Former Southeastern Economic Development Corporation Employees Sentenced for Embezzlement of Public Funds

On Friday, January 20, 2012, Carolyn Smith and Dante Dayacap were sentenced as a result of an FBI public corruption investigation. Smith received five years’ probation, with a 365-day stayed sentence of custody pending successful completion of probation, 360 hours of community service, and a $1,264 fine. Dayacap received five years’ probation, with a 270-day stayed sentence of custody pending successful completion of probation, 240 hours of community service, and a $1,264 fine. Additionally, restitution of $435,018.36 joint and several was ordered.

According to the complaint filed November 15, 2011, Carolyn Smith, the former president of the Southeastern Economic Development Corporation (SEDC), and Dante Dayacap, the former financial director of SEDC, committed the crime of embezzlement of public funds. Starting in 2005 Smith and Dayacap fraudulently appropriated and embezzled monies from SEDC through a series of bonuses and other acknowledgements.

The charges in this investigation stem from an investigation led by the FBI and prosecuted by the Office of the California Attorney General. Carolyn Smith and Dante Dayacap both pled guilty to one count of California Penal Code 504, embezzlement of public funds on November 15, 2011.

Because public corruption poses a fundamental threat to our nation’s way of life, it is the FBI’s top criminal priority. The FBI is uniquely situated to combat this type of corruption. Anyone with information suggesting public officials engaging in bribery, embezzlement, kickbacks, money laundering, or other fraudulent activities is urged to contact the San Diego FBI’s Public Corruption Hotline at (877) NO-BRIBE or the 24-hour attendant at (858) 565-1255.