No Jail Time for Former SEDC Execs

Two former top San Diego redevelopment officials avoid jail time

By R. Stickney
|  Friday, Jan 20, 2012  |  Updated 4:09 PM PDT
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Overhauling San Diego's Redevelopment

NBC San Diego

Dante Dayacap and Carolyn Smith at an earlier court appearance.

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Ex-SEDC Chief Charged With Embezzlement

Two former top redevelopment officials could be facing some serious prison time, according to the voiceofsandiego.org.

Overhauling San Diego's Redevelopment

Outside auditors found that under the longtime direction of its former president, Carolyn Smith, SEDC had become a virtual slush fund for secret staff bonuses, perks and frills.
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Two former redevelopment agency officials who embezzled funds must repay $435,000 to the City of San Diego but they will not spend time behind bars.

Carolyn Smith and Dante Dayacap pleaded guilty to one count of embezzling public funds when they worked with the Southeastern Economic Development Corp. (SEDC).

SEDC oversees taxpayer-sponsored development in San Diego's southeastern neighborhoods. Smith is the former president, Dayacap the former financial director.

Prosecutors said the two received more than $800,000 in illegal bonuses during a five-year period.

Both defendants had previously denied any wrong doing. 

Prosecutors asked for a year in prison for each defendant and a combined restitution of $700,000.

At a hearing Friday, Smith was given a one-year suspended sentence and ordered to perform 360 hours of community service. Dayacap received a nine-month suspended sentence and must serve 240 hours of community service.

Both are responsible for the $435,000 in restitution. 

According to our media partners at the voiceofsandiego, the pair will repay at a rate of $100 per month which comes to $1200 each a year.

If they follow that payment schedule, the money will not be repaid until the year 2193 the news website reported.

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