Ernie Garza, the former general manager of the Keyes Community Services District (KCSD), last week alleged that a former co-worker has been committing insurance fraud relating to benefits the district paid for her.
Garza made a formal complaint which he announced at the Tuesday, Nov. 25 board meeting. He accused KCSD administrative executive Michelle Harris of having the district pay medical benefits to her divorced husband.
“The individual in question has knowingly and improperly included her former spouse, who she secretly divorced, on her agency funded family health insurance claim … for multiple years,” said Garza. “This action was taken knowingly and without disclosure to the board.”
Garza called her actions a misappropriation of public funds.
Garza asked for an independent investigation and a full audit of all insurance premiums and claims paid on behalf of ineligible dependents and disclose the findings.
“This misconduct represents a betrayal of public trust and the misuse of public funds that should serve the residents of Keyes, many who are poor,” Garza charged.
He also accused the board of being complicit, noting that he reported his findings of the “secret” divorce to board president Johnathon Parker and vice president Ron Reforma on August 22 but they approved the payment of the invoice. Harris was also given a pay raise and promoted to jointly fill Garza’s position with Mike Jones.
“Only in Keyes, with this Board of Directors, can dishonesty not get you terminated but get you a promotion,” said Garza.
Harris was not present at the meeting, out on medical leave for a knee surgery. When the Courier called the KCSD office on Monday, the district said it wouldn’t comment. A request for Harris to call the Courier to answer Garza’s charges was not returned.
Garza said he’s asked the Stanislaus County Civil Grand Jury to investigate his claims.
Garza accused the board of working with Harris in closed session to terminate him but he was not asked to comment on his performance evaluations. He claimed the board violated the Brown Act when it met in secret on Aug. 12.
According to Garza, Harris divorced her husband in 2012, which he said he verified by the county.
Shortly before he was terminated, Harris filed a stress claim with the Special District Risk Management Authority
(SDRMA). The agency asked Garza why Harris was stressed out and Garza suspected it was “she’s about to be found out
that she’s been secretly divorced.”
According to the Transparent California website, Garza’s salary and benefits package in 2024 was $132,486.40. However, the same website notes that Harris cost the district a total of $163,930.56 in pay and benefits during 2022.
