The U.S. Department of Justice announced that Jay Soled and Benjamin Rowner plead guilty to defrauding the E-rate program. Soled and Rowner were co-owners of DeltaNet which was an E-rate service provider headquartered in New Jersey. Their conspiracy started in 1999 and ran until 2003. According to a Funds For Learning analysis, DeltaNet has not participated in the E-rate program since 2003, had customers in 28 states and had over $30 million tied to E-rate requests through that time period, however, the SLD only committed $5.4 million worth of E-rate projects.
Further information can be viewed by reading the U.S DoJ Press Release.