Friday, May 7, 2010

City of Encinitas loses $29,524 to embezzler

I guess we should be thankful. Some other cities lost a lot more:

The former president of a Huntington Beach company that held federal grant and loan money in escrow on behalf of local governments agreed today to plead guilty to embezzling millions of dollars that belonged to more than 20 cities in the Southland [...]

In a plea agreement filed in U.S. District Court in downtown Los Angeles, Belinda Exon, 55, who now lives in Phoenix, Ariz., admitted she embezzled $3.9 million that was being held in escrow by her former company, Rehab Financial Services Inc., according to Thom Mrozek of the U.S. Attorney’s Office.

The now-defunct escrow and loan servicing agent administered grants and loans for California municipalities. The money entrusted to Rehab Financial included funds awarded by the U.S. Department of Housing and Urban Development to local governments for rehabilitation programs designed to address health and safety hazards in low-income housing.

Read more:

According to the plea agreement, the following cities sustained losses:
– San Francisco, $1,021,000;
– Pomona, $751,000;
– Seal Beach, $481,432;
– Encinitas, $29,524;

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