Sources: School manager stole millions

GALLINA, N.M. (KRQE) - State investigators now believe the former business manager of a small New Mexico school system stole more than $3.3 million from her district since 2001, sources have told KRQE News 13.

According to the sources a team from the office of State Auditor Hector Balderas has finished going through the records of the Jemez Mountain School District . The district, based in the Rio Arriba County town of Gallina, has about 375 students spread among three elementary schools and middle and high schools.

In June, Jemez Mountain School Superintendent Adan Delgado discovered accounting irregularities, and upon further investigation fired the district's longtime business manager Kathy Borrego.

Delgado contacted Balderas and the Rio Arriba County Sheriff's Department. Both agencies launched investigations.

After less than a month, Balderas reported his auditors found Borrego stole $292,000 from two school accounts over the previous 11 months.

KRQE's sources said investigators from the auditor's office found Borrego shuffled money between accounts to hide the alleged theft and even transferred money from school bank accounts to her personal bank accounts.

Borrego has not been charged with a crime. News 13 has been unable to reach her for comment.

News 13 also was unable to reach Balderas for comment Thursday night.  However he has called a news conference for Friday.