FCC Bans Seven Convicted E-Rate Fraudsters from USF Programs

The Federal Communications Commission (FCC) has issued debarment notices against seven individuals convicted of defrauding the E-rate program, a component of the Universal Service Fund (USF). These individuals, including Peretz Klein, Simon Goldbrener, Ben Klein, Aron Melber, Moshe Schwartz, Susan Klein, and Sholem Steinberg, are now prohibited from participating in or receiving any benefits from USF programs. This action follows their convictions for fraud related to the E-rate program, which provides discounts to schools and libraries for internet access.

This enforcement action serves as a strong deterrent against fraud within federal broadband subsidy programs. Regulated entities and individuals involved in USF programs should be aware that the FCC is actively pursuing and penalizing fraudulent activities. Compliance officers should review their internal controls and employee training related to program participation to ensure adherence to program rules and prevent any involvement in fraudulent schemes. While no specific compliance deadline is mentioned for other entities, the debarment is effective immediately for the named individuals, and the FCC's continued vigilance suggests potential for further enforcement actions.