USF

FCC Bars 7 Individuals After $14 Million E-Rate Fraud

Those convicted will be suspended from all universal service programs for the next three years.

Kelcie Lee

Mar 23, 2026 — 2 min read

Photo of Federal Communications Commission Chairman Brendan Carr in the East Room of the White House on March 20, 2026 by Julia Demaree Nikhinson/AP.

WASHINGTON, March 24, 2026 – The Federal Communications Commission barred seven criminally convicted individuals who defrauded its E-Rate program and received more than $14 million from 2010 to 2016.

The FCC’s Enforcement Bureau announced Friday that the individuals controlled corporations that received millions through E-Rate, which is financed by the Universal Service Fund (USF) and provides broadband and internet discounts for schools and libraries. The individuals failed to provide the equipment that they billed the federal government for through E-Rate, and have now been suspended from all USF programs for the next three years.

The FCC has been working to streamline the suspension process for fraud and misuse of public funds. The agency will hold its Open Commission Meeting next week on March 26, where it will discuss and vote on a variety of rulemaking measures, including “Modernizing Suspension and Debarment Rules.” The FCC said it hopes this process will enable quicker action against misconduct to better protect federal programs from fraud, waste and abuse.

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USF Justice Department FCC fraud anti-fraud Brendan Carr E-Rate universal service New York Rockland County Government Accountability Office U.S. Government Accountability Office GAO GAO report

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