An El Dorado Hills resident and former employee of the Mt. Diablo Unified School District has been sentenced to federal prison after admitting to stealing millions of dollars from a program designed to help low-income students.
According to federal court records, Eric Rego, 40, received a 33-month prison sentence for embezzling approximately $3.465 million from the district’s Collaborative of Academics Recreation Enrichment for Students, commonly known as the CARES program.
U.S. District Judge Yvonne Gonzalez Rogers also ordered Rego to pay $3,638,250 in restitution — a figure that includes the stolen funds and an additional 5% processing fee outlined in court documents. Rego must surrender to federal authorities by June 26.
Federal prosecutors said Rego was responsible for managing grant funds connected to the CARES program, which was intended to provide academic and enrichment opportunities for low-income students within the district. Instead, investigators said he diverted the money over a period of years to pay personal gambling debts.
The case has drawn attention across Northern California because of both the amount of money involved and the impact on vulnerable students who relied on the program’s services.
In court filings, defense attorney Candice Fields argued for a lighter 27-month sentence, stating that Rego had taken significant steps toward rehabilitation since federal charges were filed last year.
“Mr. Rego has engaged in sustained, structured rehabilitation over a meaningful period,”
Fields wrote in court documents.
“He completed Moral Reconation Therapy, a cognitive-behavioral program … focused on moral reasoning, accountability, and decision-making.”
Fields also stated that Rego plans to seek future employment that “does not involve financial authority” after serving his sentence.
Federal authorities, however, emphasized the scale of the fraud and the damage caused by diverting taxpayer-funded educational resources away from children in need. The CARES program was intended to support students from low-income families through educational assistance and enrichment opportunities.
The sentencing closes a major chapter in a case that exposed significant financial oversight failures tied to public education funding. It also serves as a warning about the vulnerabilities districts face when internal financial controls break down.
Public court records related to the case are available through the federal court system and filings in the U.S. District Court for the Northern District of California.
