Published Online: April 19, 2005
Published in Print: April 20, 2005, as E-Rate Indictments Target Six Companies

News in Brief: A Washington Roundup

E-Rate Indictments Target Six Companies

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Six technology companies have been indicted on federal fraud charges in connection with E-rate projects at schools in seven states.

A federal grand jury in San Francisco found enough evidence to charge the companies with schemes to defraud the Federal Communications Commission and E-rate program managers.

The projects involved 11 school districts in Arkansas, California, Michigan, New York, Pennsylvania, South Carolina, and Wisconsin, the Department of Justice announced April 7.

The companies are: Video Network Communications Inc. of Portsmouth, N.H.; Howe Electric Inc. of Fresno, Calif.; Sema4 Inc. of San Juan Capistrano, Calif.; Digital Connect Communications, also of San Juan Capistrano; Expedition Networks Ltd. of North Hills, Calif.; and ADJ Consultants Inc. of Temecula, Calif.

The companies have defended themselves in media reports.

Michael A. Molfetta, a lawyer representing Howe Electric, told Education Week that his client was steered into trouble by other companies working on the same E-rate projects as Howe Electric.

Vol. 24, Issue 32, Page 22

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