The U.S. Department of Justice (DoJ) reported today that Leonard LaDuron, was sentenced to 57 months in prison and ordered to pay $238,607 in restitution for his role in defrauding the E-rate program. He was the owner of Serious ISP headquartered in Kansas and from 1999 – 2003 he “…steered E-Rate contracts… and devised a scheme to defraud the E-Rate program by submitting false statements and concealing material facts from the Universal Service Administrative Company…” The scheme involved at least ten schools from across the country. Based on a Funds For Learning analysis Serious ISP has not participated in the E-rate program since 2003 and the only year they received a commitment or disbursement was in 2000.
The DoJ press release can be viewed here .
