Accountant jailed after pleading not guilty to alleged $550,000 embezzlement

RANCHO CUCAMONGA -- A high-level accountant pleaded not guilty this morning to charges that he embezzled more than $550,000 from his Ontario employer.

Heng Bill Chhay, 37, arrived at West Valley Superior Court out of custody, and was jailed at the conclusion of the arraignment hearing.

His attorney, Karen Goldstein, said she expected Chhay would be able to post bail, set at $815,000.

Chhay, of Arcadia, worked as the top accountant at Empire Cos., a land development and construction company, for more than two years before leaving in May last year.

For the last 11 months he worked there, Chhay allegedly wrote himself 13 checks from company accounts -- ranging in size from $7,750 to more than $193,000 -- and deposited them in his personal bank accounts.

Chhay allegedly covered up the embezzlement by manipulating the company's computer system to make it appear the checks had been voided prior to being cashed, according to an investigative report attached to his court file.

According to the report, Chhay confessed to the embezzlement when he was interviewed at his home in October 28 by a criminal investigator for the U.S. Postal Service.

When prosecutors filed 15 felonies against Chhay last week for the alleged embezzlement, they recommended bail be set at $815,000.

This morning, Goldstein asked Commissioner Ronald J. Gilbert to lower the bail to about $550,000 -- totaling the amount allegedly embezzled.

Goldstein told the commissioner that Chhay has lived in California since 1984, is married with three children -- aged 9, 6 and 4 -- and would be willing to turn over his passport and be fixed with a GPS tracking device while out on bail.

Deputy District Attorney Michael Dowd opposed lowering Chhay's bail, and Gilbert sided with the prosecutor. Chhay is next due in court Jan. 21.

Chhay's wife was in tears after a bailiff took Chhay into custody at the conclusion of the brief hearing.

The accountant wore khaki slacks, a light-blue dress shirt and a blue sweater vest to his court appearance.

He was accompanied by his wife, his attorney, and two other people. At least one person was an agent from bail bonds company.

Besides saying she expected Chhay to make bail, Goldstein declined to discuss Chhay's case during a brief interview after the hearing.

Dowd said he has not discussed with Goldstein whether Chhay is open to a plea bargain, or wants to take his case to trial.

When Chhay confessed on Oct. 28, he said he used the embezzled money to pay his bills and student loans, and to purchase luxury cars and take a Las Vegas vacation, according to investigative reports.

Chhay reportedly told the investigator that he embezzled the money because he didn't feel he was fairly compensated and appreciated at Empire Cos.