Get updates delivered to you daily. Free and customizable.
USA TODAY
California school official convicted of embezzling over $16M concealed cash in fridge
By Max Hauptman, USA TODAY,
6 hours ago
A former California public school district official was sentenced to 70 months last week after being convicted of embezzling nearly $16.7 million over several years.
Jorge Armando Contreras, 53, formerly the senior director of financial services for the Magnolia School District in California’s Orange County, pleaded guilty on March 28 to one count of embezzlement, theft, and intentional misapplication of funds from an organization receiving federal funds.
“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,” United States Attorney Martin Estrada said in a July 25 press release.
Photos released by the U.S. attorney's office showed cash and luxury goods kept in a mini fridge.
Official worked in low-income school district, used money on luxury clothing and tequila
The school district where Contreras, who was hired in 2006, worked serves the communities of Anaheim and Stanton. 81% of the students from preschool through sixth grade are classified as socio-economically disadvantaged. In his role with the school district, Contreras managed and had access to multiple bank accounts, including the student body bank account.
Orange County prosecutors said that they had already seized approximately $7.7 million in assets, including a home in Yorba Linda, California, a 2021 BMW automobile, 57 luxury designer bags, jewelry, designer clothes and shoes, and eight bottles of Clase Azul Ultra luxury tequila.
Contreras, in his scheme, would write out checks in small dollar amounts written to “M S D” with the letter spaced out, and after receiving signatures, would alter the checks to include fictitious names and increase the amounts before depositing them in his personal accounts. He then provided bank records and bank reconciliation packets to the school district to conceal the fraud.
Contreras was charged and placed on administrative leave in August 2023. He was sentenced to 70 months in prison and ordered to pay $16,694,942 in restitution.
The FBI, IRS Criminal Investigation, and the United States Department of Education Office of Inspector General investigated this case.
Max Hauptman is a Trending Reporter for USA TODAY. He can be reached at MHauptman@gannett.com
Get updates delivered to you daily. Free and customizable.
Welcome to NewsBreak, an open platform where diverse perspectives converge. Most of our content comes from established publications and journalists, as well as from our extensive network of tens of thousands of creators who contribute to our platform. We empower individuals to share insightful viewpoints through short posts and comments. It’s essential to note our commitment to transparency: our Terms of Use acknowledge that our services may not always be error-free, and our Community Standards emphasize our discretion in enforcing policies. We strive to foster a dynamic environment for free expression and robust discourse through safety guardrails of human and AI moderation. Join us in shaping the news narrative together.
Comments / 0