Former Orange County School Official Accused of Embezzling $14 Million

Former Orange County School Official Accused of Embezzling  Million

A former senior director of fiscal services at the Magnolia School District in Orange County, California, has been accused of embezzling over $14 million from the district over a period of seven years. Jorge Armando Contreras, 52, allegedly used a music production company called JC Productions as a front to finance a lavish lifestyle.

Prosecutors claim that Contreras used the stolen funds to purchase a $1.5-million house in Yorba Linda, a $127,000 BMW, and luxury items from Versace and Louis Vuitton. He also allegedly paid $190,000 to a cosmetic surgeon and dermatologist in West Hollywood. Charging documents reveal that Contreras deposited more than 250 checks into his personal bank account, stealing money from district funds.

Between August 2022 and July 2023 alone, Contreras is accused of embezzling $4.1 million from the district, which accounted for approximately 93% of all deposits made into his personal Wells Fargo account during that period. He allegedly made payments of $1.9 million to American Express, withdrew $325,000 from ATMs, and transferred over $130,000 to his future marriage partner.

Contreras was arrested on charges of embezzling federal funds, which carries a potential sentence of 10 years in prison if convicted. A federal judge has ordered him to be held without bail, and his arraignment is scheduled for November 27. Contreras had been placed on administrative leave by the school district in August when suspicions of embezzlement arose.

The Magnolia School District, which serves approximately 5,300 students from preschool through sixth grade across nine schools in West Anaheim and Stanton, includes many low-income schools that receive millions in federal aid. The district has received over $10 million in federal funds annually since 2020. The district has filed a lawsuit against Contreras and is seeking to freeze and recover approximately $4 million.

Superintendent Frank Donavan expressed shock and deep concern over Contreras’s actions, stating that the diverted funds were intended to benefit children. The district is committed to aggressively pursuing all options to recover the funds and ensure justice is served.

Bank cameras captured Contreras depositing money into his Wells Fargo account under the names “Maria Socorro Dominguez” and “Magnia Socorro Dominguez.” District officials noted that Contreras appeared to be living beyond his means and speculated that he may have been earning extra money from his music production company.

The case is ongoing, and further developments will be reported as they arise.

 

CrimeDoor
Author: CrimeDoor

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