A former business manager at Waipahu High School has been charged with stealing nearly $500,000 from the school over five years, in what one official called a "staggering" case.

Warren S. Harada, 61, of Manoa has been charged with one count of first-degree theft and four counts of money laundering, the state attorney general’s office said Friday. The state fired Harada Dec. 30.

Board of Education members, Waipahu residents and others called the allegations against Harada shocking, and questioned how an employee would be able to steal so much, and over such a long period of time.

"$500,000 in five years, that’s $100,000 a year. That’s not a drop in the bucket," said Ilalo Parayno, a member of the Waipahu Neighborhood Board who retired as vice principal of Campbell High in 2007. "The direct effect is on the students. There’s not enough in the (school) coffers as it is."

The case comes on the heels of two other big thefts involving school employees in recent months, including a Pearl Ridge Elementary School secretary who was convicted this year of stealing nearly $70,000.

Harada stole $499,769.50 from July 28, 2005, to Feb. 11, 2010, the attorney general’s office said.

A criminal complaint filed in state Circuit Court on Thursday said Harada allegedly cashed large checks for $10,000 or more from B&H Photo Video, a New York City-based video and camera equipment company, that were meant for the school. Harada is said to have purchased expensive equipment with school funds, then returned it to the company and cashed the refund checks.

Harada, who was the business manager at Waipahu High for 17 years, declined comment and said his lawyer would also not talk to news reporters.

The state Department of Education also declined requests for comment on the allegations, citing the continuing investigation, but said the case is "extremely serious."

"Students, parents, staff and the community place their trust in Hawaii’s public schools," spokeswoman Sandy Goya said. "We will continue to monitor this case."

Board of Education Chairman Don Horner said the alleged theft underscores the need for sound accountability and auditing practices at the DOE. He pointed out the department is big, with 20,000 employees, and "like any organization we have a few folks who make bad choices."

"It’s our job to be a bit more diligent in identifying those folks earlier," Horner said.

Horner added that the department and the board are beefing up their auditing arms in an effort to better track expenses and spot problems when they’re still small. "I’m confident as we move forward these types of incidents won’t grow to the magnitude that this did," he said.

Board of Education member Keith Amemiya pointed out the alleged Waipahu theft occurred before the current principal, Keith Hayashi, stepped in. Amemiya said Hayashi "quickly discovered the problem and took the necessary steps to address the situation."

Amemiya added the scope of the alleged theft is "quite staggering."

Hayashi declined to comment on the case because of the legal proceedings but said they are "deeply troubling."

"I’d like to emphasize that Waipahu is a great school," Hayashi said, adding that the thefts shouldn’t reflect on students or other employees.

The case comes three months after Pearl Ridge Elementary School secretary Denise Hayashi, 41, was sentenced to five years’ probation and 1,500 hours of community service for stealing $68,870 from the school.

Hayashi also paid back the money she stole.

After Hayashi’s arrest in January, Schools Superintendent Kathryn Matayoshi said the department needed to redouble its efforts to prevent the recurrence of large thefts at schools. She said that the DOE has policies in place that, "when followed, provide the appropriate internal controls."

But she added staff shortages have made policy enforcement tough.

In a December 2010 case, Lehua Elementary secretary Janel Echiberi was ordered to perform 450 hours of community service after stealing $13,000 from fundraisers and donations the school collected for student programs.

State Sen. Jill Tokuda, chairwoman of the Senate Education Committee, called the latest theft case a "major concern" and said in the wake of it the DOE needs to take a good look at its systems to "ensure accountability."

"Unfortunately, this is not an isolated case," Tokuda said. "The DOE does need to go across the board and do some checks and make sure everyone is operating and spending as they should be." She also said the department should analyze, based on previous thefts, what funds are vulnerable.

Harada is scheduled to appear in court Nov. 21.

The attorney general’s office said Harada obtained money from Waipahu High School "by deception" and is charged with four counts of money laundering because he concealed the proceeds of his alleged theft.

He faces up to 10 years in prison and a $25,000 fine.