State Workers Arrested In Fraud, Kickback Investigation
SACRAMENTO (CBS13) — Thousands of your taxpayer dollars were allegedly misspent in a state-worker scandal investigators say went on for years.
The investigation stretches from Yuba City to Fair Oaks and all the way to San Pedro in Southern California.
Stephanie Clark, an employee of the Department of Fish and Wildlife, and Danny Compson, a Caltrans worker, are both facing fraud and corruption charges after an anonymous tip.
"It's something the attorney general's office takes very seriously," said Michelle Gregory with the department of justice.
According to the state attorney general's office, both employees' charges revolve around a company called Veteran Toners, an office supply company in Southern California.
"They were forging invoices, people were receiving kickbacks."
Michael Mathison, the owner of Veteran Toners, is also under arrest—accused of providing fake bids from fake companies to get the departments' business.
Mathison then allegedly charged at least $50,000 for services and items he overpriced, or never even provided.
Clark and Compson are accused of receiving thousands from Mathison to allow it all to happen, and investigators say it went on for five years.
Today, Clark's emotional husband says he never saw any of the $23,000 in cash and gifts his wife allegedly received. Compson's family said the same.
But how could this happen for so long?
While the state departments wouldn't tell us, John Guion is a director of procurement at Sacramento State. As a state agency, he says allowing a company to give other bids is never allowed, and it's obvious there is something wrong.
"Processes are broken, there's not a separation of duties. If you have a good separation of duties, and good policies and procedures in place, that would not take place."
Caltrans issued a statement that read in part, "We have launched an internal investigation, including both personnel activity and system safeguards, and will terminate this employee if facts show fraud or other unlawful acts."
The Department of Fish and Wildlife didn't respond to CBS13's request for a statement.
