A former senior director of financial services for an Orange County school district has pleaded guilty to embezzling nearly $16 million over several years from the schools he was hired to serve, federal authorities announced Thursday.
Jorge Armando Contreras, 53, of Yorba Linda, was hired in 2006 by the Magnolia School District, which serves students from Anaheim and Staunton, to manage the district's financial operations, according to the Yorba Linda Central District Attorney's Office. California News Release.
Prosecutors allege that while Contreras was in office, he wrote checks made to MSD with letters spaced apart.
After receiving the proper signature from an authorized official, he would fill in a fictitious name, increase the amount of the check, and use an ATM to deposit it into his personal bank account.
Authorities said the 53-year-old planned to provide the school with falsified bank statements and records to cover up the fraud.
Mr. Contreras admitted to stealing a total of $15,920,042 from the school district, where more than 80% of the students, from preschool through sixth grade, are socio-economically disadvantaged.
“So far, law enforcement has recovered a home in Yorba Linda, a 2021 BMW car, 57 luxury designer bags (mostly Louis Vuitton), various jewelry, designer clothing, shoes, and a Classé Azur Ultra luxury 8 bottles of tequila,” the release states.
Mr. Contreras pled guilty to one count of embezzlement, theft or intentional misappropriation of funds from an organization receiving federal funds, a felony punishable by up to 10 years in federal prison.
He went on leave in August 2023 and is currently free on $450,000 bail. A sentencing hearing is scheduled for July 25th.
The FBI, IRS Criminal Investigation Division, and U.S. Department of Education Office of Inspector General are investigating the case.
