San Joaquin County District Attorney Ron Freitas (left) speaks at a press conference to discuss opening an investigation into the Stockton Unified School District on Monday. Chief Deputy District Attorney Jeff Derman is on the right. (Carlos Rodriguez/Central Valley TV)

Stockton Unified School District Under Investigation For Fraud Following State Audit

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The Stockton Unified School District is under investigation by the San Joaquin County District Attorney's Office after two critical grand jury reports and a state audit uncovered evidence of fraud in the district's financial dealings.

District Attorney Ron Freitas announced the investigation in a brief press conference, pledging to prosecute any fraudulent actions that harm children to the fullest extent of the law.

The investigation was prompted by an extraordinary audit report released in February 2022, which found that illegal activities had occurred within the district. The report cited "sufficient evidence" of fraud, misappropriation of funds and/or assets, or other illegal fiscal practices.

The state audit was initiated following reports of procurement process irregularities and unusual circumstances surrounding a contract awarded to IAQ Distribution INC. IAQ received a multimillion-dollar contract for ultraviolet light air purification units to help mitigate the spread of COVID-19 using federal funds. The investigation discovered that the process used to award the contract was flawed and potentially illegal.

The report recommended that State Controller Malia Cohen, California Superintendent of Public Instruction Tony Thurmond, and Freitas be notified of the findings. Stockton Unified Superintendent Traci Miller held a separate press conference, pledging cooperation with any outside investigations.

The public is encouraged to provide tips to the Public Integrity Unit at or by calling 209-468-2400. For more on this visit Stocktonia.

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