A school consultant from Israel pleaded guilty in federal court in Brooklyn to conspiracy to defraud the United States. Richard Bernstein admitted to participating in a kickback scheme that directed federal funds intended for school internet access programs to specific vendors, in exchange for a share of the vendors’ profits. The plea was entered before United States District Judge Ramon E. Reyes, Jr., and Bernstein faces up to five years in prison when sentenced.
The announcement was made by Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Fara Damelin, Inspector General of the Federal Communications Commission (FCC).
“Bernstein’s scheme enriched himself and his co-conspirators at the expense of schools and schoolchildren,” stated United States Attorney Nocella. “Kickback schemes that illegally syphon public funds into private pockets are an insidious form of corruption, and our Office is committed to disrupting and prosecuting such conduct.”
“This case demonstrates the continuing pattern of procurement fraud and kickbacks between consultants and vendors that threaten the integrity of FCC’s ECF and E-Rate programs. The defendant, an active consultant in this industry, used his status to defraud these programs," stated FCC Inspector General Damelin. "We will continue to identify and vigorously investigate bad actors who exploit FCC programs for personal gain to the detriment of students that these programs are meant to serve. I am proud of the outstanding work of our investigative and analytics teams as well as our law enforcement partners at the U.S. Attorney’s Office-EDNY, Office of Inspector General, Homeland Security Investigations, NASA, and the New York City Police Department."
According to court documents and statements made during proceedings, Bernstein was founder and CEO of E-Rate Consulting, LLC and president of E-Rate Management Solutions Inc., both based in Woodmere, New York. These companies provided services related to federal internet access funding programs for schools.
The E-Rate program helps eligible schools and libraries across the U.S. obtain affordable telecommunications services, while the Emergency Connectivity Fund (ECF) supported remote learning during the COVID-19 pandemic. Both programs are operated by Universal Service Administrative Company under FCC oversight.
Bernstein acted as an agent for schools seeking support from these programs but secretly arranged with certain vendors that he would direct business their way if they shared up to half their profits with him. In one instance involving a Nassau County school in 2021–2022, Bernstein connected the school with a vendor who supplied computer equipment reimbursed by federal funds; afterward, Bernstein’s company received $11,500 from that vendor—representing half its profit on the deal.
In total, Bernstein’s companies received over $100,000 in kickbacks funded through these federal programs. He has agreed to forfeit $137,576.64—the amount identified as proceeds from his scheme.
The case is being prosecuted by Assistant United States Attorneys Laura Zuckerwise and Eric Silverberg from the Public Integrity Section with assistance from Special Agent Anthony Cunder and paralegal specialist Daniel Arakawa.
The U.S. Attorney for the Eastern District of New York serves as the federal prosecutor's office for Brooklyn, Queens, Staten Island, Nassau County, and Suffolk County official website. It prosecutes federal crimes—including cases like this—and represents civil matters within those areas official website. The office also provides support for victims and witnesses involved in its cases official website.
