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Investigation reveals how California state worker stole diamonds from unclaimed property unit

Investigation reveals how California state worker stole diamonds from unclaimed property unit
MY58. WELL, TONIGHT IN A KCRA 3 INVESTIGATION, HUNDREDS OF THOUSANDS OF DOLLARS IN DIAMONDS, VALUABLE COINS AND FAMILY HEIRLOOMS STOLEN. A CRIMINAL SCHEME THAT HAD GONE UNDETECTED FOR YEARS, ORCHESTRATED BY AN UNLIKELY CULPRIT. KCRA THREE INVESTIGATES. LYSEE MITRI OBTAINED DOZENS OF DOCUMENTS AND HUNDREDS OF EVIDENCE PHOTOS SHOWING HOW THE JEWEL THIEF FINALLY GOT CAUGHT. THIS IS A THIEF’S DREAM. A TREASURE TROVE, BUT IT’S ALL UNDER THE CARE OF THE VERY AGENCY TASKED WITH PROTECTING THE PUBLIC FROM FRAUD. THE STATE COMPTROLLER’S OFFICE. I’M NOT PLAYING. I’M TREATING YOUR MONEY LIKE MY OWN MONEY. YOU STEAL FROM ME, YOU BETTER RUN BECAUSE. AND HIDE BECAUSE I’M COMING FOR YOU ON TOP OF TRACKING TAXPAYER MONEY, THE COMPTROLLER SAFEGUARDS UNCLAIMED PROPERTY. VALUABLES LEFT BEHIND IN SAFE DEPOSIT BOXES AFTER SOMEONE DIED OR DIDN’T PAY THE BILL RETURNED WHEN THE RIGHTFUL OWNER OR HEIR TURNS UP, LIKE IN THE CASE OF A SOUTHERN CALIFORNIA MAN IN MARCH LAST YEAR. THE ITEMS WERE MAILED TO HIM, AND THEN THAT’S WHEN HE OPENED THE PACKAGE. HE NOTICED THERE WAS ITEMS MISSING. NOT JUST ANY ITEMS. FIVE LARGE DIAMONDS GONE. THE APPROXIMATE VALUE OF THOSE DIAMONDS WERE AROUND $300,000. SO WHERE DID THEY GO? THE STATE COMPTROLLER’S OFFICE CHECKED ITS SURVEILLANCE CAMERAS, TRACING THE PACKAGES MOVEMENTS IN THE MAIL ROOM. THAT’S WHEN THEY DISCOVERED THAT THERE WAS SUSPICIOUS BEHAVIOR BY ONE OF THE EMPLOYEES. THEN 58 YEAR OLD MIGUEL ESPINOSA, A MAIL MACHINE SUPERVISOR, CAUGHT THEIR ATTENTION. HE WAS TAKING THE BOX TO A LOCATION WHERE THERE WAS NO CAMERAS. HE WAS BRINGING IT BACK, RETAPING IT, AND THEN SENDING IT OFF. SO THE CALIFORNIA HIGHWAY PATROL GOT A WARRANT TO SEARCH HIS SACRAMENTO HOUSE, BUT IT HAD ALREADY BEEN A MONTH SINCE THE THEFT. THE DIAMONDS COULD BE ANYWHERE SOLD OR CAREFULLY CONCEALED. IT’S NOT MY HOUSE. I DON’T KNOW THE HIDING SPOTS. ANTHONY RUIZ SAYS HE DETAINED ESPINOSA WHILE ANOTHER OFFICER CHECKED THE SUSPECT’S ROOM, LOOKING FIRST UNDER THE BED. THERE WAS A BED WITH SORT OF A CABINET UNDERNEATH IT, AND HE JUST OPENED THE CABINET AND THEY WERE RIGHT THERE. IT WAS VERY SIMPLE. IT WAS GOOD LUCK, MOSTLY. AND THAT’S NOT ALL OFFICERS FOUND. THEY STRUCK GOLD. LIKE SPECIALTY COINS, JEWELRY. THERE WERE A COUPLE SILVER BARS. THINGS THAT WERE LOOKED LIKE FAMILY HEIRLOOMS. EVERYTHING HAD TO BE CAREFULLY CATALOGED. IT TOOK DAYS, GENERATING MORE THAN 300 PHOTOS. SO THIS WENT FROM ONE PERSON REPORTING SOME DIAMONDS MISSING TO HOW MANY PEOPLE THERE IS APPROXIMATELY 12 VICTIMS. STUFF STOLEN OVER AT LEAST A SEVEN YEAR SPAN. INVESTIGATORS SAY THIS WENT TO ONE VICTIM AND THESE ITEMS WERE ANOTHER VICTIM. PRECIOUS PROPERTY. THEY WERE SUPPOSED TO GET AFTER THE DEATH OF THEIR GRANDMOTHER, THEIR SISTER, OR THEIR FATHER. THERE WAS ONE LADY. SHE WAS HER SON LIVES HERE IN CALIFORNIA AND SHE LIVES IN IRAN. AND SHE HAD THIS SORT OF SPECIALTY, LIKE GOLD PURSE. SHE COULDN’T BELIEVE IT. SHE THOUGHT THAT HER DAD, LIKE, SOLD IT WITH A GOLD MINE OF EVIDENCE. THE CASE WENT TO THE SACRAMENTO COUNTY DISTRICT ATTORNEY’S OFFICE. WE’RE IN THE SPECIAL INVESTIGATIONS UNIT. DEPUTY DISTRICT ATTORNEY NICHOLAS JOHNSON