Ex-Principal Gets House Arrest for Embezzling Funds

A former principal in the Inglewood Unified School District was sentenced Friday to 180 days’ house arrest and three years’ formal probation for embezzling thousands of dollars of district funds.

Leonard Matthews, 60, pleaded no contest five months ago to three counts of embezzlement. On Friday, however, he told Los Angeles Superior Court Judge Gordon Ringer that he had done nothing more than incorrectly mingle his personal money with district funds.

“There was no intent for me to derive any benefit,” Matthews said. “My personal withdrawals did not exceed the amount that I had put in. . . . I have not received one penny personally from anything that has been done.”

Matthews was principal of Hillcrest Continuation High School in 1987 when investigators began to uncover evidence they said showed that he diverted to his personal use at least $4,000 from employee paychecks, a school store and private donations. According to court records, Matthews used the money to buy clothes, cosmetics and a $218 outdoor Nativity set for his home over a 16-month period beginning in 1986.

District officials transferred Matthews to a headquarters job after a finance administrator discovered that he had set up an unauthorized checking account at Wells Fargo Bank in Inglewood named “Hillcrest High School Clubs/Leonard Matthews.” The administrator referred the matter to Inglewood police.

Police investigators said they found evidence that Matthews had diverted donations intended for the school into the account, as well as profits from a student store and employee paychecks that were padded with phony overtime claims.

Detective Paul Harvey said estimates of how much went from the account into Matthews’ pocket range from $4,000 to nearly $10,000. An exact figure was never determined, in large part because poor bookkeeping by the student store made it difficult to track all the money, Harvey said.

“It was stupid, reckless and irresponsible,” Harvey said of Matthews’ actions. “He’s a well-respected individual in many circles, and this was just an incredibly stupid act.”

Matthews, who has paid $12,000 restitution to the district, was demoted to a teaching position when the police sought criminal charges from the district attorney’s office in 1988. It was unclear why he paid more than authorities estimated was taken. Prosecutors filed 14 counts of embezzlement and one count of grand theft against Matthews in October, 1990.

Matthews, a 17-year district employee, retired in June. His conviction and sentence will not affect his pension.

After his sentencing, Matthews said in a tearful interview that he agreed to plead no contest to spare his family the stress of a lengthy trial.

“I have really been railroaded,” he said. “I still feel as if I have been done a terrible injustice here.”

He said he put personal money, including his mileage reimbursement checks, into the account to contribute money for Christmas and birthday gifts to staff members. Any money he withdrew from the account represented deposits of his own money, he said.

Matthews said he recognizes that mixing personal and public funds “was an illegal process” but said the action should have been forgiven “because there wasn’t any stealing involved.”

Matthews said he believes that district officials orchestrated the investigation against him in retaliation for his political support of unpopular school board members.

“I don’t feel that what was done merits me serving any time,” he said.

Deputy Dist. Atty. Tom Gray had recommended that Matthews serve 90 days in County Jail. Gray said he was satisfied with a sentence requiring Matthews to serve twice that amount of time at home.

“County Jail really is not the place for him,” Gray said. “But what really bothers me is that there is no indication of remorse and a complete denial at this point that he ever did anything wrong. How can he just stand there and say, ‘I’m a victim of circumstances’?”

Matthews must pay a private electronic monitoring service about $400 a month for a tracking bracelet he will wear to assure he does not leave his Inglewood home.

Ringer agreed to allow Matthews to leave the house for church on Sundays, doctor’s appointments and three visits each week to visit the grave of his son, Mallory, who died last year.