Santa Clarita, CA – A Santa Clarita man has admitted to defrauding The Claremont Colleges of more than $1 million in a sophisticated wire fraud scheme, federal prosecutors announced Wednesday.
Steven Anthony Cowles, 45, pleaded guilty in federal court to one count of wire fraud, according to the U.S. District Attorney’s Office.
“Cowles admitted to orchestrating a multi-year scheme that exploited his position to divert funds for personal gain,” prosecutors said in a statement.
Cowles faces a sentencing hearing on April 22, where he could be sentenced to up to 20 years in federal prison.
How the Fraud Occurred
Cowles had worked as an electrical shop supervisor for The Claremont Colleges Services (TCCS) since 2015, overseeing maintenance of electrical systems across all seven campuses in Los Angeles County. His responsibilities included ordering parts and supplies as needed.
Between June 2018 and July 2024, Cowles allegedly embezzled approximately $1,000,571 through at least 1,343 unauthorized transactions, prosecutors said.
The scheme involved company-issued Visa credit cards that Cowles was authorized to use for work-related purchases. He allegedly linked the cards to his personal PayPal account and transferred funds for his own use.
Concealment Tactics
To hide the fraud, Cowles reportedly submitted fake invoices and other documentation to make the transfers appear as legitimate purchases of electrical products and services.
Prosecutors explained that Cowles exploited a technical feature of the system:
“When transaction data was transmitted from Wells Fargo [cards] to Workday, the transaction would populate in the Workday system with only the name of the third-party payment platform, not the ultimate recipient of the funds,” court documents said.
This allowed him to move money without immediately triggering scrutiny.
Next Steps
Cowles’ April 22 sentencing will determine the length of his federal prison term. The case highlights the risks of internal fraud and the importance of monitoring corporate financial systems for unauthorized transactions.
Conclusion
A Santa Clarita man has pleaded guilty to defrauding The Claremont Colleges of over $1 million, exploiting his supervisory role and company-issued credit cards to funnel money to his personal accounts. Authorities say the sentencing will serve as a warning for similar internal fraud cases.
If you have experienced or uncovered fraudulent activity in your workplace, share your experiences in the comments below to help others understand the warning signs and prevention measures.
