A former senior Orange County education official was sentenced Thursday, July 25, to nearly six years in federal prison for embezzling more than $16 million in public school funds, using the money to purchase a home, car and luxury bags. Jorge Armando Contreras, 52, pleaded guilty in March to embezzling from the Magnolia School District from August 2016 through July of last year, according to a U.S.
Attorney’s Office statement. He also pleaded guilty to charges of theft and intentional misapplication of funds from an organization receiving federal funds. Contreras, a Yorba Linda resident, started working for the school district in July 2006 and became director of fiscal services in March of 2013.
In April 2017, he was promoted to senior director of fiscal services, where he managed and had access to various school district bank accounts as well as the student body bank account, officials said. The U.S.
Attorney’s Office noted that 81% of the children educated by the Magnolia School District — which serves students in Anaheim and Stanton — are classified as socio-economically disadvantaged, and that the school receives millions of dollars annually in federal funds. Through his access to these accounts, Contreras wrote checks in small dollar amounts written to “M S D,” with the letters spaced out, the U.S.
Attorney’s Office said. He would then use fake names and increase the amounts of the checks after receiving the proper signatures from others before depositing the checks into his personal bank accounts. Contreras provided bank reconciliation packets to school district officials with falsified bank statements and records to cover his tracks.
He was placed on administrative leave in August 2023 and a lawsuit was filed against him by the school district. Around $7.7 million in personal and real property traced to the scheme have been seized by authorities, including: a home in Yorba Linda, a 2021 BMW automobile, 57 luxury designer bags, jewelry, designer clothes and shoes, and eight bottles of Clase Azul Ultra luxury tequila, officials said.
In total, Contreras embezzled approximately $16,694,942 from the school district. He was ordered by a judge to pay restitution in the amount matching what was embezzled..