HANDLES HIGH LEVEL GOVERNMENT CRIMES. IN THIS CASE, THERE WAS A GOVERNMENT EMPLOYEE WHO TOOK ADVANTAGE OF A SITUATION IN WHICH HE WAS ENTRUSTED TO MAINTAIN PEOPLE’S PROPERTY. THE DA’S OFFICE CHARGED ESPINOSA WITH 22 COUNTS FOR THE STOLEN GOODS. HE ULTIMATELY PLEADED GUILTY TO THREE. THIS CASE WAS A PARTICULARLY STRONG CASE. THE EVIDENCE WAS OVERWHELMING. WE MADE A OFFER AND HE ACCEPTED IT. SO CASE NUMBER 23, ASHLEY ESPINOSA FACED A JUDGE IN APRIL TO FIND OUT HIS FATE. ONE THING THAT STOOD OUT TO ME IS THE THE CONCEPT OF FAMILY AND HOW YOU BELIEVE IN FAMILY, AND WHAT WAS IRONIC TO ME WAS THE FACT THAT YOU STOLE FROM FAMILIES. ESPINOSA WAS SENTENCED TO MORE THAN A YEAR AND A HALF IN COUNTY JAIL, THEN PROBATION AND THE FAMILIES GOT THEIR BELONGINGS BACK, LEAVING JUST ONE THING UNRESOLVED ONE LAST LINGERING QUESTION MOSTLY IS THIS WHY HE DID IT? HE WASN’T SELLING THE PROPERTY. SO WAS HE GETTING SOME SORT OF THRILL OUT OF DOING IT? HE DID IT ONCE AND JUST KEPT DOING IT. THERE’S QUESTIONS I DON’T I DON’T HAVE THE ANSWERS TO. IN SACRAMENTO COUNTY, LYSEE MITRI KCRA 3 INVESTIGATES. ESPINOSA NEVER AGREED TO TALK TO POLICE. KCRA 3 ALSO TRIED TO REACH OUT TO HIM IN JAIL, BUT HE DID NOT RESPOND. HE IS EXPECT
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Investigation reveals how California state worker stole diamonds from unclaimed property unit
Newly obtained evidence photos show the $300,000 worth of diamonds that a former California state worker has been convicted of stealing while on the job.Miguel Espinosa, 60, pleaded guilty to three counts of grand theft for stealing the jewels and other valuables while he worked in the mailroom at the State Controller’s Office.The state agency safeguards unclaimed property, belongings that have been left behind in safe deposit boxes after someone died or didn't pay the bill for example. Things that are supposed to be returned when the rightful owner or heir turns up, like in the case of a Southern California man in March last year."The items were mailed to him, and then that's when he opened the package. He noticed there were items missing," California Highway Patrol Officer Anthony Ruiz said.He reported that five of his diamonds were not included in the package he received from the State Controller’s Office.The agency denied requests to discuss this case with KCRA 3 Investigates, but CHP said the State Controller's Office checked its surveillance cameras to find out what happened. The office traced the package's movements in the mailroom. "That’s when they discovered that there was suspicious behavior by one of the employees," Ruiz said.Espinosa’s behavior caught their attention. "He was taking the box to a location where there were no cameras. He was bringing it back, re-taping it and then sending it off," Ruiz said.CHP got a warrant to search Espinosa's Sacramento house. However, Ruiz knew it was a long shot. It had already been a month since the theft. The diamonds could be anywhere —sold or carefully concealed. "It’s not my house. I don't know the hiding spot. So, you know, I felt like we had a huge task to really find 'em," Ruiz said.He said he detained Espinosa while another officer checked the suspect's room, looking first under the bed. "There was a bed with sort of a cabinet underneath, and he had just opened the cabinet, and they were right there," Ruiz