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SCV Chamber Responds To ‘Baseless Claims’ By Mercado-Fortine In Local Classifieds Section

In recent weeks, the former Latino Chamber has been accused of not properly managing funds when the group merged with the Santa Clarita Valley Chamber of Commerce in February 2015 in a series of stories.


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The Santa Clarita Valley Chamber of Commerce fired off several responses recently via email and social media with respect to the accusations — questioning their source, motivation and the full disclosure of the claims by the publications making them.

In their response, SCV Chamber officials noted the publisher of the local classifieds section, Doug Sutton, who’s been running the stories on the merger inside a local newspaper, failed to disclose in each story that he was on the chamber board during the merger and voted in favor of the deal.

John Musella, chairman of the SCV Chamber of Commerce, stated publicly there was nothing improper about the merger and requested the validity of the sources and “baseless claims,” as he referred to them in an email obtained by KHTS Radio.

In the email, he requested Gloria Mercado-Fortine, a former Hart district board member who unsuccessfully sought the City Council seat to which Councilman Bill Miranda was appointed, provide proof of the accusations. Both served on the Latino Chamber of Commerce together.

Mercado-Fortine was cited as the source of financial reports in several stories.

The email reads:

“Hi Gloria… Can you please send me the emails and documentation you’ve provided the Gazette?  I’d like to review them given the Latino Chamber, and thus the SCV Chamber, is being publicly accused of mishandling funds as a result of information you’ve provided the media.  

If you have information that the Chamber needs to review, we’d appreciate the opportunity to review it.  We do not understand why accusations about an organization are brought to the media instead of the organization in question.

Again, we’d greatly appreciate your cooperation.”

She confirmed she was the chair of the Latino Chamber gala event in question from which funds allegedly went missing, in a phone conversation with KHTS News on Friday.

She denied any involvement in the handling of money when asked about the nature of her accusations.

Also this morning, the Chamber took to Facebook and published the following statement:

“Recently, a couple people have publicly made wild accusations about the Latino Chamber’s finances from when they merged with us two years ago. They are meritless. We’ve asked to see their info and they’ve declined to provide it. However, once again we reviewed the financials of the Latino Chamber and everything is still in order.

“The Latino Chamber merged with the SCV Chamber in February 2015.  The publisher of the Gazette, Doug Sutton, who has run multiple stories about the alleged financial mismanagement of the Latino Chamber merger, was a member of the SCV Chamber Board and Executive Committee at the time of the merger.  Sutton voted in favor of the merger.”

Sutton acknowledged being “called out” on social media for not disclosing his role in the vote.

I don’t remember discussing any of the financial stuff,” Sutton said Friday. “I remember it being presented to us. I remember some grumbling about it…  I remember it at the time it came to us as, ‘We’re going to do this.’”

He said going forward he was going to disclose his role in the merger in all stories.

“I really honestly don’t remember voting on it,” Sutton said. “Shame on me for not recalling.”

 

 

KHTS AM 1220 - Santa Clarita Radio

SCV Chamber Responds To ‘Baseless Claims’ By Mercado-Fortine In Local Classifieds Section

15 comments

  1. Claims, comments or any thing written regarding this was was published in the Santa Clarita Gazette, not sure what local classifieds section you are referring to ? Is this fake news?

  2. To clarify, I do not recall voting on the matter. Some how this has become about me, with everyone missing the point: There was not and has not been a legal tax filing for the last year of the Latino Chamber’s existence. Until that occurs all of this back and forth does not mean a thing. Perhaps someone will address this issue.

    • Doug… we’re looking into the tax filing issue. Given that we have all the financials and reviewed them, the tax filing is a formality we’re working on. Thanks!

  3. Perry, I am very surprised at your sloppy journalism in this article. Shame! Even the article title is incorrect: “SCV Chamber Responds to ‘Baseless Claims’ by Mercado-Fortine in Local Classifieds Section.” I doubt if the SCV Chamber has authorized this response by John Musella of “Baseless Claims” because there were no claims. Unfortunately, you refer the Santa Clarita Gazette as the Local Classifieds Section, another put-down of a competitor. To my knowledge, the Gazette has never accused anyone or organization of not properly managing funds, Doug Sutton just asked “where did the money go?” when Carl Goldman interviewed him on KHTS. Gloria has never even asked that question because she and other board members resigned shortly after the gala because of disappointment with management. When you say “the former Latino Chamber has been accused of not properly managing funds when the group merged with the SCV Chamber” Gloria was not even a member. John Musella and you have asked for copies of Gloria’s information which she gladly offered to provide. She would have given you copies at the same time as the Gazette, but you didn’t ask. You have made Gloria the center of your article which is wrong. She explained to you that all she did was provide information that was requested by the media. You and John Musella should check the facts before launching tirades. “The evidence will lead you to the truth.”

    • Bruce… I thanked Gloria for providing the information to me when I asked for it. And I’m thrilled that we’ve cleared her, Bill and the entire Latino Chamber Board of any alleged wrong doing with the gala financials for which Gloria chaired. It’s important for our members to have faith in our organizations. I’ve had faith that nothing improper occurred and we’ve reviewed the financials to confirm it.

