An audit focusing on a former Placer court executive’s alleged misappropriation of public money will impact judicial systems throughout the state.

As local court officials are “closely reviewing” an audit that alleges John Mendes gave himself unauthorized salary raises and benefits exceeding $400,000, state court officials are launching a study into court executive compensation in California’s 58 counties.

The issue stems from a special audit an Administrative Office auditor conducted during a regular audit of the Placer County Court system. The auditor noticed some issues with executive compensation, notified the presiding justice, who in turn asked for an audit of the executive’s salary.

“I believe this is the first time we’ve come across an issue with executive compensation,” said Philip Carrizosa, a spokesperson for the state Administrative Office of the Courts.

Mendes, the former Placer County Superior Court CEO, was the subject of that special audit released in April by the Administrative Office of the Courts.

In the audit, reviewers write they could not find confirmation from any of the Placer County Court presiding justices authorizing many of the high salary increases and benefits paid to Mendes during his tenure at the office from 2001 to 2009.

The audit details how Mendes’ base salary increased from $120,000 in 2001 to $195,000 in 2009. Auditors were able to confirm approvals for five 2 percent base salary increases. However, Mendes received about 62.5 percent in base salary increases total while working as court executive.

Mendes also “self-approved” more than $100,000 in bonus payments under a management incentive program.

“The court could not provide any written presiding justice authorizations or approvals for these management incentive payments,” auditors wrote.

In a statement released by current presiding justice Alan V. Pineschi, he says the court is “very concerned” about the report’s findings.

He adds that the court has taken several actions in response to the audit and has hired a new chief executive officer. The court’s new executive Jake Chatters, was hired May 29 at a salary of $165,000.

Pineschi said new procedures have been put in place “to ensure financial transparency in court operations.”

“The Placer County Superior Court is closely reviewing the audit’s findings and will work steadfastly to advance the public’s trust and confidence in the court and its administration,” Pineschi stated.

Carrizosa said he hopes the study of executive compensation statewide will do the same.

“We’ve been very careful to say there is nothing to indicate abuse within the system,” Carrizosa said. “We do want to create more uniform rules governing compensation and we want procedures to be very clear about the responsibility of the court about compensation.”

Tom Hudson, executive director of the Taxpayer Protection Committee, said he isn’t surprised by news of someone abusing their role in government.

“It doesn’t surprise me that somebody was approving his own pay raises and finagling the system,” Hudson said. “That seems to be the standard.”

He said similar stories of waste in government coupled with officials requesting more tax increase are hard to swallow.

“Everywhere you look there seems to be unbelievable, outrageous waste,” Hudson said. “Somebody in private industry would just laugh.”

Mendes’ background

Mendes left his position in Placer County in April 2009 for reasons not publicly stated. He was working as the court financial officer in Yolo County Superior Court but left June 17. He will not return, according to Shawn Landry, assistant CEO of Yolo County Superior Court.

Landry said he could not comment on the reasons why because it is a personnel matter.

Mendes was originally hired May 4 “because of the expertise he could bring to the court,” Landry said.

Landry cited Mendes’ position on the budget working group for the state Judicial Council as one area of Mendes’ expertise.

Mendes was appointed to the council as an advisory member in September 2008. He, along with a group of other court executives appointed, did not have voting power for the council, Carrizosa said.

Carrizosa said Mendes was no longer eligible to be on the council once he left his position as executive officer of Placer County courts.

Attempts to contact Mendes and his attorney were unsuccessful as of press time.

What are the next steps?

A copy of the audit was sent to the state Office of the Attorney General and to the Placer County District Attorney’s Office.

The attorney general’s office said the requested review of the audit is “ongoing,” according to spokesman Evan Westrup.

Scott Owens, assistant to the District Attorney confirmed in a prepared statement that the office is reviewing the audit of Placer County courts.

“We are in the process of reviewing that audit to determine what, if anything, should be done with that information,” Owens said. “We’ll provide further information when we can legally and ethically do so.”

The Journal's Jenifer Gee can be reached at jeniferg@goldcountrymedia.com or post a comment.