LOS ANGELES – Over the years, the Plumbing and Industrial Supply, Inc. has been awarded numerous contracts from the Los Angeles Unified School District.
However, it turns out that the company’s president and office manager submitted fake invoices for irrigation docks and pocketed the money.
On Tuesday, 74-year-old Karl Hauser was sentenced to three years of formal probation and 50 days in jail after pleading no contest to one count of embezzlement.
Hauser has also already paid $3.1 million in restitution. The initial charge was that $5.4 million was stolen.
76-year-old Paul Chapman, the former office manager, was sentenced to five years of probation, 400 hours of community service, and payment of $20,0000 in restitution.
Investigators uncovered over 200 fake invoices submitted between 2002 and 2006.
A now-deceased LAUSD employee was also complicit in the scheme, receiving unlimited use of the company’s credit card and items bought for his personal business.
