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SEABHS CEO Dana Johnson fired
Ongoing criminal investigation centers on misuse of funding
Thelma Grimes/San Pedro Valley News-Sun
After 19 years with the Southeastern Arizona Behavioral Health Services (SEABHS), 14 of those as executive director, Dana Johnson has been listed as a suspect in a criminal investigation by the Arizona Attorney General's office.
Johnson, who was fired by the SEABHS Board of Directors in a meeting in Benson Thursday night, is accused of borrowing $150,000, which she never repaid, and using SEABHS funds to purchase a 2007 Cadillac.
Rose Weston, the SEABHS regulatory legal director, updated the board on the state of the investigation, which also includes a separate vehicle fraud accusation.
The vehicle fraud investigation involves a separate employee accused of using SEABHS resources to service a personal vehicle.
Weston said Johnson went from being a person of interest to being listed as a suspect for misuse of funds. The attorney general's office started the investigation in September when Arizona Health Care Cost Containment System (AHCCCS), which provides funds for some SEABHS programs, notified the Attorney General of the alleged improprieties.
Johnson's alleged misuse of funds dates back to 2004 when the executive committee agreed to give her a $150,000 loan. Johnson did not pay the money back, and in 2006 when the issue came up again in a third-party audit, Johnson asked for an extension, which the board approved, said Weston.
Weston said when third-party auditors again realized the money had not been repaid last year, SEABHS had to file a report with AHCCCS, the Arizona Department of Health Services, the Regional Health Authority and other governing bodies.
Weston said to her knowledge because there are criminal implications, AHCCCS then passed the information on to the proper state authorities.
Weston could not say when the attorney general's office would complete the investigation.
"Indictments, if there are going to be any, could take one or even two years," she said. "These investigations are extremely lengthy, and they certainly aren't going to tell us how long this will take. They are investigating to see if there is enough evidence to withstand a trial. It's arguable whether or not the loan was improper. We don't know what is going to happen."
In a closed-door meeting Thursday night, the board discussed Johnson's severance package and returned to the regular meeting, voting unanimously on termination.
Johnson was put on leave last month, when acting CEO Jim Rubio was appointed to the position.
With the termination, Johnson received a severance package of approximately $20,000, including money for the current pay period, two weeks salary because she was not given a two-week notice and 160 hours for accumulated time off.
Johnson, who did not attend Thursday's meeting, was also criticized by board member. Marcelino Varona for her choice in a company vehicle. The former mayor of Nogales said the fact that SEABHS has 119 vehicles including cars and transportation vans is ridiculous, and Johnson's driving a 2007 Cadillac is unacceptable.
"SEABHS has more cars than the entire City of Nogales," he said. "We are a non-profit organization; we should be setting an example and giving the money to our patients and not driving around in gas-guzzling vehicles."
Records show that SEABHS' fuel costs last year were $293,923.
Besides Johnson's Cadillac, other SEABHS administrators have been given vehicles such as a Dodge Ram, Jeep Liberty, [Cadillac] El dorado , Dodge Dakota, Chevy Uplander, and Dodge Caravan among others. The model years range from 1998 to 2008, but are mostly 2004 or better.
According to SEABHS records outlining the cars purchased, 26 were bought at a discount through the Arizona Department of Transportation. The rest of the cars were purchased directly from car lots.
Varona said there was no price shopping done either. Johnson's Cadillac was purchased without any other bids from Don Mackey Cadillac Pontiac GMC in Tucson.
"SEABHS services patients in four counties where we have eight different car dealers," Varona said. "Why didn't they even look to buy locally?"
SEABHS, which provides mental care services to residents in Cochise, Santa Cruz, Greenlee and Graham counties, currently has about 400 employees.
SEABHS is a mental health agency that operates on a $35 million budget. While Weston could not say how much of that comes from the state and federal government, she did confirm a large portion of the budget comes from public funds.
Varona said the SEABHS vehicle fleet for maintenance and purchases is costing the agency more than $650,000 a year. So far in 2010, records show vehicle maintenance is costing the non-profit about $147,000.
"This is not a good practice," Varona said. "Maybe there needs to be a vehicle allowance. We've got to come up with funds to keep some of these programs going, and one of our employees is driving a Cadillac. This employee went to the dealership and told SEABHS to just write out the check. We've got to get this under control."
Varona, a former mayor and educational administrator, said he also has concerns on whether or not SEABHS has properly informed the Internal Revenue Service on vehicle use.
Varona, who is a new member to the SEABHS board, said not one of the company vehicles is labeled "for company use only" or has the SEABHS logo. The employees treat all the cars as personal vehicles, he said.
While not elaborating during the meeting, Verona also noted that some of the credit card limitations for SEABHS administrators are "ridiculous."
