DA investigating Oceano CSD

September 23, 2010


The San Luis Obispo County District Attorney’s office is investigating the auditing and accounting practices of the Oceano Community Service District.

“It has come to my attention that the District Attorney is concerned with some auditing and accounting practices here,” said Oceano CSD General Manager Raffaele Montemurro at last nights board meeting. “We have brought the District Attorney numerous things already. Now they have asked for how much money was billed by the district, collected and deposited.

“But here, because things have been done so poorly, it is not as easy as you would think. Everyone who committed the sins are now gone.”

The district’s accounting practices came under fire last month when  Montemurro discovered five bank accounts containing more than $367,000 in district money that were not noted in yearly audits. The CSD then hired certified public accountants Glen, Burdette, Philips and Bryson to evaluate the district’s charges and expenses.

The accountants discovered numerous questionable practices including the district’s former management using CSD credit cards to purchase lunches at local restaurants and then charging the expenses as either the purchase of office supplies, travel expenses or as classes and seminars.

During a board meeting on Aug. 11, the board voted to ask the District Attorney’s office and the California Attorney General’s office to further investigate the districts financial dealings.

Former administrative assistant Gina Davis worked for the district for almost three decades and was the only signer on at least three of the uncovered bank accounts.

“The problem is that in the past the district had one person who did everything, one person with unusual control,” said Montemurro, who began working with the district in Oct. 2009. “They had very poor practices.

“There was no safe to put the money in it was just put in a drawer.”

On Wednesday, board members discussed a possible timeline for getting accounting work together for the district attorney’s office but decided they would have to check with the availability of auditors before selecting a date.

The Oceano CSD serves the 7,600 residents and business owners in the unincorporated communities of Oceano and Halcyon with fire protection, sewer and water services.


AG Council Meeting, 09/28/10 Your Mayor is going to present his report on the sanitation district. All should attent!!!!

Remember, WALLACE GROUP is engineer for AG as well!!! Citizens of AG are paying for WG TWICE!!!

did anyone offer you some vaseline?





7:00 P.M.

Arroyo Grande City Council Chambers

215 East Branch Street, Arroyo Grande


This item gives the Mayor and Council Members the opportunity to present reports to the other members regarding committees, commissions, boards, or special projects on which they may be participating.


(1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority (SLOCOG/SLORTA)

(2) South San Luis Obispo County Sanitation District (SSLOCSD)


Just wondering and hoping someone with more knowledge can answer this for me. Is it just SLO County that is apparently almost entirely made up of crooked folks and good ole boy networks or is this the standard for a lot of different counties??? Seems embarrassing to say I live here with all the shenanigans that go on here from all the investor debacles to the dishonest county department heads/management to who knows what else.


Why do you think we are in the mess we are in? Once the bubble has burst, everything gets exposured and the truths come flying out. This is business as usual for government. People need to stand up and let the officials everywhere know we will not tolerate this anymore. I think that is the message of the Tea Party (not a member of big supportter) but I understand their frustration and it seems no one listens until people get angry. Very sad!!! I for one will not vote for an incumbert and if the new folks don’t do their job, impreach. The people need to take back theor power and responsibility. We all have been too passive and trusting and look where it has gotten us.

inverse Condemnation

———————These are two pdf files showing OCSD and the County Of San Luis Obispo at http://www.oceanonursery.com

“County of San Luis Obispo–Trying to Make A Deal in regards to the Evidence that they Withheld From Discovery involving their County Insurance. Plus their Documents presented to Judge Tangeman that Flooding Could Be Abated—pdf ”

“OCSD Attorney Conflict Robert Weeks–Fiancee/Wife Was Oceano Nursery Bookkeeper that the Oceano Community Service District Hired knowing this Fact!—OCSD Directors Full Knowledge of Their Action!. pdf..”

It is time that San Luis Obispo County residents know the facts behind our local Government, that will shock the whole County in these County/OCSD letters in these pdf files!


Does anyone rally expect DA Shea to find that these guys were operating outside the law? Shea only goes after the small time crooks and tweekers while the real crooks steal the county blind with the DA’s blessing.


Shame on us for allowing this to continue. This should be the next dept in the county to get replaced, impeached, thown out of office. It is as bad as the sheriff’s dept.


Good thing we keep re-electing him.


Grigger Jones committed fraud forged our father’s signature and the stepmother’s signature The stepmother herself admitted it wasn’t her signature and yet after two years still waiting for the DA in San LLuis Obispo to do something HELLO! what is taking so long He has already targeted two other families When will this guy and his poop boy Michael gould the accountant be stopped?


I emailed Grigger and ask him some simple questions of why Miller had not listed me as a creditor in his B.K. All I got was a confidentiality sermon and a referral to Bernice with no email or contact number for that entity, thanks Grigger, by the way you are going down to the poky counselor, and boy do the love protem judges in there, I think Coleen Alexander’s name is on enough documents to put her away too.


Wallace is still the OCSD Engineer. A previous board removed him a few years ago and he was rehired sometime after that.


Should it surprise me Wallace’s name has come up in discussion about gov’t malfeasance again?

inverse Condemnation

———————-This is a very interesing comment from the OCSD General Manager—“But here, because things have been done so poorly, it is not as easy as you would think. Everyone who committed the sins are now gone.”

Are they?

Kevin Rice

Not quite gone, but she isn’t going for re-election in November and will be gone soon.

If you can believe stuffing cash receipts into a “kitty” drawer is good, and that only having one signer on a hidden $367,000 stash is even better, then maybe the prior players were better for you. If you think that accounting for cash and putting it into a safe is more appropriate, then you’re in the majority.

inverse Condemnation

———————–Oh?–What about the $200,000.00 I have been hereing about from prior OCSD meetings dating back to 2004?

Kevin Rice

Hearing? Tell us more. The $367,000 isn’t a rumor, it’s in hand.


Your right inverse.

It’s more like $250,000 (waiver of development fees) given to a prominent developer in Oceano. It’s interesting that this deal was given at the same time this developer was building a subdivision for a former director. I guess you might get a big discount on the cost of building you subdivision if you saved someone that much money on another project. This former directors wife is currently sitting on the board after being appointed illegally. She was told by two attorneys to step down and she refuses. What integrity she has.

And finally, who is best buddies with these two? Kevin P Rice. And who is Slorider???

Kevin Rice

What a bunch of horseshhittt. No one built a subdivision for any former director. And how the hell do I play into this scheme of yours? I’m calling you out—outright liar.

Kevin Rice

Or should I call you Pamela Dean? Ms. Suing-District-Taxpayers.


Catnip, you are full of B.S. Everything in your comment is completely false, but you knew that before you wrote it. Outright liar.


Have to agree with “hotdog” there seems to be a total dropped ball on Miller/Gearhart who are hiding in BK court. Every day I read of lesser crooks being “charged” and being brought to justice!


Interesting, Wallace was the OCSD’s District administrator and engineer up until recently, sounds like another fine job performance on the tax payers dime.

inverse Condemnation

———————If you would like to know a little more about Wallace and OCSD money—then check out the pdf files at http://www.oceanonursery.com

Take a look at the $5,000.00 spent in 1987 involving those above!


Wow, the DA is going to do something around here? I thought they were playing golf with Hedges. Of course he has to be invited. And of course the 125 million bones Gearheart and Miller and Brard stole from over 1200 investors is obviously not worth looking into, that might mean some actual work.


Ditto, things look bleak, these people should have their right hand cut off by the D.A. by now!