A former senior director of fiscal services for the Magnolia School District has been sentenced to 70 months in federal prison for embezzling nearly $16.7 million from the district, federal officials announced Thursday.
Jorge Armando Contreras, 53, was also ordered to pay restitution totaling $16,694,942. Contreras, who held his position with the district—serving Anaheim and Stanton—since 2006, was found guilty of embezzlement, theft, and intentional misapplication of funds from an organization receiving federal funds. He had previously pleaded guilty to the charges in March.
During his tenure, Contreras misappropriated funds intended for educational purposes to support his extravagant lifestyle. Prosecutors revealed that he used the stolen money to buy luxury items, including designer Louis Vuitton bags, a high-end automobile, and a home.
According to the U.S. Attorney’s Office of the Central District of California, Contreras exploited his access to the district’s bank accounts, including those for the student body. His scheme involved writing checks with fictitious names and then depositing them into his personal bank account. To cover his tracks, he provided falsified bank statements and reconciliation packets to district officials.
Contreras was placed on administrative leave in August 2023, leading to a lawsuit filed against him in Orange County Superior Court. Law enforcement officials have seized around $7.7 million worth of assets linked to his fraud. These assets include a home in Yorba Linda, a 2021 BMW, 57 designer bags—primarily Louis Vuitton—jewelry, designer clothing, and bottles of Clase Azul Ultra luxury tequila. Photographs released by the prosecutor’s office showed stacks of cash stuffed into a mini refrigerator and Louis Vuitton purses.
The investigation was carried out by the FBI, IRS Criminal Investigation, and the U.S. Department of Education Office of the Inspector General.
