Hospital Sues Hermandad for Failure to Repay $27,000 Loan

A suit filed this week by Santa Ana Hospital Medical Center alleges the civil rights group Hermandad Mexicana Nacional failed to repay a $27,000 loan.

The suit, filed in Orange County Superior Court on Wednesday, alleges that the medical center made a loan to Hermandad in 1994. The money, along with an 8% annual interest fee, was to be repaid by Dec. 15, 1995.

Despite several demands and other efforts to collect the loan, Hermandad officials “have refused and failed, and continue to fail and refuse, to pay,” according to the lawsuit. The hospital is asking for the $27,000, interest and attorneys’ fees.

Greg Ozhekim, the hospital’s attorney, said Thursday he didn’t know how the money was used or why Hermandad failed to pay it back. Hospital and Hermandad officials could not be reached for comment.

Hermandad Mexicana Nacional, or National Mexican Brotherhood, is a 50-year-old organization with branches in two states providing English and citizenship classes and a wide array of other services to immigrants and elderly people.

The group is being investigated by California Secretary of State Bill Jones and Orange County Dist. Atty. Michael R. Capizzi because of allegations that it fraudulently registered from 721 to 890 noncitizens to vote.

The organization also has been experiencing financial problems. An independent audit earlier this year revealed that Hermandad could not account for more than $500,000 in federal grants and taxes. The Internal Revenue Service is auditing Hermandad’s books for 1994 and 1995, according to the audit report.