Allegations Surface in Switzer Village Embezzlement Case

A family-run business in Juneau is at the center of a legal dispute involving claims of embezzlement, theft, and financial mismanagement at Switzer Village Mobile Home Park. A recent lawsuit accuses Josette Duran, former manager of the park, of misusing company resources and failing to repay substantial family loans.

Lawsuit Filed by Majority Owner Marlene Schneider

The lawsuit, filed earlier this month by Marlene Schneider of S&S Development, LLC, names her daughter Josette Duran, Josette’s husband Marciano Duran, and Duran Construction as defendants. Schneider claims that Josette, who took over management duties in 2011 after the death of Marlene's husband Charlie Schneider, used park funds for personal and business purposes unrelated to the mobile home park’s operations.

Duran Construction Dispute and Financial Mismanagement Allegations

According to the complaint, Duran Construction, operated by Josette and Marciano Duran, has served as a contractor for Switzer Village Mobile Home Park since the 1980s. However, Schneider alleges that Josette used the park as “a source of money, labor, materials, and assets” for Duran Construction and various family members. The complaint also details that Josette was terminated from her management role in June of this year due to her "lack of transparency."

Unpaid Loans and Questionable Transactions Under Scrutiny

The lawsuit outlines a series of loans made by the Schneiders to the Durans, starting in the 1990s. While some earlier, secured loans were reportedly repaid, the complaint alleges that after Charlie Schneider's passing in 2011, Josette and Marciano borrowed increasingly larger amounts without providing any collateral, and largely stopped making repayments. Schneider claims that more than $7 million remains unpaid.

Additional allegations include Josette paying herself more than her management position allowed, authorizing payments to Duran Construction for incomplete or unclear services, and writing hundreds of thousands of dollars’ worth of checks to Duran Construction without specifying purposes for the disbursements.

Claims of Unauthorized Property Sales and Use of Park Assets

Marlene Schneider also asserts in the lawsuit that Josette sold three mobile home units to Duran Construction without permission or compensation. She further alleges that park funds were used to purchase a mobile home for Josette’s son, who did not subsequently pay rent for the unit. These claims add to the broader allegations of mobile home park theft and financial mismanagement highlighted in the complaint.

Defendants Deny Allegations Amid Ongoing Litigation

Marciano and Josette Duran, through an emailed statement to KTOO, have denied any wrongdoing, stating, “The allegations are disputed and remain subject to litigation.” The Durans maintain that their company’s longstanding contractual relationship with Switzer Village was legitimate.

Neither Marlene Schneider nor her attorney responded to requests for further comment. The case, which includes complex accusations of embezzlement and disputed financial transactions, remains ongoing and will be decided through the legal process.

Source: ktoo.org.