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A Tracy man pleaded guilty Wednesday to stealing $645,000 from his brother-in-law’s garbage collection company and was ordered to pay everything back.

Louis Contreras, 46, will be released from jail today and is expected to turn himself in on April 8 to serve a 40-month state prison sentence.

Contreras’ attorney Albert Ellis said he’s pleased about the relatively short sentence and the early resolution. The maximum sentence was eight years.

“This was a very difficult matter for the entire family, and it was his intention to resolve this at an early date,” Ellis said.

Though a judge ordered Contreras to repay the amount stolen, he will have a tough time living up to that order because of his poor health and poverty, Ellis said.

Contreras has valley fever, a respiratory illness, and Ellis said his client is relieved to be back with his family and back to getting proper medical attention. The one-time Tracy High School football player lives with his parents in Tracy.

Contreras had worked since 1995 as a cashier for Tracy Material Recovery and Solid Waste Transfer Inc. Though audits showed that he stole $645,000, Contreras told investigators that he took anywhere from $100,000 to $150,000 every year for 12 years.

He said he spent much of the money on lavish meals, hotel stays, golf trips and prostitutes as he slid deeper into debt.

Contreras was arrested on Oct. 30, 2008, and was indicted in December by a criminal grand jury on two felony charges and several enhancements for embezzlement.

Prosecutor Stephen Taylor said the Contreras case should remind businesses to keep a close eye on money handled by their employees.

“It’s important for business owners to start auditing and checking their accounting,” said the deputy district attorney. “Things like this are not going to be much of a problem if businesses are keeping an eye the cash register.”

The San Joaquin County District Attorney’s Office is inundated with embezzlement cases and expects many more to come to light, Taylor said, especially in an economy that leaves many desperate for extra cash.

• Contact a Tracy Press reporter or editor at 835-3030 or tpnews@tracypress.com.