San Joaquin County DA investigator on paid leave after audit finds potential fraud

Hannah Workman, The Stockton Record
·3 min read
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An investigator for the San Joaquin County District Attorney's Office has been placed on paid administrative leave after an audit found potential fraud dating back to 2017.

District Attorney Ron Freitas on Monday said the potential fraud was flagged after an audit of the 2024 Auto Insurance Fraud Grant Program. The program gives money to district attorney's offices across the state to cover attorney's fees, investigators, paralegals, and other costs related to investigating and prosecuting auto insurance fraud.

Freitas — who assumed the role of district attorney in 2023 and previously served as assistant district attorney — claimed the fraud occurred under his predecessor's watch.

San Joaquin County District Attorney Ron Freitas attends the San Joaquin County Hispanic Chamber of Commerce's 20th annual Latina Business Conference and Luncheon at the Wine and Roses Inn in Lodi on Friday, Mar. 24, 2023.
San Joaquin County District Attorney Ron Freitas attends the San Joaquin County Hispanic Chamber of Commerce's 20th annual Latina Business Conference and Luncheon at the Wine and Roses Inn in Lodi on Friday, Mar. 24, 2023.

"It was discovered that an investigator within the San Joaquin County District Attorney’s Office had been allegedly falsifying time sheet information in order to justify the district attorney’s office receipt of grant funds," Freitas' office said in a statement. "When confronted with the alleged fraudulent time sheet information, the investigator in question provided information showing that the alleged fraud had been committed at the urging of leadership in the prior administration of the San Joaquin County District Attorney’s Office."

However, former District Attorney Tori Verber Salazar on Monday said that as assistant district attorney, Freitas oversaw the auto insurance fraud division from 2015 to 2018. During that time, Verber Salazar said Freitas "never raised any concerns."

When asked if Freitas did, in fact, oversee the auto insurance fraud division, Erin Haight, a spokesperson for the district attorney's office, initially said she could not confirm whether he did. Haight later stated that Freitas oversaw the special operations division from 2016 to 2018, and did not supervise the auto insurance fraud division.

Freitas' office did not provide the name of the investigator who had been placed on leave. Haight said they were unable to disclose that information because "it pertains to an ongoing investigation."

Investigators with the district attorney's office are currently conducing an internal affairs investigation of the alleged fraud, according to a statement released by the office.

(4/20/22)San Joaquin County District Attorney Tori Verber Salazar speaks at a press conference on Wednesday, April 20 at the DA's office in downtown Stockton about charges for Anthony Gray, 52, who allegedly stabbed to death 15-year-old student Alycia Reynaga at Amos Alonzo Stagg High School on Monday, April 18. CLIFFORD OTO/THE STOCKTON RECORD
(4/20/22)San Joaquin County District Attorney Tori Verber Salazar speaks at a press conference on Wednesday, April 20 at the DA's office in downtown Stockton about charges for Anthony Gray, 52, who allegedly stabbed to death 15-year-old student Alycia Reynaga at Amos Alonzo Stagg High School on Monday, April 18. CLIFFORD OTO/THE STOCKTON RECORD

Freitas has initiated an internal audit of the Auto Insurance Fraud Grant Program dating back to 2017 to review what funds may have been fraudulently received, according to his office. He is also asking the San Joaquin County Auditor's Office to conduct its own audit, and has notified both the San Joaquin County Administrator and the San Joaquin County Board of Supervisors of the alleged fraud.

Legally, Verber Salazar said "it would be a clear conflict for the district attorney's office to investigate their own team member."

More: He led San Joaquin County DA's winning campaign. Then he got a $270k gig at DA's office

Verber Salazar said she is requesting an investigation into the current administration by the state attorney general and FBI regarding payments to Freitas' campaign manager. She claimed his campaign manager received $33,000 a month — a total of $267,000 — for eight months of work.

"To date, the DA refuses to answer questions into that sweetheart deal. And now this," Verber Salazar said. "I said from the very beginning, no one is safe from his retaliation."

More: Stockton Unified Trustee AngelAnn Flores plans to sue DA, sheriff following arrest

Last month, Verber Salazar alleged that the recent arrest of Stockton Unified School District Trustee AngelAnn Flores was an act of retaliation by Freitas' office and the San Joaquin County Sheriff's Office due to Flores "stand(ing) up to corruption" in said agencies. Verber Salazar is representing Flores, who is facing embezzlement, grand theft, and false claims charges.

Record reporter Hannah Workman covers news in Stockton and San Joaquin County. She can be reached at hworkman@recordnet.com or on Twitter @byhannahworkman. Support local news, subscribe to The Stockton Record at https://www.recordnet.com/subscribenow.

This article originally appeared on The Record: San Joaquin County DA investigator on paid leave after audit finds potential fraud