Richard Bernstein, a former school consultant, pleaded guilty to participating in a kickback scheme that misused federal Covid-era programs designed to provide internet access to students. According to the U.S. Department of Justice, Bernstein admitted to defrauding the United States by directing federal funds intended for schools to specific vendors and receiving a portion of the proceeds.
U.S. Attorney Joseph Nocella, Jr., and FCC Inspector General Fara Damelin announced the outcome of the federal court proceedings in Brooklyn, where Bernstein faces a potential five-year prison sentence. Bernstein used his companies, E-Rate Consulting, LLC and E-Rate Management Solutions Inc., to connect schools with vendors and entered into undisclosed agreements with those vendors to receive a share of their profits, reportedly up to 50 percent. Nocella described the scheme as a theft from schools and students, while Damelin noted it represented a serious breach of trust in programs overseen by the FCC.
Bernstein’s actions affected the E-Rate and Emergency Connectivity Fund (ECF) programs, managed by the Universal Service Administrative Company (USAC) and overseen by the FCC, which are intended to provide affordable internet services and support remote learning during the pandemic. According to court records, Bernstein directed schools he represented to work with certain vendors and then received a portion of the profits. In one instance, E-Rate Management Solutions submitted a fraudulent invoice for $11,500 to a vendor, representing half of the vendor’s profits for supplying technology equipment to a Nassau County school. The payment was subsequently transferred to Bernstein’s company after USAC reimbursed the vendor.
Bernstein admitted to receiving over $100,000 in kickbacks from the scheme. In addition to facing potential prison time, he has agreed to forfeit $137,576.64, the total amount he gained from the transactions. The prosecution is being handled by the Office’s Public Integrity Section, including Assistant United States Attorneys Laura Zuckerwise and Eric Silverberg, with support from law enforcement partners involved in protecting the integrity of federally funded educational programs.
