San Gabriel Valley : Anti-Poverty Agency Chief Quits Amid Financial Probe

The chief executive officer of a Pasadena anti-poverty agency that uses federal and private funds has resigned amid a police investigation into possible financial misconduct and a state audit of alleged irregularities in the agency’s budget.

Emmell J. Beech, head of Foothill Area Community Services Inc., announced his resignation Wednesday night, effective immediately, citing health problems and other concerns stemming from the investigation.

“I do not believe there has been malfeasance or criminal acts,” Beech, 64, told the agency’s board Wednesday night in a statement.

A probe of the agency, which has an annual budget of $3 million, began in September when police and FBI agents confiscated records from Beech’s home and the offices of the nonprofit agency. The organization serves low-income families in the west San Gabriel Valley.

Beech’s departure comes a week after agency employees demanded his resignation in the wake of an audit that shows a series of financial problems, including several loans, bonuses and salary advances to Beech and $217,000 in earthquake recovery grants. Those loans may have been used to buy Las Vegas real estate and as a down payment on his home, the report said.

“There is activity here that is extremely inappropriate if not illegal on its face,” said Cheryl Goble of the state Department of Community Services and Development, which conducted the audit and provides much of the agency’s money.

Beech could not be reached for comment Thursday. . . .