The total loss for the theater from 2017 to 2019 was $353,082, investigators said.
Since 2017, the convention and visitors bureau, Visit Las Cruces, has been responsible for managing the theater. Because the bureau derived nearly all of its budget from lodger’s taxes, the financial investigation identified another problem: Funds used for general events, such as the Las Cruces Country Music Festival, events at the downtown Plaza de Las Cruces and the theater, may have violated the law.
“In authorizing the occupancy tax for revenue on lodging with municipalities, the (state) Legislature decided that the proceeds could only be used primarily for advertising, publicizing and promoting tourist-related attractions, facilities and events. … Paying for general event costs is not included among the authorized uses for occupancy taxes.”
City audit alleges fraud in Las Cruces government involving $1.8 million in public funds
KVIA
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Editor s note: An initial version of this article referred to a state audit. Rather, this is a city audit that had been forwarded to the state auditor.)
LAS CRUCES, New Mexico A 767-page city audit released on Tuesday alleges criminal activity and $1.8 million in mismanaged funds by former employees and contractors of the city of Las Cruces - one of whom is a well-known restaurant owner.
The audit states that there is probable cause to believe criminal violations have occurred in actions reportedly taken by former economic development director Philip San Filippo, former city manager Stuart Ed and city contractor Marci Dickerson.