Former employee at Mt. Diablo Unified School District (MDUSD), Eric Rego, faces mail fraud charges in an elaborate scheme involving fabricated invoices for electronic devices. The grand jury indictment outlines that Rego, 39, from El Dorado Hills, allegedly defrauded the MDUSD of approximately $3.3 million by diverting funds intended for an after-school program to purchase tablet computers and other electronics, which he then sold for personal profit, according to the U.S. Attorney's Office.
Rego, who formerly coordinated the MDUSD's after-school program, manipulated the invoicing system by collaborating with a nonprofit, Nonprofit 1, to run the district's academic, recreational, and environmental programming for students. From July 2020 to May 2024, he allegedly tricked an employee of Nonprofit 1 into buying iPads, MacBooks, GoPro cameras, and more, claiming they were necessary for the program. Instead, the indictment claims that causing the school district to pay for goods under the guise of operational expenses, he unknowingly resold the devices and pocketed the proceeds.
The fraudulent scheme involved Rego directing an employee at Nonprofit 1 to submit monthly invoices with a cost breakdown that included the electronics as a line-item expense for supposedly legitimate subcontracts and supplies. These invoices, approved by Rego, were then sent to MDUSD for processing and payment, thereby misleading the school district into believing they pertained to actual costs incurred by Nonprofit 1 for the after-school program.
Unsealed documents indicate that Rego was arrested today and is scheduled for a court appearance in Sacramento's federal district court this afternoon. If convicted of the three counts of mail fraud, he's charged with. He could face up to 20 years in prison and fines up to $250,000 for each count, based on the indictment's allegations and potential sentence outlined by the U.S. Sentencing Guidelines.
The serious nature of the offense was stressed by U.S. Attorney Ismail J. Ramsey and FBI Acting Special Agent in Charge Dan Costin, who announced the charges. Assistant U.S. Attorney Ryan Rezaei is prosecuting the case, with Linda Love assisting, due to a collaborative investigation by the FBI and the Concord Police Department. Superintendent Adam Clark, Ed.D., and the school district were commended for their cooperation in the investigation that led to the indictment of Rego.
