Posted June 2, 2003.

Internet Company Owner Pleads Guilty in E-Rate Fraud Case

The owner of a New York Internet-services company pleaded guilty May 22 to conspiring to steal millions of dollars through the government’s e-rate program, which subsidizes telecommunications costs for libraries and schools.

The government charged John Angelides with offering Internet services to poor schools through the program, which pays subsidies of up to 90%. He told the schools they did not have to pay their 10% share, then faked checks and invoices from them so his company, Connect2 Internet Networks, could collect its 90%, Long Island Newsday reported May 22.

“I knew my conduct was wrongful,” Angelides told U.S. District Judge Thomas P. Griesa. Angelides has agreed to pay the government about $290,000, and could receive one-and-one-half to two years in prison at his sentencing September 10.

Two other Connect2 Internet employees pleaded guilty in the scheme earlier this month, Newsday reported.

Posted June 2, 2003.