Former Employee At CDPH Office Of AIDS Sentenced To Prison For $2 Million Fraud Scheme
SACRAMENTO (CBS SF) – A former employee at the California Department of Public Health has been sentenced to federal prison after she was convicted in a $2 million scheme to defraud the agency's Office of AIDS, prosecutors said.
According to U.S. Attorney Phillip Talbert's office, 48-year-old Christine Iwamoto of Sacramento was sentenced to two years in prison and ordered to pay $481,200 in restitution. Iwamoto pleaded guilty last October to wire fraud and conspiracy to commit money laundering in connection with the case.
Prosecutors said Iwamoto participated in a scheme spearheaded by her colleague Schenelle Flores to defraud the Office of AIDS.
According to the agency's website, the office "works collaboratively with state and federal agencies, local health jurisdictions, universities, and community-based organizations to ensure that efforts to combat the HIV/AIDS epidemic are targeted and effective."
Between December 2017 and November 2018, Iwamoto along with other participants in the scheme obtained at least $2 million in personal benefits, including cash and purchased items.
Court documents said Iwamoto set up a shell company and coordinated with Flores to submit invoices to the state contractor falsely claiming her company provided consulting and meeting facilitation services to the Office of AIDS. She then received $450,000 in payments.
Iwamoto also distributed cash and checks to an unnamed colleague also taking part in the scheme, along with obtaining gift cards from the state contractor for her personal use, prosecutors said.
Flores pleaded guilty to wire fraud in connection with the scheme in February. She was sentenced to 70 months in prison in the case.