
Kathy Borrego was fired earlier this summer from her job as the business manager for Jemez Mountain Schools, a position she held for ten years in the remote village of Gallina.
The superintendent of the district discovered questionable account activity among Borrego's files and notified the Rio Arriba County Sheriff's Department, which has yet to file official charges against Borrego.
Property has been seized from her home with the execution of search warrants.
The State Auditor's office did some initial checking of her activity and publicly stated roughly 300-thousand dollars is missing over the past two years.
The amount missing is so damaging to the district, it had to take an emergency loan just go keep schools running.
Borrego has been with the district since 1999 and currently a "special audit" is underway, looking at all of her activity with the district over that time period.
How much more was stolen? Possibly, much, much more.
I sat down with State Auditor Hector Balderas this past week to discuss the case. He alluded that the 300-thousand dollars is just the tip of the iceberg.
Jojola: Could this set a record of embezzlement in New Mexico, this case?
Balderas: You know I have never seen anything like this. My best auditor that is conducting the special audit, has never the egregious behavior that we are now testing. In 35 years of auditing, he has never seen anything like this.
Balderas also says the Feds have been notified because it's suspected Borrego pocketed Federal dollars given to the district. Not only is she likely to face state charges, but the Feds may choose to charge her as well, at least that's my prediction.
The "special audit" is expected to be released soon, possibly early next week.
While Balderas can not go into detail about the audit or who are what else they are looking at in this investigation, there are questions that must be answered by the authorities once more facts are revealed.
How could someone steal so much by themselves, and for so long?
Who was responsible for oversight?
Did Borrego have help from friends, relatives? Surely a bank teller or someone should have raised their eyebrows when a woman shows up with a substantial amount of money to deposit in her account--especially checks from a school district made out to her own name.
My predictions: More people will be implicated in this case and will turn over evidence/testimony against Borrego to save their own hides from prison time. Expect charges of not only embezzlement, but tampering with evidence and possibly money laundering.
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jeremyjojola.com