Calif. Co. agrees to E-rate fraud plea; promises to pay $1.7m for actions.
Education Technology News, March, 2006
A California company has agreed to plead guilty and pay $1.7 million in criminal fines and restitution for its part in defrauding the E-rate program, which provides schools and libraries with $2.25 billion annually in discounts on telecommunications services, internal connections and Internet access.
The Department of Justice charged Premio Inc., which makes and sells computers, software and hardware, with submitting rigged bids for schools in California. DOJ also alleged the company committed fraud by substituting ineligible equipment for approved equipment and submitting false invoices when dealing with a Michigan district.
"This fraudulent conduct caused the E-Rate program to pay for unnecessary and inappropriate items and as a result prevented the...
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