A former Orange County public college official has pleaded responsible to embezzling practically $16 million from a district the place most college students are categorised as economically deprived.
Jorge Armando Contreras used the cash he stole from the Magnolia College District to finance a lavish life-style, together with a $1.5-million home in Yorba Linda, a $127,000 BMW and $190,000 in beauty surgical procedure, in line with federal prosecutors.
Contreras, 53, of Yorba Linda, pleaded responsible on Thursday to a single felony cost of embezzlement, theft, and intentional misapplication of federal funds, which may deliver as much as 10 years in jail.
Authorities have seized $7.7 million in belongings from him, together with the Yorba Linda residence, the BMW, dozens of Louis Vuitton designer baggage and bottles of the luxurious tequila Clase Azul Extremely.
A photograph obtained from court docket data reveals former Orange County college official Jorge Armando Contreras, who’s accused of embezzling tens of millions over seven years from the district that employed him.
(U.S. District Courtroom)
In 2006, Contreras was employed by the Magnolia College District, which serves 5,300 preschool-to-sixth-grade college students in Anaheim and Stanton, 81% of whom are categorised as socioeconomically deprived.
He started to run the district’s fiscal operations in 2013, and from 2016-23 deposited greater than 250 checks into his private account, authorities stated. Because the senior director of fiscal providers, Contreras was incomes $220,000 yearly.
From August 2022 to July 2023 alone, prosecutors allege, Contreras stole $4.1 million from the district.
In response to the fees, throughout that interval, he paid $1.9 million to American Specific, withdrew $325,000 from ATMs, and transferred greater than $130,000 to the one who would change into his marriage associate in August 2023.
In his plea settlement, Contreras, who’s free on $450,000 bond, admitted to having college funds deposited in his private checking account.
Utilizing his entry to highschool district financial institution accounts and the scholar physique checking account, Contreras wrote checks in small quantities, acquired them signed after which elevated the greenback quantities and inserted fictitious names, the plea settlement stated.
The varsity district put him on administrative go away in August 2023, and he was arrested in October. He’s scheduled for sentencing earlier than U.S. District Decide Fred W. Slaughter on July 25.
Contreras’ legal professional, listed on court docket paperwork as Ronald Hedding, didn’t instantly reply to a request for remark.
As a entrance for the embezzlement scheme, the FBI believes, Contreras used a music manufacturing firm known as JC Productions, whose Instagram web page boasted of “one of the best musical productions and dwell occasions.”
In response to a district official whose title was redacted from the charging paperwork, “Contreras appeared to dwell a life-style past the means of somebody in his place on the College District,” and the official assumed he made more money from his music manufacturing firm. As soon as, Contreras gave out $25 Starbucks reward playing cards to district workers, saying the cash got here from the corporate.
Financial institution cameras captured Contreras depositing cash into his Wells Fargo account underneath the phony names “Maria Socorro Dominguez” and “Magnia Socorro Dominguez,” the FBI stated. In response to the plea settlement, he initially wrote M.S.D. — the identical initials as Magnolia College District — on the checks, with the letters spaced out.
The varsity district has filed a lawsuit in opposition to Contreras.
“We’re persevering with to go after different belongings, and presumably different people who knew about this, or had been in on this,” Superintendent Frank Donavan stated in a press release. “Whereas we’re grateful for the FBI’s immediate and thorough response, we discover it laborious to imagine that he’s solely going through a most of 10 years. We additionally discover it laborious to imagine that he’s launched on bail till July, when he’s undoubtedly a flight threat. The cash he stole was largely focused for college kids with particular wants.”
