A former San Francisco city employee was arrested Thursday on suspicion of funneling more than $500,000 in city funds to his own pockets, the San Francisco City Attorney’s Office announced in a press release.
Stanley Ellicott was indicted on charges that he defrauded the city of more than $600,000 by forming a fake company. Ellicott was previously charged with another fraud and now faces new charges. according to Go to press release. Mr. Ellicott’s scheme included creating a fictitious company through which he allegedly directed $627,000 in city funds during his tenure.
As an employee of the Department of Human Resources, he allegedly abused his position to administer workers’ compensation claims and establish secret financial accounts for fraudulent activities. according to San Francisco Standard. Payments intended for legitimate claims were reportedly siphoned off to this fake company, which he allegedly disguised as a vendor for the city’s workers’ compensation system and provided non-existent audit services for more than 600 claims. was demanding payment for.
Former city employee Stanley Ellicott, already indicted in a kickback scheme, faces new charges of setting up an elaborate sham company to siphon more than $500,000 in city funds into his own pockets. https://t.co/eO8yHeeZz0
— San Francisco Standard (@sfstandard) March 21, 2024
“We are disgusted and angered by Mr. Ellicott’s actions,” Human Resources Director Carol Eisen said in a news release. “He took advantage of his colleagues and the public for his own benefit. There is no excuse or room for this type of behavior in city government.”
Following the allegations against Mr. Ellicott in January 2024, collaborative actions were taken to address and eliminate weaknesses in internal controls that enabled the alleged fraud and abuse within the department’s subsystems. the news release said. (Related: Department of Justice charges man with $148 million urine test fraud)
“The abuses Mr. Ellicott is accused of are reprehensible, especially because he was in a position of authority,” Commissioner Greg Wagner said in a news release. “The swift and coordinated efforts of DHR, the City Attorney’s Office, and the Office of the Comptroller’s Office were effective. The City has already implemented new safeguards to close the loopholes in payment management that allowed this incident to occur. ”
