Executives at a California railroad have been found guilty of misappropriating public funds to create luxury apartments in a historic train station where they had been working long hours.
Joseph Navarro was convicted for using $42,000 to construct his own private living quarters within Burlingame Station, located about 16 miles south of San Francisco, as reported by the San Mateo County District Attorney on Thursday.
The former deputy director of Caltrain transformed parts of the station into a bedroom, living room, and gym, which he then utilized for personal use.
The 67-year-old Navarro conspired with his coworker, Seth Worden, the former station manager, to disguise the renovation expenses as necessary office updates, allowing them to covertly turn parts of the historic site into residences.
Worden, 62, was also implicated in the scheme, having allegedly used an additional $8,000 to create his own living area at Millbrae Station, situated just three miles away.
The conspiracy unfolded between 2019 and 2021, with warnings regarding unauthorized excavations at Worden’s location noted in 2020. However, it wasn’t until 2022 that complaints about Navarro’s activities were brought to light via anonymous tips, according to Railway Services.
Both men were arrested in March 2024, nearly three years after completing their project.
Michel Bouchard, the executive director, emphasized that using public funds for personal gain violates legal and organizational standards, undermining public trust.
Caltrain has committed to investigating any allegations of misconduct thoroughly. If proof is found, they vow to rectify issues and hold the responsible parties accountable.
Navarro’s legal team claimed that the statute of limitations had lapsed, but the judge decreed that the charges were indeed filed within an allowable timeframe.
Worden has agreed to testify against Navarro amidst disputes over allegations of embezzlement as a civil servant.
Interestingly, while living in the station, Navarro had his then-girlfriend stay with him during her post-surgery recovery.
His assistant possessed access to room keys, raising questions about whether Navarro had managed to keep his secret apartment hidden from others.
During the trial, prosecutors indicated that Navarro and Worden aimed to keep their project discreet by limiting expenditures to remain under $3,000, thereby avoiding extensive documentation.
“This illustrates a clear abuse of power and authority. Mr. Navarro manipulated several individuals and leveraged his position unjustly,” remarked Deputy Prosecutor Joseph during his closing argument. “His actions had ripple effects beyond just himself.”
“Turning a historic station into your personal haven is undeniably a conflict of interest,” Cannon stated emphatically. “It’s just common sense.”
Constructed in 1894, Burlingame Station was designated a historic landmark in 1971, featuring a Mission Revival architectural style.
In 1978, the Bay Area station earned recognition as a national historic site.
Navarro, who resides in Pennsylvania, is set to be sentenced on June 11, facing up to four years in prison, though the judge may opt for probation for the former executives.