said. "It was very, very simple."It didn’t stop there. Officers found hundreds of items they gathered as evidence from jewelry to valuable coins and bars of silver."Things that looked like family heirlooms," Ruiz said. Everything had to be carefully cataloged. It took days, generating more than 300 photos. See photos of some of the evidence here, here, here and here. "The volume was massive," Ruiz said.It went from an investigation involving one victim to 12 potential victims, Ruiz said.Investigators believe the items were stolen over at least a seven-year span.(Photo gallery below: Diamonds, coins among the items that were taken.)It was precious property that, in some cases, people were supposed to inherit after the death of a grandmother, a sister or a father. "There was one lady, her son lives here in California, and she lives in Iran. And she had this sort of specialty, like, gold purse," Ruiz said. "She couldn't believe it. She thought that her dad, like, sold it."With a gold mine of evidence, the case went to the Sacramento County District Attorney's Office. "We’re in the special investigations unit," Deputy District Attorney Nicholas Johnson said.The unit handles high-level government crimes. "In this case, there was a government employee who took advantage of a situation in which he was entrusted to maintain people's property," Johnson said. The DA’s Office charged Espinosa with 22 counts for the stolen goods. However, Espinosa ultimately pleaded guilty to just three of those charges, taking prosecutors up on a deal."This case was a particularly strong case. The evidence was overwhelming. We made an offer, and he accepted it," Johnson said, explaining that prosecutors often make offers that they feel are fair and just in order to avoid the cost and risk of taking it to trial.In April, Espinosa faced a judge for sentencing."Mr. Espinosa, I did read the letters that were attached and included in your probation packet," Sacramento County Superior Court Judge Satnam Rattu said. "One thing that stood out to me is the concept of family and how you believe in family, and what was ironic to me was the fact that you stole from families. People who had artifacts and, you know, things that they kept in their family for generations maybe that you were just taking."The judge told Espinosa that he needed to see how he hurt those families by stealing from them.He was sentenced to serve one year and eight months in county jail and another year and eight months on probation.Meanwhile, investigators said the families got their belongings back.It leaves just one thing unresolved, one last lingering question for Ruiz."Mostly it was just why he did it. He wasn't selling the property," Ruiz said.Espinosa had no criminal history up to that point, he added."Was he getting some sort of thrill out of doing it? He did it once and just kept doing it? Those are questions that I don't have the answers to," Ruiz said.Police said Espinosa never agreed to talk with them when he was arrested.KCRA Investigates also tried to reach out to Espinosa in jail, but he did not respond. Espinosa is expected to be released at the end of January 2025, according to online jail records. | MORE | How to check for unclaimed property in CaliforniaSee more coverage of top California stories here | Download our app | Subscribe to our morning newsletter

