Clarke J. Howatt, Wire Fraud, California 2016

A former government finance director has been accused of embezzling nearly $4 million from a Bay Area government agency. Clarke J. Howatt, 56, of Oakland, pleaded guilty to wire fraud on March 23, 2016 in federal court in San Francisco.

According to the plea agreement, Howatt used his position as financial services director of the Association of Bay Area Governments (ABAG) to convince the agency's related Finance Authority for Non-Profit Corporation (FAN) to make payments to accounts he controlled.

Howatt admitted to creating a Nevada corporation and a related bank account to receive FAN funds. In 2014, he requested that FAN reimburse the corporation for over $1 million in expenditures incurred as part of a capital improvement project in San Francisco's South of Market neighborhood.

In another scheme, Howatt convinced FAN to issue over $1 million to 'Windemere BLC Land Company LLC,' a company associated with Howatt. FAN issued several bonds and made numerous legitimate expenditures in connection with the public capital improvements associated with Windemere Ranch and its special districts.

In total, Howatt admitted to illegally obtaining $3,876,135.21 as a result of his scheme to defraud. He pleaded guilty to a single count of wire fraud, a violation of 18 U.S.C. § 1343.

Howatt is currently released from custody pending sentencing. The maximum penalty for a violation of 18 U.S.C. § 1343 is 20 years' imprisonment, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and 3 years of supervised release.

Source: https://www.justice.gov/usao-ndca/pr/oakland-based-government-finance-director-pleads-guilty-embezzling-public-funds