Former school district employee charged with $3M fraud involving fake invoices

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Former school district employee charged with $3M fraud involving fake invoices

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 defrauding the district through a scheme involving fake invoices for electronic devices. Eric Rego, 39, from El Dorado Hills, California, faces three counts of mail fraud according to an indictment unsealed today.

Rego allegedly used funds intended for MDUSD's after-school program to purchase tablet computers and other electronic devices. He is accused of selling these devices for personal profit. The after-school program, which was free for students and funded by state grants, provided academic and recreational activities to students from transitional kindergarten through twelfth grade.

Rego served as the after-school program coordinator and worked closely with a nonprofit organization referred to as Nonprofit 1. From July 2020 to May 2024, Rego reportedly acquired iPads, MacBooks, GoPro cameras, and other electronics through this nonprofit. He falsely claimed these items were necessary for the program but instead resold them.

The indictment states that Rego instructed a Nonprofit 1 employee to submit invoices including expenses for subcontracts and supplies, incorporating the cost of these electronics. These invoices were then approved by Rego and submitted to MDUSD under false pretenses. It is alleged that he fraudulently obtained devices valued at approximately $3.3 million.

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

The indictment serves as an allegation of crimes committed; Rego is presumed innocent until proven guilty. If convicted, he could face up to 20 years in prison and a fine of $250,000 per count of mail fraud. Sentencing would be determined by the court following guidelines set forth in U.S.C § 3553.

United States Attorney Ismail J. Ramsey announced the charges alongside FBI Acting Special Agent Dan Costin. Assistant U.S. Attorney Ryan Rezaei is prosecuting with assistance from Linda Love. The investigation was conducted by the FBI and Concord Police Department with cooperation from MDUSD and Superintendent Adam Clark.