Supervisor Beya Alcaraz Resigns After Revelations of Questionable Business Practices

Beya Alcaraz resigned Friday as San Francisco’s District 4 supervisor, just hours after messages surfaced showing she admitted to paying workers at her former pet shop under the table and potentially misreporting business revenue.

Alcaraz, 29, was appointed by Mayor Daniel Lurie to fill the seat vacated by recalled supervisor Joel Engardio. But text messages dated March 28 revealed Alcaraz discussed tax practices that accounting professionals have described as potentially illegal. The messages were exchanged between Alcaraz and Julia Baran, who took over the Animal Connection pet store from her in May.

In the texts, Alcaraz estimated the business had between $50,000 and $75,000 in unreported cash revenue. She also described expenses related to payroll and taxes being lower than official figures due to off-the-books employee payments. “It will be less, since I pay people under the table now,” she wrote. Alcaraz also described classifying personal outings with friends as business meals for tax deductions, occasionally receiving cash reimbursements.

Mission Local verified the messages came from Alcaraz’s phone number. They included statements such as, “I also live off a big portion of the non cash revenue.” In one exchange, she referred to two seasonal employees by saying her “under the tables come in as needed.”

Jerry Dratler, a retired chief accounting officer for Williams Sonoma, said this kind of conduct amounts to an admission of filing fraudulent tax returns. “That’s pretty damn serious,” he said. “That goes beyond being a sloppy business operator.”

More details about the business emerged through Baran, who shared documents and footage showing the store operated at a loss between 2020 and 2023 and cited unsanitary conditions, including rodent infestations and a freezer used for dead pets.

In a written response, Alcaraz defended her record, stating she paid all her taxes and compensated workers because she believed in fair pay: “I don’t owe a dollar in taxes, and I paid the young people who came to work in my store.”

The mayor’s office issued a prepared statement praising Alcaraz’s business experience but declined to address whether it was aware of the financial practices she described. When asked whether the selection was adequately vetted, Lurie told Channel 7 that Alcaraz was “absolutely” vetted and added, “She can’t help that she’s 29 years old.”

Sharky Laguana, former president of the city’s small business commission, stated that paying workers off the books is an unambiguous violation of employment and tax law. Still, he acknowledged that the practice sometimes supports low-income or immigrant workers who may have difficulty finding formal employment.

Alcaraz’s resignation came hours after the allegations became public. After the San Francisco Standard published details from Baran about the store’s conditions, she said a mayoral aide reached out to ask what the city could do in response. Baran’s reply was clear: “They should own up to what they did, apologize and promise to do better.”

The sudden departure leaves District 4 once again without a supervisor and raises deeper questions about the mayor’s vetting process and criteria for appointments. The mayor has not announced next steps for filling the seat.