The Department of Justice has announced an indictment charging Bradley J. Hansen, a former Grand Rapids school superintendent with conspiring with the owner of an Internet Service Provider (ISP) to sign a three-year Internet service contract with the ISP in exchange for receipt of $60,000 in free goods and services.
Valued at $1.6 million, the conspiratorial conduct began in 2001 and ran at least until June 14, 2004. Hansen is also charged with obstructing justice in September 2007 when he was interviewed regarding E-Rate Program fraud in Michigan.
E-Rate is a federally-funded program that subsidizes provision of Internet access and telecommunications services, as well as internal computer and communications networks to economically disadvantaged schools and libraries.
The conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine. The obstruction of justice charge carries a maximum penalty of 20 years in jail and a $250,000 fine. The maximum fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either amount is greater than the statutory maximum fine.
Anyone with information concerning violations of the E-Rate Program or other anticompetitive conduct is urged to call the Chicago Field Office of the Antitrust Division at 312-353-7530.