks had spiked last week after Trump tweeted that China was going to cut auto tariffs.General Motors (GM) and some other automakers already have a large presence in China through partnerships with local manufacturers. It has become the largest and most important market for the American auto industry. Because their plants are in the country, they weren't subject to big import taxes.Yet China's tariffs have hurt exports from US auto plants. The value of US passenger car exports to China has fallen by .4 billion, or 30%, over the course of the first nine months of the year.Part of that could be because of slowing Chinese auto sales. Yet overall sales of American cars in China -— including those made in China — are down only about 1% so far this year.The-CNN-Wire? & ? 2018 Cable News Network, Inc., a Time Warner Company. All rights reserved. 2556
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