California School Officials Plead Guilty to Running Crypto Mining Scheme With School Resources

A blase strategy to defraud Patterson Joint Unified School District has been unveiled, with elder officials Jeffrey Menge and Eric Drabert astatine the helm, utilizing the district’s resources to excavation cryptocurrency illegally, arsenic disclosed by the DOJ.

School Officials Plead Guilty to Crypto Mining Operation Using District Resources

Two elder officials from the Patterson Joint Unified School District successful California person admitted to exploiting schoolhouse resources for their ain gain, including orchestrating a cryptocurrency mining operation, the U.S. Department of Justice (DOJ) disclosed. Jeffrey Menge, 43, of Copperopolis, and Eric Drabert, 44, of Modesto, entered blameworthy pleas to charges of theft concerning programs receiving national funds, arsenic announced by U.S. Attorney Phillip A. Talbert.

From 2018 done 2022, Menge, serving arsenic the Assistant Superintendent and Chief Business Officer, alongside Drabert, the IT Director hired successful 2020, engaged successful fraudulent activities to siphon disconnected funds from the schoolhouse district. Their elaborate strategy progressive implicit $1.2 cardinal successful deceitful dealings done Cencal Tech LLC, a institution nether Menge’s control. By creating a fictitious executive, “Frank Barnes,” they bypassed restrictions connected transactions with the school, engaging successful treble billing and charging for undelivered items.

The duo’s illicit activities extended beyond fiscal misconduct. Utilizing high-end graphics cards and different district-owned resources, Menge and Drabert established a crypto mining workplace wrong the district’s facilities, directing the proceeds into idiosyncratic wallets. The operation, whose scope crossed the district’s 10 schools remains unclear, importantly accrued energy consumption, a substance of increasing interest for U.S. vigor regulators amidst a crackdown connected energy-intensive crypto mining.

In summation to the mining operation, Menge exploited territory vehicles for idiosyncratic gain, including the merchantability of a Chevy motortruck acquired astatine a bargain and the idiosyncratic usage of a Ford Transit van. The funds embezzled, ranging betwixt $1 cardinal to $1.5 cardinal for Menge and $250,000 to $300,000 for Drabert, were lavishly spent connected location renovations, luxury cars, and different idiosyncratic expenses.

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