April 14--The financial services manager for Placentia has been arrested for embezzling $4.3 million from city accounts, officials said.
Michael Minh Nguyen of Irvine is charged with 17 felony counts of misappropriation of public funds and if convicted faces a maximum sentence of 29 years in state prison plus a fine of $8.6 million, according to the Orange County district attorney's office.
Officials arrested Nguyen, 34, Wednesday night with help from the Orange County district attorney's Bureau of Investigations, along with the agency's Public Integrity Team. He is being held on $4.3-million bail and is required to prove the money is from a legitimate source before posting bond.
Records show Nguyen was hired for his job on April 21, 2008.
Between April 22, 2015, and April 12, 2016, prosecutors said, Nguyen made 17 wire transfers from a Placentia account to other accounts belonging to him and various recipients. In the past four months, he allegedly transferred $2 million from city coffers.
He is accused of wiring more than $300,000 to a personal account on Monday, and the next day, of wiring another $1.5 million, according to investigators. Shortly after, with assistance from the FBI Cyber Task Force, officials succeeded in freezing the wiring of the $1.5 million and returning it to Placentia. Officials believe Nguyen tried to hide the embezzlement by altering financial ledgers.
Placentia officials discovered these unauthorized wire transfers on Tuesday and contacted the district attorney's office to report the fraud.
"This alleged embezzlement and theft of public funds is an affront to the people of Placentia and to our hard-working employees," City Administrator Damien Arrula said in a statement.
Orange County Deputy Dist. Atty Marc Labreche alluded to the threat of bankrupcy already facing a bedroom community "in dire financial straits."
"This is the last thing they need," Labreche said.
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