HP to pay $16.3 million to resolve E-Rate fraud charges

10.11.2010

priorities is making sure E-rate works to benefit students and libraries. Today's settlement shows the extensive efforts of the FCC and DOJ to protect the E-rate program from waste, fraud, and abuse, and to deter misconduct in the future."

Whistleblowers filed two related lawsuits under the U.S. False Claims Act, which permits private parties to sue for false claims on behalf of the U.S. government and share in any recovery. In one case, the DOJ has joined the lawsuit against contractor MSE, its former CEO and a former CTO in the Dallas school district. The DOJ has joined the second lawsuit against contractor ACS.

With the HP settlement, the two whistleblowers in the Dallas case will share more than $1.4 million. The two whistleblowers in the Houston case will share nearly $800,000.

The IDG News Service