Probe Into Alleged Misuse of Funds at CSUN Is Dropped

Federal authorities have dropped an investigation into the possible misuse of disaster- relief funds earmarked for earthquake repairs at Cal State Northridge.

The investigation, launched in July, involved allegations that university President Blenda Wilson’s husband, Louis Fair Jr., had used CSUN workers to move his personal office furniture and then paid them with Federal Emergency Management Agency funds provided after the 1994 Northridge temblor.

In another development, university officials announced Wednesday the resignation of Teri Sigrist, the CSUN supervisor in charge of the campus crew that moved Fair’s belongings. Sigrist, who school officials said is leaving because of a declining workload, had said she remembered speaking to Fair about hiring workers for a private job, but did not know he was Wilson’s husband.

When the charges first surfaced in July, FEMA investigators had requested records relating to the office move. But after reviewing the federal agency’s findings, the U.S. attorney’s office declined to prosecute the case. As a result of that decision, FEMA officials closed their investigation, said Michael Janiga, a special agent for FEMA’s inspector general in Oakland.

“The case was declined, so we are closing our end of the investigation,” Janiga said. “We will remain in contact with CSUN campus police, and if something else arises, we can re-present it to the U.S. attorney.”

Janiga declined to comment on the specifics of what the FEMA investigation revealed.

Thom Mrozek, spokesman for the U.S. attorney’s office in Los Angeles, confirmed that no charges had been filed in relation to the CSUN investigation, but also refrained from discussing the specifics of why the case had been rejected.

According to prosecutors in the U.S. attorney’s office, FEMA fraud cases have been prosecuted in the past. The reason the office might choose to decline a case could be either because FEMA did not produce sufficient evidence to prove the case in court or the amount of FEMA funds in question is not significant enough to spend the court’s resources and time.

John Chandler, a spokesman for CSUN, said as of Wednesday the school had not received word from FEMA that the investigation had been closed.

“If the decision was to take no action, we would not necessarily be informed,” he said.

Regarding Sigrist, Chandler said she submitted her resignation a week ago. Her departure at the end of September is not related to the alleged misuse of funds, Chandler said.

“She was conscious of not wanting to leave while the investigation was continuing,” he said. “Now that the [FEMA] inquiry is completed, that ceased to be a factor.”

In addition to Sigrist’s departure at the end of the month, eight of 12 temporary workers in the relocation office will not be returning, said Hildo Hernandez, director of physical plant management at CSUN.

Federal and university officials began an investigation at CSUN after a disgruntled employee called the fraud hotline alleging wrongdoing. The employee, Desmond Cerceo, accused CSUN of misusing the FEMA funds and paying workers for overtime and weekend hours they did not perform.

Chandler said a separate, internal investigation is being carried out by the office of the university auditor and the CSUN controller’s office, in conjunction with campus police.