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Michigan Businessman Sentenced for Wire Fraud
WASHINGTON – Jeremy R. Sheets, a Michigan businessman, pleaded guilty to wire fraud in connection with the federal E-Rate program.
The charge was filed in U.S. District Court in Grand Rapids, Mich., on Dec. 9, 2010, for engaging in wire fraud in connection with the E-Rate program funding applications of two school districts in western Michigan.
According to the charge, Sheets, the president and part owner of an Internet and technology services company, violated E-Rate program rules by compensating two school districts for their share of E-Rate expenses.
Sheets utilized E-Rate funds to purchase undisclosed items, some of which were not eligible for E-Rate funding. Sheets concealed his violation of E-Rate program rules from the E-Rate program by fraudulently misrepresenting that the schools had been billed for their E-Rate expenses when, in fact, Sheets had reimbursed the schools for their share of expenses.
The E-Rate program was created by Congress in the Telecommunications Act of 1996 and is administered by the Universal Service Administrative Company, under the auspices of the Federal Communications Commission (FCC). The program provides subsidies to economically disadvantaged schools and libraries.
Depending on the financial needs of the applicant schools, the program pays 20 to 90 percent of the cost for Internet access and telecommunications services, as well as internal computer and communications networks.
Key Facts
- State: Michigan
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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