Advertisement
Advertisement

AG busts up alleged toner racket

Share

Two state workers have been arrested and charged with accepting bribes from a state toner contractor, officials said.

A state complaint alleges that Michael Mathison, the owner of Veteran Toners Services, provided inflated quotes for office supplies to the Department of Fish and Wildlife and the California Department of Transportation, Attorney General Kamala Harris said Tuesday.

Advertisement

It alleges that Mathison then supplied counterfeit quotes from nonexistent competitors with even higher prices, allowing his Veteran Toners Services to be awarded the business at the original inflated prices. In exchange for giving the company the contract, two state employees received kickbacks via money orders, gift cards and vacations, Harris said.

“These workers conspired to defraud taxpayers for personal gain,” Attorney General Harris said. “We take government fraud very seriously. I thank our state partners for working closely with Department of Justice agents on this case,” she said.

Mathison, 50, of San Pedro, was arrested on charges of bribery, conspiracy and misappropriation of state funds.

Stephanie Clark, 42, of Fair Oaks, and Danny Gray Compson, 62 of Yuba City, face charges of embezzlement by a public officer in addition to the charges bring brought against Mathison.

Clark and Compson were booked into the Sacramento and Sutter county jails, respectively, on $75,000 bail. Mathison was booked into the Los Angeles County Jail on $250,000 bail.

Their arrests were the result of a year-long investigation by the Attorney General Office’s Bureau of Investigation operating on an anonymous tip.

Clark, of the California Department of Fish and Wildlife, is alleged to have taken more than 50 bribes over five years totaling $23,800. Agents found more than 50 money orders deposited to Clark’s bank account, the complaint alleges. Agents then uncovered more than 200 purchase orders for office supplies; a sampling of 13 of those showed some $50,000 in over-charges.

Compson, of Caltrans, also accepted bribes from Mathison, according to the complaint. It says he submitted invoices of $5,000 a week to be paid, but he never received the product.

Advertisement