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Howe Electric Pleads Guilty to E-rate Fraud

The U.S. Department of Justice announced that Howe Electric, Inc plead guilty to bid rigging and has agreed to pay $3.3 million in criminal fines and restitution.  The E-rate projects were from 1999-2001 and involved two Fresno, CA area schools.

The U.S. Department of Justice announced that Howe Electric, Inc plead guilty to bid rigging and has agreed to pay $3.3 million in criminal fines and restitution.  The E-rate projects were from 1999-2001 and involved two Fresno, CA area schools.

The DoJ reported that over the last several years "…a total of seven companies and 16 individuals have pleaded guilty, have been convicted and found guilty, or entered civil settlements, resulting in more than $40 million in criminal fines, civil settlements and restitution and jail sentences totaling nearly 29 years…"  The FCC and USAC are continuing to spend more resources auditing program stakeholders and Congress recently approved the FCC Office of Inspector General using over $21 million from the Universal Service Fund for more rigorous oversight.  

One of Funds For Learning's goals is to promote the E-rate program and enhance its status for all E-rate stakeholders.  To help facilitate this objective FFL developed E-rate University. ERU is a series of Trainings on Demand and assessment test to educate E-rate stakeholders on the process, ever-changing regulations and compliance issues. ERU is constantly accessed by both applicants and service providers to validate the knowledge and skill level of those participating in the E-rate program.

The DoJ Howe Electric statement can be viewed here.

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