SEABHS records show 11 administrators have a combined credit limit of $49,500 with Wells Fargo Credit Cards. Johnson accounts for $10,000 of that.
Employees also have a combined credit limit of $11,250 with Home Depot, and another $10,000 with Wal-Mart.
Varona, who was outspoken during the board meeting, also questioned the decision to cancel a retreat in January.
Varona, along with board member Dan Doyle, also of Nogales, became agitated when they found out that the planned retreat was going to cost the company more than $20,000.
With the cost and the company being in a transitional period, board Chairman Tim Sikkema said the best option at this time is to postpone the retreat.
Varona disagreed, questioning why the costs for a retreat are so high. He was told that they needed to reserve hotel rooms, and hire a facilitator for the two-day event, as Johnson has done in years past.
The City of Benson held two separate one-day retreats in 2009 in which the City Council talked to every department head, discussed current and future plans and the budget for a total of $642.76.
Benson City Clerk Vicki Vivian said the first retreat, which included all department heads, cost the most at $456.06 for food and renting the facilities at Cochise College Benson Center.
The second retreat, held recently, had only City Council members, and with lunch and facilities cost $186.70.
"We don't need to hire a facilitator; we just need to talk to staff to see where we stand," Varona said. "We just need a day where we can go and talk about all these potential issues.
Board member Dick Hamilton of Benson agreed with Sikkema, stating maybe it's better to wait.
Varona continued to argue the point, stating there was no need for a hotel or facilitator, but there is need for more communication. Other board members eventually conceded, and it was agreed to arrange a one-day event in February or March.
Varona said Monday they don't even need to search for a facility to hold the retreat, noting that the SEABHS building in Sierra Vista could meet their needs.
Varona said sitting back and hoping things will sort themselves out is not an option for the SEABHS board.
"The board needs to grab more of a hold on what is happening here," he said. We also need to discuss the criteria we are looking for in a new CEO. There needs to be a more hands-on CEO. This is a big organization that provides necessary services to people in need. We need to make sure our employees are being held accountable for their actions."
SEABHS has outpatient and family care centers in Benson, Bisbee, Douglas, Clifton, Nogales, Safford, Sierra Vista and Willcox.
Attempts to reach Johnson were unsuccessful.
Thelma Grimes/San Pedro Valley News-Sun
After 19 years with the Southeastern Arizona Behavioral Health Services (SEABHS), 14 of those as executive director, Dana Johnson has been listed as a suspect in a criminal investigation by the Arizona Attorney General's office.
Johnson, who was fired by the SEABHS Board of Directors in a meeting in Benson Thursday night, is accused of borrowing $150,000, which she never repaid, and using SEABHS funds to purchase a 2007 Cadillac.
Rose Weston, the SEABHS regulatory legal director, updated the board on the state of the investigation, which also includes a separate vehicle fraud accusation.
The vehicle fraud investigation involves a separate employee accused of using SEABHS resources to service a personal vehicle.
Weston said Johnson went from being a person of interest to being listed as a suspect for misuse of funds. The attorney general's office started the investigation in September when Arizona Health Care Cost Containment System (AHCCCS), which provides funds for some SEABHS programs, notified the Attorney General of the alleged improprieties.
Johnson's alleged misuse of funds dates back to 2004 when the executive committee agreed to give her a $150,000 loan. Johnson did not pay the money back, and in 2006 when the issue came up again in a third-party audit, Johnson asked for an extension, which the board approved, said Weston.
Weston said when third-party auditors again realized the money had not been repaid last year, SEABHS had to file a report with AHCCCS, the Arizona Department of Health Services, the Regional Health Authority and other governing bodies.
Weston said to her knowledge because there are criminal implications, AHCCCS then passed the information on to the proper state authorities.
Weston could not say when the attorney general's office would complete the investigation.
"Indictments, if there are going to be any, could take one or even two years," she said. "These investigations are extremely lengthy, and they certainly aren't going to tell us how long this will take. They are investigating to see if there is enough evidence to withstand a trial. It's arguable whether or not the loan was improper. We don't know what is going to happen."
In a closed-door meeting Thursday night, the board discussed Johnson's severance package and returned to the regular meeting, voting unanimously on termination.
Johnson was put on leave last month, when acting CEO Jim Rubio was appointed to the position.
With the termination, Johnson received a severance package of approximately $20,000, including money for the current pay period, two weeks salary because she was not given a two-week notice and 160 hours for accumulated time off.
Johnson, who did not attend Thursday's meeting, was also criticized by board member. Marcelino Varona for her choice in a company vehicle. The former mayor of Nogales said the fact that SEABHS has 119 vehicles including cars and transportation vans is ridiculous, and Johnson's driving a 2007 Cadillac is unacceptable.
