The US Department of Justice Charges School District Staff for Running Crypto Mining Farm
The United States Department of Justice (DOJ) has filed charges against two senior staff members of New Jersey’s Patterson Joint Unified School District for allegedly running a crypto mining farm. The former Assistant Superintendent and Chief Business Officer, Jeffrey Menge, and the IT Director, Eric Drabert, are accused of embezzlement schemes that took place between 2018 and 2022.
Running a Crypto Mining Farm with School District Resources
According to the DOJ statement, Eric Drabert collaborated with Jeffrey Menge in operating a crypto mining farm using school district property and electricity. The mined cryptocurrency, estimated to be between $1 million and $1.5 million, was transferred to their personal wallets. However, the statement did not specify which schools within the district were involved in the operation.
Additional Theft Methods and Fraudulent Transactions
The court filing revealed that Menge and Drabert were also engaged in other theft methods. They utilized Menge’s controlled Nevada company to conduct fraudulent transactions exceeding $1.2 million, including double billing and billing for undelivered items.
Embezzled Funds Used for Personal Expenses
The embezzled funds were used to finance various personal expenses, such as home renovations and luxury car purchases, including a Ferrari. Menge’s embezzlement amounted to between $1 million and $1.5 million, while Drabert’s theft totaled $250,000 to $300,000.
FBI Investigation and Sentencing
The FBI is leading the investigation with support from local law enforcement agencies. The sentencing is scheduled for May 30, 2024, before U.S. District Judge Troy L. Nunley. The defendants could face a maximum penalty of 10 years in prison and a $250,000 fine, although the final sentences will be determined by the court.
Hot Take: School District Staff Face Charges for Crypto Mining Farm
The US Department of Justice has brought charges against two senior staff members of New Jersey’s Patterson Joint Unified School District for allegedly operating a crypto mining farm. These individuals are accused of embezzlement schemes and using school district resources to mine cryptocurrency. The investigation also revealed additional theft methods and fraudulent transactions. The embezzled funds were used for personal expenses, including luxury car purchases. This case highlights the importance of ethical behavior and proper use of resources, particularly in educational institutions. It also serves as a reminder that illegal activities involving cryptocurrencies can have severe consequences. The sentencing will determine the punishment for these individuals, setting an example for others who may consider engaging in similar activities.
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