  4. I would like to see our local leaders start acting like adults. Sit down with Carl as an neutral party, present all of your documents and move on.

  5. I lost faith in Carl Goldman as a neutral party after his sit down interview with Doug Sutton and Bill Miranda. Carl was in studio several weeks before interviewing Wilk/Miranda when Bill pointed to a stack of papers and indicated that he had the numbers. Truth was Bill did not have them and sent the Gazette reporter on yet another wild goose chase. During the interview with Sutton/Miranda Carl should have told Bill to give the papers he had to Doug on the spot. Instead , he rushed out of the studio, placed a call to Chamber president (pro tempore) John Musella who we are led to believe told Carl that Bill’s numbers sounded about right. We still don’t know what that number is, and later in the interview Bill rhetorically pondered what difference it would make even if the money was flushed down the sewer.

    The focus of Gazette stories is not on the Latin Chamber. It is on whether Bill Miranda properly discharged his duties and responsibilities as the paid CEO of the Latin Chamber prior to , during , and after the merger of the chambers. Why? Because the narrative story the evening of his appointment was that he had successfully negotiated the merger of the two chambers. That is indeed in question.

    Here are some facts.

    The Internal Revenue Service does not have record of receiving a closing Form 990 for the Latin Chamber of Commerce. Fiscal year July 1, 2014 to June 30, 2015 is not of record. This document would go a long way to determining where the money went.

    The 2015 Form 990 for the Santa Clarita Valley Chamber of Commerce 2015 annual year (merger year) makes no reference to the merger of the two chambers. No line items, no notes.

    We are told that the merger took place in February 2015, but Marlon Roa filed an amended Statement of Information with the Secretary of State in May 2015 naming William Miranda as CEO. himself as Treasurer, and Byron Alvarado as Secretary. Why? They had been merged in February.

    In October 2016 dissolved the Latin Chamber with the Secretary of State’s office by Marlon Roa. Just one problem.

    The Franchise Tax Board has no record of receiving the closing form 3500 that is required and necessary to dissolve a non profit entity.

    All of this time, Bill Miranda was the Chief Executive Officer of the Santa Clarita Valley Latino Chamber of Commerce.

    All funds received and disbursed by the Latino Chamber from July 1, 2014 are unaccounted for at this time. That includes membership dues, special events, and corporate grants .

    We still do not know how much money the Chamber of Commerce received from the Latino Chamber.

    Why does KHTS feel that it is necessary to investigate and disparage Doug Sutton and Gloria Mercado-Fortine rather than have one of their reporters l(Perry Smith ?) do the hard work of a thorough investigative report?

    I guess it is easier to piggyback and criticize the hard diligent work of others.

    We ask, what does “move on” mean?….Be quiet, shut up, sit on the story when a false narrative may have been used to appoint Willian “Bill” Miranda to a vacant council seat despite a paucity of, and questionable qualifications for a position of leadership and financial stewardship.

    Doug Sutton and his reporter Lee Barnathan have courageously pursued a story that is difficult to report in a an insular community like Santa Clarita. In my opinion , they are worthy of praise and admiration not scorn and disparagement by another media outlet.

  6. Part of this story written by Perry Smith is incorrect. In at least two articles in recent editions of the Gazette I was quoted regarding being on the board at the time and not recalling much of the merger. Once in an article written by Lee Barnathan and once in my own column.

    • Doug… you were on the Executive Committee which reviewed and approved the merger. If there was an issue with finances it would have been vetted at that time. And it wasn’t.

      I find it ironic that it’s ok for you as the publisher to have little to no recollection of the merger having been invoked in its approval, but your expectation is that everyone else must have a perfect memory of all the events and figures.

  7. Should we know if Johm Musella resigned from the Governing Board of the SCV Chamber when he took over day to day operations?

    Should we know that William “Bill” Miranda sat on the Chamber’s Governing Board when he sought the council vacancy? Should we know whether William “Bill” Miranda is still a member of the Santa Clarita Chamber?

    Should it be noted that one of John Musella’s clients, namely Chiquita Landfill was the major sponsor of the 2014 Gala ?

    • Steve… I am Chair of the Board for the Chamber. I am not staff. The Exec committee is managing day to day operations in the absence of a head staff person.

      Bill Miranda was on the Board of the Chamber when he sought the appointment and resigned upon appointment.

      Yes, Chiquita is my client and was the title sponsor of the 2014 gala for $7,500

  8. Surprised that Mr. Champion let Mr. Sutton out of his cage to make a comment.

    This thread is like a who’s who of SCV scumbags.

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About Perry Smith

Perry Smith is a print and broadcast journalist who has won several awards for his focused, hyperlocal community coverage in several different regions of the country. In addition to five years of experience covering the Santa Clarita Valley, Smith, a San Fernando Valley native, has worked in newspapers and news websites in Los Angeles, the Northwest, the Central Valley and the South, before coming to KHTS in 2012. To contact Smith, email him at Perry@hometownstation.com.