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Ex-employee charged with defrauding school district via fake invoices

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Thursday, March 6, 2025

Ex-employee charged with defrauding school district via fake invoices

Attorneys & Judges
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Ismail J. Ramsey, U.S. Attorney | U.S. Attorney for the Northern District of California

A former employee of the Mt. Diablo Unified School District (MDUSD) has been charged with mail fraud in a scheme involving fake invoices for electronic devices. Eric Rego, 39, from El Dorado Hills, California, faces three counts of mail fraud as part of a multi-million-dollar scam to defraud MDUSD by acquiring electronic devices under false pretenses and reselling them for personal gain.

Rego was an employee at MDUSD, serving as the after-school program coordinator. According to the indictment unsealed today, Rego misused funds allocated for an after-school program to purchase tablet computers and other electronic equipment. The program was funded mainly through state grants aimed at benefiting high-need areas and provided free educational and recreational activities for students from transitional kindergarten through twelfth grade.

The district had partnered with a nonprofit organization, referred to as Nonprofit 1, to manage its after-school program. Rego worked closely with this organization. From July 2020 until May 2024, he allegedly purchased iPads, MacBooks, GoPro cameras, and other devices through Nonprofit 1 under the guise that they were needed for students in the program. Instead, he kept these devices and sold them at reduced prices.

To facilitate his scheme, Rego instructed a Nonprofit 1 employee to submit monthly invoices listing expenses for subcontracts and supplies that included the cost of these electronic items. He reviewed and approved these invoices before their submission to MDUSD for payment processing. The indictment claims Rego obtained devices worth approximately $3.3 million through fraudulent means.

Rego was arrested today and is scheduled to appear in federal district court in Sacramento on February 5, 2025.

An indictment serves only as an allegation of criminal activity; the defendant remains presumed innocent unless proven guilty. If convicted on all counts of mail fraud, Rego could face up to 20 years in prison and a fine of $250,000 per count. Sentencing would be determined by the court following U.S. Sentencing Guidelines and relevant federal statutes.

United States Attorney Ismail J. Ramsey announced the charges along with FBI Acting Special Agent in Charge Dan Costin.

Assistant U.S. Attorney Ryan Rezaei is leading the prosecution with assistance from Linda Love. The investigation was conducted by the FBI and Concord Police Department. The U.S. Attorney’s Office and FBI acknowledged cooperation from MDUSD and Superintendent Adam Clark during their inquiry.

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