Two former top officials in the Patterson Joint Unified School District are headed to federal prison after what prosecutors describe as a long-running scheme that drained roughly $1.5 million from the district and powered a cryptocurrency mining operation on school property.
Senior U.S. District Judge John A. Mendez on Tuesday sentenced former assistant superintendent Jeffrey Menge to 30 months in prison and former IT director Eric Drabert to 18 months.
According to a press release from the U.S. Attorney's Office, the sentences were imposed on March 3, 2026. Prosecutors say Menge was responsible for approximately $1.5 million in theft while Drabert stole about $276,000. Both were ordered to forfeit vehicles, cash and electronics, and to make restitution to the district. The release notes that the rulings were issued by Senior U.S. District Judge John A. Mendez.
Prosecutors say Menge used a Nevada company, CenCal Tech LLC, and even invented a fictitious executive named "Frank Barnes" to double-bill the district and hide payments for services that were never delivered. They say the pair bought high-end graphics cards and other equipment with district funds, then tapped school electricity and computer systems to run a crypto-mining farm, funneling the digital coins into wallets they controlled.
"These defendants were entrusted with safeguarding resources meant to educate and support children; instead, they stole $1.5 million for their own benefit," U.S. Attorney Eric Grant said in the release. The investigation was led by the Federal Bureau of Investigation with help from Stanislaus County investigators, according to the U.S. Attorney's Office.
How the theft was uncovered
The scheme began to unravel in the fall of 2022, when district employees noticed unusual equipment and suspicious computer activity. Patterson school leaders brought in a digital forensics firm, then referred the case to law enforcement, Superintendent Reyes Gauna told CBS Sacramento.
"I was heartbroken for our district," Gauna said. In the aftermath, trustees moved to separate purchasing duties, beef up inventory controls and add more layers of oversight on spending. District officials say Patterson Joint Unified serves roughly 6,300 students, which means a lot of kids were counting on money that instead got rerouted into fraud and crypto rigs.
Legal fallout and recovery
Federal prosecutors say investigative raids turned up vehicles, cash and computers, and the government has sought forfeiture of items tied to the embezzlement scheme. The case was prosecuted by Assistant U.S. Attorneys Joseph D. Barton and Cody S. Chapple.
Local coverage notes that the district has pledged to keep pursuing restitution and tightening internal controls as it works to recover the stolen funds. Action News Now reported on the prison sentences and the district’s response.
The punishments cap a multiyear investigation that federal and local authorities say exposed a complex fraud operation inside a small Central Valley school system. Patterson trustees say their immediate priority is rebuilding public trust and making sure that dollars meant for students actually reach classrooms. Officials say reforms, from dual approvals to new purchasing protocols, are already underway as the district audits old contracts and maps out a path to recoup as much of the $1.5 million loss as possible.
