BREAKING: Richard Bernstein, a former school consultant, has pleaded guilty in a Brooklyn court to a $100,000 kickback scheme tied to federal COVID-era education funds. Bernstein’s fraudulent actions misappropriated vital resources meant to ensure internet access for students during the pandemic, according to the U.S. Department of Justice.
The court proceedings, announced earlier today by U.S. Attorney Joseph Nocella, Jr. and FCC Inspector General Fara Damelin, reveal shocking details about how Bernstein diverted funds from programs designed to support remote learning. His companies, E-Rate Consulting, LLC and E-Rate Management Solutions Inc., facilitated connections between schools and vendors while secretly pocketing up to 50 percent of the profits from these transactions.
In a damning statement, Nocella described Bernstein’s scheme as a “theft from schools and students,” emphasizing the betrayal of trust involved in his actions. Damelin added that this fraud represents a serious breach of integrity in programs overseen by the Federal Communications Commission (FCC).
Bernstein specifically targeted the E-Rate and Emergency Connectivity Fund (ECF), managed by the Universal Service Administrative Company (USAC). These programs are crucial for providing affordable internet services to students, especially during the ongoing challenges of remote learning.
Court records reveal that Bernstein directed schools to work with select vendors, subsequently filing fraudulent invoices to siphon off funds. In one alarming instance, his company submitted a false invoice totaling $11,500 to a vendor, claiming it represented half of the profits for technology equipment supplied to a school in Nassau County. The vendor was reimbursed by USAC, and the payment was funneled directly to Bernstein’s company.
In total, Bernstein admitted to receiving over $100,000 in kickbacks through this scam. Facing a potential prison sentence of up to five years, he has also agreed to forfeit $137,576.64, the entire amount gained from these illicit transactions.
As this case unfolds, the Office’s Public Integrity Section, led by Assistant U.S. Attorneys Laura Zuckerwise and Eric Silverberg, continues to pursue justice for the misuse of federally funded educational programs. Authorities stress the importance of protecting the integrity of initiatives designed to support students and ensure equitable access to education.
Stay tuned for further updates as this story develops, and consider the broader implications of such fraud on the educational resources available to vulnerable students. This case serves as a critical reminder of the need for transparency and accountability in the management of federal funds.
