Calif. school official who stole $17M from low-income district and hid cash in a mini-fridge is sent to prison

A crooked senior finance director at a low-income California school district who embezzled millions of dollars to fund a lavish lifestyle — splurging on high-end tequila and fancy cars — has been sentenced to 70 months in federal prison.

Jorge Armando Contreras, 53, pleaded guilty in March to lining his pockets with nearly $17 million from the Magnolia School District, which he spent on luxury goods like cars, expensive tequila and dozens of designer bags, the US Attorney’s Office of the Central District of California said in a press release .

“Instead of using his job at a public school district to help socio-economically disadvantaged children, Contreras embezzled millions upon millions of dollars, which he flagrantly spent on a luxury home, car, and designer clothes and accessories,” said United States Attorney Martin Estrada.

“Today’s sentence highlights my office’s determination to prosecute and punish those who betray the public trust — especially when their behavior affects some of our community’s most vulnerable members.”

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The district serves hundreds of preschool to grade 6 students in Anaheim and Stanton, 81% of whom are classified as socioeconomically disadvantaged.

Contreras was hired by Magnolia Schools in 2006 as senior director of fiscal services, giving him unfettered access to district bank accounts and the student body bank account, which he raided with impunity from 2016 to 2023, USAO said.

He used the filthy lucre to live the high life, purchasing a $1.5 million Yorba Linda mansion, a BMW SUV worth $127,000, 57 designer handbags (mostly Louis Vuitton), as well as jewelry, clothes, shoes and eight bottles of Clase Azul Ultra luxury tequila valued at around $1,700 each.

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According to court documents, Contreras would write checks against district bank accounts in small amounts made out to “M S D” with the letters spaced out — ostensibly short for Magnolia School District.

But once he secured the proper signatures, he’d fill in fictitious names and increase the amounts of the checks, which he would deposit into his personal bank account using ATMs.

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He even provided bogus bank reconciliation packets to district colleagues, complete with falsified bank statements and records.

When law enforcement raided his home, they found large stacks of cash stuffed in a mini-fridge.

In all, his theft from the district amounted to approximately $16,694,942, according to USAO.

He was sentenced by US District Judge Fred W. Slaughter on charges of embezzlement, theft and intentional misapplication of funds from an organization receiving federal funds.

In addition to his prison term, Contreras was ordered to pay restitution in the full amount.

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