The former senior director of fiscal services at an Orange County public school district was sentenced to almost six years in federal prison for embezzling nearly $16.7 million from the district over several years, prosecutors said July 25. Jorge Armando Contreras, 53, of Yorba Linda, began overseeing financial operations for the Magnolia School District in 2006.
He pleaded guilty in March to embezzlement, theft, and misapplication of funds from an organization receiving federal money. “Instead of using his job at a public school district to help socio-economically disadvantaged children, Contreras embezzled millions upon millions of dollars, which he flagrantly spent on a luxury home, car, and designer clothes and accessories,” U.S.
Attorney Martin Estrada said. Law enforcement has seized around $7.7 million in assets linked to the scheme, including a Yorba Linda home, a 2021 BMW, 57 luxury bags, various jewelry pieces, designer clothing, and eight bottles of Clase Azul Ultra tequila.
Mr. Contreras, who had oversight of several school district and student body bank accounts, exploited his position to commit fraud. He began by writing checks in small amounts, made payable to “M S D,” with the letters spaced out.
After securing the necessary signatures, he would increase the amounts on these checks, use fictitious names, and deposit them into his personal bank account through ATMs, prosecutors said. To cover his tracks, Mr. Contreras submitted falsified bank statements.
