A former senior Orange County schooling official has been arrested after authorities allege he embezzled greater than $14 million in public college funds over a seven-year span.
Jorge Armando Contreras, 52, is going through a felony cost of embezzling from packages receiving federal cash, and has been ordered jailed with out bond, based on a U.S. Lawyer’s Workplace assertion.
The Yorba Linda resident is accused of embezzling the cash whereas working as senior director of fiscal providers on the Magnolia College District.
Prosecutors say from August 2022 to July 2023 alone, Contreras embezzled greater than $4 million, utilizing the cash to pay $1.9 million to American Categorical, to withdraw $325,000 in money from ATMs, to switch greater than $130,000 to an individual he would later marry and to buy a BMW SUV.
Contreras is also accused of utilizing among the stolen funds to pay $190,000 to a West Hollywood dermatologist and beauty surgeon and to purchase Versace and Louis Vuitton luxurious gadgets.
Based on a criticism filed final week on the federal courthouse in Santa Ana and unsealed on Thursday, Contreras made the unauthorized funds to himself, receiving greater than 250 checks — starting from $11,000 to $95,000 — from the college district that have been deposited into his private checking account. Fictitious individuals have been listed on the checks because the payee, federal prosecutors stated.
Prosecutors allege that Contreras altered paperwork to cover the embezzlement. And among the cash was transferred to financial institution accounts in Mexico, based on the indictment.
In 2020, prosecutors allege, Contreras when buying a house in Yorba Linda paid for greater than $1 million of the price by means of a wire switch from a private checking account, and allegedly altered financial institution statements submitted for a mortgage software tied to the property with a view to cover the embezzled funds.
The Magnolia College District — which serves college students in Anaheim and Stanton — employed Contreras in 2006 to handle their fiscal operations. He was positioned on administrative go away in August, based on prosecutors, and the district has filed a lawsuit towards him.
The U.S. Lawyer’s Workplace famous that 81% of the kids educated by the Magnolia College District are labeled as socio-economically deprived, and that the college receives hundreds of thousands of {dollars} yearly in federal funds.
Up to now, the district has undertaken efforts to get well and freeze some $4 million, stated Frank Donavan, district superintendent.
“Mr. Contreras’ actions, which diverted hundreds of thousands of {dollars} meant to profit youngsters to his personal private use, are stunning to the conscience and deeply disturbing,” Donavan stated in an announcement Thursday. “The District will proceed to aggressively pursue all choices to get well funds and to make sure justice is served.”
Contreras is scheduled to return to federal courtroom for an arraignment on Nov. 27. If convicted, he faces as much as 10 years in federal jail.
