‘Bake Sale Bandit’ or ‘Under-Appreciated Mom’?
By Patric Hedlund and Gary Meyer
Until about 14 months ago, Staci Watson and Jennifer Underwood were seen as models of community service—young mothers immersed in raising their kids and volunteering at school. But last week, on October 22, Staci Lynette Watson, 39 was arrested on two felony counts for embezzlement and grand theft. She was taken to jail and held on $20,000 bail.
Money had allegedly been taken from Frazier Park School’s Parent, Teacher, Student Organization (the PTSO).
Underwood was serving as president and Watson was both vice president and treasurer of the nonprofit when irregularities were discovered. Underwood has not been charged and has not been arrested. She is said to have recently moved to South Dakota.
The investigative report of Frazier Park substation Lead Deputy Brian Knox and other documents obtained by The Mountain Enterprise yield a picture of an almost cartoon-like tumble into alleged fraud. Both moms argue they worked too hard and deserved to be “appreciated.”
Their path to collecting that appreciation is alleged to have included conspiring together in illegal meetings to change the PTSO bylaws with just their own votes, to try to hide purchases of dozens of pizzas, Chinese food dinners and almost a thousand dollars in gasoline, using Watson’s PTSO debit card.
Estimates of the amount of money that may be missing or mishandled range from $2,450 to $9,000, all from an account built dime by dime from community donations at numerous fundraisers. The money is intended to provide Frazier Park School students with library books, learning tools and field trips.
“The total amount of theft or loss reported is over $5,000,” Kern County Sheriff’s Sergeant Mark Brown said in February 2015 when The Mountain Enterprise first reported to the public an investigation was underway.
“It was reported to us on February 5,” Brown said. “We’re knee-deep in the investigation right now.”
Parents Take Action
Last week, after Watson’s arrest, we interviewed Nicole Corbin and emailed with Alexis Edwards and Kelsy Moore to learn how a group of Frazier Park School parents took action to reclaim their PTSO.
Suspicions of a problem arose during preparations for the 2014 Harvest Festival. Parents were concerned about large amounts of money being used for supplies. They wanted to see an accounting of funds being spent. Corbin also wanted to see how funds were being approved for use. She asked officers for the bylaws and was told by Underwood and Watson that she could not see them.
“We are a private business,” she says they told her, “so our bylaws are private.”
The Mountain Enterprise also asked for a copy of the bylaws. The school principal at the time said he didn’t have them.
We asked for the bylaws at the El Tejon Unified School District office also. We were told ETUSD administrators do not maintain a copy of PTSO bylaws and minutes, although the school gives a room on the campus to the PTSO free of charge, places PTSO membership application forms on its school and district websites and allows the group to collect and spend thousands of dollars from the public each year in the school’s name.
Underwood and Watson came to the newspaper office. They complained to office staff about our requests and spoke about “an ungrateful community.”
Bylaw-gate
Through the winter of 2014, PTSO parents were persistent. They learned that Watson and Underwood had gone to California Bank & Trust in December to have Principal Keri St. Jeor removed from the PTSO bank account. The bank stated this violated the organization’s bylaws.
Deputy Knox’s report says that Underwood and Watson then attempted to bring new bylaws to the bank, but the bank refused to accept them as valid, although it kept a copy. That set removed the principal from the PTSO executive board and ended the need for two signers on checks. It also said that “all financial information is strictly confidential.” Executive board members could discuss financial information only in executive meetings.
In January Nicole Corbin received an email from Underwood who said the PTSO bylaws were available “only through formal request.” Underwood “threatened to file a slander suit against parents alleging fraudulent activity,” Knox reports.
On January 27, 2015 Corbin was allowed to see the bylaws at a meeting in the school cafeteria, under supervision of Underwood and new Vice President Jennifer Witham. They told Corbin she could read the bylaws but was not allowed to take notes.
When the principal came into the room, they told him he had to leave, Corbin recalls. By then, she was looking for the procedure to remove officers, but did not want them to know that, so she lingered over each page, reading slowly.
On January 29 a burglary was reported at Jennifer Underwood’s residence in the Pine Mountain community. In an elaborate tale, Underwood and her son said a black Toshiba laptop computer was stolen by someone crawling in a window. The computer belonged to the PTSO and held its records.
On February 3, 2015 a group of parents gathered in a meeting with Underwood and Watson at 6:35 p.m. at the school. Minutes were recorded. By 6:42 p.m. Underwood and Watson were removed from office in an 11-0 vote. At 6:45 p.m. a motion was passed that all property and belongings of the PTSO (including laptop and printer) should be returned to Frazier Park School by Friday, Feb. 6. At 6:47 p.m. they elected new officers. At 6:49 p.m. the meeting was adjourned. But the deposed officers stayed.
Deputy Knox’s report says Underwood produced yet another set of bylaws after the vote to adjourn. This third set of bylaws was dated August 14, 2014. It had an Article X with a personal conduct clause regarding libel and slander, making offenders responsible for attorney fees and fines. Knox’s report says Underwood threatened to use the remaining PTSO funds for attorneys’ fees, and that Watson said “she had the right to spend money on food, gas and other items because she was doing so much work for the organization.”
On February 4 new officers Nicole Corbin, Alexis Edwards and Kelsy Moore went to the Kern County Sheriff’s substation to file a complaint of embezzlement.
Unpaid Bills
Alexis Edwards sifted through the accounts and debit purchases. New officers found unpaid bills totalling over $5,000. One from the Candy Cane Holiday Shoppe dated December 2014 went to a collection agency for $3,351. An unpaid balance of $2,007 was owed to Scholastic Book Fair.
The PTSO computer later showed up at the school with a box of other items. Its hard drive was wiped clean of all PTSO records. Watson and Underwood also left with it two defiant letters justifying their actions.
Knox writes that unauthorized PTSO debit card purchases by Watson for fuel, pizza, other restaurants and at convenience stores total $2,400.74.
Making Things Right
Today the PTSO bylaws and minutes from meetings are kept at the front counter of the school office. Anyone can refer to them by simply requesting the folder.
“It is our deepest desire to restore not only the community’s faith in our PTSO, but to restore funds lost by this terrible misuse,” Alexis Edwards said.
Kelsy Moore said she still wonders how this was done without “feeling some kind of remorse….She needs to pay back every penny that was wrongfully used….”
Watson was released from the Kern County jail on a $20,000 bond. She is scheduled to appear at Kern County Superior Court in Lamont on November 5.
Staci Watson and Jennifer Underwood did not respond to our inquiries by press time.
Photo captions:
(l-r) Jennifer Underwood was president and Staci Watson was treasurer when thousands of dollars went missing from the Frazier Park School PTSO account. Watson (right) was arrested last week on two felony charges.
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This is part of the October 30, 2015 online edition of The Mountain Enterprise.
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