Former city employee to repay embezzled money

Mathis Winkler

NEWPORT BEACH -- Within a month, the city will begin getting back a

little of the money convicted embezzler Bob Dixon owes.

At a rate of $268.72 every two weeks, it’s virtually impossible that

the former utilities director will ever repay the $1.8 million he

embezzled from the city a decade ago.

But that’s the amount city officials will receive from the Alameda

County Sheriff’s Department, which will garnish Dixon’s wages from the

Berkeley Albany YMCA. Dixon, who was convicted of the theft in 1992, now

works at that organization.

Dixon began stealing money from the city in 1982 to finance a lavish

lifestyle of luxury vacations, designer clothes and a museum-quality art

collection.

His scheme involved writing checks to fictitious companies and

depositing them in his own account after endorsing them to himself.

A tip from a credit card company investigator finally led to Dixon’s

January 1992 arrest. He served 18 months in a San Diego prison and four

months in a halfway house in Orange before moving to the Bay Area.

The Newport Beach embezzlement wasn’t the first time Dixon had stolen

money. In 1972, he pleaded guilty to stealing $87,000 from Georgetown

University, where he was a graduate student.

Because the 1992 judgment requiring Dixon to repay his debts was set

to expire in 2002, Assistant City Atty. Dan Ohl traveled to Berkeley in

November to find out about Dixon’s assets and get the judgment renewed

for another decade.

“I didn’t expect him to be employed or have any kind of viable

income,” Ohl said Tuesday. “I’m surprised we’re getting anything.”

Since Dixon now owes the city about $2.6 million, including interest

on the embezzled money, it’s unlikely that Newport Beach will even

recover the interest, Ohl said. He added that he didn’t know whether

Dixon could be required to continue to pay the city after the renewed

judgment expires in 10 years.

Mayor Gary Adams said the money wasn’t really the issue, adding that

it was important city officials did everything to recover as much as they

could.

“I think the gesture [to go after the money] is very important,” he

said Tuesday. “Any amount we can get from [Dixon] is worth pursuing. The

guy took a lot of money from the citizens of Newport.”

But Clarence Turner, who served on the City Council from 1986 to 1994

and presided as mayor during the time Dixon’s crimes became public, said

the city’s attempt to recover its losses was a waste of money and time.

“We have to accept the fact that the city was taken,” he said. “It’s

time to move forward.”

The recovered money -- the first check is due to arrive within 30 days

-- will probably be placed in a trust before city officials decide what

to do with it, said Dennis Danner, the city’s administrative services

director. He added that he would recommend returning the money to the

city funds Dixon had stolen from.

Dixon could not be reached for comment Tuesday.