Anaheim, CA – Former senior education official, Jorge Armando Contreras, has pleaded guilty to embezzling over $15 million in public school funds from the Magnolia School District over a span of seven years.

Contreras, 52, admitted to the embezzlement from August 2016 through July of last year, according to a statement from the U.S. Attorney’s Office. He faced charges of theft and intentional misapplication of funds, offenses that could lead to a maximum sentence of 10 years in prison.

Starting his tenure at the district in 2006, Contreras rose through the ranks to become director of fiscal services in 2013. His fraudulent activities escalated in April 2017, when he was promoted to senior director of fiscal services, granting him access to various school district bank accounts, including the student body account.

Court documents revealed that Contreras diverted checks from these accounts into his personal bank account, using fictitious names and inflated amounts to disguise his actions. He also provided falsified bank statements and records to conceal the embezzlement from district officials.

Authorities highlighted Contreras’ extravagant spending, which included over $4 million embezzled in just one year. He utilized the stolen funds for personal expenses, such as American Express charges, cash withdrawals, transfers to a future spouse, and the purchase of a BMW SUV.

In August, Contreras was placed on administrative leave, and law enforcement subsequently seized approximately $7.7 million in assets linked to the scheme. These assets included a home in Yorba Linda, luxury vehicles, designer goods, and expensive tequila.

In total, Contreras confessed to embezzling nearly $16 million from the Magnolia School District. He is currently free on a $450,000 bond and is scheduled for a sentencing hearing on July 25.

This case has sent shockwaves through the community, as the funds embezzled were meant to support the education of socio-economically disadvantaged students within the district.