State Official Arrested in $300,000 Fraud Scheme

An employee of the state Department of Rehabilitation was arrested Thursday in connection with a fraud scheme that authorities say netted her and three accomplices more than $300,000.

The alleged ringleader, Susan Leine, 53, of Redlands, worked in the Riverside office of the Department of Rehabilitation as a counselor for the visually impaired. As part of her job, she hired individuals to read to her clients, said department spokeswoman Erin Treadwell.

According to Treadwell, Leine authorized payments for reading services that were never provided, after making up the names of phony clients with fake Social Security numbers. The state sent the checks to Leine’s accomplices, Treadwell said.

Auditors grew suspicious of the amount of payments authorized by Leine and notified the California Highway Patrol, which investigates crimes against the state.

Since 1992, according to Treadwell and CHP investigator Paul Harder, Leine fraudulently authorized more than $300,000 in payments to Ann Fisher, 52, of Redlands; Jean Leanos, 53, of San Dimas, and Barbara Gettis, 56, of Gilroy.

All four people were arrested at their homes Thursday on suspicion of grand theft. Leine, who was placed on administrative leave, also was arrested on suspicion of misappropriation of public funds.