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NextiraOne, about to plead guilty to E-rate fraud, urged the FCC ...

NextiraOne, about to plead guilty to E-rate fraud, urged the FCC April 14 not to debar it from the program, on grounds it has cooperated with DoJ in tracking the firm’s bad actors, an assertion DoJ seconded in a…

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letter to the FCC also sent April 14. DoJ said NextiraOne will plead guilty tomorrow (Fri.) to one criminal count, with the parties filing a civil settlement agreement the same day, in connection with E-rate projects at the Pine Ridge Reservation schools in S.D. In the pact, DoJ agreed to document NextiraOne cooperation to the FCC. DoJ said the company was unusually cooperative in supplying information, including “extensive production of internal e-mails,” and in encouraging employees to “come forward and make themselves available for interviews,” DoJ told the FCC. “More important, NextiraOne has accepted full responsibility for the wrongdoing carried out by certain former employees,” DoJ said. The company fired individuals involved with the E-rate program, made restitution to the Pine Ridge Schools and reimbursed the Universal Service Fund, DoJ said. DoJ said it was able to trace the fraud to a business unit in NextiraOne “that pressured network technicians and administrative staff, who were, for the most part not familiar with the program’s rules and requirements, to go along with the fraudulent acts.” NextiraOne, in a petition to the FCC for waiver of E-rate suspension and debarment, said such waivers can be granted if “extraordinary circumstances” exist and that’s the case here. “Because NextiraOne already has taken extraordinary measures to protect the integrity of the E-rate program, debarment would unnecessarily punish the company and fail to promote important government objectives,” the company told the FCC. NextiraOne said it “has taken full responsibility for the actions of its former employees, including actions that occurred prior to formation of the company.” NextiraOne was formed in April, 2001, when Platinum Equity acquired 2 existing firms, Williams Communications Solutions and Milgo Solutions. Williams, already in the E-rate business at the time of the acquisition, formed the basis for the new company’s E-rate unit in late 2001. NextiraOne learned in late 2002 that a grand jury was investigating its involvement in the E-rate program, it said. The company was accused of seeking and obtaining E-rate funding for ineligible products and services.