FRESNO, Calif. (KFSN) — Staff at the Fresno Arts Council quickly put up partitions to shield Action News cameras as we sought answers on Thursday.
One woman who briefly came to the door said the executive director was unavailable and had “no comment” before locking us out.
The Arts Council is facing scrutiny after a $1.5-million embezzlement claim surfaced. A board member came forward last week, telling city officials that an employee stole the money.
Fresno Police and the FBI are now investigating.
“For checks that are written, they go through the mail,” Action News Legal Analyst Tony Capozzi said. “For checks and money that’s transferred from one bank to another account goes through the wires, and that’s all federal offenses.”
Capozzi explained the forensic audit that officials confirm is underway.
“The money needs to be traced, and by doing that, they can determine whether or not the money was embezzled, and if the money was illegally obtained from the Arts Council and utilized in another way, that could be money laundering,” he said.
The funds come from Measure P, which voters approved in 2018. The 30-year sales tax funds city parks, recreation, streets, and the arts.
In August 2023, the City Council agreed to allow the Fresno Arts Council to administer the grant program to local artists.
In the first cycle, nearly $10 million went out. In October 2024, the Arts Council got another $5.7 million for a second round of grants.
They returned to City Hall a year later, requesting a third round of funding last October. The city denied it, as artists voiced concerns.
“We need to diversify our grant program here, as people are applying for the full 50,000 amount when they don’t need it,” Johannes Renders said in October. “They just go for the max amount that they can.”
Last Thursday, city leaders learned from the board member about the embezzlement. On Tuesday, the city announced it had cancelled its contract with the Arts Council.
“The question then becomes, was there enough oversight over the Arts Council to see where this money was going and to see if it was done properly?” Capozzi said.
Local artists are now demanding answers. They want to know who stole the money and when they will get paid for the grants they are promised.
“A thorough investigation would take two to three months to make sure we know exactly where the money went, how it came in, where it went, how it went out, and to whom it went,” Capozzi said.
With more questions than answers, the city confirms it will take over the grant program.
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