DIGIVESTASI - Jeffrey Menzi, 43, of Copperopolis, and Eric Drabert, 44, of Modesto, pleaded guilty today to theft from programs that received federal funds, U.S. Attorney Philip A. Talbert announced. . 

According to court documents, Menge served as assistant superintendent and chief executive officer of the Paterson Unified School District from 2018 to 2022. Around 2020, Menge hired Dravert as the district's IT director. Menge and Drabbert carried out a scheme to embezzle funds from the school district. To carry out this plan, they used, among other things, CenCal Tech LLC, a Nevada company controlled by Menge.

Because Menzi had limited  ability to negotiate deals between school districts and stakeholders, he created a fictitious persona called "Frank Burns" as a CenCal Tech executive. Mr. Menge and Mr. Dravert then used CenCal Tech to conduct fraudulent transactions with the school district totaling more than $1.2 million. The transactions included double billing, overbilling, and billing for items that were not delivered  to the school district by CenCal Tech. 

According to court documents, Menge and Dravert committed theft in other ways as well. For example, they purchased high-end graphics cards and used those cards, along with the district's other assets and electricity, to operate a cryptocurrency "mining" farm within the  district. They then transferred the mined cryptocurrencies to wallets under their  personal control. Menge also misused  the school district's fleet, including purchasing Chevrolet trucks below market value and selling them for a profit, and using a Ford Transit  as a personal vehicle. 

The total amount of embezzlement was between $1 million and $1.5 million, with Drabbert stealing between $250,000 and $300,000 as part of the scheme. Menge used his stolen funds to renovate his home,  purchase luxury cars, including a Ferrari sports car, and for other personal purposes. Drabbert used the stolen funds to, among other things, renovate the villa. 

This case is the result of an investigation by the Federal Bureau of Investigation with assistance from the Stanislaus County District Attorney's Office Investigations Bureau  and the Stanislaus County Sheriff's Office. Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case. 

Mr. Menge and Mr. Drabbert are scheduled to be sentenced by U.S. District Judge Troy L. Judge. May 30, 2024, Nanley. Menge and Drabat each face a statutory maximum  penalty of 10 years in prison and a $250,000 fine. However, the actual sentence will be determined at the discretion of the court, taking into account all applicable legal factors and the Federal Sentencing Guidelines, which take into account many variables.

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