The latest in the saga of CapRadio (Capital Public Radio) continues. The public media organization is filing a lawsuit against its former General Manager, Jun Reina, accusing him of embezzling hundreds of thousands of dollars from the group to fund an extravagant lifestyle.
CapRadio operates news/talk (90.9) KXJZ and classical KXPR (88.9) in Sacramento (and their simulcast signals), and North State Public Radio, which comprises two stations owned by Chico State.
The lawsuit, filed in December, claims that Reina used the misappropriated funds for lavish overseas trips, home renovations, his childrenâs college tuition, and other personal expenses.
CapRadio is seeking $900,000 in damages and is requesting that Reinaâs 4,500-square-foot West Sacramento home be placed in a trust.
According to CapRadioâs attorneys, Reina siphoned at least $372,397.68 from the station over more than a decade he was with the organization, during which he held various executive positions. The alleged misuse of funds included purchasing vehicles, entertainment tickets, fine dining, and personal healthcare expenses. The lawsuit asserts that the misappropriation of funds contributed to CapRadioâs financial struggles.
In November 2024, CapRadioâs financial statement showed the company is still $10 million in debt after cutting nearly $11 million in expenses, including more than $5 million from programming and production and almost $4 million from management and general expenses.
An auxiliary of Sacramento State University, CapRadio has been attempting to recover after an audit of management and finances in August 2023 that resulted in layoffs, board resignations, and the university taking over operational control of the stations. In December, the Sacramento Bee demanded the university release an unredacted version of the audit, given unexplained expenditures by its former GM.
Chris Bruno, CapRadioâs Chief Marketing and Revenue Officer, stated that the station is taking all necessary steps to hold Reina accountable. âOur community has stood by us and deserves nothing less,â he said, according to the Sacramento Bee.
The lawsuit also claims that Reina used CapRadio funds to pay his mortgage and property taxes for his large home, located in an upscale, gated community in West Sacramento. The property, described in its Zillow listing as a luxurious five-bedroom, five-bathroom residence, features high-end amenities. Documents uncovered during the investigation show that an American Express card in Reinaâs name was charged for approximately $450,000 in purchases, many of which were not supported by receipts or any business justification.
The paper reports that a significant portion of these expenses were linked to personal travel, hotel stays, fine dining, golf club memberships, and other non-business-related expenditures. The lawsuit further alleges that Reina misled CapRadioâs Board of Directors by providing them with inaccurate and incomplete financial information.
Filed in Yolo Superior Court on Dec. 19, 2024, the lawsuit also reveals that Reina used over $105,000 of the misappropriated funds for extensive renovations to his home. Items flagged in Reinaâs American Express statements under âHome Goods and Servicesâ totaled over $74,000 between 2017 and 2020, including purchases such as garden supplies, HVAC equipment, and BBQ and pool supplies. Among the largest individual expenses were $26,090 and $13,106 for garden supplies in December 2017 and $10,000 and $6,439 for HVAC items in 2019.
CapRadioâs legal team has expressed concern that Reina may attempt to flee the state and abscond with the proceeds from the sale of his property, further defrauding the organization and its creditors. Reina resigned from CapRadio in June 2023, just a few months before the audit was released by the California State University system, which uncovered widespread financial mismanagement.
