The FCC’s Enforcement Bureau (Bureau) has suspended seven individuals who have been convicted of fraud related to their participation in the E-Rate program. Corporations controlled by such individuals collectively requested over $35 million in E-Rate funds and received over $14 million in E-Rate funds from around 2010 to 2016, but did not provide much of the equipment for which they billed the federal government. The Bureau has suspended each individual from further participation in the E-Rate program and has begun proceedings to debar them from participation in all federal universal service support mechanisms for three years.
The Bureau has issued notices to each of the seven individuals: (1) Peretz Klein; (2) Ben Klein; (3) Moshe Schwartz; (4) Simon Goldbrener;(5) Sholem Steinberg; (6) Aron Melber; and (7) Susan Klein. The parties have 30 days to respond to the notices and explain why they should not be prohibited from participating in activities with or related to all federal universal service support mechanisms.
