Please ensure Javascript is enabled for purposes of website accessibility
U.S. Attorney Ends Probe Into Fresno Unified Construction Projects
Bill McEwen updated website photo 2024
By Bill McEwen, News Director
Published 6 years ago on
April 6, 2019

Share

U.S. Department of Justice officials based in Sacramento say that a federal investigation into construction contracts awarded by Fresno Unified School District is over and no charges will be filed.
The probe, which was launched in August 2015, began with a federal grand jury subpoena of district records related to its use of lease-leaseback contracts to build and renovate schools.

“We believe that they came to the correct conclusion and the district is certainly pleased that this chapter is closed.” — Fresno attorney Carl M. Faller, who represented Fresno Unified in the federal criminal investigation
“We believe that they came to the correct conclusion and the district is certainly pleased that this chapter is closed,” attorney Carl M. Faller of Fresno, a former assistant U.S. Attorney who represented Fresno Unified in the criminal investigation, said Friday.
Faller said he believed that federal officials made the announcement because of “the significant amount of public discussion” about the investigation.
“They rightfully decided to notify the public when it was concluded, and we very much appreciate that,” Faller said.
Fresno Unified officials have steadfastly maintained that the contracts were legal and that no district employees engaged in wrongdoing.

Civil Lawsuit Over Gaston Contract in July

Three months before the federal inquiry began, the Fifth District Court of Appeal reversed a Fresno Superior Court decision in a lawsuit challenging Fresno Unified’s award of a $37 million contract to build Rutherford B. Gaston Middle School to Harris Construction.
The appeal court based part of its reversal on finding that the contract between Fresno Unified and Harris wasn’t a “true” lease because the contractor didn’t finance the project.
However, two other California appellate courts have since ruled that lease-leaseback is exempt from competitive bidding requirements and the law governing leaseback construction doesn’t require a true lease and contractor financing.
That lawsuit, filed by Stephen Davis of Davis Moreno Construction Inc., is scheduled to be heard by a Fresno judge beginning in July.

Documents Sought in Federal Subpoena

The federal subpoena required Fresno Unified to provide financial documents involving its leaseback contracts. The district switched from competitive bidding to the leaseback mechanism under then-Superintendent Michael Hanson following voter passage of the $280 million Measure Q bond in 2010.
In the leaseback arrangement, a district forgoes the traditional competitive bid process. Instead, it hires a firm to front the cost of a project and repay the contractor over time. Fresno Unified repeatedly used the leaseback process following passage of Measure Q even though it had the funds to pay for Gaston and renovate many schools.
The federal investigation also examined the personal emails and phone records of district officials and sought records pertaining to financial dealings between contractors and officials, and the campaign contributions of Harris Construction and another company, Bush Construction, in Fresno Unified school board races.
In January 2017, Fresno Unified trustees fired Hanson on a 4-2 vote. The dismissal came eight months before Hanson’s previously announced departure date from the district.
 

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Rams Take Oregon Tight End Terrance Ferguson in Second Round After Trading Out of First

DON'T MISS

Yastrzemski and Chapman Homers Help Giants Rally Past the Brewers

DON'T MISS

The Latest: Francis Is Remembered as a ‘Pope Among the People’ as He Is Laid to Rest

DON'T MISS

ICE Is Reversing the Termination of Legal Status for International Students Around the US

DON'T MISS

Trump Is a Revolutionary. Will He Succeed or Fail?

DON'T MISS

Trump Now Doubts Putin Wants to End Ukraine War, a Day After Saying a Deal Was Close

DON'T MISS

We Need Proof of Life for the Makeup Artist Trump Sent to El Salvador

DON'T MISS

Fresno Elderly Woman Evicted, Forced to Leave Dogs Behind. One Still Needs a Home.

