Former Patterson school officials sentenced to prison in $1.5M embezzlement scheme
Two former Patterson Joint Unified School District officials were sentenced Tuesday to federal prison for their roles in a scheme that prosecutors say diverted roughly $1.5 million in school district funds.
U.S. District Judge John A. Mendez sentenced former assistant superintendent Jeffrey Menge, 45, of Copperopolis, to 30 months in prison and former IT director Eric Drabert, 46, of Modesto, to 18 months.
Both sentences fell at the low end of federal sentencing guidelines.
Prosecutors had recommended higher sentences — 37 months for Menge and 24 months for Drabert.
Judge Mendez said the sentences reflected a balance of aggravating and mitigating factors, including the seriousness of the crime and the defendants’ conduct since the scheme was uncovered.
“There are a number of factors that are aggravating, and there are a number of factors that are mitigating,” Mendez said during the hearing.
The judge said the crimes involved a breach of trust and occurred over a significant period of time but also noted efforts by the defendants to take responsibility and repay the school district.
Mendez said a higher sentence for Drabert could create an unwarranted disparity between the two defendants.
“I think a low-end sentence is sufficient but not greater than necessary,” he said.
Both men were allowed to voluntarily surrender to federal prison by May 26.
A restitution hearing is scheduled for May 5 to determine how much money the defendants must repay to the district.
About 20 people sat in the courtroom gallery, including Patterson Unified School District officials and supporters of the two men.
Scheme involved $1.5 million in school funds
Menge and Drabert previously pleaded guilty to theft concerning programs receiving federal funds, a felony offense under federal law.
According to federal prosecutors, the men used their positions in the district to steer contracts and payments through a technology company connected to Menge.
Court documents say the scheme operated between 2018 and 2022 while Menge served as the district’s assistant superintendent and chief business officer.
In 2020, Menge hired Drabert to serve as the district’s IT director.
Prosecutors said the two men used CenCal Tech LLC, a Nevada-based company controlled by Menge, to carry out the scheme.
To conceal his connection to the company, prosecutors said Menge created a fictitious executive named “Frank Barnes.”
Investigators said the men used the company to submit fraudulent invoices to the school district, including double billing, overbilling and charges for equipment that was never delivered.
In total, prosecutors said Menge embezzled about $1.5 million from the district, while Drabert personally received about $276,000.
Court filings say the men also used school district equipment and electricity to operate a cryptocurrency mining operation, transferring the digital currency to wallets they controlled.
Prosecutors also said Menge used stolen funds for personal expenses including remodeling his home and purchasing luxury vehicles including a Ferrari 458, Audi R8 and Corvette Z06.
Drabert used some of the money to remodel a vacation cabin, prosecutors said.
Assistant U.S. Attorney Cody Chapple, who prosecuted the case, declined to comment after the hearing.
District says sentencing brings closure
Patterson Unified School District Superintendent Reyes Gauna said the sentences represent an important step toward closure for the district and the community.
“For us, it begins a closure and healing for our district,” he said outside the courtroom. “We’re obviously elated that they were both sentenced to do some time for their crimes.”
Gauna said the case severely damaged trust within the school community.
“When you are provided a place in a leadership role, the number one item that we look for is someone that we can trust,” he said.
Gauna said the district has not yet received restitution and will wait for the court’s determination in May.
“We’ll leave it up to the court at this point,” he said. “It’s really hard when you’re trying to tackle something of that sophistication to prove every penny that was taken.”
He said the district has implemented several financial safeguards since the scheme was uncovered.
Purchases over $500 are now tracked and inventoried, and purchases over $5,000 must be reviewed by district administrators and the school board.
The district also eliminated credit card access for principals and installed a secured receiving area to store equipment deliveries.
Gauna said increased transparency is part of the district’s effort to rebuild public trust.
Defense attorneys say sentences were appropriate
Outside the courtroom, the defendants’ attorneys said the judge properly weighed mitigating factors in determining the sentences.
“A high-end sentence was not warranted in this case,” said Diane Bass, who represents Menge. “There were too many mitigating factors.”
Bass said the consequences of a federal felony conviction are significant.
“Any prison sentence on a federal felony conviction for any individual, particularly for an educated professional, the conviction in and of itself is a huge punishment,” Bass said. “Thirty months in federal prison is no joke.”
Drabert’s attorney, Rebecka Monez, said the judge “got it right” in imposing a lower sentence.
She said Drabert’s efforts to repay the district played a role in the court’s decision.
“The fact that Mr. Drabert was very focused on making the victim whole and repaying the loss to the school district was very moving on the court today,” Monez said.
Drabert brought a $100,000 cashier’s check to court that will be applied toward restitution once the final amount is determined.
Monez also said she believes Drabert poses little risk of committing another crime.
“As the court stated on the record today, he [Judge Mendez] has no doubt that Mr. Drabert will not be a repeat offender,” she said.
Restitution dispute still unresolved
The total restitution amount remains unresolved because prosecutors and defense attorneys disagree about the final loss amount.
Judge Mendez encouraged both sides to attempt to reach an agreement before the May hearing. If they cannot, the court could hear testimony and review additional evidence to determine the final amount.
Gauna said resolving restitution will be an important final step for the district.
“Once we get restitution taken care of, this will be a closed chapter,” he said.
