Fair Oaks Woman Arrested in State Contract Fraud Scheme

A Fair Oaks woman, who works for the California Department of Fish and Wildlife, was arrested today for embezzlement and allegedly taking bribes. 

Stephanie Clark, 42, of Fair Oaks, was one of three arrested in the scheme.

According to the California Department of Justice, the scheme allegedly involved 50-year-old Michael Mathison of San Pedro, owner of Veteran Toners Services and 62-year-old Yuba City resident Danny Gray Compson, who works for the California Department of Transportation. 

Compson and Clark reportedly accepted bribes from Mathison. 

"The complaint alleges that Michael Mathison, owner of Veteran Toners Services, supplied inflated quotes to the Department of Fish and Wildlife and the California Department of Transportation (CalTrans) for office supplies," according to the California Department of Justice. "Mathison then produced counterfeit quotes from non-existent competitors with even higher prices. As a result, Veteran Toners Services was awarded the office supplies business at the original inflated price and two department employees — in return for giving Veteran’s the contract — received kickbacks in the form of money orders, gift cards and vacations."

Clark reportedly took more than 50 bribes totaling $23,800 over the course of five years, according to a press release. Investigators also found more than 200 purchase orders for office supplies, 13 of which were about $50,000 in over-charges, according to the release.

Compson also allegedly accepted bribes from Mathison, submitting invoices amounting to as much as $5,000 a week to be paid, but never received the product, according to the release. 

“These workers conspired to defraud taxpayers for personal gain,” said Attorney General Harris, in a release. “We take government fraud very seriously."

Clark, Compson and Mathison face charges of bribery, conspiracy and misappropriation of state funds. Clark and Compson also face charges of embezzlement by a public officer, according to the release. 

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