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SacBee investigation of CapRadio scandal

In today's editions. Essential pull-quote:

CapRadio’s Board of Directors, Sacramento State and the CSU system had policy failures that delayed detection of Reina’s spending. They failed to prevent or stop questionable transactions that documents show to have occurred for about six years. Here are the key findings:
  • Reina reported to CapRadio’s board, but its members did not review his expenses, according to a former board chair.
  • Sacramento State allowed “select auxiliaries,” which included CapRadio, to manage their own day-to-day financial operations while the CSU provided oversight, according to a spokesperson. The CSU’s policy for auxiliaries says the university president provides oversight.
  • CSU audits had flagged for more than two decades that CapRadio’s financial practices had problems. Despite those warnings, Reina’s behavior continued unchecked.
The nonprofit’s auditors did not flag Reina’s reported behavior for years.

 
It’s crazy that even at one point KVIE-TV the PBS affiliate in Sacramento even considered merging with CapRadio before CSUS cancelled the move due to the audit and its fallout related to their former GM misusing their funds.
 
It’s crazy that even at one point KVIE-TV the PBS affiliate in Sacramento even considered merging with CapRadio before CSUS cancelled the move due to the audit and its fallout related to their former GM misusing their funds. Yes we now know that KVIE formed their own news operation called “Abridged by KVIE” as part of the move to cover statewide and Sacramento area news on their site.
 
I was struck by the following quote from the article:

"“I found Jun to be a likable, highly competent, respected person,” said Jeffrey Callison, a former CapRadio employee who worked at the station from 1996 until 2011."

The whole and terrible truth is that if those who you work with find you to be a "likeable, highly competent, respected person,", they may be more inclined to either look the other way or vouch for your behaviors when you engage in potential wrongdoing. We really, *really* want to trust that other person but sometimes that trust turns out to be unwarranted.
 
I was struck by the following quote from the article:

"“I found Jun to be a likable, highly competent, respected person,” said Jeffrey Callison, a former CapRadio employee who worked at the station from 1996 until 2011."

The whole and terrible truth is that if those who you work with find you to be a "likeable, highly competent, respected person,", they may be more inclined to either look the other way or vouch for your behaviors when you engage in potential wrongdoing. We really, *really* want to trust that other person but sometimes that trust turns out to be unwarranted.

Worth noting that Jeffrey only worked with Jun for four years and that Jun had a CEO and COO above him at that time. As the Bee piece outlines, he eventually assumed both those roles in addition to his original CFO post, removing all oversight.

Jun had only been CEO and GM for about three months when I got hired, and he wasn't part of my hiring process (I interviewed with Drew Sandsor, Devin Yamanaka and Nick Miller via Zoom because it was the early months of COVID).

And because we were keeping most people home, I didn't really have many interactions with Jun until things started to loosen up in 2021. Even then, it would be bumping into each other in or near the parking lot, lobby, or outside his office. I never once saw him in the newsroom. It's like his world stopped at the men's room, which is where the building transitions from offices to studios.

He came off as a nice, friendly, intelligent guy. At that point, 50-plus years into a broadcasting career, I'd worked for enough unpleasant and/or obviously ethically challenged GMs to be happy about one that wasn't (also, I was spoiled---my most recent GM, Sara McClure at iHeart, was terrific).

But again---the Bee article makes it clear that the failures were at the board of directors and university levels. Whatever their reasons for lax oversight of Jun, being "likeable" probably was the least of them.
 
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The Bee article I linked to says the D.A. is still considering possible criminal charges.
Seriously, what's it been now, two years since this scandal broke into public view? And the crimes actually began occurring much earlier than that. It sounds to me like the sheriff and the district attorney are looking for a way to run out the clock (i.e., reach the "statute of limitations" date) so they can avoid indicting Jun and holding a very public, highly embarrassing trial. Much easier to reach a civil settlement with him, with restitution, and not have all this crap muddy the professional reputations of (to use a Yiddish expression) some Big Machers in the CSUS and professional communities, and undoubtedly a few local and state government officials too.
 
