Bay Area/ San Francisco/ Politics & Govt
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Published on March 22, 2024
San Francisco Officials Implement Reform in Wake of $600K Embezzlement Scandal, Accused Ex-HR Employee Under FireSource: City Attorney of San Francisco

San Francisco's City Hall is tackling corruption head-on with new controls following a scandal involving one of its own. After former Department of Human Resources employee Stanley Ellicott was slammed with additional criminal charges, officials are moving quickly to tighten the ship. Ellicott, previously charged for improper use of grant funds, is now accused of concocting a scheme to illegitimately cash over $600,000 from city coffers, according to a statement from the San Francisco City Attorney's Office.

Human Resources Director Carol Isen, alongside Controller Greg Wagner and City Attorney David Chiu, revealed that a series of assessments has led to reinforced safeguards to ensure such underhanded activities never recur. Wagner emphasized the importance of the swift, cross-department efforts that have already changed the internal control mechanisms. He stated, "The abuse Mr. Ellicott is charged with is reprehensible, not least because he was in a position of authority," driving home the gravity of the betrayal.

The fraud was sophisticated, officials say. As a part of the Worker’s Compensation Division Finance team, Ellicott had access to the system responsible for handling worker's compensation claims. He exploited this to funnel city funds to his make-believe entity, the Independent Auditors Group. These payments were siphoned off to $627,118, all masked by the subsystem's operation outside the central financial and procurement system due to it containing protected health information of City employees.

The sweeping reforms come in the wake of Ellicott's alleged misdeeds, sparking outrage among the city officials. "I am disgusted and angered by the actions taken by Mr. Ellicott," Isen commented, underlining the betrayal of trust involved in the incident. Meanwhile, City Attorney Chiu was outspoken about ensuring Ellicott is made fully to atone, stating, "We will make sure Mr. Ellicott pays back the funds he stole." This misconduct led to Ellicott's firing and galvanized a full cooperative effort with the District Attorney's investigation.