The FCC said it suspended Inter-Tel Technologies from participati...
The FCC said it suspended Inter-Tel Technologies from participating in the school and libraries universal service support mechanism for at least 3 years. It said it could extend the debarment period “if necessary to protect the public interest.” The…
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Commission action comes after Inter-Tel pled guilty to mail fraud and other criminal offenses for activities related to its participation in the E-rate program with the San Francisco Unified School Dist. (SFUSD). According to the FCC, the company admitted that among other violations, it: (1) “Assisted consultants in falsely describing equipment to be supplied to SFUSD by hiding equipment not eligible for funding under the E-rate program in order to have the program pay for it.” (2) Learned that consultants had submitted bills to the Universal Service Administrative Co. (USAC) with the prices inflated by about $26 million above the amounts originally bid for the project, and did nothing to inform USAC and the SFUSD about that. (3) Participated in a conspiracy with one or more equipment and service vendors to eliminate competition for E-rate projects. (4) Submitted fraudulent and non-competitive bids to frustrate the competitive process in the E-rate projects. The FCC said the suspension would become effective upon the earlier of Inter-Tel’s receipt of the Commission suspension letter or publication of notice in the Federal Register. “Suspension is immediate pending the [Enforcement] Bureau’s final debarment determination,” the Commission said. Inter-Tel has 30 days to oppose the action.