Antitrust Lawyer Blog Commentary on Current Developments

MICHIGAN SCHOOL OFFICIAL INDICTED TO DEFRAUD FCC’S E-RATE PROGRAM

On June 2, Bradley J. Hansen, the former superintendent of the Montcalm Area Intermediate School District in Grand Rapids, MI, was indicted by a grand jury for conspiring to commit bribery and deprive the school district and the citizens of Michigan of his honest services in relation to the Federal Communication Commission’s (“FCC”) E-Rate Program.

He was also charged with obstruction of justice into Department of Justice’s ongoing investigation into bidding violations related FCC E-Rate program. According to the indictment, Mr. Hansen conspired with a local Internet service provider by accepting a three-year contract worth $1.6 million along with $60,000 in free goods and services.

The conspiracy took place between 2001-2004. The Telecommunication Act of 1996 authorized the FCC’s E-Rate Program to provide economically disadvantaged school districts and libraries with funds to connect to the Internet. As a result of this ongoing investigation a total of seven companies and 18 individuals have pleaded guilty, have been convicted and found guilty, or entered civil settlements, resulting in more than $40 million in criminal fines, civil settlements and restitution and jail sentences totaling nearly 29 years.

Andre Barlow

202-589-1838

abarlow@dbmlawgroup.com