Nonprofit headed by Central Basin Board Vice President Gary Mendez found to be running without a valid license.
In a series of events, the California Youth Martial Arts Academy and Education Foundation, a nonprofit organisation, has found itself in a precarious legal situation.
The Academy, initially based next to a machine shop in Santa Fe Springs, was led by Gary Mendez, who also served as its CEO. However, in April 2021, the Franchise Tax Board suspended the organisation due to Mendez's failure to file the required annual Statement of Information.
Despite the state and federal suspension and revocation of its tax-exempt status, Mendez continued to conduct business under the CYMA name. This action, according to general legal principles, could potentially expose the responsible parties to penalties, including back taxes owed, fines, loss of certain legal protections, and potential state legal actions if nonprofit laws are violated.
However, there is no current public information from available sources indicating any legal consequences for Mendez specifically related to continuing operations after the nonprofit status revocation in August 2021. This lack of information may be due to the need for consultation of official government records or legal databases for any enforcement or legal proceedings.
The IRS revoked CYMA's tax-exempt status as a 501(c)(3) corporation four months later. Mendez, after being presented with evidence, announced the cancellation of all CYMA programs effective at 5pm Thursday, May 8, 2025.
Interestingly, an email from Mendez to the South Whittier School District Associate Superintendent, asking for help getting the word out about CYMA classes, was sent in August 2023, two years after CYMA's IRS status was revoked. The email included Mendez's 510(c)(3) CYMA award letter, further highlighting the organisation's continued operations.
The only IRS financial statement for California Youth Martial Arts Academy and Education Foundation, known as the 990, was filed by Mendez in 2017 and shows the corporation earning over $27,000 in revenue. Mendez paid himself nearly $22,000 from the corporation's revenue in 2017.
It's worth noting that Margaret Suarez, who owns a house a few blocks south of the I-605/I-10 interchange in La Puente, was the Treasurer of California Youth Martial Arts Academy and Education Foundation. A letter sent to Supervisor Janice Hahn's office in July 2023 asked for $1,500 "to pay for insurance costs," using CYMA letterhead, which at the time was FTB suspended and had its IRS tax status revoked.
As of now, the address listed for California Youth Martial Arts Academy and Education Foundation is a PO Box in Norwalk. The exact consequences for Mendez and the organisation due to the continued operations after the revocation remain unclear, underscoring the importance of ongoing investigation and potential legal action.
- Despite the revocation of its tax-exempt status and legal troubles, the California Youth Martial Arts Academy and Education Foundation, under the leadership of Gary Mendez, continued to offer events and education-and-self-development programs, as indicated by an email sent to the South Whittier School District Associate Superintendent in August 2023.
- The community is encouraged to stay informed about the ongoing legal situation of the California Youth Martial Arts Academy and Education Foundation, as their continued operations after the IRS revocation of their 501(c)(3) status raises questions and concerns about general-news and education issues, especially since they were once a respected nonprofit organization.