DON'T MISS

Virginia Giuffre, Voice in Epstein Sex Trafficking Scandal, Dies at 41

DON'T MISS

California Proposes Allowing Testing of Self-Driving Heavy-Duty Trucks

UP NEXT

Yastrzemski and Chapman Homers Help Giants Rally Past the Brewers

UP NEXT

The Latest: Francis Is Remembered as a ‘Pope Among the People’ as He Is Laid to Rest

UP NEXT

Trump Now Doubts Putin Wants to End Ukraine War, a Day After Saying a Deal Was Close

UP NEXT

Fresno Elderly Woman Evicted, Forced to Leave Dogs Behind. One Still Needs a Home.

UP NEXT

Virginia Giuffre, Voice in Epstein Sex Trafficking Scandal, Dies at 41

UP NEXT

California Proposes Allowing Testing of Self-Driving Heavy-Duty Trucks

UP NEXT

Selma Mayor Charged With Electioneering Violation on Election Day

UP NEXT

Fresno Air Improves. Where Does It Rank in the US?

UP NEXT

Driving Near the Fresno Airport Next Week? Plan for Road Closures

UP NEXT

Misty Her: Push for Fresno Unified Turnaround Starts Now With ‘Boots on the Ground’

Bill McEwen,
News Director
Bill McEwen is news director and columnist for GV Wire. He joined GV Wire in August 2017 after 37 years at The Fresno Bee. With The Bee, he served as Opinion Editor, City Hall reporter, Metro columnist, sports columnist and sports editor through the years. His work has been frequently honored by the California Newspapers Publishers Association, including authoring first-place editorials in 2015 and 2016. Bill and his wife, Karen, are proud parents of two adult sons, and they have two grandsons. You can contact Bill at 559-492-4031 or at Send an Email

ICE Is Reversing the Termination of Legal Status for International Students Around the US

1 hour ago

Trump Is a Revolutionary. Will He Succeed or Fail?

2 hours ago

Trump Now Doubts Putin Wants to End Ukraine War, a Day After Saying a Deal Was Close

2 hours ago

We Need Proof of Life for the Makeup Artist Trump Sent to El Salvador

2 hours ago

Fresno Elderly Woman Evicted, Forced to Leave Dogs Behind. One Still Needs a Home.

3 hours ago

Virginia Giuffre, Voice in Epstein Sex Trafficking Scandal, Dies at 41

14 hours ago

California Proposes Allowing Testing of Self-Driving Heavy-Duty Trucks

17 hours ago

Higher Taxes on Millionaires? Trump Says He’s Open, but Many in His Party Are Not

18 hours ago

Ex-US Rep. George Santos Sentenced to Over 7 Years in Prison for Fraud and Identity Theft

18 hours ago

Selma Mayor Charged With Electioneering Violation on Election Day

18 hours ago

Rams Take Oregon Tight End Terrance Ferguson in Second Round After Trading Out of First

The Los Angeles Rams selected Oregon tight end Terrance Ferguson with the 46th overall pick in the second round of the NFL draft on Friday n...

3 minutes ago

Rams
3 minutes ago

Rams Take Oregon Tight End Terrance Ferguson in Second Round After Trading Out of First

13 minutes ago

Yastrzemski and Chapman Homers Help Giants Rally Past the Brewers

46 minutes ago

The Latest: Francis Is Remembered as a ‘Pope Among the People’ as He Is Laid to Rest

1 hour ago

ICE Is Reversing the Termination of Legal Status for International Students Around the US

2 hours ago

Trump Is a Revolutionary. Will He Succeed or Fail?

2 hours ago

Trump Now Doubts Putin Wants to End Ukraine War, a Day After Saying a Deal Was Close

President Donald Trump speaks to reporters at the White House in Washington, D.C., U.S., April 23, 2025. (REUTERS/Kevin Lamarque)
2 hours ago

We Need Proof of Life for the Makeup Artist Trump Sent to El Salvador

After a Fresno woman was evicted and her home padlocked, her four dogs were left behind — and now the last one, a loyal German shepherd named Ginger, is waiting for a new home. (Mell's Mutts)
3 hours ago

Fresno Elderly Woman Evicted, Forced to Leave Dogs Behind. One Still Needs a Home.

Help continue the work that gets you the news that matters most.

Search

Send this to a friend