7 Hudson Valley residents accused of defrauding gov’t of $14MPosted: Updated:
Seven Hudson Valley residents, including at least one rabbi, were arrested in connection with an alleged multimillion-dollar effort to defraud the federal government.
Seven people, including six Ramapo residents, were indicted for allegedly scheming to defraud a federal program known as "E-Rate," which provides grants to schools serving underprivileged students so they can afford internet access and other forms of technology.
Federal prosecutors say the defendants billed E-Rate for equipment and services that were not actually provided to their private religious schools. The Hasidic communities do not allow students to access the internet or use computers.
Four of the defendants requested over $35 million in E-Rate funds and received over $14 million from about 2010 until 2016.
The FBI raided yeshivas in Rockland and Orange counties and businesses in connection with the probe back in March.
Six of the seven individuals were present in court after they were arrested early Wednesday morning. They each face up to four counts of wire fraud and conspiracy to commit wire fraud.