The U.S. Department of Justice (DoJ) reported that Jeremy Sheets plead guilty to engaging in wire fraud in connection with the E-rate program. The fraud lasted approximately six years beginning in late 2001 through 2007.
According to the DoJ:
Jeremy Sheets, the president and part owner of an Internet and technology services company, violated E-Rate program rules by compensating two school districts for their share of E-Rate expenses. In addition, Sheets utilized E-Rate funds to purchase undisclosed items, some of which were not eligible for E-Rate funding. Sheets concealed his violation of E-Rate program rules from the E-Rate program by fraudulently misrepresenting that the schools had been billed for their E-Rate expenses when, in fact, Sheets had reimbursed the schools for their share of expenses.
The FCC along with the DoJ and FBI have a joint task force to work on E-rate related fraud cases and as of today, a total of seven companies and 20 individuals have pleaded guilty or have been convicted and found guilty or entered civil settlements with the Government.