State worker allegedly defrauded California’s Office of AIDS for personal expenses, feds say

Federal prosecutors have charged a Sacramento woman who worked as a manager in the state Office of Aids with wire fraud, alleging she worked with others who obtained up to $2 million by engaging in schemes and submitting phony invoices to the state for personal expenses.

Schenelle M. Flores appeared Wednesday in a Zoom hearing in federal court in Sacramento. She waived her right to indictment and entered a not guilty plea. U.S. Magistrate Judge Carolyn K. Delaney allowed Flores to remain out of custody on an unsecured $25,000 bond and scheduled her next hearing for Feb. 11

Flores is accused of participating in a scheme from December 2017 through November 2018 along with other individuals in Sacramento, Fresno and Orangevale to “divert funds from the California Department of Public Health,” court documents say.

The Orangevale resident was an analyst at the Office of AIDS, court documents say.

Department spokeswoman Ali Bay emailed a statement to The Bee Wednesday saying the case stemmed from CDPH’s own probe initially.

“These serious allegations go against everything our department stands for and we appreciate the work of law enforcement to ensure that individuals are held accountable for criminal actions,” Bay’s statement said. “In late 2018, CDPH identified fiscal irregularities within the Office of AIDS and immediately launched an internal investigation and notified the state and federal authorities.

“CDPH has fully cooperated with law enforcement authorities and has also overhauled the fiscal management of the Office of AIDS to ensure the proper and appropriate use of state funds.”

Flores, 45, was listed in court documents as a manager in the Office of AIDS. Her Linkedin page says she worked for CDPH for 26 years and 10 months.

Flores was charged in a six-page wire fraud information that says the scheme included individuals in Sacramento, one purporting to operate a consulting business and another claiming to offer website services.

Others allegedly involved included the chief executive officer and chief financial officer of a Fresno company that had a CDPH contract to “provide services to the Office of AIDS, including distributing condoms and other harm reduction,” supplies, court documents say.

Flores allegedly directed those two to purchase gift cards to be given out as patient incentives “when in fact they were for personal use” by Flores and others, court records say.

The scheme also included access to debit cards used for season tickets to sporting events, concerts, travel and other personal expenses, court records say.

The two executives at the Fresno company each earned 2018 salaries of about $440,000 “as a result of maintaining the contract” with CDPH, court records say.

None of the other individuals or companies are named in court documents.

Flores could face up to 20 years in prison and a fine of $250,000.

This story was originally published February 3, 2021 at 3:55 PM with the headline "State worker allegedly defrauded California’s Office of AIDS for personal expenses, feds say."