Alleged mosquito district thief posts $250,000 bail

The former mosquito district finance director accused of embezzling hundreds of thousands of dollars was given the chance to post $250,000 bail after proving the money was not the product of either that alleged crime or previous thefts for which she was imprisoned.

However, Jo Ann Dearman, also known as Joanne Seeney, was also required to surrender her passport to the court yesterday. Dearman was granted the right to bail last month after finishing her previous prison commitment for embezzlement with the caveat she prove the money was not ill-gotten gains. On Wednesday, Judge Leland Davis ruled that Dearman’s sister, Billie Jean Dearman, is a credible and valid source of money.

Dearman testified that she has not received any money from her sister and will make the monthly payments on the bail bond from an account composed of her retirement, Social Security and pension. An Aladdin Bail Bonds representative also testified that Billie Jean Dearman is the only signer on the bond, said District Attorney Steve Wagstaffe.

Dearman’s co-defendant Vika Sinipata previously sought the same review of her $150,000 bail but has since pulled the motion and remains in custody. They return to court June 5 for a preliminary hearing.

Dearman, 61, and Sinipata, 35, are both charged with eight counts of embezzling public money from the San Mateo County Mosquito and Vector Control District.

Prosecutors say Dearman, then district finance director, and Sinipata, her bookkeeper assistant and accounting supervisor, embezzled the funds between 2009 and 2011 by giving themselves extra pay at a higher pay rate and fraudulent time off, excessively contributed to their deferred compensation funds, used credit cards for personal purchases and electronically transferred money into their own accounts. The audit reported more than $635,000 was missing, much of it in the last fiscal year. The district contacted the County Counsel’s Office which in turn handed the matter to the District Attorney’s Office which charged them with stealing more than $450,000. The district’s numbers might be closer to the actual loss but prosecutors are only alleging the amount they can prove.

At the time of Dearman’s employment, she had been prosecuted in two different embezzlement cases, including one in which she ran up more than a half-million dollars on her boss’ credit card. She was sentenced to two years and eight months in prison on the two cases and ordered to pay restitution.

According to a now-retired operations director at the district, Dearman stole some of the money by charging to the district personal needs like water utilities and defense attorneys representing her in a different embezzlement case.

The alleged embezzlement came to light after a boardmember questioned the balance in a pesticide account.

Since Dearman and Sinipata were arrested, questions into how they allegedly acted without detection led the Local Agency Formation Commission to speed up its regularly scheduled review of its policies, finances and accountability. LAFCo is a state-mandated, independent agency that oversees the organization and boundaries of the county’s cities and special districts.

The San Carlos City Council also asked the grand jury to investigate but it has indicated its current docket is full.

Michelle Durand can be reached by email: michelle@smdailyjournal.com or by phone: (650) 344-5200 ext. 102.