netcurmudgeon (netcurmudgeon) wrote,
netcurmudgeon
netcurmudgeon

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How to you plead?

Sometimes you think that someone is slimy ... and then you find out just how slimy they are.

I learned today that four people who I used to have dealings with (back when MHIS did business with their employers) have plead guilty to Federal fraud and obstruction charges stemming from an FBI investigation of their scheme to defraud the Federal E-Rate program of hundreds of thousands of dollars.

Two of the men I had pegged as scumballs back in 2002 and 2003. The third I knew was engaged in some dodgy stuff with my former boss. The fourth, I think, is just a dope who got sucked in when his supervisor (the third guy) went completely crooked.

Rich Brown and Keith Madeiros, both formerly account execs with SBC hatched a scheme to create fake front companies. The fake firms would be "hired" as subcontractors to ANI, a real company doing real work as a sub to SBC. They induced Scott Federowicz at ANI to participate. The fronts submitted bogus invoices for work that never got done. Federowicz OK'd the invoices and ANI paid them. ANI then billed SBC, who in turn invoiced the E-Rate program manager (USAC), thus defrauding the government.

Scott Federowicz's subordinate Dave Dauphenais got tangled up in this when the FBI, investigating the E-Rate fraud, found that Federowicz was also independently defrauding his employer with a bogus laptop purchasing scam. Dave "couldn't remember" who he delivered $624,106 worth of laptops to ... earning him an obstruction charge, a guilty plea, $10,000 in fines, probation and community service. Poor dumb bastard.

Now that the three main conspirators have plead guilty, the FCC will move to debar them from the program (as if facing huge fines and years in prison wasn't enough). Their debarments will probably have expired by the time they get out of prison, but it will be one more mark of shame on them when their names appear on the FCC web site and in the Federal Register.

Some fine reading if you want instructions on how to fly your life into the ground:
Brown & Madeiros - U.S. Attorney's press release on guilty pleas | Boston.com news article
Scott Federowicz - U.S. Attorney's press release
Dave Dauphenais - U.S. Attorney's press release

...Sometimes there is some justice in this world.
Tags: e-rate, fraud
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