Seriously, what's it been now, two years since this scandal broke into public view?

More than two years. The first audit was released on September 28, 2023.

And the crimes actually began occurring much earlier than that.

Nine years ago---2017, according to the lawsuit CapRadio filed against Reina.

It sounds to me like the sheriff and the district attorney are looking for a way to run out the clock (i.e., reach the "statute of limitations" date) so they can avoid indicting Jun and holding a very public, highly embarrassing trial.

Maybe. The statute of limitations on fraud in California is three years from the date the victim discovers they were defrauded. For embezzlement and breach of fiduciary responsibility, it's four years.

Much easier to reach a civil settlement with him, with restitution, and not have all this crap muddy the professional reputations of (to use a Yiddish expression) some Big Machers in the CSUS and professional communities, and undoubtedly a few local and state government officials too.

Earlier this month, CapRadio's fraud insurance paid the radio station back...now the insurance company will be pursuing Reina in a civil suit to recoup $1.3 million.

 
More than two years. The first audit was released on September 28, 2023.



Nine years ago---2017, according to the lawsuit CapRadio filed against Reina.



Maybe. The statute of limitations on fraud in California is three years from the date the victim discovers they were defrauded. For embezzlement and breach of fiduciary responsibility, it's four years.



Earlier this month, CapRadio's fraud insurance paid the radio station back...now the insurance company will be pursuing Reina in a civil suit to recoup $1.3 million.


In other words, it's more likely that Reina will face a civil trial than a criminal one.
 
In other words, it's more likely that Reina will face a civil trial than a criminal one.

No.

Reina will certainly face a civil trial. The insurance company isn't going away.

We have no idea whether @Weiserguy is correct that the Sacramento County District Attorney's Office is deliberately slow-walking prosecuting criminally. We'll find out when the D.A. either files charges, declines to or the statute of limitations expires.

Potential complicating factor: D.A. Thien Ho is running for Congress in the newly-redrawn 6th District. There's probably a political argument for and against a criminal prosecution when it comes to his record (he tends to like to focus on high-profile violent crime like the Golden State Killer).
 
...We have no idea whether @Weiserguy is correct that the Sacramento County District Attorney's Office is deliberately slow-walking prosecuting criminally. We'll find out when the D.A. either files charges, declines to or the statute of limitations expires.

Potential complicating factor: D.A. Thien Ho is running for Congress in the newly-redrawn 6th District. There's probably a political argument for and against a criminal prosecution when it comes to his record (he tends to like to focus on high-profile violent crime like the Golden State Killer).
Allow me to draw a possible scenario: "Oops, we miscalculated. We thought we had another day/week/month [dealer's choice] to file criminal charges against Mr. Reina. Upon further analysis, we see we j-u-s-t missed the Statute of Limitations deadline and can't go back and undo the oversight. However, Mr. Reina has agreed to a [sealed] civil settlement to repay the money he embezzled, plus interest, so he is not getting away without restitution, so case closed."
 
Allow me to draw a possible scenario: "Oops, we miscalculated. We thought we had another day/week/month [dealer's choice] to file criminal charges against Mr. Reina. Upon further analysis, we see we j-u-s-t missed the Statute of Limitations deadline and can't go back and undo the oversight. However, Mr. Reina has agreed to a [sealed] civil settlement to repay the money he embezzled, plus interest, so he is not getting away without restitution, so case closed."
It’s certainly possible. Especially since CapRadio’s insurance covered the loss, and he’s not accused of ripping anyone else off. But we won’t know until they do that or something else.

And given that the congressional district Ho is running in is metro Sac, where the case is well-known, he may see an upside in prosecution. He’s only been a candidate for six weeks. He probably doesn’t even have a poll in the field yet.
 

Here is an update and yes it’s a carryover when CapRadio was audited because of their former GM misusing the stations funds. Now one of the legal cases between CapRadio and KVIE has been settled over a transmitter dispute.
 


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