New fraud charge in California Office of AIDS scandal targets third state worker
Federal prosecutors have charged a third California Office of AIDS worker in connection with a conspiracy that officials say siphoned off more than $2 million in state funds for vacation trips, sporting events and personal expenses.
Yvonne Gaide, 60, of Orangevale, who was an analyst the Office of AIDS at the California Department of Public Health, made a brief appearance in Sacramento federal court Tuesday on a single count of wire fraud.
Gaide pleaded not guilty and was ordered to return for her next hearing May 31. The single count could net her a sentence of up to 20 years and a $250,000 fine.
Gaide allegedly participated along with Office of AIDS colleagues Schenelle M. Flores and Christine Iwamoto in a scheme that used debit cards, state AIDS contract funds and dummy corporations created to pose as contractors to obtain the money from December 2017 through November 2018, court papers say.
“The purpose of the scheme was to divert funds from the California Department of Public Health for the personal use of Schenelle M. Flores, Christine M. Iwamoto, Yvonne Gaide and others known and unknown to the Grand Jury,” court papers say.
Federal and state investigations have determined the scheme used an Office of AIDS contractor, MLB Distributors, to divert funds for personal expenses that included more than $200,000 at Disneyland, court papers say. MLB, which has since been dissolved, has said it is cooperating with the probe.
Flores was sentenced in March to five years, 10 months in federal prison after agreeing to a plea deal and cooperating with prosecutors. Court papers say she used AIDS funds to pay for suites at San Francisco Giants games, cruises, Sacramento Kings tickets and a yacht rental for her daughter’s birthday party.
Iwamoto was sentenced in April to two years in prison and ordered to pay $481,200 in restitution.
This story was originally published May 11, 2022 at 5:25 AM.