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San Benito County Recovers $696,602 After Phishing Scam Diverts ACH Payment

The case renews scrutiny of the independent Auditor-Controller’s Office after earlier library embezzlement.

Overview

  • The Oct. 15 transfer was flagged by the bank, prompting Treasurer Melinda Casillas to alert county administration and file a fraud claim with the FBI.
  • Investigators say someone posing as a construction contractor used a vendor change request to insert falsified details and reroute the money.
  • The payment was approved by the Auditor-Controller’s Office, which verifies claims and is led by elected Auditor-Controller Joe Paul Gonzalez.
  • The Sheriff’s Office reports the funds have been returned to the county and says it is pursuing the perpetrators with FBI partners.
  • County leaders plan a meeting as early as next week to address how the breach occurred and to strengthen financial controls following the recent library embezzlement case.