Monday, September 18, 2006

Did founders of Genesis embezzle money?

Genesis foster care agency's co-founders reject plea deal
Pablo Lopez The Fresno Bee. The Fresno Bee. Fresno, Calif.:Sep 15, 2006. p. B1


Defense lawyers for the founders of Genesis, who are accused of embezzling more than $500,000 from the Fresno foster care and group home business, rejected a plea offer from the prosecution.

Instead, defense lawyers say they are ready to go to trial to prove their clients' innocence.

Elaine Bernard, her ex-husband, Rene Bernard, and her sister, Carol Dela Torre, are charged in Fresno County Superior Court with a 17-count indictment that alleges embezzlement, theft and tax evasion.

The prosecution offered Elaine Bernard and Dela Torre a plea deal in which the sisters would admit to at least one felony.

Rene Bernard would have to plead guilty or no contest to two misdemeanors.

In exchange for the pleas, the vast majority of the indictment would be dismissed, lawyers said.

After a hearing Thursday, Elaine Bernard's lawyer, Roger Nuttall, said his client rejected the plea deal because the defendants are innocent.

"This is not an embezzlement case. There was no intent to steal. They are highly respected, decent people," he said.

Nuttall said the plea deal wasn't fair because neither Elaine Bernard nor Dela Torre would be able to run the nonprofit business with a felony conviction on their record.

"The offer was not acceptable," Nuttall said, saying pleading to one felony would be as bad as pleading to all of the felonies in the indictment. "They would lose their license. They would lose their profession."

Nuttall indicated the prosecution's offer was a packaged offer, meaning the sisters both would have to plead guilty or no contest, or the deal would be voided.

The packaged deal, however, does not affect Rene Bernard.

Rene Bernard's lawyer, Scott Baly, said his client is still considering the prosecution's offer. If Rene Bernard rejects the offer, Baly said, he was ready to defend his client.

Prosecutors Regina Leary and Mike Elder left court without commenting. District Attorney Elizabeth Egan has a policy against talking about pending cases.

The sisters founded Genesis in 1987 and turned it into an $8 million annual enterprise caring for abandoned and abused children. Rene Bernard used to work for the business as a handyman.

The District Attorney's Office launched an investigation into their accounting practices in late 2001 after receiving information from Genesis employees and former board members. After a lengthy investigation into their accounting practices, the District Attorney's Office accused the defendants of using a corporate credit card and checks to skim more than $500,000 from the nonprofit business between 1996 and 2002.

Defense lawyers contend the defendants had permission to use corporate credit cards. They also have said the defendants have repaid any money owed to the corporation.

At Thursday's court hearing, Nuttall said he wants to reach a "reasonable settlement" that does not include a felony conviction for Elaine Bernard and Dela Torre.

Prosecutor Regina Leary, in response, told Judge Gary Orozco that she would be willing to listen to a counteroffer. Orozco offered to set aside time, including on Sunday, to help both sides reach a settlement. Orozco then ordered another pre-trial hearing on Sept. 21.

If a settlement isn't reached by then, Nuttall said he will file a motion to continue the Sept. 25 trial date for one week so he can get his other cases resolved or delayed before jury selection begins.

Lawyers said they expect the trial to last several weeks.

"We feel we have a particularly viable case," Nuttall said. "We are ready to present it to the jury."

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