Former Fresno Arts Council manager Suliana Cadwell ordered to pay back stolen money
The city of Fresno is threatening additional legal action to receive the full amount stolen by Caldwell.
FRESNO, Calif. (KFSN) -- The City of Fresno is threatening legal action after a federal judge ordered former Fresno Arts Council employee Suliana Caldwell to repay more than $1.1 million in stolen taxpayer funds, money city officials say they still have not received.
Caldwell appeared in federal court Tuesday, where a judge ordered her to pay restitution to the city for funds stolen while serving as operations manager for the Fresno Arts Council.
"I'm happy that the U.S. attorney was able to put on the record the amount that they believe the city is owed and due," Fresno City Manager Georgeanne White said.
According to court proceedings, Caldwell stole about $1.8 million from the nonprofit organization. Prosecutors said approximately $1.17 million of that total came from Measure P funds provided by the City of Fresno, while the remaining money originated from other Arts Council funding sources.
During the hearing, Caldwell told the court, "I will do everything in my power to restore what's due back to the City of Fresno."
The hearing lasted less than 10 minutes. Federal prosecutors disclosed that PayPal, the platform Caldwell used to transfer funds to herself, reversed more than $900,000 in fraudulent transactions and returned those funds to the Fresno Arts Council. Because of those reimbursements, prosecutors said Caldwell no longer owes the nonprofit restitution.
The City of Fresno, however, says it has yet to receive any of the more than $1 million it believes is owed.
Prosecutors also said PayPal has not helped recover the Measure P funds for the city. As a result, city officials contend the Arts Council is retaining money that should be returned to Fresno taxpayers.
"The arts council has given zero to the city," White said.
Because the Fresno Arts Council is an independent nonprofit organization, the city has no direct authority to compel its board members to return the funds.
"We believe the money is owed to the city of Fresno. They're not giving us the money. We're going to pursue every legal option that is available to us," White said.
Questions surrounding the disputed funds remain unresolved.
In response to inquiries about the reimbursed money, the source of other stolen funds, the city's reimbursement demands and any potential litigation between the city and the Arts Council, attorney Jackson Waste, who represents the Fresno Arts Council, said in a statement: "I have been in communication with the City's counsel and look forward to resolving these issues to both sides' satisfaction."
Caldwell's attorney, Kevin Rooney, said his client agrees she must repay the money but has no control over where the restitution ultimately goes.
"Ms. Caldwell, she took money unlawfully. She owes it back. Who gets it? That's something not in her control," Rooney said.
The city has not specified what legal action it may pursue against the Fresno Arts Council. Meanwhile, questions remain about when and how the restitution will be repaid.
Caldwell is scheduled to begin serving her prison sentence on Oct. 21.
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