Orange County prosecutors are investigating a bankrupt drug-rehab nonprofit after an audit found $354,000 in public payments to the organization could not be accounted for or were spent inappropriately.
The DA’s office launched its investigation into the Sacramento-based nonprofit California Hispanic Commission on Alcohol and Drug Abuse (CHCADA) and its parent company, Genesis Title Holding Corporation, following an October audit by Auditor-Controller Eric Woolery’s office.
Among other improper payments and spending, the DA investigator disclosed that upward of $66,000 in public payments went into a retirement “that only benefitted the CEO, despite the fact the nonprofit’s invoices represented these costs as though they benefited employees that directly supported the county contract.”
The county is seeking between $300,000 to $400,000 from the nonprofit. (Source: Orange County Register, October 4).