Second state worker pleads guilty in California Office of AIDS fraud scandal

A second state worker has pleaded guilty in connection with a $2 million fraud case involving the California Office of AIDS and will cooperate with prosecutors, authorities said.

Christine Iwamoto, 47, a former manager inside the California Department of Public Health, was charged in federal court in Sacramento earlier this month with wire fraud and conspiracy to commit money laundering, and a plea agreement filed in court Thursday says she agreed to plead guilty and pay restitution of up to $600,000.

Iwamoto’s plea follows a guilty plea in February by Schenelle Flores, another Office of AIDS worker accused of defrauding the state by having a Southern California company bill the office for personal expenses, including tickets to sporting events, concerts and restaurants.

Flores also is cooperating with prosecutors in the investigation, which court documents say involved the use of gift cards, phony companies and email accounts.

“The total loss from the scheme that Flores organized was at least approximately $2.7 million,” court papers filed Thursday say, with Iwamoto receiving $450,000 and 312 $100 gift cards.

The scam began in December 2017 and involved at least five individuals, court papers say. CDPH discovered irregularities in its books in 2018 and began an investigation that led to the charges.

Iwamoto faces sentencing Feb. 24 and could face up to 20 years, although the government has agreed to recommend a lower sentence. Flores faces sentencing Jan. 20.

This story was originally published October 28, 2021 at 10:59 AM.