Former California City Official Accused of Embezzling Nearly $200K in Insurance Fraud Scheme

Carl F. Alameda, a former assistant city manager for the City of La Cañada Flintridge, has been charged with 34 felony counts, including 11 for embezzlement and 23 for insurance fraud. According to the Los Angeles County District Attorney, Alameda allegedly stole $193,086 by redirecting insurance claim checks meant for the city into his own bank account. The alleged scheme ran from 2016 to 2022 and involved submitting falsified claims on city letterhead to insurance companies seeking reimbursement for vehicle accidents and property damage.

The city discovered the irregularities in May 2022 when suspicious checks began arriving at the LA County Public Works office. This triggered a joint investigation by the city and the Los Angeles County Sheriff’s Department. Alameda was placed on leave and later ended his employment with La Cañada Flintridge in April 2023. He was subsequently hired by the City of Ojai, where he is now on paid administrative leave as a precaution while that city conducts its own internal audit.

La Cañada Flintridge officials stated that the city has since tightened its internal financial controls and undergone third-party audits to prevent similar issues in the future. While only a portion of the diverted funds were actually owed to the city, officials confirmed they will seek restitution through the legal process.

This case underscores the importance of vigilant oversight in municipal claims handling, particularly as it relates to third-party insurance reimbursements. Alameda has pleaded not guilty, and the case remains under investigation by the Public Integrity Division of the District Attorney’s Office.