2 Men Accused Of Bilking LAUSD Out Of Millions With Fake Invoices

LOS ANGELES (CBSLA.com) — Two men are facing several charges after allegedly bilking the Los Angeles Unified School District out of millions of dollars.

The Los Angeles County District Attorney’s office said in a news release that Karl Hauser and John Paul Chapman face charges of grand theft of personal property with special allegations of embezzlement of public funds, according to the complaint.

The statement says Hauser served as president of a company that had contracts with the district while Chapman served as office manager for one of the company’s branches.

The pair is accused of submitting more than 200 phony company invoices for irrigation clocks over a four-year period. About $5.4 million was allegedly taken in the scheme, authorities said.

The statement also said a person, who worked for the LAUSD, was allegedly involved in the scheme. That person has since died, authorities said.

Chapman has pleaded not guilty, according to the news release, while Hauser has yet to be arraigned.

The statement said both men could face more than 13 years in prison, if convicted.

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