District Never Checked Out Applicants

The county’s mosquito abatement district did not conduct background checks on its prospective financial managers until it lost $635,000 in an embezzlement scheme.

Candidates for positions with the County of San Mateo go through a rigorous process including an online application, an oral interview by a panel, the submission of supplemental materials, a criminal background check, and fingerprinting.

But as an independent special district, San Mateo County Mosquito and Vector Control District "has its own hiring process," said Donna Vaillancourt, director of human resources for the county. "They work in the county, but not for the county."

Yesterday, district general manager Robert Gay revealed that two of its former finance department employees have been linked to what he described as a complex, methodical embezzlement. One was out on bail for a similar crime when she was hired.

The scheme unraveled when a board member questioned $150,000 in overpayments.

A subsequent probe by the county counsel revealed an elaborate scheme requiring "quite the mastermind," according to the lead investigator.

"Initially, it looked like a discrepancy of $150,000 in a pesticide account," said Deputy County Counsel Aimee Armsby. Chances were good the transaction might not have attracted attention considering "this is the account with the highest amount of expenditure and the biggest fluctuation." 

Armsby said the district plans to run criminal background checks for sensitive positions such as those involving finance. Minutes from board meetings indicate the agency will also begin running DMV checks, drug testing and credit checks on new employees.

The district's sole purpose is to eliminate mosquitos and other pests that can transmit diseases to humans. Those within its boundaries pay either an annual benefit assessment of $15 or $3.74 per parcel plus a percentage of each property tax dollar, depending on the city of residence. 

The district is moving aggressively to recoup its losses, Gay said in a statement. Its insurance policy includes coverage for illegal acts. And restitution may be possible through civil suits.

"We don’t know what the outcome will be, but we know they will actively be pursued," Armsby said.

No formal charges have been filed against the two former employees, including former finance director Joann Seeney, who is serving a two-year, eight-month sentence for siphoning $568,000 from a Foster City company and one other embezzlement conviction. The other woman has not been named.

On Sept. 14, the board welcomed a new finance director, Rosendo Rodriguez.