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State workers, contractor arrested for alleged state contract fraud

Attorney General Kamala D. Harris announced today the arrest of three individuals who allegedly engaged in fraud against the State of California.

The complaint alleges that Michael Mathison, 50, of San Pedro and owner of Veteran Toners Services, supplied inflated quotes on the price of office supplies to the Department of Fish and Wildlife and the California Department of Transportation (CalTrans). Mathison produced counterfeit quotes from non-existent competitors with higher prices so the contract would be awarded to his company.

Mathison currently faces charges of conspiracy, misappropriation of public funds, forgery and bribery.

The complaint also alleges that Stephanie Clark, 42, of Fair Oaks and public employee of the Department of Fish and Wildlife and Danny Gray Compson, 62, of Yuba City and public employee of CalTrans, accepted bribes from Mathison to award the office supply contract to Veteran Toners Services in exchange for money orders, gift cards and vacations.

Clark and Compson both face charges of bribery, conspiracy, misappropriation of public funds and embezzlement.

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