Guilty duo stole $2M from California schools, built crypto mine

Two California school district officials have pleaded guilty to stealing up to $1.8 million and electricity to fund and run a secret crypto mine, remodel property, and purchase expensive cars.

According to the Department of Justice (DoJ), assistant superintendent Jeffrey Menge embezzled up to $1.5 million over four years from the Patterson Joint Unified School District in Sacramento, while IT director Eric Drabert stole up to $300,000. 

Menge and Drabert were accused of over-billing the school district through a company Menge controlled called CenCal Tech. Through establishing a fake executive named Frank Barnes, the pair were able to “conduct more than $1.2 million in fraudulent transactions” by “double billing, over billing, and billing for items not delivered by CenCal Tech to the school district.”

The pair also purchased high-end graphic cards and installed a crypto mine powered using the school district’s electricity.

Illegal crypto mining rigs found in Poland’s Supreme Administrative Court

Read more: Europol says alleged crypto miner made millions from stolen electricity

Menge bought various expensive vehicles, including a 2010 Ferrari 458 Italia, and paid to remodel and install a shop in his home. In addition, he gave himself a $37,700 discount to buy the school’s Chevy truck before selling it for a $27,000 profit. Dalbert used illicit funds to remodel his vacation cabin.

The Federal Bureau of Investigations (FBI) raided their homes last year. According to a plea agreement, Menge was ordered to forfeit a Jeep Wrangler Hellcat, an Audi R8 Quattro, and the Ferrari, among other items. 

The two pleaded guilty in a Sacramento federal court yesterday. They will face a minimum of 10 years in prison and a $250,000 fine. They’re scheduled to be sentenced on May 30.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel. 

Comments

Post a Comment

Popular posts from this blog

Solana-Based Meme Coin Project Selling Out Fast – Could This Be the Next Presale Gem with 100X Growth Potential?

Image
Slothana has made a remarkable entrance despite its choice of mascot—the sloth—and it has sparked considerable interest among the crypto community. Riding on the trend of sloth-themed projects and benefiting from the surge in Solana’s popularity, Slothana has exceeded expectations by raising over $10 million in its ongoing presale. Slothana’s strategic blockchain choice fuels its presale success Slothana’s strategic choice to establish its presence on the Solana blockchain strategically aligns it with the burgeoning meme coin sphere. Solana has emerged as the preferred blockchain for meme projects during this bullish market phase, and Slothana adeptly leverages this trend. By selecting Solana as its platform, Slothana seamlessly integrates itself into a thriving ecosystem tailor-made for the success of meme coins. In a domain where most meme coins adhere to conventional themes such as dogs or cats, Slothana distinguishes itself by embracing the sloth a...
Read more

Vitalik Buterin’s $181K ETH Transfer to Coinbase Sparks Speculation

Image
Vitalik Buterin’s $181,000 ETH transfer to Coinbase sparks intrigue in the crypto community. Ethereum’s co-founder reaffirms his commitment to philanthropic ETH transfers amidst speculation. Ethereum remains stable with a neutral market, but a potential short-term price fall looms as selling pressure builds. Ethereum’s co-founder, Vitalik Buterin, has once again grabbed the spotlight. He recently moved a substantial amount of 100 ETH, valued at $181,000, to Coinbase. This action has left the crypto community brimming with speculation. Vitalik, known for his sporadic transfers to various cryptocurrency exchanges, remains a figure of intense scrutiny in the digital currency world. The Vitalik holding address vitalik.eth transferred 100 ETH ($181,000) to Coinbase today. Previously, Vitalik stated that he had not sold ETH for personal benefit since 2018, mainly donating it to a charity or non-profit organization or other projects.https://t.co/jmuDIPOO...
Read more

Crypto Twitter explodes over the news of Sam Bankman-Fried's arrest

US politicians, crypto execs, and influencers fired up their Twitter apps upon learning of Sam Bankman-Fried's arrest in The Bahamas. Crypto Twitter has blown up over the shocking news of Sam Bankman-Fried’s arrest in The Bahamas — many of whom weren’t expecting it to happen so soon.  On Dec. 12, the disgraced FTX founder was arrested by the Royal Bahamas Police after receiving notification from the United States government that criminal charges has been filed against him. Within hours, politicians, crypto executives and influencers all booted up their Twitter apps to comment on the arrest of the FTX’s former CEO. New York Democratic Congresswoman Alexandria Ocasio-Cortez, who’s held a fairly neutral view on the crypto industry to date, told her 13.4 million Twitter followers that Bankman-Fried’s was a step in the right direction towards “justice being served,” but noted that the arrest would likely postpone Bankman-Fried’s testimony before the House Financial Services Committee, ...
Read more