San Mateo County Community College District hit with $32M complaint 

In early February, the district filed a complaint against multiple firms including Allana, Buick & Bers; McCarthy Building Companies; Studio W Architects, formerly known as Bunton, Clifford & Associates; Bothman Construction; and Blach Construction Company. 

The $1 billion lawsuit alleges the firms showered Galatolo and former Vice Chancellor Jose Nuñez with gifts in exchange for contracts on district projects. Galatolo, who currently faces 21 charges filed against him by District Attorney Steve Wagstaffe, has vehemently denied all wrongdoing, asserting instead that the claims were made by either disgruntled employees or politically motivated trustees. 

Allana agrees. He shared similar comments when initially named in the district’s civil suit and doubled down on his defense Tuesday in his $32.75 million claim against the institution. In his claim submitted to the district, he asserts that Holober initially raised concerns about alleged inappropriate relationships after the firms and Galatolo backed a political opponent. The district then affirmed these accusations by filing a lawsuit against the firms, according to the claim. 

“This is a smear campaign, pure and simple,” Allana said in a press release announcing the filing of his claim. “These lies are being flung wildly, and only firms that contributed to Richard Holober’s political opponent’s campaign are being targeted. A massive amount of taxpayer dollars are being wasted to retaliate against Richard Holober’s political opponents and he must be held accountable.”

Specifically, Allana accuses Holober and the district of violating a number of district policies, California education code, misrepresentation and defamation, intentional or negligent interference with contractual relations and malicious prosecution and abuse of power. 

The firm is now seeking $20 million worth of damages to its business and professional reputation, $2 million worth of damages for contractual relationship with the district, $10 million for damages from contractual relations with others and $750,000 in legal fees. 

Holober did not respond to a request for comment. David McLain, the district’s interim executive director of Community and Government Relations, said the district hasn’t had an opportunity to review the claim and has no comment at the time.

According to the district’s suit, Allana allegedly took a district-paid trip through the Middle East in 2017 with Galatolo and Nuñez where the three allegedly lounged poolside, drank and partied, took guided tours through Dubai and traveled through Allana’s home country of Pakistan.

That trip was largely paid for with district funds as a relationship-building voyage meant to encourage new international students to transfer to the community college district. Unbeknownst to the district, Allana had also paid to upgrade Galatolo’s flight seats and allegedly provided other gifts to the two administrators. 

In return, the complaint alleges Allana, Buick & Bers was awarded multiple contracts amounting to $1.5 million and family favors such as a job offer to Allana’s brother and a recommendation letters for the son of a Pakistani official to the University of Southern California.

Allana, Buick & Bers was also allowed to revise a bid on a solar project in 2013. The initial bid on Nov. 21 was nearly $5.5 million but fell to just more than $4.9 million on Dec. 13, the final day of the bid. Three days later, their bid fell to about $4.5 million and they were selected as the winner. The final cost of the project rose to nearly $5 million, according to the complaint.

But in Allana’s complaint to the district, he asserts the solar project was awarded to the firm long before he and Galatolo became friends. Once the pair did spark a friendship, Galatolo has claimed the two always provided each other with gifts, nullifying any need to disclose the gifts on legal forms. 

“Since its inception, ABB has always performed with the highest level of business standards, integrity and trust,” read the complaint. “Holober and other employees were motivated by vendetta, fraud, corruption and malice in making the false and disparaging statements. SMCCCD ratified Holober’s false statements and conduct by filing a lawsuit against ABB on February 8, 2023 and discontinuing its contractual relationship with ABB.” 

Galatolo began as chancellor in 2001 and resigned suddenly in August 2019. The district board offered him an emeritus title to use while exploring ways to create a four-year program. The District Attorney’s Office confirmed its investigation in late August 2019. Galatolo was suspended from the position in September 2019 and terminated in February 2020 from the position that paid $467,000.

The case has been delayed over a dispute of electronic records seized from a search warrant involving files from a lawyer involved in the community college district at the time Galatolo was employed there. Ultimately, the judge denied the defense’s appeal and is allowing the files to be turned over to the prosecution, according to the DA’s Office.

Galatolo is set to return to court Sept. 27 for a hearing to determine whether he will be willing to take a plea deal or take the case to trial.