"SEABHS has more cars than the entire City of Nogales," he said. "We are a non-profit organization; we should be setting an example and giving the money to our patients and not driving around in gas-guzzling vehicles."
Records show that SEABHS' fuel costs last year were $293,923.
Besides Johnson's Cadillac, other SEABHS administrators have been given vehicles such as a Dodge Ram, Jeep Liberty, [Cadillac] El dorado , Dodge Dakota, Chevy Uplander, and Dodge Caravan among others. The model years range from 1998 to 2008, but are mostly 2004 or better.
According to SEABHS records outlining the cars purchased, 26 were bought at a discount through the Arizona Department of Transportation. The rest of the cars were purchased directly from car lots.
Varona said there was no price shopping done either. Johnson's Cadillac was purchased without any other bids from Don Mackey Cadillac Pontiac GMC in Tucson.
"SEABHS services patients in four counties where we have eight different car dealers," Varona said. "Why didn't they even look to buy locally?"
SEABHS, which provides mental care services to residents in Cochise, Santa Cruz, Greenlee and Graham counties, currently has about 400 employees.
SEABHS is a mental health agency that operates on a $35 million budget. While Weston could not say how much of that comes from the state and federal government, she did confirm a large portion of the budget comes from public funds.
Varona said the SEABHS vehicle fleet for maintenance and purchases is costing the agency more than $650,000 a year. So far in 2010, records show vehicle maintenance is costing the non-profit about $147,000.
"This is not a good practice," Varona said. "Maybe there needs to be a vehicle allowance. We've got to come up with funds to keep some of these programs going, and one of our employees is driving a Cadillac. This employee went to the dealership and told SEABHS to just write out the check. We've got to get this under control."
Varona, a former mayor and educational administrator, said he also has concerns on whether or not SEABHS has properly informed the Internal Revenue Service on vehicle use.
Varona, who is a new member to the SEABHS board, said not one of the company vehicles is labeled "for company use only" or has the SEABHS logo. The employees treat all the cars as personal vehicles, he said.
While not elaborating during the meeting, Verona also noted that some of the credit card limitations for SEABHS administrators are "ridiculous."
SEABHS records show 11 administrators have a combined credit limit of $49,500 with Wells Fargo Credit Cards. Johnson accounts for $10,000 of that.
Employees also have a combined credit limit of $11,250 with Home Depot, and another $10,000 with Wal-Mart.
Varona, who was outspoken during the board meeting, also questioned the decision to cancel a retreat in January.
Varona, along with board member Dan Doyle, also of Nogales, became agitated when they found out that the planned retreat was going to cost the company more than $20,000.
With the cost and the company being in a transitional period, board Chairman Tim Sikkema said the best option at this time is to postpone the retreat.
Varona disagreed, questioning why the costs for a retreat are so high. He was told that they needed to reserve hotel rooms, and hire a facilitator for the two-day event, as Johnson has done in years past.
The City of Benson held two separate one-day retreats in 2009 in which the City Council talked to every department head, discussed current and future plans and the budget for a total of $642.76.
Benson City Clerk Vicki Vivian said the first retreat, which included all department heads, cost the most at $456.06 for food and renting the facilities at Cochise College Benson Center.
The second retreat, held recently, had only City Council members, and with lunch and facilities cost $186.70.
"We don't need to hire a facilitator; we just need to talk to staff to see where we stand," Varona said. "We just need a day where we can go and talk about all these potential issues.
Board member Dick Hamilton of Benson agreed with Sikkema, stating maybe it's better to wait.
Varona continued to argue the point, stating there was no need for a hotel or facilitator, but there is need for more communication. Other board members eventually conceded, and it was agreed to arrange a one-day event in February or March.
Varona said Monday they don't even need to search for a facility to hold the retreat, noting that the SEABHS building in Sierra Vista could meet their needs.
Varona said sitting back and hoping things will sort themselves out is not an option for the SEABHS board.
"The board needs to grab more of a hold on what is happening here," he said. We also need to discuss the criteria we are looking for in a new CEO. There needs to be a more hands-on CEO. This is a big organization that provides necessary services to people in need. We need to make sure our employees are being held accountable for their actions."
SEABHS has outpatient and family care centers in Benson, Bisbee, Douglas, Clifton, Nogales, Safford, Sierra Vista and Willcox.
Attempts to reach Johnson were unsuccessful.
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Reader Comments
The following are comments from the readers. In no way do they represent the view of bensonnews-sun.com.
