Another bizarre twist: It turns out that the Fresno Arts Council and PayPal are stiffing the city on embezzled Measure P funds
By Doug Hoagland
In a startling development, City Manager Georgeanne White said Tuesday that the Fresno Arts Council refuses to give the City embezzled Measure P money that PayPal has reimbursed to the Arts Council.
“We have demanded our money back multiple times. They have not given us back any of our money, and we will pursue every legal option that’s available to us,” White said at a news conference. She spoke following a restitution hearing in federal court for Suliana Caldwell, the convicted embezzler who used her PayPal account to pull off the crime.
Keep track of Measure P: Reporter Doug Hoagland won a 2026 Gruner Award (the highest honor in Valley journalism) for best news story for staying on top of Measure P. See past coverage in The Munro Review’s comprehensive archive
Contacted for comment, Jackson Waste, attorney for the Arts Council, said: “I have been in communication with the City’s counsel and look forward to resolving these issues to both sides’ satisfaction.”
Asked if the City plans to sue the Arts Council, White declined to answer on the advice of City Attorney Andrew Janz, who accompanied White to the court hearing and news conference.
White also was critical of PayPal at the news conference. Asked about PayPal getting involved in the dispute, White said: “I think everybody heard the same thing I heard in court – PayPal has returned money directly to the Fresno Arts Council, and they have not been interested in working with the U.S. Attorney directly to get money back to the City of Fresno.”
An email seeking comment from PayPal was not immediately answered.
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At the restitution hearing, Assistant U.S. Attorney Joseph D. Barton said that PayPal has reimbursed the Arts Council $901,844. That is more than what the Arts Council lost in the embezzlement from accounts it owned and operated, according to the U.S. Attorney Office. The amount lost from those accounts: $642,086.08.
The Measure P money lost in the embezzlement was a significantly greater amount. It totaled $1,177,913.92, according to the FBI’s tracing of the stolen funds.
Still unknown: How did PayPal come up with the seemingly random figure of $901,844? Will it add to that total or, as the Fresno Bee suggested in Tuesday’s coverage, is it intent on “washing its hands” of the situation?
TMR exclusive: One-third of stolen funds wasn’t even Measure P money. So where did it come from?
At the news conference, White was asked if she expects PayPal – based on her understanding of events – to make further reimbursements to the Arts Council. “What I know is what I just heard in court,” White said.
She said the City has had no direct conversations with PayPal, adding: “Those conversations have happened, it appears, directly with the Fresno Arts Council and to some extent with the U.S. Attorney’s Office.”
At the restitution hearing, U.S. District Judge Jennifer Thurston ordered Caldwell to pay the City of Fresno $1.17 million. “I will do whatever I can in my power to return what’s due back to the City of Fresno,” Caldwell said. She is scheduled in October to begin a 33-month prison sentence after pleading guilty to one count of felony wire fraud.
Kevin Rooney, Caldwell’s attorney, said it’s his understanding that any amount of money the City might eventually get from the Arts Council would be deducted from the restitution owed by Caldwell in the criminal case.
Juliana Harris
Many Thanks, Doug! What an incredible story! Your research and follow up is appreciated. Looking forward to your updates.
Steph
What a mess.
I mean, PayPal doesn’t owe the City a dime. They’re beholden to the Arts Council only. Tho I’m still personally shocked PayPal is reimbursing in such high numbers anyway.
And Atty Rooney is hopefully wrong. His client stole that money, she alone has to pay it back. Unless PayPal is directly sending her any money for her to direct to the Arts Council, too bad so sad. Pay up you terrible human (she might not be awful, but she sure did an awful thing).
What. An. Absolute. Mess.