School Officials Admit to Crypto Mining Operation Using District Resources
Two senior officials from the Patterson Joint Unified School District in California have admitted to exploiting school resources for their own gain, including orchestrating a cryptocurrency mining operation, as disclosed by the U.S. Department of Justice (DOJ). Jeffrey Menge, 43, of Copperopolis, and Eric Drabert, 44, of Modesto, have pleaded guilty to charges of theft concerning programs receiving federal funds, according to U.S. Attorney Phillip A. Talbert.
Elaborate Scheme to Defraud School District
From 2018 through 2022, Menge, serving as the Assistant Superintendent and Chief Business Officer, alongside Drabert, the IT Director hired in 2020, engaged in fraudulent activities to siphon off funds from the school district. Their scheme involved over $1.2 million in deceitful dealings through Cencal Tech LLC, a company controlled by Menge. By creating a fictitious executive named "Frank Barnes," they were able to bypass restrictions on transactions with the school, engaging in double billing and charging for undelivered items.
Illegal Crypto Mining Operation
In addition to financial misconduct, Menge and Drabert utilized high-end graphics cards and other district-owned resources to establish a crypto mining farm within the district's facilities. The proceeds from the operation were directed into their personal wallets. The full extent of the mining operation across the district's 10 schools is still unclear. However, the increased electricity consumption caused by the operation has raised concerns among U.S. energy regulators, who are cracking down on energy-intensive crypto mining practices.
Embezzlement and Personal Expenses
Apart from the mining operation, Menge also used district vehicles for personal gain. This included the sale of a Chevy truck that was acquired at a discounted price and the personal use of a Ford Transit van. The embezzled funds, estimated to be between $1 million to $1.5 million for Menge and $250,000 to $300,000 for Drabert, were spent on lavish home renovations, luxury cars, and other personal expenses.
Thoughts and Opinions
What do you think about this case of illicit mining operation? Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
Should You Buy or Sell Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. Many people are now turning their backs on traditional investments like stocks and bonds, and instead look to precious metals like Gold.
While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.
This could be changing, according to some experts. Experts believe that gold prices could skyrocket in the face of another global financial crisis.
They also pointed out that gold is gaining popularity due to its perceived value, and potential return.
These are some important things to remember if your goal is to invest in gold.
- First, consider whether or not you need the money you’re saving for retirement. It is possible to save for retirement while still investing your gold savings. That said, gold does provide an additional layer of protection when you reach retirement age.
- Second, make sure you understand what you’re getting yourself into before you start buying gold.There are several different types of gold IRA accounts available. Each type offers varying levels and levels of security.
- Remember that gold is not as safe as a bank account. It is possible to lose your gold coins.
Do your research before you buy gold. And if you already own gold, ensure you’re doing everything possible to protect it.
How much is gold taxed under a Roth IRA
The tax on an investment account is based on its current value, not what you originally paid. Any gains made by you after investing $1,000 in a stock or mutual fund are subject to tax.
But if you put the money into a traditional IRA or 401(k), there’s no tax when you withdraw the money. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
These accounts are subject to different rules depending on where you live. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. Massachusetts allows you to delay withdrawals until April 1. New York allows you to wait until age 70 1/2. To avoid any penalties, plan your retirement savings and take your distributions as early as possible.
What precious metals can you invest in for retirement?
It is gold and silver that are the best precious metal investment. They’re both easy to buy and sell and have been around forever. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: Gold is one of man’s oldest forms of currency. It’s also very safe and stable. Because of this, it’s considered a good way to preserve wealth during times of uncertainty.
Silver: Silver has always been popular among investors. This is a great choice for people who want to avoid volatility. Silver tends instead to go up than down, which is unlike gold.
Platinum: This precious metal is also becoming more popular. Like gold and silver, it’s very durable and resistant to corrosion. However, it’s much more expensive than either of its counterparts.
Rhodium. Rhodium is used as a catalyst. It is also used to make jewelry. It is also quite affordable compared with other types of precious metals.
Palladium: Palladium has a similarity to platinum but is more rare. It’s also less expensive. This is why it has become a favourite among investors looking for precious metals.
What amount should I invest in my Roth IRA?
Roth IRAs can be used to save taxes on your retirement funds. These accounts cannot be withdrawn until you turn 59 1/2. However, if your goal is to withdraw funds before that time, there are certain rules you must observe. First, your principal (the deposit amount originally made) is not transferable. This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. You must pay taxes on the difference if you want to take out more than what you initially contributed.
The second rule states that income taxes must be paid before you can withdraw earnings. When you withdraw, you will have to pay income tax. Let’s assume that you contribute $5,000 each year to your Roth IRA. Let’s also assume that you make $10,000 per year from your Roth IRA contributions. Federal income taxes would apply to the earnings. You would be responsible for $3500 The remaining $6,500 is yours. You can only take out what you originally contributed.
The $4,000 you take out of your earnings would be subject to taxes. You’d still owe $1,500 in taxes. On top of that, you’d lose half of the earnings you had taken out because they would be taxed again at 50% (half of 40%). So, even though you ended up with $7,000 in your Roth IRA, you only got back $4,000.
There are two types of Roth IRAs: Traditional and Roth. Traditional IRAs allow you to deduct pretax contributions from your taxable income. Your traditional IRA allows you to withdraw your entire contribution plus any interest. You have the option to withdraw any amount from a traditional IRA.
Roth IRAs are not allowed to allow you deductions for contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. There is no minimum withdrawal requirement, unlike traditional IRAs. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item’s value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- If you take distributions before hitting 59.5, you’ll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
External Links
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China’s Evergrande Crisis – Forbes Advisor
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 90 – WSJ
- Want to Keep Gold in Your IRA at Home? It’s not exactly legal – WSJ
irs.gov
finance.yahoo.com
How To
Guidelines for Gold Roth IRA
Start saving as soon as possible to save for your retirement. Start saving as soon as possible, usually at age 50. You can continue to save throughout your career. It is important to invest enough money each and every year to ensure you get adequate growth.
You also want to take advantage of tax-free opportunities such as a traditional 401(k), SEP IRA, or SIMPLE IRA. These savings vehicles permit you to make contributions, but not pay any tax until your earnings are withdrawn. These savings vehicles can be a great option for individuals who don’t qualify for employer matching funds.
The key is to save regularly and consistently over time. You’ll miss out on any potential tax benefits if you’re not contributing the maximum amount allowed.
—————————————————————————————————————————————————————————————–
By: David Sencil
Title: California School Officials Plead Guilty to Running Crypto Mining Scheme With School Resources
Sourced From: news.bitcoin.com/california-school-officials-plead-guilty-to-running-crypto-mining-scheme-with-school-resources/
Published Date: Tue, 06 Feb 2024 05:30:38 +0000