T Fac wrote on Nov 25, 2009 2:54 PM:
" This is why the state is in trouble... No one is willing to give a little. What is wrong with finding an office to have your retreats or meeting as they should be called...to have more communication which is certainly needed. You could have 1 day a qtr for meetings without it costing so much. And why should some one who has misused funds be given ANY money. The money she was due should have gone toward the loan she still owes!!! "
Bad Kittie wrote on Nov 25, 2009 5:04 PM:
" And it is such a relief that she has upstanding people like you, that understand that everything she did was done only with the approval of SEABHS including the extension to pay it back. I wonder who would come out and say they are disappointed in you if your issues became public? "
Former Employee wrote on Nov 25, 2009 11:01 PM:
" Finally... Taxpayer's money has been wasted by SEABHS for years. The management drives new Dodge trucks, yet there were no raises for years and the pension plan went away. 119 vehicles for 200+ employees. "
former employee wrote on Nov 27, 2009 4:48 PM:
" it has finally come around dana and her crew of enablers ran seabhs like her private bussiness there should be an investigation on her and her practices for years she did things that were corrupt and unlawful and never had to answer for it i am pleased to see a board member with the courage to act and the brains to question her activities, varona has her hands full she has the same board members there that were there 20 yrs ago and condonded her actions jim rubio is no better he was second in command when everything was happening and his job was to cover for danas incompetence and dis criminatory practices you want to know all of the story contact former employees "
jen8675309 wrote on Nov 28, 2009 9:52 AM:
" The Board of Directors fired her, yet they are also the Board who APPROVED the loan AND approved the extension. Who is irresponsible?
Perhaps a new Board is in order as well. "
Perhaps a new Board is in order as well. "
Bo wrote on Nov 28, 2009 1:12 PM:
" shouldn't the IRS and Ariz Corp comm be notified especially if its been since 2004 and involves 150,000 dollars "
Mary A. Wilson wrote on Nov 29, 2009 4:44 PM:
" I would like to congratulate Thelma Grimes for courage in journalism. Most newspapers are so concerned with "not rocking any public or political boats" that the truth is never heard. On behalf of the citizens of Cochise, Graham, Greenlee and Santa Cruz counties, I thank you, Ms. Grimes! "
Jackie-Former Employee wrote on Nov 30, 2009 3:13 PM:
" For years, there has been an atmosphere of futility among the employees, those still there and those who are gone. Questionable issues that were brought to the board were never addressed because they thought Dana was a gift from God and could do no wrong. Dana would make sure you were next on the list to be terminated if you even questioned questionable activities. In the beginning Jim Rubio attempted to do the right thing, but when push came to shove, he backed down to Dana to keep his job. The empolyees that trusted him and had faith in his abilities were left hanging by themselves. The sad part is that the clients in these communities deserved much better from the agency that was to provide much needed services. There should be a new board of directors and a search for a quality CEO. The communities deserve nothing less. "
johnlaws wrote on Dec 1, 2009 2:33 PM:
" There is a lot of FAT that should be cut at
SEABHS, most of the managers are driving company cars, having the maintance crew wash their cars, They couldnt give their employees a raise for
two years, but could build a lavish corporate office for Dana with a gym
and private court yard, however none
of their hard working Techs were aloud to use any of it. The State needs to do a full investigation on SEABHS, Dana isnt
the only underhanded manager working
there. "
SEABHS, most of the managers are driving company cars, having the maintance crew wash their cars, They couldnt give their employees a raise for
two years, but could build a lavish corporate office for Dana with a gym
and private court yard, however none
of their hard working Techs were aloud to use any of it. The State needs to do a full investigation on SEABHS, Dana isnt
the only underhanded manager working
there. "
Regina Koch-Mart wrote on Dec 1, 2009 6:10 PM:
" Don't believe everything you read in print. People are entitled to the benefit of the doubt! "
former employee wrote on Dec 3, 2009 7:20 PM:
" It's a shame all that money spent on
company cars and gas, when there is
no real therapeutic programs for thier
clients, that money should be going to
the clients. It would have been nice if some of that money was directed to the real backbone of SEABHS, the TECHS!
They deserve better pay insurance and retirement. What was once a good job is now just another dead end. "
company cars and gas, when there is
no real therapeutic programs for thier
clients, that money should be going to
the clients. It would have been nice if some of that money was directed to the real backbone of SEABHS, the TECHS!
They deserve better pay insurance and retirement. What was once a good job is now just another dead end. "
Former employee wrote on Dec 6, 2009 9:35 PM:
" Seabhs always seemed to be administratively top heavy and out of touch with the front line folks. While I will concede that it does require more vehicles and fuel resources to service a mostly rural client base, better managment of the funds, using them to support the frontline and client needs would go a long way towards creating a more effective organization which should be the goal. It always seemed as though the administrations exsistence was more important than the end result of a stronger community. If it was not for the dedication of the folks on the front line Seabhs would not be successful. That being said I am dissapointed the Board is not taking any responsibility for their lack of oversight and turning a blind eye. "
Kittie wrote on Nov 25, 2009 10:52 AM: