In a significant development for federal oversight of school technology funding, Richard Bernstein, a prominent Long Island-based E-rate consultant, pleaded guilty, January 22, 2026, in federal court to conspiracy to defraud the United States. Bernstein admitted to steering millions of dollars in school contracts to select vendors in exchange for a secret share of the vendors’ profits, exploiting programs designed to help children access the internet during the Covid-19 pandemic.
The guilty plea was entered before United States District Judge Ramon E. Reyes, Jr. Bernstein, who faces a potential sentence of up to five years in prison, was the founder and Chief Executive Officer of E-Rate Consulting, LLC, and president of E-rate Management Solutions Inc. (collectively, EMS), both headquartered in Woodmere, New York.
Federal Prosecutors and FCC Inspector General Condemn Scheme
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Fara Damelin, Inspector General of the Federal Communications Commission (FCC), jointly announced Bernstein’s guilty plea. “Bernstein’s scheme enriched himself and his co-conspirators at the expense of schools and schoolchildren,” stated Nocella. “Kickback schemes that illegally syphon public funds into private pockets are an insidious form of corruption, and our Office is committed to disrupting and prosecuting such conduct.”
Inspector General Damelin highlighted the broader risks posed by procurement fraud in federal programs: “This case demonstrates the continuing pattern of procurement fraud and kickbacks between consultants and vendors that threaten the integrity of FCC’s ECF and E-Rate programs. The defendant, an active consultant in this industry, used his status to defraud these programs. We will continue to identify and vigorously investigate bad actors who exploit FCC programs for personal gain to the detriment of students that these programs are meant to serve.”
How the Conspiracy Unfolded
Court documents and proceedings revealed that Bernstein, acting as an agent for schools seeking access to federal resources, secretly steered school contracts toward vendors willing to kick back as much as half of their profits to him. The E-rate and Emergency Connectivity Fund (“ECF”) programs, operated by the Universal Service Administrative Company (USAC) under FCC oversight, were designed to provide affordable telecommunications and internet access to schools and libraries and, during the pandemic, to support remote learning.
One example cited in court involved Bernstein’s consulting work for a Nassau County school in 2021 and 2022. Bernstein arranged for the school to purchase 130 Lenovo Chromebooks and 40 Lenovo laptops from a preferred vendor, who then sought federal reimbursement for the equipment. After USAC paid $68,000 to the vendor for these purchases, Bernstein’s firm, EMS, invoiced the vendor for $11,500, representing half the vendor’s profits for the deal. The vendor paid EMS the full amount within days.
Impact and Consequences
Investigators determined that EMS collected more than $100,000 in kickbacks from vendors funded through the E-rate and ECF programs. As part of his plea agreement, Bernstein will forfeit $137,576.64, the total illicit proceeds he received from the scheme. The case underscores the vulnerability of federal programs to exploitation and the ongoing efforts by law enforcement agencies, to protect the integrity of public funding.
Bernstein’s sentencing date has not yet been scheduled. As the legal process continues, authorities reaffirm their commitment to holding accountable those who divert resources intended for America’s schools and students.
The full press release from the United States Attorney’s Office can be viewed here.
