Consumer Group Dissolving Amid Allegations

The San Diego-based Utility Consumers Action Network, which for decades has provided information on utilities and gas prices, is dissolving in response to a subpoena from a federal grand jury related to allegations of embezzlement, the organization announced this week.

On its website, UCAN said allegations of embezzlement, the use of private bank accounts for hiding money, failure to comply with state audit requirements, engaging in unlicensed legal activities and entering into illegal contracts have been lodged against its senior management.

“However, no evidence confirming such allegations was provided by those lodging allegations, nor discovered by any of the professionals retained by UCAN’s board,” according to UCAN.

The subpoena was received on Feb. 22.

Board members retained lawyers last year in response to lawsuits threatened by staffers, according to the statement. Filing an intention to dissolve with the court would help resolve its legal issues, UCAN said.

UCAN said it would continue its work as a ratepayer advocate while it is dissolved. The UCAN website is a popular source of information on gas prices.

In response to the announcement, San Diego City Councilman Carl DeMaio sent a memo to Mayor Jerry Sanders and City Attorney Jan Goldsmith, asking if the city should let UCAN continue to solicit donations via inserts in water bills.

“I am concerned that the city is including a fundraising solicitation in every San Diegan’s water bill for an organization that is now closing down under the cloud of a grand jury investigation,” said DeMaio, who is running for mayor.

Solicitation inserts have been included in bills three times per year since 2009.

-City News Service