Ed-Tech Policy A National Roundup

Judge Ponders $8.71 Million Penalty to Settle E-Rate Fraud Charges

By Andrew Trotter — January 04, 2005 1 min read
  • Save to favorites
  • Print

A consulting company in Tempe, Ariz., agreed last month to plead guilty to being part of schemes to defraud the federal E-rate program in school districts in California and Michigan, but the federal judge in the case balked at that resolution.

The U.S. attorney in San Francisco announced Dec. 8 that Inter-Tel Technologies Inc., a subsidiary of Inter-Tel Inc., would pay a total of $8.71 million in criminal and civil penalties to settle two felony charges.

But U.S. District Judge Charles R. Breyer refused to accept that resolution because of what he called the case’s “egregious facts.” He was scheduled to consider additional evidence this week.

Inter-Tel, based in Tempe, Ariz., was charged with allocating contracts and submitting rigged bids for E-rate projects at two unidentified districts in California and Michigan. The company also was charged with entering into a scheme to defraud the E-rate program in San Francisco, including trying to conceal plans to install items that were ineligible for E-rate aid and submitting fake documents to defeat a probe of the legitimacy of the funding request.

Inter-Tel said in a statement that it no longer employs the two sales representatives directly involved in the schemes, and that the plea agreement would require it to implement reforms while serving a three-year probation.

A version of this article appeared in the January 05, 2005 edition of Education Week

Events

Recruitment & Retention Live Online Discussion A Seat at the Table: Chronic Teacher Shortage: Where Do We Go From Here?  
Join Peter DeWitt, Michael Fullan, and guests for expert insights into finding solutions for the teacher shortage.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Science Webinar
Close the Gender Gap: Getting Girls Excited about STEM
Join female STEM leaders as they discuss the importance of early cheerleaders, real life role models, and female networks of support.
Content provided by Logitech
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Student Achievement Webinar
Mission Possible: Saving Time While Improving Student Outcomes
Learn how district leaders are maximizing instructional time and finding the best resources for student success through their MTSS framework.
Content provided by Panorama Education

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Ed-Tech Policy E-Rate Money for Cybersecurity? The FCC Is About to Get an Earful From Schools
There are some strong, opposing opinions about whether the federal program should pay for cybersecurity.
4 min read
Illustration of Internet network data computer laptop security shield and lock symbol.
DigitalVision Vectors/Getty
Ed-Tech Policy All That Ed Tech Schools Bought During the Pandemic Won’t Improve Equity. Here's Why
Product design, limited organizational capacity, and the dangers of digital surveillance are all barriers, four experts told Education Week.
6 min read
v42 16 sr equity tech 112322
Illustration by Chris Whetzel for Education Week
Ed-Tech Policy Schools Need More Money for Students' Home Internet, Education Groups Tell Congress
Most K-12 students are back to learning in-person, but the homework gap persists and millions of students could lose their home internet.
3 min read
Photograph of a young girl reading, wearing headphones and working at her desk at home with laptop near by.
iStock/Getty Images Plus
Ed-Tech Policy What Educators Should Know About Biden's 'AI Bill of Rights'
The White House outlined some core principles that address the pitfalls of artificial intelligence.
5 min read
Image shows a conceptual circuit board with "AI" grid lit up in the center.
Getty