E-Rate programme lands telco boss in jail

Tyrone Pipkin, former co-owner of Illinois-based technology company, Global Networking Technologies was sentenced to serve one year and a day in prison as well as to pay a $6 000 fine for conspiring to defraud the E-Rate programme, reports PC World.

Pipkin provided bribes and kickbacks to school employees responsible for the procurement of Internet services in multiple states.

The school employees gave control of the E-Rate competitive bidding process to Pipkin and his co-conspirators, allowing them to ensure E-Rate contracts at these schools were awarded to their companies.

The US Congress created the E-Rate programme as part of the Telecommunications Act of 1996 to provide subsidies to economically disadvantaged schools and libraries, which Pipkin conspired to defraud, writes 7th Space Interactive.

As a result of the Antitrust Division's investigation into fraud and anticompetitive conduct in the E-Rate programme, a total of seven companies and 24 individuals have pleaded guilty, have been convicted at trial, or entered civil settlements.

Barrett White, Pipkin's co-conspirator, was also sentenced to one year and one day in prison for his role in the conspiracy, while Gloria Harper, a second conspirator, pleaded guilty to the conspiracy in a separate charge and awaits sentencing set for 8 September.

Pipkin, who acted on his own behalf and on behalf of Computer Training Associates and Global Networking Technologies, participated in the conspiracy from December 2001 to September 2005, says ITWorld.

The E-Rate programme provides for remote access point installation throughout each school building to allow the wireless connection of computers to the Internet so as to bridge the digital divide between the advantaged and the disadvantaged, writes McKissack & McKissack.