Federal authorities on Dec. 18 charged the owner of Connect2 Internet Networks Inc., a New York-based internet services company, and three employees with allegedly defrauding the eRate of millions of dollars.

eSchool News first broke the story on Nov. 8 that Connect2 might be one of several companies under investigation by the Schools and Libraries Division (SLD) of the Universal Service Administrative Co., the agency that administers the eRate, for possible violations of the program's rules. (See "New eRate tool IDs questionable vendors," http://www.eschoolnews.com/news/showStory.cfm?ArticleID=4072.)

The case marks the

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