For release on September 11, 2014   CONTACT:
Judy Lee, Deputy District Attorney
Public Integrity Unit
(408) 792-2798   FORMER SANTA CLARA COUNTY SCHOOL DISTRICT OFFICIAL CHARGED WITH CONFLICT OF INTEREST FELONIES
A former assistant superintendent of the Santa Clara County Unified School District has been criminally charged with two conflict of interest felonies, accused of approving contracts and checks that ended up with him getting paid thousands in public money.
  The money, for accounting services, was supposed to be paid directly to the school district. Instead it went to Jinfa “Jim” Luyau, 59, of Saratoga, the District’s Assistant Superintendent of Business Services.
Luyau was arrested last week. He remains out of custody on $20,000 bail. His arraignment is scheduled for 1:30 p.m., Friday, September 12, 2014, in Department 23. If convicted, Luyau faces a maximum of three years and eight months incarceration.
  “You are not allowed to profit by a government contract that you yourself made,’’ said prosecutor Judy Lee of the Public Integrity Unit. “There needs to be a set of checks and balances to make sure there is not a misuse of public funds.”
  It is against the law for a government official to profit financially from any government contract he or she negotiates in their official capacity.
The alleged crimes were uncovered after a 2011 Office of Education audit that uncovered anomalies. Fearing fraud, the Santa Clara County Office of Education hired an independent auditor. The possible crimes were reported to the D.A.’s Office in late 2012.
  An investigation found that Luyau had negotiated and signed off on two contracts between 2006 and 2013, intended to pay the district for bookkeeping services provided to a third party, the South Bay Areas Schools Insurance Authority (SBASIA.) Luyau approved multiple checks to himself that paid him more than $40,000. SBASIA, a consortium of districts, did not know of Luyau’s payments to himself.
Luyau retired from the district in 2012.
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