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Uploaded: Tuesday, October 23, 2012, 8:59 AM
Hanretty expresses 'extreme remorse' for stealing from schools; heads to state prison
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This is an expanded version of a previously posted article.
By Barbara Wood
Special to the Almanac
Tim Hanretty, former Portola Valley School District Superintendent and Woodside Elementary School District finance officer, was handcuffed and taken into custody directly from the Redwood City Superior Court courtroom after being sentenced to two years in state prison on Monday, Oct. 22, for embezzlement and other crimes.
Looking on from the courtroom were officials from both districts who appeared somber, and in some cases close to tears, at the resolution to the case.
"This is a very difficult sentencing decision," Judge Mark Forcum said. He alluded to Mr. Hanretty's motive in the case. "Because you were angry at the school district for not better compensating you," Judge Forcum said, "you decided to take it upon yourself to embezzle" the money.
After the sentencing, Mr. Hanretty's attorney, Michael Markowitz of Danville, elaborated. He said Mr. Hanretty had asked for a loan of $100,000 from the Portola Valley district "and they turned him down."
Faced with debts on a home remodeling project, "he very, very foolishly took things into his own hands," Mr. Markowitz said.
The judge ordered Mr. Hanretty to pay the full amount of restitution that the Portola Valley district has requested -- more than $180,000 including $100,926 he admitted embezzling from the district, plus its attorney, auditor and staff overtime costs.
Still to be determined is exactly how much restitution Mr. Hanretty will be required to pay to the Woodside district.
Woodside has asked to be reimbursed $1,556,446 in loan interest and $1,968,000 in loan principal, plus $67,783 in attorney fees and $35,173 for an accountant.
A hearing on Nov. 15 will determine the restitution to be paid to Woodside.
"I will be glad when the restitution is ironed out," Woodside superintendent Beth Polito said. "We are also pursuing other venues to make us whole. We have an insurance claim and are negotiating with the lender."
After the sentencing, Portola Valley Superintendent Carol Piraino said she appreciates "the work that county counsel, the forensic auditors, and the district attorney's office did on behalf of the Portola Valley School District."
To date, Mr. Hanretty has repaid the Portola Valley district $120,926 and repaid the Woodside district $20,000. Mr. Markowitz, his attorney, said the amount was "all he can come up with at this time" and that he had borrowed it from family and other supporters.
Mr. Hanretty appeared grim during the hearing, but addressed the court calmly. "I stand before you today with extreme remorse for my acts of wrongdoing," he said, reading from a prepared statement. "I profusely apologize to everyone who has been harmed by my actions."
On July 31, Mr. Hanretty pleaded "no contest" to charges of felony misappropriation of public funds in Woodside and Portola Valley.
In Woodside he was accused of forging documents that allowed a loan of up to $3 million to be made to the district, despite the fact that the school board had approved borrowing only $632,000. He eventually obtained a loan of $2.6 million, which district officials say was spent on school projects.
In Portola Valley further investigation found Mr. Hanretty had turned in $100,926 in invoices for work on his own home, to be paid by the district's solar panel fund.
In return for the plea, the District Attorney's Office had agreed that Mr. Hanretty would serve no more than four years in prison.
The misappropriation of public money was first discovered about a year ago when a Woodside school board member questioned the amount of debt service the district was paying.
After investigation uncovered the dubious loan, Mr. Hanretty resigned in January as the Portola Valley district superintendent, a job he began in August 2010. Before that, he had served as chief business officer of both districts.
Mr. Hanretty's attorney had asked that he be given only probation, while the DA's office had asked that he be sentenced to the full four years in prison.
Mr. Markowitz offered one explanation for Mr. Hanretty's misdeeds: "A gay man who's in the position he's in," he said, and who has spent much of his life hiding his sexual orientation "has a very difficult time being forthright with the people he's involved with."
"I am not a quitter. I never have been," Mr. Hanretty told the court before the sentencing, saying he planned to use his plumbing, electrical and other skills to start a home-improvement business to earn money to pay back the districts.
That goal, it appears, will have to be put off for now.
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Posted by Resident, a resident of the Portola Valley: other neighborhood, on Oct 23, 2012 at 1:56 pm "A gay man...has a very difficult time being forthright..." says his attorney.
Not "A" gay man: THIS gay man.
Being gay does not in itself lead to crime, and being gay is not an excuse for committing crimes.
Mr. Hanretty's personal life experiences may have created a weakness of character that allowed him to fleece two school districts, but that does not pre-destin his ensuing actions. His attorney, Mr. Markowitz, should feel quite a bit of shame for trying to shift the blame from an individual's chosen actions to their innate sexual orientation. Mr. Markowitz is implying that our society's prejudices cause individuals to commit crimes, even as his words underline and worsen those prejudices. Shame on both men.
