Auction of landmark Casa del Mexicano is delayed

The auction of the Casa del Mexicano, the 80-year-old cultural center in Boyle Heights that has found itself in financial straits, has been delayed because the nonprofit that runs it has filed for bankruptcy protection.

The giant lime- and lemon-colored building went into foreclosure in October after the Mexican Benefit Corp. fell behind on payments for a $175,000 loan it took out to do repairs. It also owed Los Angeles County nearly $50,000 in unpaid property taxes.

A group calling itself the Committee for the Rescue and Democracy of the Casa del Mexicano took the nonprofit’s woes public, accusing the corporation’s president, Martha Soriano, and her husband, Ruben Soriano, its secretary, of illegally obtaining the loan, stealing money, ignoring bylaws and fabricating a phantom board.

The couple, who have been in charge of the organization since 2002, say they are victims of a sour economy and a mix-up with the county that sent the Casa’s taxes soaring.

“This gives us more time to find an investor willing to help us,” Ruben Soriano said of the bankruptcy. “If not, we hope the bankruptcy judge will allow us the chance the reorganize and find money so we can save the building.”

Brownstone Mortgage of Santa Ana had planned to auction the building Feb. 18 for $280,000 — the cost of the loan plus the unpaid taxes, which the lender paid in order to rescue the house from being sold at a county auction.

Alex Nackoul, Brownstone Mortgage’s managing director, said his company expects the bankruptcy to delay the sale, but “we plan to take whatever steps we can to protect our interests.”

Javier Rodriguez, a community activist leading the group that has accused the Sorianos of malfeasance, said he has found an investor willing to take over the property, but that the couple are not interested.

“We will have to wait and see what will happen next,” Rodriguez said. “But we’re not giving up on the investigation.”

esmeralda.bermudez@latimes.com