Newly obtained evidence photos show the $300,000 worth of diamonds that a former California state worker has been convicted of stealing while on the job.

Miguel Espinosa, 60, pleaded guilty to three counts of grand theft for stealing the jewels and other valuables while he worked in the mailroom at the State Controller’s Office.

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The state agency safeguards unclaimed property, belongings that have been left behind in safe deposit boxes after someone died or didn't pay the bill for example. Things that are supposed to be returned when the rightful owner or heir turns up, like in the case of a Southern California man in March last year.

"The items were mailed to him, and then that's when he opened the package. He noticed there were items missing," California Highway Patrol Officer Anthony Ruiz said.

He reported that five of his diamonds were not included in the package he received from the State Controller’s Office.

The agency denied requests to discuss this case with KCRA 3 Investigates, but CHP said the State Controller's Office checked its surveillance cameras to find out what happened. The office traced the package's movements in the mailroom.

The suspect in the mailroom.
CHP

"That’s when they discovered that there was suspicious behavior by one of the employees," Ruiz said.

Espinosa’s behavior caught their attention.

Suspect moves packages concealed under USPS bins
CHP
The suspect moves packages concealed under USPS bins.

"He was taking the box to a location where there were no cameras. He was bringing it back, re-taping it and then sending it off," Ruiz said.

Suspect retapes package.
CHP
Suspect retapes package. 

CHP got a warrant to search Espinosa's Sacramento house. However, Ruiz knew it was a long shot. It had already been a month since the theft. The diamonds could be anywhere —sold or carefully concealed.

"It’s not my house. I don't know the hiding spot. So, you know, I felt like we had a huge task to really find 'em," Ruiz said.

He said he detained Espinosa while another officer checked the suspect's room, looking first under the bed.

"There was a bed with sort of a cabinet underneath, and he had just opened the cabinet, and they were right there," Ruiz said. "It was very, very simple."

It didn’t stop there. Officers found hundreds of items they gathered as evidence from jewelry to valuable coins and bars of silver.

"Things that looked like family heirlooms," Ruiz said.

Everything had to be carefully cataloged.

It took days, generating more than 300 photos.

"The volume was massive," Ruiz said.

It went from an investigation involving one victim to 12 potential victims, Ruiz said.

Investigators believe the items were stolen over at least a seven-year span.

(Photo gallery below: Diamonds, coins among the items that were taken.)

It was precious property that, in some cases, people were supposed to inherit after the death of a grandmother, a sister or a father.

"There was one lady, her son lives here in California, and she lives in Iran. And she had this sort of specialty, like, gold purse," Ruiz said. "She couldn't believe it. She thought that her dad, like, sold it."

With a gold mine of evidence, the case went to the Sacramento County District Attorney's Office.

"We’re in the special investigations unit," Deputy District Attorney Nicholas Johnson said.

The unit handles high-level government crimes.

"In this case, there was a government employee who took advantage of a situation in which he was entrusted to maintain people's property," Johnson said.

The DA’s Office charged Espinosa with 22 counts for the stolen goods. However, Espinosa ultimately pleaded guilty to just three of those charges, taking prosecutors up on a deal.

"This case was a particularly strong case. The evidence was overwhelming. We made an offer, and he accepted it," Johnson said, explaining that prosecutors often make offers that they feel are fair and just in order to avoid the cost and risk of taking it to trial.

In April, Espinosa faced a judge for sentencing.

"Mr. Espinosa, I did read the letters that were attached and included in your probation packet," Sacramento County Superior Court Judge Satnam Rattu said. "One thing that stood out to me is the concept of family and how you believe in family, and what was ironic to me was the fact that you stole from families. People who had artifacts and, you know, things that they kept in their family for generations maybe that you were just taking."

The judge told Espinosa that he needed to see how he hurt those families by stealing from them.

He was sentenced to serve one year and eight months in county jail and another year and eight months on probation.

Meanwhile, investigators said the families got their belongings back.

It leaves just one thing unresolved, one last lingering question for Ruiz.

"Mostly it was just why he did it. He wasn't selling the property," Ruiz said.

Espinosa had no criminal history up to that point, he added.

"Was he getting some sort of thrill out of doing it? He did it once and just kept doing it? Those are questions that I don't have the answers to," Ruiz said.

Police said Espinosa never agreed to talk with them when he was arrested.

KCRA Investigates also tried to reach out to Espinosa in jail, but he did not respond.

Espinosa is expected to be released at the end of January 2025, according to online jail records.

| MORE | How to check for unclaimed property in California

See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter