Civil Litigation Will Target Yzaguirre, Kingsbury and Peterson

Pasadena Unified School District (PUSD) officials today announced their intent to file a civil lawsuit against Jessie Yzaguirre, Mark Kingsbury and Eric Peterson for involvement in fraudulent activities related to the expenditure of Measure Y school facilities bond funds. The Board of Education elected to pursue civil litigation after the District Attorney’s office upheld its decision to forgo criminal prosecution. In December, Superintendent Edwin Diaz requested that the District Attorney reexamine evidence collected by an independent investigator hired by PUSD, which implicated the three individuals’ involvement in fraudulent activity.

"We continue to maintain that the evidence uncovered by our forensic investigator clearly demonstrates that these three individuals acted illegally in overseeing the Washington Middle School modernization project," said Superintendent Edwin Diaz. "Based on the advice of our attorney, we will pursue civil litigation to punish these individuals and recoup the taxpayers’ funds."

"As we initiate project planning and management for a new school facilities bond, it is especially important that we send a strong message to our community, employees, and our current and potential contractors that we will not tolerate fraud. The Board of Education, Citizens’ Oversight Committee, staff and contractors will meet the highest standards for accountability, management, and ethics to safeguard against any future misappropriation or mismanagement of funds intended to improve the quality of education for PUSD students."

Shortly after arriving at PUSD, Superintendent Diaz ordered an internal analysis of the policies, procedures and management of the District’s facilities and Measure Y construction projects. When the analysis revealed the possibility of illegal activity, he hired an external forensic auditor to examine records. The forensic investigation determined that contractors had been paid but that work products were not delivered.

The investigation resulted in the reorganization of the facilities division, and the application of rigorous standards, management and record-keeping practices. Strong citizen oversight and accountability are an integral part of the recently approved Measure TT.