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.
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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
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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
