The arraignment for a former Santa Maria-Bonita School District employee and three executives from TurnKey Construction company charged with embezzlement and misappropriating more than $3.6 million in public funds designated for school construction was continued Friday.

Accused are Cynthia Lynn Clark, 54, former assistant superintendent of the Santa Maria-Bonita School District, now of Cape Canaveral, Fla.; Harold Leo Clark III, 46, of Temecula, former TurnKey chief executive officer; Michael Patrick Bannan, 43, of Vista, former TurnKey chief operating officer; and David Irwin, 39, of Temecula, former TurnKey vice president.

Some of the charges may have been beyond their statute of limitations, and the matter must be cleared up before the case can continue, said Ilan Funke-Bilu, attorney for Cynthia Clark.

From 2000 to 2005, Turnkey managed multiple construction projects for Santa Maria-Bonita.

During this time, the construction company signed $62 million in construction management contracts with the district for the completion of 16 major school projects.

In fall 2004, questions began to arise regarding TurnKey’s business practices, prompting the school district to stop all payments to the company.

An investigation began of the accounts, invoices and payments made to TurnKey, overseen by Cynthia Clark, and the company declared bankruptcy in January 2005.

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According to the grand jury indictment, the TurnKey executives — with Cynthia Clark’s knowledge — submitted false invoices related to several school projects the district hired the company to complete and used the money to fund a lavish lifestyle.

The defendants appeared before Commissioner John McGregor and are due back in court Aug. 25 for a hearing on the matter and possible arraignment.

If convicted on all counts, each of the defendants could face up to 38 years in prison.

July 19, 2008