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In latest developments, two California faculty district officers have admitted responsible to stealing as much as $1.8 million and misappropriating electrical energy to finance and function a clandestine crypto-mining operation.
The USA Division of Justice (DOJ) disclosed that Jeffrey Menge, former Assistant Superintendent and Chief Enterprise Officer of Patterson Joint Unified Faculty District, and Eric Drabert, the district’s IT Director, pleaded responsible to fees of theft regarding applications receiving federal funds.
Fraudulent Billing Scandal
Based on the DOJ’s assertion, Menge, as Assistant Superintendent, employed Drabert as the college district’s IT director round 2020.
Collectively, they orchestrated a sequence of illicit actions to siphon funds from the district. Menge reportedly utilized a Nevada-based firm known as CenCal Tech LLC, which he managed, as a entrance for the crypto scheme.
The investigation revealed that to avoid restrictions on conducting celebration transactions, Menge created a fictitious govt, “Frank Barnes,” to signify CenCal Tech.
By means of this setup, it’s alleged that Menge and Drabert executed fraudulent transactions price over $1.2 million, involving practices comparable to double billing, overbilling, and billing for undelivered objects.
Illicit Crypto Mining Operation Unveiled
Diversifying their prison actions, Menge and Drabert went past monetary embezzlement, in keeping with the US Division of Justice.
The regulation enforcement company acknowledged that the people utilized “high-end graphics playing cards,” faculty district property, and electrical energy to determine and function a crypto mining farm throughout the faculty district.
The illegally mined crypto belongings had been then redirected to wallets beneath their management. Moreover, Menge is alleged to have exploited faculty district-owned autos, buying a Chevy truck at a reduced worth and promoting it for private revenue whereas utilizing a Ford Transit van as his car.
The general magnitude of the embezzlement was staggering. Menge misappropriated funds between $1 million and $1.5 million, whereas Drabert was discovered responsible of stealing between $250,000 and $300,000.
The DOJ revealed that the ill-gotten good points had been used for “lavish” private bills. Menge indulged in reworking his residence, buying luxurious autos, together with a Ferrari sports activities automotive, and funding different private endeavors. Drabert, then again, utilized stolen funds to renovate his trip cabin and for numerous private bills.
The responsible pleas by Jeffrey Menge and Eric Drabert, former officers of Patterson Joint Unified Faculty District, make clear a stunning case of embezzlement and crypto mining fraud throughout the training system.
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