2 Businessmen Arrested in School Thefts

The Los Angeles Unified School District embezzlement case widened Wednesday as the owners of two camera stores were arrested and charged with conspiracy and felony grand theft involving $300,000 worth of photo and other electronic equipment.

Simon Ong, 41, owner of Simon’s Camera Discount Store, 4513 Beverly Blvd., and Steven Kaner, 44, owner of Pan Pacific Camera Center, 825 La Brea Ave., are accused of conspiring with school officials to bill the school district for equipment that was diverted to the officials’ personal use, Dist. Atty. Ira Reiner told reporters.

Instead of delivering the equipment to the school district, the store owners gave items valued at an equivalent amount to Melvin N. Tokunaga, deputy director of custodial operations, and James Wyatt, a district engineer, Reiner said. The owners profited by charging their regular markup, but did not receive kickbacks, the district attorney said.

The latest arrests bring the total number of people charged in the case to 12--six school district employees, including Tokunaga’s boss, James L. Riley, and six people outside the district. So far, about $1 million in losses has been documented, Reiner said, adding that he expects more arrests and “substantial” further losses.

Tokunaga, 42--described by Reiner as the “mover and shaker” in the case--was charged in March with six felony counts of conspiracy, grand theft and embezzlement in connection with a variety of schemes involving items ranging from pesticides to toilet paper. He is awaiting a preliminary hearing.

Wyatt, 62, was arrested in March and is expected to be formally charged today with felony grand theft.

Pointing to a large display of items seized from Wyatt’s home, including a $3,400 Hasselblad camera, Reiner said: “It’s rather disgusting when you look at the excesses here. It seems like every camera lens known to man was . . . purchased with stolen money from the school district.”

Under the scheme, Reiner said, the officials would place a series of small orders--less than $400--with the stores. As these accumulated, the owners would open accounts for them. When the accounts reached a certain level, “these thieves from the school district,” would go to the stores to pick out equipment to take home, the district attorney said.

“They would come in and go through the store like kids in a candy shop, and say, ‘I want that and I want that and I want that,’ ” Reiner said. “And they’d walk out with five or 10 thousand dollars’ worth of equipment, as the case may be. That built up to about $300,000. . . . “

Reiner said the equipment seized from Wyatt is worth about $50,000, and it is not known where the rest of the goods are. Investigators believe that at least some of the equipment was resold.

Wyatt cooperated with investigators, Reiner said, and prosecutors will recommend that he avoid jail time if convicted.

Kaner and Ong face a maximum of six years in state prison.