SACRAMENTO, Calif. – A former Pacific Gas and Electric Company (PG&E) employee traded his position for cold, hard cash, admitting today to a years-long conspiracy to defraud his employer. Ronald S. Schoenfeld, 65, of Goodyear, Arizona, formerly of Dublin, California, copped a plea to one count of conspiracy to commit honest services wire fraud, a scheme that netted him at least $1,476,000 in illicit kickbacks.
According to the U.S. Attorney’s office, the rot ran deep. Schoenfeld, while still on the PG&E payroll, actively steered contracts toward a Stockton-based transportation company – owned by his own cousin. The deal? A hefty 2.5% cut of every contract awarded. He deliberately concealed this familial connection from PG&E, feeding confidential inside information to his cousin’s business and even directly manipulating the contract consideration process, all in violation of company policy. This wasn’t oversight; it was calculated corruption.
The scale of the fraud is staggering. Between March 2007 and February 2015, PG&E shelled out at least $82.1 million to the transportation business run by Schoenfeld’s cousin. While the company profited handsomely, Schoenfeld was lining his own pockets. The $1,476,000 in kickbacks represents a documented figure; the true amount could be higher, investigators suspect.
The investigation, spearheaded by the Federal Bureau of Investigation, peeled back layers of deception. Assistant U.S. Attorneys André M. Espinosa, Amy S. Hitchcock, and Tanya B. Syed built a solid case, leading to Schoenfeld’s guilty plea. This isn’t a victimless crime; it’s money stolen from ratepayers and shareholders, eroding trust in a vital utility provider.
Schoenfeld now faces a November 16, 2020 sentencing date before U.S. District Judge Kimberly J. Mueller. He’s looking at a maximum of five years in federal prison and a $250,000 fine. However, the final sentence will be determined by Judge Mueller, taking into account sentencing guidelines and other relevant factors. Expect a lengthy hearing; the level of premeditation and the duration of the scheme will undoubtedly weigh heavily on the judge’s decision.
This case serves as a stark reminder that even within seemingly reputable corporations, greed and corruption can flourish. The Grimy Times will continue to follow this case and report on any further developments. The FBI has not ruled out the possibility of additional charges or indictments related to this scheme, particularly concerning the cousin who allegedly orchestrated the kickback payments.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: White Collar Crime|Public Corruption|Fraud & Financial Crimes
- Source: Official Source ↗
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