Two high-ranking officials from New Jersey’s Patterson Joint Unified School District face serious legal repercussions following allegations of conducting illicit cryptocurrency mining operations and embezzlement, spanning several years.

The Scheme Unveiled

The U.S. Department of Justice has recently unveiled charges against two prominent figures in the Patterson Joint Unified School District. The accused, former Assistant Superintendent Jeffrey Menge and IT Director Eric Drabert, are alleged to have misused school district resources to run a cryptocurrency mining operation.

Operational Details and Profits

Details from the DOJ’s statement indicate that the mining operation, which took place on school property and used school electricity, saw the pair transfer an estimated $1 million to $1.5 million in mined cryptocurrency into their personal accounts. The extent of the operation across the district’s 10 schools remains unclear.

Additional Misconduct

Further investigations revealed more underhanded activities, with the duo engaging in additional theft and fraudulent transactions through a Nevada-based company controlled by Menge. These transactions included double billing and billing for items that were never delivered, amounting to over $1.2 million in fraudulent gains.

Lavish Expenditures

The ill-gotten wealth was not modestly spent. Menge and Drabert reportedly funneled their stolen funds into extravagant personal uses, such as home renovations, luxury vehicles—including a Ferrari—and other personal expenses.

Law Enforcement and Legal Proceedings

The case is being pursued vigorously by law enforcement, with the FBI at the helm, supported by local authorities. Assistant U.S. Attorney Jeffrey A. Spivak is in charge of the prosecution. The accused are set to be sentenced on May 30, 2024, and could face up to 10 years in prison with a $250,000 fine each. However, their actual sentences will be determined by the court, considering various statutory factors and adherence to the Federal Sentencing Guidelines.