Peretz Klein, Defrauding E-Rate Program, New York 2022

Seven defendants have been sentenced for defrauding a federal program that provided technology funding for underprivileged schools in Rockland County, New York, according to a recent announcement by U.S. Attorney Damian Williams.

The defendants, including Peretz Klein, Ben Klein, Moshe Schwartz, Simon Goldbrener, Sholem Steinberg, Aron Melber, and Susan Klein, had previously pled guilty to conspiring against the United States.

‘The seven defendants who have now pled guilty in this case sought to steal from our most vulnerable population: economically disadvantaged children,’ U.S. Attorney Damian Williams said. ‘The defendants created elaborate schemes with complete disregard for the fact that the money they selfishly stole should have gone towards providing children with much-needed technology to further their education and brighten their future.’

According to the allegations made in the Indictment and the Informations to which the defendants pled guilty, as well as the defendants’ admissions in court, the defendants used their positions to defraud the E-Rate program, which distributes funds to schools and libraries serving economically disadvantaged children.

The E-Rate program provides funding for telecommunication services, internet access, and related equipment, with up to 90% of the cost defrayed by the program. However, the defendants submitted false certifications and claims to the program, resulting in millions of dollars’ worth of unauthorized funding.

‘Each defendant now faces serious penalties for their callous crime,’ U.S. Attorney Damian Williams said.

Here are the sentences handed down to each defendant: