A former Mt. Diablo Unified School District employee has been charged with mail fraud in connection with an alleged multi-million dollar scheme to defraud his former employer.

A federal grand jury charged Eric Rego with three counts of mail fraud, the U.S. Department of Justice said in a statement Tuesday.

According to an indictment, Rego, 39, a resident of El Dorado Hills, used district funds meant for an afterschool program to buy tablet computers and other electronic devices he then sold for his own profit.

Rego — who was arrested Tuesday — was MDUSD’s afterschool program coordinator. The program offered academic, recreational, and environmental programming. To students in transitional kindergarten through 12th grade.

The free program was funded primarily through state grants designed to benefit high-need population areas and was run by a contracted nonprofit, with which prosecutors said Rego worked closely.

Prosecutors said that from July 2020 until May 2024, Rego purchased or caused to be purchased iPads, MacBooks, GoPro cameras, and other electronic devices through the nonprofit, which Department of Justice officials didn’t name.

Rego allegedly falsely claimed to a nonprofit employee that the iPads and other devices were needed for students in the program but kept the devices and resold them at a fraction of their cost.

Rego allegedly directed a nonprofit employee to submit monthly invoices containing a line-item expense for subcontracts and supplies and to include the cost of the iPads and other devices in the invoice. Rego allegedly reviewed and approved the monthly invoices and submitted them to the district for processing and payment, indicating the invoices were for the nonprofit’s expenses.

Products valued at $3.3 million

The indictment alleges Rego fraudulently obtained iPads, MacBooks, GoPro cameras, and other devices for approximately $3.3 million.

Rego is scheduled to appear in federal court Wednesday, Feb. 5.

If convicted, Rego faces a maximum sentence of 20 years in prison and a fine of $250,000 for each count of mail fraud.

Mt. Diablo Unified School District released a statement Tuesday, saying it discovered the alleged financial misconduct, reported it to police, and hired an independent forensic accountant to conduct a financial audit.

“Anyone who attempts to misuse funds intended for the education of our students will be held accountable.” MDUSD Superintendent Adam Clark

The district said hundreds of electronic devices were purchased but never delivered to district sites or used for student programs. It said it will pursue all legal avenues to recover any misused funds.

“Educating our children is our most pressing priority,” said Superintendent Adam Clark. “Anyone who attempts to misuse funds intended for the education of our students will be held accountable. We are committed to full transparency and will continue to take decisive action to safeguard public resources and protect the integrity of our programs.”