WESTWOOD : 2 Ex-UCLA Officials Plead Not Guilty in Fraud Case

Two former UCLA administrators have pleaded not guilty to charges that they embezzled more than $600,000 by duping the university into paying two employment agencies for work that was never performed.

James G. Campbell, the former administrative officer of UCLA’s radiology department, and Benny Chow, its former chief financial officer, have pleaded not guilty to 59 counts, including conspiracy, fraud and money laundering.

Prosecutors allege that Campbell established two employment agencies and, with Chow, knowingly approved fraudulent invoices billing UCLA for work that was not done. To avoid the appearance of personal gain, Campbell allegedly directed the employment agencies to divert some of that money to his relatives, friends and others.

Two other people who allegedly participated in the scheme have agreed to cooperate with prosecutors and testify if necessary at the Sept. 11 trial of Campbell and Chow, said Assistant U.S. Atty. Nathan Hochman. Campbell’s brother, Bruce, and Stephen P. Walta, a corporate agent of one of the employment agencies, each pleaded guilty earlier this week to one count of mail fraud. Walta also pleaded guilty to one count of conspiracy.