Steven A. Hagstrom, Embezzlement, California 2015

SANTA ANA, California – Former controller Steven A. Hagstrom, 38, of Anaheim, was sentenced to 37 months in federal prison for embezzling well over $3.3 million from his Irvine-based company, Sentinel Offender Services, LLC.

Hagstrom pleaded guilty to one count of embezzlement in June.

Hagstrom had access to Sentinel’s bank accounts, which held fines, court fees, and restitution payments from criminal defendants, as well as money paid to the company for services provided to state and federal court systems.

Between early 2012 and April 2013, Hagstrom transferred approximately $3,338,197 from Sentinel’s bank accounts to bank accounts he controlled, where the funds could be used for his own benefit.

As controller, Hagstrom’s theft of such funds jeopardized the proper operation of the criminal justice system, prosecutors wrote in a sentencing memorandum filed with the court.

The investigation into Hagstrom was conducted by the Federal Bureau of Investigation and IRS – Criminal Investigation.

Judge David O. Carter ordered Hagstrom to pay $2,127,932 in restitution, a figure less than the amount of money embezzled, since Sentinel was able to recover some of the money previously.

Hagstrom’s case serves as a reminder of the importance of safeguarding public funds and the consequences of embezzlement.

Sentinel Offender Services, LLC, which provides supervision services, including electronic monitoring programs, to courts and probation departments, suffered a significant financial loss due to Hagstrom’s actions.

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