Embezzler of Newport Funds Living in Orange Halfway House : Corrections: Robert J. Dixon, who stole $1.8 million as city’s utilities director, was released from prison last month.

Former Newport Beach Utilities Director Robert J. Dixon, who admitted stealing $1.8 million from city coffers over a 10-year period, has been living quietly in a halfway house here since his release from prison last month.

Dixon, 49, served 18 months of a four-year sentence at the Richard J. Donovan Correctional Facility in San Diego and is eligible for parole next month, officials of the state Department of Corrections said Friday.

His austere lifestyle at the halfway house, which looks like a converted motel, contrasts sharply with the material affluence he once enjoyed at city expense. He shares the facility located in a rundown area of town with 50 other people, including inmates and staff. Most of them are unaware of Dixon’s high-profile crimes.

“He just goes about his business,” said a staff member. “He’s quiet, keeps to himself and looks for work.”

Another halfway house employee said Dixon spends some of his time doing volunteer work and has received “a lot of job offers.” The volunteer work earns him free time away from the facility, where inmates are required to return at a certain time each day.

Dixon declined to comment on his present situation Friday, saying only, “It would be inappropriate for me to make any kinds of comments while I am still under the supervision of the California Department Corrections.”

His early release from prison came as a surprise to Newport Beach city officials, many of whom are still angry over his elaborate check-writing scam that went undetected for years as he rose through the ranks at Newport Beach City Hall.

“It’s odd that a white-collar criminal would be released after such a short period of time,” said

During the years he worked for the city, Dixon submitted paperwork to the city’s Finance Department for fictitious services or transactions. He collected the checks, forged signatures and deposited the money into his personal accounts.

His scheme unraveled when a credit card company investigator told Newport Beach police that many city checks were turning up in Dixon’s account. When police confronted Dixon, he confessed.

With the stolen money, Dixon traveled regularly to New York on shopping sprees and built an extensive art collection valued at more than $200,000. The former utilities manager also bought time-share property in Jamaica and a wardrobe that included $125,000 worth of cuff links, 200 sweaters, 60 pairs of shoes, 200 shirts and 60 suits.

“He was always well-dressed and I even used to kid him about it,” said Assistant City Manager Ken Delino. “But no one realized he was wearing $3,000 suits.”

The city managed to recoup about $700,000 of the embezzled money by selling Dixon’s art and expensive possessions. But, Delino said, the city had to spend more than $300,000 of the recovered amount on legal fees and other related expenses such as auction fees and storage.

Although the city has put the scandal behind it, city leaders say they are still bitter about the once-trusted employee.

“This was a major theft,” said Councilwoman Evelyn R. Hart. “It’s very hard for me to forgive him. I don’t know that I can.” Added Turner, “The people who worked with him feel betrayed and I think they always will.”