The Mercury News

College district vice chancellor charged with embezzling funds

- By Aldo Toledo atoledo@bayareanew­sgroup.com

As the San Mateo County District Attorney’s Office probes alleged corruption at the San Mateo County Community College District, its Vice Chancellor Jose Nuñez has pleaded not guilty to 15 felony charges accusing him of embezzling taxpayer money and using property to campaign for a political ally.

Nuñez — a 21-year veteran of the district who oversaw its facilities — was charged amid a two-year criminal investigat­ion into the district, a scandal that led to the firing of Chancellor Ron Galatolo in February 2021. No charges have been filed yet against Galatolo.

The district oversees Skyline College, Cañada College and the College of San Mateo.

Along with 12 perjury charges against Nuñez for allegedly failing to report gifts made to him by donors, the DA’s Office charges against him are:

• Embezzleme­nt of government funds amid allegation­s that in 2013 and 2014 Nuñez helped award a solar energy project contract to the architectu­ral firm of Allana, Buick and Bers of Palo Alto.

• Illegally using college district computers and work hours to support the March 2020 statewide Propositio­n 13 bond measure that would have awarded $2 billion to community college capital projects across California.

• Illegally using college district computers and work hours to support the 2018 political campaign of Tom Mohr, who died in 2020.

Nuñez was arraigned at the San Mateo County Hall of Justice on Dec. 22 and is scheduled for a pretrial conference Wednesday. Nuñez has been placed on administra­tive leave, according to a statement from the district.

District Attorney Steve Wagstaffe said in an interview his office has focused the investigat­ion on allegation­s of impropriet­y made against former Chancellor Galatolo, as well as other officials currently employed at the district. He said charges may be looming for Galatolo and others in the coming months, but the first person to get charges in the scandal is Nuñez.

Galatolo could not be reached for comment.

Wagstaffe said he was in discussion with Nuñez’s attorneys for several months. Nuñez could not be reached for comment.

“We’ve been trying to see if there’s a middle ground or a defense; we’re always keeping an open ear to listen to the other side,” Wagstaffe said. “But I have heard no compelling argument. At least at this point, this is a political corruption case, misuse of taxpayer resources, and it’s always something that we take seriously.”

San Mateo County College District Director of Public Affairs Ana Maria Pulido said in a statement they would not respond specifical­ly to the allegation­s made against Nuñez.

“Although the facts of the case are still limited, the college district has placed Mr. Nuñez on administra­tive leave to allow the legal process to take its course,” Pulido said. “The college district has an unwavering commitment to integrity, transparen­cy and accountabi­lity and supports the district attorney’s goal of ensuring that these standards are met by all public officials.”

Prosecutor­s have spent the past two years investigat­ing political corruption at the community college district after a whistleblo­wer contacted the DA’s Office with allegation­s of illegal activity by top officials. Their probe has centered on the former chancellor who was fired in February 2021.

Galatolo — who was previously the district’s chancellor for 20 years and the top-paid employee with an annual salary of $467,000 — was accused of receiving “high-end travel,” con

cert tickets and meals from college district contractor­s and not disclosing it to the state as required, according to the district’s terminatio­n letter. The board also stated he failed to disclose “apparent use of public funds for retirement incentives” as well as “undisclose­d personal relationsh­ips with vendors.”

In August 2019, Galatolo entered into a three-year, $1.6 million agreement with the district board to become chancellor emeritus, a position that ostensibly was set up to explore the possibilit­y of landing a California State University campus on the Peninsula.

Just a week after starting, the district placed Galatolo on paid leave upon learning he was being investigat­ed by the San Mateo County District Attorney’s Office.

College district board President Richard Holober said in an interview the district is cooperatin­g in every possible way with the DA’s investigat­ion. He said he wants the investigat­ion “to come to whatever conclusion necessary sooner rather than later.”

In the past year, Holober said the district has adopted a policy to hire outside auditors to analyze the district’s practices and procedures. The district also has hired an internal auditor that will operate with “a great deal of autonomy” in reviewing any whistleblo­wer complaints in the future.

Holober ran against Tom Mohr in 2018 in a pitched battle between labor interests and the district’s establishe­d administra­tion. Nuñez allegedly campaigned for Mohr using college property. Holober beat Mohr by 4 percentage points.

“For folks who have observed the district and the board over the period of several years, it is no secret that I was very critical of some of the operations even though most of it was fought out in closed sessions and not made public,” Holober said. “We have a new board, new board majority and with that new board majority we’re doing our job, which is what I’ve always wanted us to do.”

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