COUPLE DENIES GUILT IN LAUSD FRAUD LOCAL PAIR DENIES GUILT IN SCHOOL EMBEZZLEMENT.

Byline: Orith Goldberg Staff Writer

SANTA CLARITA - Two Santa Clarita Valley school board members pleaded not guilty Thursday to charges of embezzlement and misappropriation of public funds in connection with their work for the Los Angeles Unified School District.

Gloria Mercado, a member of the Hart High School board and her husband Bruce Fortine, a member of the board that governs College of the Canyons, were ordered to return to court Feb. 29 for a preliminary hearing to determine if they will face trial.

``We think there is sufficient evidence to convict them,`` said Los Angeles County Deputy District Attorney Rune Sodonis.

Mercado's attorney, Stephen Fleishman, said he was optimistic his client would be acquitted.

``I don't believe there was any crime committed at all,`` Fleishman said.

The charges against Mercado, 46, and Fortine, 61, stem from accusations that Fortine was paid $8,000 for services he never performed at Le Conte Middle School in Hollywood, where Mercado was principal.

Mercado was demoted after Le Conte's financial manager found Fortine listed among school employees as a ``supervision aide,`` then learned he had not been on campus on days for which he was paid, prosecutors said.

Prosecutors said phone logs kept at the school's administration office showed that on at least seven occasions when Fortine was supposed to be at the school working, he had called Mercado from a location off campus.

Fortine's attorney, Dan Melnick, said his client was working on the days the calls were made.

``I really think that ultimately, we will demonstrate that he earned every penny he got,`` Melnick said.

Fleishman said it is possible Fortine was performing work for the school off campus.

``If he was calling from outside the premises, what was he doing (there)?,`` Fleishman said. ``If he was sunning himself that's one thing, but if he was working it's certainly not a criminal wrong.''

Mercado has worked for the district since 1976. She was named principal of Le Conte in 1993 and transferred to Nimitz Middle School two years later. On Jan. 19, 1999, Mercado was placed on administrative duty and was demoted July 1 to a teaching post. She was placed on administrative leave last month.

As principal, Mercado earned $103,684 a year. That salary was reduced to $56,820 after her July demotion.

Fortine has said that he believes he and his wife are being penalized for Mercado's participation in the prosecution of a former union representative at Le Conte on charges of child molestation. Mercado was placed on paid administrative leave Dec. 6.

If convicted, Mercado likely would be fired, LAUSD spokesman Shel Erlich said. If she is acquitted, the district would still have the option of terminating her, Erlich said.

If convicted, Fortine could forfeit his seat on the college board, according to College of the Canyons spokeswoman Sue Bozman.

Hart High School board President Dennis King said no action would be taken against Mercado unless she is convicted.

``I hope this thing gets cleared,`` he said. ``We'll just have to wait and see.``