A Corona man has been charged with embezzling $100,000 from a youth sports program that receives money from the city, and the president of the program says he is outraged that the City Council is considering trying to recoup its donation from the organization itself as well as from the defendant.
Cedric Earl Allen, 53, pleaded not guilty Monday in Superior Court in Riverside to two counts each of grand theft, embezzlement, perjury and forgery. Allen also was charged with enhancements of theft of more than $100,000 and taking, damaging or destroying property, according to court documents.
The loss of the money has Corona Youth Sports Foundation officials scrambling to secure more funding. The foundation, created seven years ago by City Councilman Steve Nolan, gives children who live in downtown Corona more athletic opportunities. Its signature program is boxing, and about 40 youths strap on the gloves three times each week at the old City Hall on Sixth Street.
The embezzlement case threatens funding for the Corona Boxing Club. Here, Ref Sanchez and A.J. Ibarra spar.
Allen was treasurer of two organizations: the sports foundation and the Committee to Reelect Steve Nolan. The charges against Allen include an accusation that Allen stole $17,000 from Nolan's campaign committee between 2008 and 2009 and filed false campaign disclosure reports between 2006 and 2009.
On Nov. 3, the City Council, in a 4-0 vote with Nolan recused, directed City Attorney Dean Derleth and other city staff to "investigate the return of funds donated to the Corona Youth Sports Foundation and if necessary pursue litigation against" Allen, Nolan's organization and the sports foundation. The council did not say how much money it is seeking.
Mike Hickey, outgoing president of the sports foundation, said the city should be going after Allen for the money -- not the foundation.
"It's a shame, being the victim of a crime, and we're being looked at as perpetrators," Hickey said.
Nolan criticized the council's decision as "exploring circumventing the prosecution and restitution process of the court."
Mayor Karen Spiegel said the sports foundation was supposed to take better care of the money.
"Nonprofit money is still taxpayer money," Spiegel said, "so we need to do our due diligence and make an effort to let them know that the contract has been violated. They were supposed to be self-sustaining, and they failed."
Neither Nolan nor anyone with the foundation other than Allen has been accused of any crime.
Nolan's organization was targeted because he has said Allen illegally transferred $14,000 from the sports foundation to the campaign account to replace money stolen from Nolan.
Allen admitted taking the money without the permission of Nolan and the sports foundation, according to a declaration written by the Riverside County district attorney's office as it sought an arrest warrant.
Hickey said the foundation did not immediately miss the money because none of its checks bounced.
The foundation has enough money to pay for its programs through the end of January.
"We have a number of kids who really need this program," Hickey said. "We'll keep this program alive."
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