March 5, 2021

The Honorable Xavier Becerra

California Attorney General
1300 I Street
Sacramento, CA 95814

SENT VIA EMAIL AND U.S. MAIL

Dear Attorney General Becerra:

I write on behalf of the Board of Directors for the California District Attorneys Association (CDAA)
to formally request an investigation by your office into the unauthorized transfer and expenditure
of asset forfeiture and high-tech funds by former staff members at the Association.

By way of background, last fall our Board of Directors commissioned a full and independent
forensic audit of internal staff accounting practices involving funds restricted for environmental
protection and worker safety. The December 2020 audit report from Hemming Morse LLP, revealed
a longstanding past financial practice, beginning in 2004, which resulted in the borrowing of certain
restricted funds to support general functions of the Association. A copy of this audit was previously
shared with members of your office on December 23, 2020. While the audit found no evidence of
intentional malfeasance, it did identify a pattern that violated best practices and accepted
accounting standards for restricted purpose funds.

The Board of Directors of the Association accepted and concurred with the audit and all audit
recommendations on December 21, 2021. Please see our public statement to this effect on
December 22, 2020.

Subsequently, CDAA representatives including myself met with Acting Chief Assistant Attorney
General Ed Ochoa and other members of your staff on February 17, 2021, at their request to discuss
the audit. CDAA found this meeting productive and we provided your staff with information on the
affirmative steps we have taken to address the audit and related issues. I also discussed with your
team a plan of action going forward to prevent any reoccurrence of similar accounting practices.

Yesterday, CDAA received a follow-up letter from Mr. Ochoa. This letter implied that CDAA was not
moving expeditiously enough to address the accounting issues, notwithstanding the extensive
information that I provided to your office about my plan to remedy these practices. To be clear, as

2495 Natomas Park Drive, Suite 575 • Sacramento, CA 95833 • 916-443-2017 • www.cdaa.org
CDAA Request for AG Investigation
March 5, 2021
Page 2

this request for an investigation hopefully demonstrates, the Board and I are committed to a full
and timely resolution of this issue.

It is notable as well that the Attorney General’s Office has been aware of the issues surrounding the
accounting discrepancies in the environmental protection program since early last summer. On July
2, 2020, Mr. Ochoa and Margarita Padilla received a full briefing on the circumstances leading to the
audit. In fact, the firm selected to conduct the forensic audit (Hemming Morse LLP) was
recommended to us by members of your office.

As was discussed at the February 17 meeting, the accounting practices identified in the audit were
the catalyst for a change in management at the Association. Your knowledge of this staff change
may be relevant because a former member of CDAA’s management is now employed by your office.

On January 11, 2021, I assumed the position of Chief Executive Officer at CDAA following a lengthy
career as a deputy prosecutor and elected District Attorney in Ventura County. As the new CEO, I
have been charged with the task of restoring trust and fidelity in the Association’s financial
management. As a part of that effort, I have been conducting an internal review of our financial
records and practices. On February 22, 2021, I reviewed internal reports, prepared at my request,
that revealed the practice of borrowing asset forfeiture funds. Pursuant to Health and Safety Code
section 11489(b)(2)(D), CDAA receives one percent of the funds forfeited under California’s Asset
Forfeiture Law. This provision requires that the funds be used “for the exclusive purpose of
providing a statewide program of education and training for prosecutors and law enforcement
officers in ethics and the proper use of laws permitting the seizure and forfeiture of assets under
this chapter. Since the law’s adoption in 1994, the Association has utilized these funds to provide
numerous comprehensive training programs on ethics and asset forfeiture for prosecutors and law
enforcement officers throughout California. However, the internal reports noted above disclose the
following unauthorized and improper use of these funds by Association staff:

• Approximately $1,257,599 in asset forfeiture funds have been transferred to and used for
CDAA general fund purposes.
• The vast majority of these transfers, $1,090,225, occurred between 2015–2020.
• During a four-year period, 2016–2020, asset forfeiture funds were placed directly into the
general fund without an initial deposit into the asset forfeiture account.
• Use of these funds in this manner is contrary to the statutory restrictions contained in
Health and Safety Code section 11489(b)(2)(D).

Regular financial reports and other staff information provided to the Board of Directors did not
disclose the existence of this unauthorized practice.
CDAA Request for AG Investigation
March 5, 2021
Page 3

Additionally, while I am still reviewing association finances, it appears that funds the Association
receives for high tech training through a memorandum of agreement with the Marin County District
Attorney’s Office may have been similarly affected. A preliminary review suggests that an estimated
$406,984 in high-tech funds governed by Penal Code section 13848.4 have been improperly
transferred and utilized for general fund purposes.

It is very troubling that former staff members appear to have prepared and submitted reports to
the Association’s independent, annual auditor and the Board of Directors that did not disclose these
accounting practices. The Board and I ordered these practices to immediately cease and
implemented appropriate safeguards to prevent any similar future actions. No one is more angry
and disappointed than the Board and myself that these actions occurred. A satisfactory resolution is
our highest priority, and we are committed to restoring these funds.

For all of these reasons, I respectfully request that your office promptly open and conduct a
thorough investigation into the improper use of asset forfeiture and high-tech funds by CDAA staff.
Thank you in advance for your consideration of this request and I look forward to speaking with
members of your staff at their earliest convenience.

Very truly yours,

Gregory D. Totten
Chief Executive Officer