Saturday, January 3, 2009

Grand jury testimony pulls back curtain on Tracy embezzlement case

By Mike Martinez
Staff Writer
Posted: 01/02/2009 07:24:08 PM PST
Updated: 01/02/2009 09:49:38 PM PST

TRACY — A Tracy man spent stolen money on stays at five-star hotels in San Francisco, Hawaii, Arizona and South Carolina, while dining at the best restaurants with a paid escort earning $300-an-hour, according to grand jury testimony.

Louis Anthony Contreras, 45, was indicted by a San Joaquin County grand jury on Dec. 11 and was accused of grand theft and falsifying corporate books after embezzling $645,000 from Tracy Material Recovery over the past 12 years. Authorities originally said Contreras estimated he may have taken more than $1.8 million, but after a month of forensic computer research, the amount missing was revised downward.

Contreras worked the scales at the Tracy Material Recovery Facility and Transfer Station on MacArthur Drive, where he would accept cash payments at the scale and provide customers with receipts. He would reportedly then destroy the company's copy of the receipt and pocket the cash. With the receipts voided or destroyed, his till would balance at the end of the day, according to testimony.

The alleged scam was uncovered by Mike Repetto, the chief executive officer of Tracy Material Recovery Inc., and Contreras' brother-in-law, on Oct. 17. Repetto installed surveillance cameras in the scale house where he captured video of Contreras ripping up receipts, grabbing cash and stuffing it into a backpack, according to documents made public last month.

"It's been rough at home for me, my family, and I just feel a lot of anger," Repetto told the grand jury. "He was very trusted. And I know it's a long time to go on with things. ... And it's just a bad, I mean, I'm really — it hurts. It really hurts. And it bugs me to no end that this went on and to have a really trusted person and family member do this to me, so that's all I pretty much have to say on it."

In testimony from the closed hearing released last month, two letters written by Contreras were presented to the grand jury — one an apology to his brother-in-law, and the other a confession letter. Both were read aloud into the record, according to court transcripts.

Contreras wrote he took an average of $100,000 to $150,000 a year while working the scales at the waste recovery facility. He wrote he would spend the ill-gained cash on "five-star hotels," "girls" and "fancy dinners."

He said the more money that come in, the more he would spend.

"It was out of control," Contreras wrote. "It was getting too easy to take it, and nobody would ask any questions. ... I started to spend more and more because I knew I could get it."

He also apologized to Repetto, a man he called "the most important friend in my life."

"The pain I put you though is the worst pain in the world," Contreras wrote. "I disgraced you and the company, your family, my nieces and my family as well. I will do whatever it takes to pay you and the company back. I don't expect you to forgive me, and I deserve it. All I can say is that I'm very sorry for what I have done to you, Mike."

Contreras is due back in San Joaquin County Superior at 1:30 p.m. on Tuesday in Department 26.

http://www.insidebayarea.com/trivalleyherald/localnews/ci_11358876

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