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Posted by Steve, a resident of the Menlo Park: Downtown neighborhood, on Oct 23, 2012 at 3:17 pm What does gay have to do with anything in this case. A thief is a thief regardless of sexual orientation. Should be interesting in the state prision for him.
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Posted by Katie, a resident of the Menlo Park: Downtown neighborhood, on Oct 23, 2012 at 5:34 pm They NEVER repay their embezzeling debts.
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Posted by Former PV resident, a resident of another community, on Oct 23, 2012 at 5:59 pm Having worked with Tim Hanretty in a volunteer capacity some years ago, I find his embezzlement charges quite distressing. I respected and trusted Mr. Hanretty, though this was before he was both PVSD financial manager and superintendent. The damage his actions have caused two very fine school districts is horrible.
But for Mr. Markowitz to make Mr. Hanretty's sexual orientation a scapegoat for his illegal actions is awful. Though no one discussed it, which is appropriate, I don't think that anyone who worked with and knew Mr. Hanretty would have been surprised to know that he was gay and that was just fine as it was his personal life. Crime is crime, pure and simple, regardless of sexual orientation.
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Posted by Psychological Influences, a member of the Corte Madera School community, on Oct 23, 2012 at 9:19 pm Mr. Markowitz makes an interesting comment about a cause for Mr. Hanretty's aversion to transparency and honesty: growing up and living in a context in which honesty and transparency are dangerous might have consequences that affect one's professional performance and judgement.
Are adult children of alcoholics reliable leaders? Are GLBTQ people who have grown up in non-accepting environments permanently skewed by this experience?
Do we really want to go there in thinking about people in personal and professional contexts?
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Posted by Sarah, a resident of the Portola Valley: Central Portola Valley neighborhood, on Oct 24, 2012 at 11:08 am As a PV resident and parent with 3 kids in the school district I am deeply saddened and angered by the actions of Mr. Hanretty. However I am also angered by both the comments of Mr. Markowitz and decision by the Almanac to print the comments of Mr. Markowitz regarding Mr. Hanretty's sexual orientation. It is COMPLETELY irrelevant to this situation. Shame on you Almanac for printing something so offensive.
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Posted by Some Guy, a resident of the Menlo Park: Downtown neighborhood, on Oct 24, 2012 at 1:28 pm @Sarah: I think the almanac did their due diligence as a REPORTING AGENCY to REPORT what was said. Not shame on the Almanac, shame on Mr. Markowitz.
The Almanac should be praised for not white washing, or censoring the story.
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Posted by Complete Bull, a resident of the Portola Valley: Central Portola Valley neighborhood, on Oct 24, 2012 at 4:31 pm This is such a complete bull crap comment. Everyone knew Tim was gay in the same way that everyone knows I am straight---I have a spouse and he has a spouse. His happens to be male. It has absolutely NOTHING to do with his ethical failings and criminal activity, and I am quite sure that that thought has never crossed anyone's mind. He's a thief and a liar, and he stole from schoolchildren. I don't give a flying f$&@ who he sleeps with, and neither does anyone else.
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Posted by Try Markowitz For Stupidity, a resident of the Portola Valley: Portola Valley Ranch neighborhood, on Oct 24, 2012 at 6:17 pm Markowitz' remark is an insult to gay people the world throughout. What a moron.
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Posted by Interested party, a resident of another community, on Oct 24, 2012 at 8:18 pm Mr. Markowitz obviously did not have a valid leg to stand on, so he was grabbing at straws. Tim did what he did and there is no acceptable excuse, or defense. Everyone needs to learn from this. Financial controls, checks and balances, internal controls , and separation of duties are so important. The sad part is that it is the children that are the real victims in this case. The #1 priority for all school employees must be the children.
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Posted by member, a member of the Woodside School community, on Oct 28, 2012 at 2:47 pm While the parent community was volunteering in the classrooms, fundraising so that teachers could be paid, donating classroom equipment, underwriting the schools until it hurt, this guy was helping himself to what he wanted. What in the world could he have been thinking? Has our society really sunk so low? Kudos to the board member who raised the alarm. Where was the financial oversight while all this was going on?
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Posted by still reeling, a resident of the Portola Valley: other neighborhood, on Oct 28, 2012 at 3:49 pm The financial oversight question is so important. This monkey business happened in 2 school districts, supposedly under the watch of 2 boards. How was he able to deceive everyone for so long?
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