Bohuchot was indicted in 2007 on charges of taking nearly $950,000 in illegal gifts and cash in exchange for steering at least $120 million in contracts to Micro System Enterprises, owned by Houston businessman Frankie Wong. Bohuchot was convicted in 2008 and received an 11-year prison sentence; Wong received a 10-year sentence.
Allegations of wrongdoing in the Houston Independent School District did not result in any criminal charges, but the district did get slapped with an $850,000 fine and lost tens of millions of dollars in e-Rate funding. The DOJ accused Houston ISD of violating the e-Rate’s competitive-bidding rules and in 2006 froze the district’s access to e-Rate funding. Houston ISD finally settled the case with the federal government in March.
As part of its settlement, Houston ISD agreed to implement monitoring software to ensure that district employees abide by federal e-Rate compliance rules.
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