Introduction
A sophisticated scheme to defraud Patterson Joint Unified School District has been unveiled, with senior officials Jeffrey Menge and Eric Drabert at the helm, using the district's resources to mine cryptocurrency illegally, as disclosed by the DOJ.
School Officials Exploiting Resources for Personal Gain
Two senior officials from the Patterson Joint Unified School District in California have admitted to exploiting school resources for their own gain, including orchestrating a cryptocurrency mining operation, the U.S. Department of Justice (DOJ) disclosed. Jeffrey Menge, 43, of Copperopolis, and Eric Drabert, 44, of Modesto, entered guilty pleas to charges of theft concerning programs receiving federal funds, as announced by U.S. Attorney Phillip A. Talbert.
The Elaborate Scheme
From 2018 through 2022, Menge, serving as the Assistant Superintendent and Chief Business Officer, alongside Drabert, the IT Director hired in 2020, engaged in fraudulent activities to siphon off funds from the school district. Their elaborate scheme involved over $1.2 million in deceitful dealings through Cencal Tech LLC, a company under Menge's control. By creating a fictitious executive, "Frank Barnes," they bypassed restrictions on transactions with the school, engaging in double billing and charging for undelivered items.
Illegal Crypto Mining Operation
The duo's illicit activities extended beyond financial misconduct. Utilizing high-end graphics cards and other district-owned resources, Menge and Drabert established a crypto mining farm within the district's facilities, directing the proceeds into personal wallets. The operation, whose scope across the district's 10 schools remains unclear, significantly increased electricity consumption, a matter of growing concern for U.S. energy regulators amidst a crackdown on energy-intensive crypto mining.
Exploitation of District Vehicles
In addition to the mining operation, Menge exploited district vehicles for personal gain, including the sale of a Chevy truck acquired at a bargain and the personal use of a Ford Transit van. The funds embezzled, ranging between $1 million to $1.5 million for Menge and $250,000 to $300,000 for Drabert, were lavishly spent on home renovations, luxury cars, and other personal expenses.
Conclusion
It is crucial to address such fraudulent activities within educational institutions to maintain trust and ensure that resources are used for the benefit of students and the community. The exposure of this illegal crypto mining operation emphasizes the need for strong oversight and accountability in the management of public funds.
Do you think there are many other illicit mining operations? Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
Can I own a gold ETF inside a Roth IRA
You may not have this option with a 401(k), however, you might want to consider other options, like an Individual retirement account (IRA).
Traditional IRAs allow for contributions from both employees and employers. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
Also available is an Individual Retirement Annuity. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions to IRAs don't have to be taxable
Can I buy or sell gold from my self-directed IRA
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. You can also transfer funds from another retirement account if you already have one.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
If you do decide you want to invest your money in gold, you should look into purchasing physical bullion instead of futures contracts. Futures contract are financial instruments that depend on the gold price. They allow you to speculate on future prices without owning the metal itself. You can only hold physical bullion, which is real silver and gold bars.
Should You Get Gold?
Gold was a safe investment option for those who were in financial turmoil. However, today many people are turning away from traditional investments such as stocks and bonds and instead looking toward precious metals such as gold.
Although gold prices have shown an upward trend in recent years, they are still relatively low when compared to other commodities like oil and silver.
Some experts think that this could change in the near future. Experts believe that gold prices could skyrocket in the face of another global financial crisis.
They also pointed out that gold is gaining popularity due to its perceived value, and potential return.
These are some important things to remember if your goal is to invest in gold.
- Consider first whether you will need the money to save for retirement. You can save for retirement and not invest your savings in gold. However, when you retire at age 65, gold can provide additional protection.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each account offers different levels of security and flexibility.
- Keep in mind that gold may not be as secure as a bank deposit. You may lose your gold coins and never be able to recover them.
Don't buy gold unless you have done your research. If you already have gold, make sure you protect it.
What is a Precious Metal IRA, and how can you get one?
A precious metal IRA allows you to diversify your retirement savings into gold, silver, platinum, palladium, rhodium, iridium, osmium, and other rare metals. These metals are known as “precious” because they are rare and extremely valuable. They make excellent investments for your money and help you protect your future from inflation and economic instability.
Precious metals are often referred to as “bullion.” Bullion refers actually to the metal.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. This ensures that you will receive dividends each and every year.
Precious metal IRAs have no paperwork or annual fees. Instead, you pay only a small percentage tax on your gains. You can also access your funds whenever it suits you.
Statistics
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
forbes.com
finance.yahoo.com
cftc.gov
irs.gov
How To
A rising trend in gold IRAs
Investors are increasingly turning to gold IRAs as a way to diversify and protect their portfolios from inflation.
Owners can invest in gold bars and bullion with the gold IRA. It can be used for tax-free growth and provides an alternative investment option for those concerned about stocks and bonds.
Investors can manage their assets with a gold IRA without worrying about market volatility. Investors can use the gold IRA for protection against inflation and potential problems.
Investors also benefit from physical gold's unique properties, such as durability and portability.
In addition, the gold IRA offers several other advantages, including the ability to quickly transfer ownership of the gold to heirs and the fact that the IRS does not consider gold a currency or a commodity.
This means that investors who are looking for financial safety and security are becoming more interested in the gold IRA.
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By: David Sencil
Title: School Officials Plead Guilty to Crypto Mining Operation Using District Resources
Sourced From: news.bitcoin.com/california-school-officials-plead-guilty-to-running-crypto-mining-scheme-with-school-resources/
Published Date: Tue, 06 Feb 2024 05:30:38 +0000
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