Jorge Armando Contreras, Embezzlement, California 2023

SANTA ANA, California – A former senior director of fiscal services at an Orange County public school district has pleaded guilty to embezzling nearly $16 million from the district over several years.

Jorge Armando Contreras, 53, of Yorba Linda, pleaded guilty to one count of embezzlement, theft and intentional misapplication of funds from an organization receiving federal funds, a felony offense that carries a statutory maximum sentence of 10 years in federal prison.

Law enforcement has seized approximately $7.7 million in personal and real property traced to the scheme, including a home in Yorba Linda, a 2021 BMW automobile, 57 luxury designer bags (mostly Louis Vuitton), various pieces of jewelry, designer clothes and shoes, and eight bottles of Clase Azul Ultra luxury tequila.

Contreras was the senior director of fiscal services at Magnolia School District, which serves students in Anaheim and Stanton. In this role, Contreras managed the district’s fiscal operations. The schools in this district educate children from preschool through sixth grade – 81% of whom are classified as socio-economically disadvantaged.

According to his plea agreement, Contreras managed and had access to various school district bank accounts as well as the student body bank account. Contreras caused checks from these accounts to be deposited into his personal bank account.

The school district placed Contreras on administrative leave in August 2023 and filed a lawsuit against him in Orange County Superior Court.

United States District Judge Fred W. Slaughter scheduled a July 25 sentencing hearing for Contreras, who is free on $450,000 bond.

The FBI, IRS Criminal Investigation, and the United States Department of Education's Office of Inspector General are investigating this case.

Source: https://www.justice.gov/usao-cdca/pr/former-orange-county-education-official-pleads-guilty-embezzling-nearly-16-million