A former Mendocino County employee wants mental health diversion in her felony case involving the county’s suspended auditor and allegations they misappropriated public funds.
Paula Kennedy, a former payroll manager, filed a diversion application in Mendocino County Superior Court July 30. It went before Mendocino County Judge Ann Moorman Thursday and she scheduled a hearing for Sept. 16.
Diversion would let Kennedy avoid incarceration in favor of mental health treatment and get charges dismissed if terms are met.
Prosecutors allege Kennedy used an obscure earnings code on payroll reports to add additional funds to her paycheck for each pay period from 2019 to 2022.
Her diversion application states she did her job well but was overworked and underpaid, and suffered anxiety, stress and depression.
She was diagnosed over the past five years with mental health disorders, including bipolar disorder and schizophrenia, and this contributed to her partaking in the alleged activity.
“They framed it now as a design to steal cash,” Kennedy told a psychologist in her application. “Nobody is saying I didn’t work the hours. I worked even though I was under terrifying pressure, often crying while I was typing at my desk.”
Her attorney with the Public Defender’s Office, Mary LeClair, argued Thursday the diversion motion hadn’t received opposition since July 30 and should be approved.
“The case makes it clear as long as there’s a (clear) showing on the application itself, the court may grant diversion,“ she told Moorman. ”We provided more than a (clear) showing.“
Moorman instead scheduled next month’s hearing to give the prosecution an opportunity to review the motion.
Kennedy and co-defendant, Chamise Cubbison, the county auditor, were charged in October with misappropriating $68,106 in public funds between Oct. 1, 2019, and Aug. 31, 2022. The Mendocino County Board of Supervisors suspended Cubbison shortly after charges were filed.
Both defendants are out of custody and have pleaded not guilty.
Cubbison, an elected official, was Kennedy’s supervisor, but her exact involvement in the case is unclear. The complaint alleges funds were paid out to Kennedy without authorization of the Board of Supervisors, which oversees the county budget and approves most big-ticket expenditures.
Cubbison’s attorney, Chris Andrian, has previously told The Press Democrat Kennedy was owed money and there was approval for her to receive it.
“There is no criminal conduct by either of them in my view,” Andrian said in November 2023. “There's no assertion my client put any money in her pocket and misused any money for her benefit.”
The matter also shed light on a strained relationship between Cubbinson and Mendocino County District Attorney David Eyster.
It stems from conflicts over county finances and Eyster’s opposition to Cubbison being named auditor when the position became open in September 2021. He alleged at the time that she was unqualified.
In June 2022, Cubbison ran unopposed and was elected auditor-controller, while also assuming the treasurer-tax collector role after the positions were consolidated.
Given their contentious history, Cubbison contended Eyster was biased against her and filed a motion in November to request his removal from the case.
The California Attorney General’s Office investigated the matter but, according to an opinion issued Dec. 12, Cubbison had not provided sufficient evidence of a conflict.
A Mendocino County judge also ruled against a defense motion for Eyster to recuse himself.
Nonetheless, Eyster in March appointed a special counsel to handle the case.
The defendants were scheduled to attend a preliminary hearing last month before proceedings slowed due to the discovery of thousands of internal administrative emails that need to be reviewed.
According to court records, defense attorneys filed subpoenas for emails involving people in the case and were told they were inaccessible or didn’t exist due to the technical issue.
Special Prosecutor Traci Carrillo found the emails were still accessible and notified defense attorneys.
They’re now combing through emails for any that may be relevant to the case, specifically anything involving the defendants and former Auditor-Controller Lloyd Weer.
On Thursday, Moorman said about 279,000 emails need to be reviewed and setting a preliminary hearing date is “far too premature.”
You can reach Staff Writer Colin Atagi at colin.atagi@pressdemocrat.com. On Twitter @colin_atagi
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