San Francisco, CA – District Attorney Brooke Jenkins announced today that the Honorable Judge Bruce Chan sentenced Stanley Ellicott (40) to a term of three years in State Prison after pleading guilty and being convicted of seven felony counts of public corruption in connection to a complex scheme that defrauded the city of more than $627,000 directly from the Department of Human Resources’ Division of Workers’ Compensation, and another case where he aided and abetted public corruption. At today’s sentencing hearing, Mr. Ellicott was remanded into custody and is currently in San Francisco County Jail, awaiting transfer to the California Department of Corrections and Rehabilitation’s custody in State Prison.
“I am proud of my Office’s Public Integrity Task Force for discovering, investigating, and prosecuting this case,” said District Attorney Brooke Jenkins. “Mr. Ellicott had enormous responsibility as the Assistant Director of Finance and Technology in the City’s Workers’ Compensation department and he is being held accountable for violating the public trust. I am committed to rooting out public corruption at all levels and protecting residents and taxpayers from fraud and gross misconduct perpetrated by city employees.”
Mr. Ellicott pled guilty and was convicted of two counts of misappropriation of public moneys, grand theft, financial conflict of interest, presentation of fraudulent claim, money laundering, and aiding and abetting a financial conflict of interest in a government contract. Mr. Ellicott’s guilty plea and conviction settled two fraud cases he was facing.
Over a four-and-a-half-year period from May of 2019 to January of 2024, Mr. Ellicott stole $627,118.86 from the City, where he previously served as the Assistant Director of Finance and Technology for the Human Resources Department, Workers’ Compensation Division. One of his responsibilities was to oversee “the financial integrity of the Workers’ Compensation Division.”
Mr. Ellicott enlisted a friend to register a fake business in Illinois called “IAG Services” and open a bank account for the business, which she gave full control of to Mr. Ellicott. Mr. Ellicott then added this fake business as a vendor in the workers’ compensation system and over time billed more than 600 actual City workers’ compensation claims with charges for auditing services. Department archives show no evidence any auditing services were ever performed. Because the City is self-insured for workers’ compensation purposes, payments to doctors, employees, and vendors related to workers’ compensation claims come directly from the City’s coffers.
All the City payments to “IAG Services” were deposited into the account set up by Mr. Ellicott’s friend, then the money was systematically transferred into Mr. Ellicott’s personal checking accounts in a pattern to appear like they were payroll payments. In total, he transferred more than $488,000 from IAG’s account into accounts belonging to him.
The website for the Illinois business “IAG Services” created in Oakland – where Ellicott lives – and IAG emails sent to Ellicott’s work address that appear to be created by him. On several occasions, Mr. Ellicott emailed his subordinates and directed them to process payments to IAG that he had approved, enlisting their unknowing and unwitting assistance in his fraud.
Mr. Ellicott also pled guilty to and was convicted in a separate case for his role in a scheme to misappropriate grant funds awarded through the City’s Community Challenge Grant Program.
The cases against Mr. Ellicott were successfully prosecuted by Assistant District Attorney Erin Loback, with assistance from District Attorney Investigator Mike Reilly, paralegal Chloe Mosqueda and the entire Public Integrity Task Force.
“I’m pleased that through our persistent searching we were able to locate Mr. Ellicott’s numerous bank accounts and freeze all of the stolen funds before we arrested him,” said Assistant District Attorney Erin Loback. “The taxpayers of the City and County of San Francisco will be made whole with the return of every penny of the stolen $627,118.86 back to the City’s Worker’s Compensation Fund.”
Frozen funds will be transferred back to the city.
Court Numbers: 24004990, 25025111
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