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State Audit Finds Evidence of Fraud, Misappropriation by San Ysidro Administrators |

Fonseca and Sanchez-Macias (Photo / Mario A. Cortez)
A formal State audit has found evidence that two administrators at a local school district may have committed fraud and misappropriation of funds by granting themselves unearned payments and life insurance benefits without proper approval from their board.
The State’s Fiscal Crisis & Management Assistance Team (FCMAT) conducted an extraordinary audit at the request of the San Diego County Office of Education to review actions taken by San Ysidro School District’s former Superintendent Julio Fonseca and Deputy Superintendent Arturo Sanchez-Macias.
“Based on the findings in this report, there is sufficient evidence to demonstrate that fraud, misappropriation of funds, and other illegal fiscal activities may have occurred,” the report concluded. ....

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San Ysidro Superintendent Illegally Cashed Out Life Insurance Policy

By Eduardo Rueda / Investigative Reporter
San Ysidro School District’s former Superintendent cashed out the value of a life insurance policy last year without the approval of the school board.
Julio Fonseca, who served as Superintendent from July 2015 until he abruptly resigned last month after a sexual harassment claim was filed against him by a female District employee, cashed out $106,000 in payments allegedly in exchange for a life insurance policy granted to him in his employment contract.
Fonseca’s original employment contract with the District, approved in June 2015, included a base salary of $185,000, a $600 monthly expense allowance, $7,500 for moving expenses, $10,000 for relocation costs, 24 vacation days per year, 24 sick or personal days off per year, full health insurance benefits for him and his family, and a “District-paid term life policy in a benefit amount of $100,000.” ....

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