News in Brief: A Washington Roundup
E-Rate Indictments Target Six Companies
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 22Published in Print: April 20, 2005, as E-Rate Indictments Target Six Companies