Former San Carlos Mayor Andy Klein accused of embezzling over $2 million

Klein admitted to embezzlement via email and a written note on May 19, the suit alleges.

“I have been embezzling money from my clients. I believe I owe you around $300,000,” Klein allegedly wrote in a note to the Redwood City property owner’s manager, a photo of which is included in the court filing. “I am going to do an accounting and pay you everything I owe you. I am so sorry.”

Contacted by phone, Klein declined to comment.

Another lawsuit, filed June 25 on behalf of Andrews-Bloom Investments LLC, alleges that Klein’s property management company also withdrew $226,000 in unauthorized funds belonging to the owners of three South San Francisco properties.

That suit also stated that Klein had hired an attorney, who said he was in a rehabilitation center until June 30.

Klein resigned from the San Carlos City Council in April 2012, citing personal reasons including the dissolution of his marriage. Prior to his resignation, he was arrested for driving under the influence of alcohol in 2011, however, charges were not filed. His blood alcohol test showed a .07 percentage level, .01 under the legal limit, the San Mateo County District Attorney’s Office said previously.

Over 10 years later, on Christmas Eve 2022, Klein was again arrested for suspicion of drunk driving. He pleaded no contest to misdemeanor drunk driving in 2023, DA Steve Wagstaffe said.

Klein was elected by the San Carlos voters to a four-year term on the City Council in November 2009 and selected to serve as vice mayor in 2011. In May of that year, Klein was selected to replace mayor Omar Ahmad following Ahmad’s sudden death due to a heart attack. Klein completed Ahmad’s term as mayor in 2011 and was subsequently elected by the council last December to serve as mayor for a full term.

The June 8 lawsuit alleges that Klein provided property owners with false or incomplete financial records, and allegedly confessed to embezzlement from his clients in meetings with real estate agents from Marcus & Millichap, who were representing the property owners.

“In that meeting, Andy confessed … that he was embezzling money from his clients, including about $300,000 from Woodside alone, Andy then wrote his confession down on Marcus & Millichap stationary … because Kelly, the managing member, is hearing impaired,” the suit reads.

The June 25 lawsuit alleges that on May 26, the managing member of the South San Francisco apartments received notice from the individual that had referred Klein’s property management company to them that Klein had embezzled from his colleagues. After that, the unauthorized withdrawals were allegedly discovered, the claim states.

The DA’s Office has not received anything criminal pertaining to the alleged embezzlement, Wagstaffe said.