An Orange County former education official has been sentenced to 70 months in federal prison for committing financial betrayal against the public and a school district serving mostly socio-economically disadvantaged students. Jorge Armando Contreras, 53, from Yorba Linda, was slapped with almost six years behind bars and an order to pay back $16.7 million that he embezzled from Magnolia School District, according to a statement by the U.S. Attorney's Office for the Central District of California.
In March, Contreras pleaded guilty to one count of embezzlement, theft, and intentional misapplication of an funds from an organization receiving federal funds. As the senior director of fiscal services, he held the reins to various district bank accounts, siphoning funds through a scheme involving checks deposited into his personal account. The district, which looks after children up to sixth grade, says 81% of them are classified as socio-economically disadvantaged, pointing to the gravity of the theft.
U.S. Attorney Martin Estrada minced no words when he denounced Contreras' action, stating, "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," as stated by the U.S. Attorney's Office, Central District of California. Estrada emphasized the sentence as a conviction that the office will "prosecute and punish those who betray the public trust – especially when their behavior affects some of our community's most vulnerable members." The elaborate fraud involved small checks made out to "M S D", fictitious names, and altered amounts — a method used to divert money unnoticed until August 2023.
While on administrative leave following the unfolding of the embezzlement, Contreras also became the subject of a school district lawsuit filed in Orange County Superior Court. Recovered items from his gains include a home in Yorba Linda, a 2021 BMW automobile, a collection of 57 luxury designer bags, and a range of high-end jewelry, clothing, and expensive tequila bottles. This haul, worth approximately $7.7 million, was collected through the combined efforts of the FBI, IRS Criminal Investigation, and the U.S. Department of Education's Office of Inspector General, as report by the U.S. Attorney's Office.
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