”
All that is necessary for evil to triumph is for good men to do
nothing.
”
In the context of the embezzlement accusation against Gilroy
Unified School District Trustee Francisco Dominguez, the often
quoted line is unfortunately applicable
– with a twist.
“All that is necessary for evil to triumph is for good men to do nothing.” In the context of the embezzlement accusation against Gilroy Unified School District Trustee Francisco Dominguez, the often quoted line is unfortunately applicable – with a twist.
The South County Collaborative Board, after being presented with weighty allegations that Mr. Dominguez stole $52,269 from the organization while under contract to manage a federal Drug Free Communities grant, chose not to turn the matter over to law enforcement, but instead to dither, contemplate and rationalize while quietly working out an arrangement with Mr. Dominguez – an elected public official who ran for a state Assembly seat – to pay the money back.
That unconscionable decision undoubtedly became easier as the months dragged on from the time local Certified Public Accountant John Blaettler, a man with an impeccable reputation who, by all accounts, is as straight-arrow as they come, brought what he called “systematic” billing fraud to the attention of the South County Collaborative Board members. Blaettler, at the time, was serving as treasurer for the Collaborative. When it became clear the Collaborative Board, led by Chairman Lynn Magruder of Community Solutions, was going to pursue sweeping the matter under the rug, Blaettler resigned, exasperated.
In his resignation letter, he wrote: “I feel that I can no longer serve as treasurer and board member based on the position and action, or lack thereof, the board has taken in the Francisco Dominguez embezzlement. As a businessman, supporter of other non-profits and life-long member of this community I won’t be part of a board decision to let Francisco get away with criminal behavior by simply allowing him to return the $52,269 he stole.”
Even in the face of Blaettler’s substantial evidence, stellar reputation and urgent warnings, the Board, under Magruder’s leadership, decided not to put the matter into law enforcement’s hands. Given that the list of Board members reads like a “Who’s Who in South County Social Services,” the chosen path is incredibly stunning.
Informing the Gilroy Police Department would have led to an investigation and collaboration with the Santa Clara County District Attorney’s office.
The Collaborative’s lack of financial oversight is indeed embarrassing. What organization hands over the checkbook to a consultant and allows that person to write checks to his own firm – in this case DZ Consulting – without requiring a second signature?
But that misstep pales in comparison to the Collaborative Board’s shocking decision not to report a potential crime.
While it’s difficult to dissect the group’s dynamics, one thing is certain: Ms. Magruder should resign immediately. The Collaborative needs fresh leadership before it crumbles under the weight of its own folly. To think that a matter of such community import could be swept under the rug is foolish. To stubbornly stick to the lines that Magruder repeatedly uttered – that it’s a billing dispute with a mystery independent contractor that’s been resolved – is incredibly damaging not only to the Collaborative but to every person and organization associated with it.
The Collaborative made an error in procedure with regards to minding its own financial store. People who make donations can accept that. But to kick the can down the road when it comes to serious allegations against a person in a position of authority and public power in our community is an egregious and terribly sad error in judgment.
The Collaborative is a tax-exempt organization that has brought together representatives from other non-profits, hospitals, schools, clinics and public agencies which serve people in need in South County. It is a noble undertaking and much good work has been done.
Ironically, the decision to attempt to sweep this matter under the rug rather that report it ultimately hurts those disadvantaged people by eroding the public’s trust in the charitable organizations that serve the needy. Moreover, it is unfair to Mr. Dominguez in that it does not provide for an investigation by the District Attorney’s office that could clear his name.
The Collaborative Board still has a very small window of opportunity in which to reverse course and bring the matter to law enforcement’s attention as it should have done months ago. Hopefully, there will be Board members who will be motivated not by the fear of doing the wrong thing but by the courage to do the right thing.
Report the matter, let the professionals charged with investigative powers determine what should happen, publicly own up to the basic facts in the case, admit and apologize for the glaringly awful financial oversight and move forward. That’s what the South County Collaborative should do before the gaping hole it has dug for itself gets even deeper.
