7 Indicted For Fraud In Payments for Internet Equipment For Yeshivas

Last Wednesday, the U.S.. Attorney's Office for the Southern District of New York announced the indictment (full text) of seven individuals on wire fraud and conspiracy to commit wire fraud charges growing out of federal payments intended to fund computer equipment for Orthodox Jewish yeshivas. The indictment charges that for many years, defendants billed the federal E-Rate program for millions of dollars in equipment that was not furnished, or was furnished at inflated prices and often was not needed.  The federal program is intended to provide schools and libraries serving economically disadvantaged children with internet access. According to a Forward report on the indictment: "Some of the internet services paid for by E-Rate had been requested by schools that ban internet use for religious reasons."