BAKERSFIELD, Calif. (KERO) — Two lawsuits involving Clinica Sierra Vista are raising questions about alleged financial irregularities, an independent investigation and what happened after concerns were raised inside the organization.
One lawsuit was filed by two current Clinica employees, Magdalena Pruitt and Genesis Barajas. The other was filed by former board treasurer Mario Valenzuela.
Clinica disputes the allegations, which have not been proven in court.
Lawsuit 1: Employees allege financial irregularities and retaliation
Pruitt and Barajas filed their lawsuit against Clinica Sierra Vista on Aug. 19.
The employees allege they faced retaliation after raising concerns about Clinica's finances and potential conflicts of interest.
Among the allegations in their complaint:
- $5.8 million expense entry: Barajas alleges she discovered an unexplained $5.8 million expense entry in Clinica's financial records with no supporting documentation.
- Westpoint staffing: The lawsuit says Barajas was asked to develop different staffing models for Clinica's Westpoint location, including an outside contractor option.
- BeyondCare Medical: Around the same time, the employees say they learned about a separate company called BeyondCare Medical. The lawsuit alleges CEO Olga Meave and two other Clinica executives were listed in corporate records for the company and were attempting to steer a staffing contract for a new clinic to BeyondCare — a company they secretly owned.
- Other financial concerns: The complaint raises additional questions involving consulting payments and adjustments to Clinica's financial records.
- Retaliation: Pruitt and Barajas allege they faced adverse treatment after raising their concerns and were eventually placed on paid administrative leave. Both remain employed by Clinica.
Clinica denies the allegations.
Attorney Russell Ryan told 23ABC that BeyondCare was never fully organized, never did business with Clinica and never had negotiations, a contract, letter of intent or payment arrangement with the organization.
Ryan also told 23ABC there was "no retaliation."
Pruitt and Barajas say their concerns were eventually taken to Clinica's board, which authorized an independent investigation by law firm Feldesman LLP.
What happened to that investigation is also a central part of the second lawsuit.
Clinica says the Feldesman investigation was temporarily suspended after the board learned the attorneys conducting it were not licensed to practice law in California.
Ryan says Feldesman later withdrew and his firm completed the investigation.
When asked what that completed investigation found, Ryan said it "did not substantiate any of those allegations" and found no other misconduct or improper behavior by Clinica or the management team members identified in the lawsuit.
Ryan says the final report remains privileged and confidential.
Lawsuit 2: Former board treasurer challenges his removal
Former Clinica board treasurer Mario Valenzuela filed a separate federal lawsuit against Clinica Sierra Vista and board chair Ana Zarco.
His lawsuit centers on the organization's board, the handling of the independent investigation and his removal.
Valenzuela alleges:
- Interference with the investigation: His complaint alleges interviews were canceled and investigators' access was restricted before the investigation was suspended.
- Federal disclosures: Valenzuela says he reported compliance concerns to the U.S. Department of Health and Human Services Office of Inspector General and the Health Resources and Services Administration.
- Board removal: He alleges he was removed after pushing for accountability over concerns raised inside Clinica.
- Board composition: His lawsuit also raises questions about whether Clinica's board fell below federal membership requirements during the period in question.
Clinica and Zarco dispute Valenzuela's contentions.
Valenzuela declined further comment, but his attorney provided a statement saying he stands behind his verified complaint.
"Mr. Valenzuela took action because he believed it was his responsibility as a board member to protect whistleblowers, safeguard the integrity of Clinica Sierra Vista, and ensure that the organization could continue serving the public without interruption."
As the two cases move through the courts, Clinica Sierra Vista is continuing to expand its services, with a new clinic set to open in east Bakersfield.
The allegations in both lawsuits have not been proven in court.
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