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July 12, 2007
Supervisor Admits Role in $1M Temp Worker Scheme

A former supervisor at a luxury car dealership in California has pleaded guilty to embezzling more than $1 million by creating bogus time-sheets for temporary workers and then pocketing at least half of the money, the Justice Department announced.

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David Delgado, 36, of Laguna Niguel, pleaded guilty to two counts of wire fraud before United States District Judge AliceMarie H. Stotler.

Delgado was the supervisor of temporary employees at the Mercedes-Benz dealership in Laguna Niguel for more than seven years. His responsibilities included overseeing temporary workers and approving the hours they worked.

In 2004, prosecutors said, Delgado was approached by a temporary employee who offered to give Delgado half of his paycheck if Delgado arranged to have the temporary employee remain on the payroll. Delgado agreed and the temporary employee stopped working at the Mercedes-Benz dealership. Instead of notifying the temp agency or Mercedes-Benz that the temporary worker was no longer working, Delgado approved phony hour entries for the temporary worker, Prosecutors said.

Over the next few years, Delgado recruited additional temporary employees or created completely fictitious temporary employees, prosecutors alleged.

Under the plea agreement, Delgado would face a sentence in the range of 2.5 to 3 years in federal prison. Delgado is scheduled to be sentenced on September 7, 2007. Delgado is also required to pay $1,053,970 to the dealership, of which approximately $100,000 has already been paid.

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