State of Indiana

The State of Indiana was accused by the Department of Justice (DOJ) of engaging in noncompetitive bidding practices, inflating prices to Indiana schools and libraries, falsifying invoices and disregarding the requirement that the schools and libraries make co-payments for E-Rate services. The E-Rate program, which helps poor schools connect to the Internet, was created by congress in the Telecommunications Act of 1996 and was operated by the U.S. Federal Communications Commission. The DOJ had conducted an ongoing antitrust investigation into fraud and anti-competitive conduct into the E-Rate program. Under the program, schools can apply for cabling and Internet backbone equipment and for monthly Internet service fees. Indiana has agreed to pay $8.3 million in a civil settlement against charges it made false statements in the E-Rate program. [NETWORK WORLD]

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