City Official Accused of Embezzling : Crime: Police say the No. 2 executive in the city’s risk management division has confessed to taking $447,984 in the last seven months.

A Santa Monica city executive has confessed to embezzling $447,984 of public funds in the last seven months by approving bogus claims paid to nonexistent companies, according to police and City Atty. Robert M. Myers.

Charles M. Cota, 43, was arrested at his office Tuesday and was booked on suspicion of embezzlement, embezzlement of public funds and grand theft, all felonies. Police said Cota was released on $5,000 bail, pending arraignment in Santa Monica Municipal Court on Feb. 5.

Repeated efforts to reach Cota for comment were unsuccessful.

City officials said Cota, who has multiple sclerosis and uses a wheelchair, cited his deteriorating health and concern for the financial security of his family as pushing him to steal from the city.

Myers said, however, that Cota had recently purchased a $9,000 Cartier watch and at least one automobile. Cota, a resident of Valencia, earned $54,000 a year as the No. 2 person in the city’s risk management division, which processes and settles claims against the city.

City Manager John Jalili said he learned of the suspected thefts early Monday morning from Cota’s boss, Risk Management Manager Tom Phillips. Phillips had become concerned during a routine internal audit and worked over the weekend to verify his suspicions.

By noon Monday, Santa Monica police had located Cota’s bank accounts and had frozen them. Myers said initial reports indicate at least $200,000 would be recovered and that he hopes to establish that $31,860 was used as down payment on a house purchased by Cota last month.

A civil suit to recoup the funds was filed on Tuesday by Myers’ office. The criminal case will be presented to the district attorney’s office for filing after records seized by search warrants served at Cota’s home and bank are studied and compiled.

According to allegations in the civil lawsuit filed in Santa Monica Superior Court, Cota created several companies, then paid them for accidents and injuries that never occurred.

Among the dummy companies were: Desktop Graphic & Design, Tri-M Enterprises, Canyon Advertising & Publishing and Matthew Maxwell & Associates.

All of the claims were less than $15,000, which is the maximum amount that can be paid without City Council approval. Myers said files with fake photographs and investigative reports were seized from Cota’s home.

Cota used his home address on all of the business bank accounts, however, and did not actually file the claims with the city, so it was easy to spot them in the audit, officials said.

Cota is on unpaid administrative leave and has been notified that the city wants to fire him, Myers said.