Danville Official Seized in Alleged Plot to Embezzle

DANVILLE, Calif. —  Danville’s top building official was free on bail Saturday following his arrest on suspicion of setting up a scheme to embezzle money by submitting false documents to the town.

Stephen Reich, 46, allegedly plotted to have a town building inspector submit false time cards and then split the unearned pay with the inspector, officials said.

Reich was arrested Friday afternoon after being questioned by police. He was booked for investigation of one felony count of embezzlement of public funds by a public official, then released after posting $10,000 bail, a Contra Costa County jail spokeswoman said.

He was hired as building services manager in May, 1990. His department issues building permits, enforces building codes and inspects new construction.

Reich’s arrest came one day after the Town Council accepted the resignation of Town Manager George Sipel and voted to put Town Attorney Mark Doane on probation. Both men admitted removing a sign from private property as a prank.

“After what we’ve gone through the last two weeks, I can just say that I am stunned,” Town Councilwoman Beverly Lane said of Reich’s arrest.

Town Manager Joe Calabrigo said he did not know if any money had been taken in the alleged embezzlement scheme. Officials ordered an audit.