AngelAnn Flores, a Stockton Unified School District trustee, was found guilty of committing insurance fraud but acquitted of felony charges of embezzlement and misappropriation of funds.

The verdict was announced Thursday afternoon following a three-week trial of the former school board president, capping a years-long saga that included evidence of fraud in the business practices of the county’s largest school district, the arrest of a Superior Court clerk, threats by law enforcement to investigate journalists and multiple accusations of wrongdoing on both sides of the courtroom.

Flores had faced three felony counts: one each for embezzlement and misappropriation of funds relating to alleged misuse of her district-issued credit card, and one for filing a false car insurance claim unrelated to her role at SUSD. She was only convicted for the latter.

Outside the courthouse, Flores’ defense team described the outcome as vindication for their client.

“We said from Day One that (Flores) never took a penny from SUSD. The jury validated it. It never should have got to this trial,” said Tori Verber Salazar, lead defense attorney.

As for the one guilty verdict, which Flores intends to appeal, Verber Salazar said they respected the jury’s decision.

“They really thought long and hard about this,” she said. “We understand how they got to where they got.”

Chief Deputy District Attorney Don Vaughn, who tried the case, declined to comment as he walked out of the courthouse following Thursday’s verdict. The DA’s office later praised the outcome of the trial in a written public statement.

“This conviction sends a clear message that fraud will not be tolerated, and that justice will be pursued,” the DA’s Office said. “The office is committed to ensuring that our elected leaders are held accountable.”

DA officials made no mention of the two charges for which Flores was found not guilty.

Jurors told her after the verdict was announced that the embezzlement and misappropriation charges were dismissed almost immediately, Verber Salazar said. Both the prosecution and defense were given time to speak with the jurors outside of public earshot about the verdict and thank them for their service.

“It took jurors 30 seconds to vote not guilty on count two and 30 seconds to vote not guilty on count three,” the former SJ County DA said. “One minute to come back. That was a tremendous waste of resources and time (and) money).”

Flores was arrested in April 2024 and charged with theft of public funds, grand theft of money exceeding $950 and embezzlement by a public official connected with purchases she made on a district credit card the previous year, as well as insurance fraud related to a minor car accident in 2022.

A grand jury later only indicted Flores on two counts related to alleged SUSD misspending, and one count of making false insurance claims. The case finally went to trial last month.

Jury deliberations began Wednesday following two days of closing arguments in which the prosecution and defense offered starkly different narratives: one presenting Flores as an official who defrauded taxpayers and an insurance company, and the other portraying her as a whistleblower targeted by a flawed investigation and inconsistent district policies.

Prosecutors said Flores used a district credit card issued to her for personal meals and attempted to retroactively align an accident report with a new insurance policy. Flores pleaded not guilty to the charges in May. Her defense has maintained that the charges against her reflect a campaign to discredit her for exposing district corruption.

Filing a false insurance claim

Flores got into a fender-bender with a coworker while driving in dense fog Oct. 15, 2022. Later that day the SUSD trustee purchased a six‑month policy through Sentry Insurance. She reported the accident to the insurance company three days later.

Despite insurers flagging the claim as suspicious, internal policy required payout once eligibility was established. Sentry Insurance claims adjuster Stacy Maguire, who testified during Flores’ trial, said the claim would have been denied had she known Flores purchased the policy three days before reporting the incident. Ultimately, though, the insurer paid more than $2,000 to the other vehicle owner.

Randy Gaines, the coworker allegedly involved in the incident was never charged, nor was he brought as a witness. Prosecutors said they were unable to find Gaines by the time of the trial.

Flores, who convicted of filing a false insurance claim, faces up to five years in prison and a fine not to exceed $50,000, or double the amount of the fraud, whichever is greater. A date for sentencing has been scheduled for Sept. 22.

Allegations of corruption

This case and its subsequent trial have brought forth allegations of corruption not just for Flores. One witness testified that Motec Sanchez, founder of the social media site 209 Times, conspired with San Joaquin County District Attorney Ron Freitas to pursue a prosecuting Flores because he disliked her scrutiny of school district finances.

Years after a special state audit found evidence that illegal financial practices may have occurred in Stockton Unified — including a $7.3 million contract passed under a previous board — questions about those problems remain. The district attorney previously pledged to root out “any and all wrongdoing” at Stockton Unified. Two years later, no charges have been filed against any board member except Flores or any other district employee.

Xochitl Paderes, a former colleague of Sanchez’s, testified she attended two meetings where the men discussed their mutual interests in supporting Freitas’ run for district attorney, which allegedly included discussions of possible future prosecutions of Flores while overlooking investigations into the district’s questionable business dealings.

Sanchez has long been a critic of Flores, who was one of only two SUSD board members to vote against a dubious, multimillion-dollar contract that used COVID-19 federal education funds to purchase air purifiers. The 209 Times has posted myriad negative reports about Flores for years.

He was also laid off from his short tenure as director of the Family Resources Center by the SUSD Board of Trustees in 2023 during Flores’ tenure as board president.

In a Superior Court hallway following Thursday’s verdict, Flores’ friend Ashley Hampton addressed the defendant in front of a crowd of supporters and media, while also admonishing Sanchez and Freitas.

“The world now knows the truth about the leaders (they) elected because you took a stand,” she said, referring to testimony in the trial that Freitas allegedly investigated and charged Flores as a favor to Sanchez.

“Any elected official associated with 209 Times does not deserve their position,” she added. “(Their) integrity … is now in question.”

Other reactions from the public

The San Joaquin County Superior Court room where Flores heard the jury’s verdict was filled to the brim with onlookers, including many well-known community members, such as Stockton NAACP President Bobby Bivens, homeless advocate Jessica Velez, Rev. Earnest Williams, community activist Alyssa Leiva and Mexican Heritage Center President Gracie Madrid.

Standing outside the courthouse, Madrid, who is also a friend of Flores, was disappointed the verdict hadn’t been three not-guiltys. “But I’m happy how it turned out,” she said.

David Sengthay, a former SUSD student and community organizer, said outside the courthouse that it was apparent there had been “uneven enforcement and uneven investigation.”

“It has become very clear that (District Attorney) Ron Freitas has something to gain from prosecuting AngelAnn Flores,” he said. “Those counts (related to SUSD) were political prosecution, no questions asked.”

Red Rabbit Advocacy founder Jessica Velez was there to support Flores, her fellow church goer who she described as “my sister.”

“This city deserves truth and transparency, and we need to be free from oppression,” Velez said. “That’s what has made this city turn … what it is. Because of all the corruption in the background.”