On October 16, 2018, the FCC released an appeal decision that addresses funding requests tied to Connect2 Internet Network from 1998, 1999, and 2000. Connect2 Internet Network provided E-rate services to private schools in New York and violated E-rate program rules. The FCC found that Connect2 violated its “….obligation to ensure compliance with the non-discount share requirement through its independent billing and collection responsibilities, 2) sought E-rate support for providing services other than the services that the applicant applied for and that USAC approved; and 3) sought E-rate support for providing services outside of the funding year for which they were granted….”
The CEO of Connect2 Internet Networks was ultimately convicted of defrauding the E-rate program and had the distinction of the first E-rate service provider that the FCC proposed debarring from the program. Connect2 Internet Networks has not participated in the E-rate program since 2003.
The FCC Connect2 Appeal Decision can be viewed here.