A former Magnolia School District administrator was sentenced to nearly six years in federal prison Thursday for embezzling more than $16 million dollars from the district.
U.S. District Judge Fred Slaughter sentenced Jorge Armando Contreras, 53, of Yorba Linda, to 70 months in federal prison. He was given until Sept. 27 to surrender to authorities.
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Prosecutors and Contreras' defense attorney, Ronald Hedding, agreed that the restitution the defendant is liable for amounts to $16,694,942.81.
Assistant U.S. Attorney Billy Joe McLain said investigators believed it should be $17,761,260.68 given evidence of large ATM deposits going back to December of 2008, but Slaughter concluded there was not enough evidence to meet the legal standard.
Hedding said the seizures of Contreras' property amounted to $9 million to $10 million that will go toward the restitution.
McClain said the theft led to curtailing programs for special education and early admission kindergarten and improvements and repairs in the district as well as the elimination of a technical teacher on special assignment.
"The conduct in this case is terrible," McClain said. "Doing it on this scale is horrible conduct. It's deplorable."
Slaughter ordered three years of supervised release for Contreras when he is freed from prison. He also ordered him to participate in programs for mental health, gambling and narcotics addiction while in custody.
Going forward, Slaughter told the defendant, "I hope you look to help people. ... Positive energy is positive results. ... What you did was completely unacceptable, but you have a long life ahead of you. I want you to learn from this experience."
Contreras pleaded guilty March 28 to embezzling from the district, which serves students in Anaheim and Stanton. The embezzlement began in April 2015, McClain said.
Prosecutors said Contreras started working for the school district in July 2006 and became director of fiscal services in March of 2013. He was promoted to senior director of fiscal services in April 2017.
Contreras embezzled about $4.1 million from August of 2022 through July 2023 alone, prosecutors said.
He used the money to pay for $1.9 million in American Express charges, to withdraw $325,000 in cash and to transfer about $130,000 to his partner, who he married in August of last year, prosecutors said.
Contreras also spent money buying a home in Yorba Linda for about $1.5 million and purchasing a BMW SUV that cost $127,000, according to prosecutors.
He also spent $190,000 for cosmetic treatments, prosecutors said. He was placed on administrative leave in August of last year.
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