Man Sentenced for Scamming Los Angeles Unified School District Out of Millions

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LOS ANGELES – A 74-year-old man was sentenced today for his part in scamming the Los Angeles Unified School District out of millions of dollars officials said.

Karl Hauser will be required to pay $3.1 million in restitution, spend 50 days in jail, and be on formal probation for 3 years for submitting fake invoices for irrigation clocks. Hauser was the president of the Plumbing and Industrial Supply, Inc., which was awarded several LAUSD contracts throughout the years.

John Paul Chapman, 76, the office manager at the company’s Vernon branch was also involved in the scheme. According to Los Angeles District Attorney officials, over 200 fraudulent company invoiced for irrigation clocks were submitted to the district between 2002 and 2006. A third accomplice, an LAUSD employee who had access to the credit cards was also compensated for his role in the scheme, but has since died.

Chapman pleaded no contest in February to the one count of embezzlement. He was sentenced to five years of formal probation and to pay $20,000 to LAUSD and ordered to complete 400 hours of community service.