Engineer Allegedly Diverted Funds of O.C. River Project
An engineer with the U.S. Army Corps of Engineers was indicted by a federal grand jury on charges of wrongfully converting $25,000 paid by a contractor working on the Santa Ana River flood control project, the U.S. attorney’s office said Thursday.
The engineer, William Gallegos, 47, of Fontana was responsible for managing and overseeing contractors working on the project in Orange, San Bernardino and Riverside counties.
Assistant U.S. Atty. William Carter said Gallegos falsely told a project contractor, Paul Hubbs Construction Co. of Riverside, that the money was owed to a subcontractor.
At Gallegos’ direction, Carter said, the company issued three checks totaling $25,000 from 1993 to 1998. He said Gallegos cashed them and deposited the money in his own bank account.
In an indictment returned Wednesday, Gallegos was charged with three counts of conversion of money by an employee of the United States.
If convicted, he faces up to 30 years in prison and $750,000 in fines.
The case was investigated by the Defense Department’s inspector general and its criminal investigative service.
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