The court case involving a Santa Barbara County senior level accountant who allegedly embezzled $1.7 million in public funds took another step forward on Sept. 25.
That morning, Judge Clifford Anderson in Santa Barbara presided over the arraignment of Lynn Hogan, a Public Works Department accountant, on a 27-count complaint filed by the county District Attorney’s Office three days earlier.
Hogan, along with eight other individuals, is charged with the misappropriation of the funds, forgery, and conspiracy. Hogan has worked for the county since 1988.
According to court documents, between May 2008 and July 2017, Hogan created fake vendor numbers while in her department in order to issue false refund checks. The DA’s complaint lists multiple instances of several individuals taking the checks and cashing them in personal bank accounts.
“We recognize the trust placed by those we serve; it’s a significant responsibility that we take very seriously,” Board of Supervisors Chair Joan Hartmann said in a statement issued by the county. “We are committed to being responsible stewards of public funds to ensure no one can defraud our residents and taxpayers, or this organization.”
District Attorney Joyce Dudley announced that her office made several arrests relating to the case on Sept. 21.
In total, nine people face charges but only six have been booked in Santa Barbara County Jail. According to the Santa Barbara Sheriff’s Public Information Officer Kelly Hoover, Michelle Lavin, Vincent Anzivino, Christina Huffman, Leanna Harada, and Michael Anzivino were arrested along with Hogan. All six remain in custody.
Hoover said Wendy Puchli, Richard Kaplinski Jr., and Michael Elliot—who are also named in the complaint—had not been arrested by sheriff’s deputies nor booked in the county jail, and directed further questions to the DA.
The DA’s office did not immediately return requests seeking comment.
The arrests follow months of investigative work by the DA after the county’s auditor-controller’s office “noticed suspicious activity in July” of this year and “attempts to bypass internal control processes,” according to a county press release announcing the arrests.
Investigators are still determining the precise amount of money taken.
According to county Executive Officer Mona Miyasato, Santa Barbara County will be working with its insurer on a claim “in an effort that no public funds will be lost.”
Miyasato said in a statement that both the auditor-controller and Public Works director were fully cooperating with the DA’s office.
“We will get to the bottom of this and ensure there is full accountability for those responsible,” she added. “We are aware that a criminal charge is an accusation, and any defendant is presumed innocent until and unless proven guilty.”
The county is ordering a forensic audit by an independent accounting firm as well as reviewing its “internal controls, financial systems, and policies,” Miyasato said.
While the auditor’s office and public works have been reviewing systems and operations since the alleged fraud was suspected, Miyasato noted, “the independent audit will provide us more information to further shore up safeguards and controls as necessary.”
This article appears in Sep 28 – Oct 5, 2017.