INTERNAL CONNECTIONS

DR1: Peretz Klein, Susan Klein, Ben Klein, and Sholem Steinberg plead guilty on February 12, 2020 to defrauding the E-rate program. As outlined in a DOJ press release, these defendants held themselves out as vendors to schools participating in the E-rate program. Corporations controlled by these defendants requested over $35 million in E-rate funds, and received over $14 million in E-rate funds, from in or about 2010 to in or about 2016. Each of these defendants admitted that the companies they controlled did not in fact provide much of the equipment for which they billed E-rate. Due to this guilty plea and admission to violating E-rate?s rules regarding use and delivery of equipment and services (See 47 C.F.R. ?? 54.500, 54.507), USAC is denying all funding to FRNs associated with these SPINs because of their found relationship with one of these four defendants. DR2: Peretz Klein, Susan Klein, Ben Klein, and Sholem Steinberg plead guilty on February 12, 2020 to defrauding the E-rate program and admitted to using several entities to perpetuate the fraud. As outlined in a DOJ press release, these defendants held themselves out as vendors to schools participating in the E-rate program. Corporations controlled by these defendants requested over $35 million in E-rate funds, and received over $14 million in E-rate funds, from in or about 2010 to in or about 2016. Each of these defendants admitted that the companies they controlled did not in fact provide much of the equipment for which they billed E-rate. Due to this guilty plea and admission to violating E-rate?s rules regarding use and delivery of equipment and services (See 47 C.F.R. ?? 54.500, 54.507), USAC is denying all funding to FRNs associated with these SPINs because their relationship with one of these four defendants.