A manager of California’s Office of AIDS has been charged with defrauding the state out of about $2 million that was intended to help combat the condition.
Schenelle M. Flores, 45, of Sacramento pleaded not guilty to wire fraud Wednesday during a remote hearing of the federal court in Sacramento and was allowed to remain out of custody on a $25,000 bond, the Sacramento Bee reported.
Court documents obtained by KCRA-TV allege that Flores, working with at least five others, conducted a scheme in 2017 and 2018 to divert funds from the California Department of Public Health that were intended for use by the Sacramento-based Office of AIDS.
Flores worked with an unnamed Fresno-based corporation that had a state contract to distribute condoms and with owners of other businesses that purportedly provided services to the Office of AIDS, including a consulting business and an information technology services provider, prosecutors contend.
Flores and others used “false statements, representations, promises and half-truths” in charging supposed corporate expenses to the state, prosecutors allege.
Also, Flores used gift cars ostensibly intended as patient incentives and was given debit cards linked to corporate bank accounts that she and others used to make personal purchases, such as season tickets to sports games, concert tickets, travel and payments to family and friends, according to the allegations.
The fraud reaped at least $2 million in cash and purchased items, prosecutors alleged.
The criminal investigation began after the Department of Public Health launched a probe because of “fiscal irregularities,” said a statement from spokeswoman Ali Bay to the Bee.
“These serious allegations go against everything our department stands for and we appreciate the work of law enforcement to ensure that individuals are held accountable for criminal actions,” Bay said.
If convicted, Flores could face up to 20 years in federal prison and a fine of $250,000.