Court documents alleged that from 2004 until 2014, 49-year-old Mark Whitaker worked with Charles Jones to conceal a scheme to defraud a federal E-Rate program. The program is an FCC program that sends money to schools and libraries for internet access, telecommunication services, and other equipment.
Whitaker helped to manage two companies, Integrated Computer Solutions and Technology Associates, which acted as E-Rate program vendors for numerous public school districts across Tennessee and Missouri. Whitaker's position was reportedly to submit false certifications to the program at the direction of Jones, whose case is still pending in court.
Whitaker reportedly submitted false certifications knowing they were going against the rules of the program, including falsely certifying that the schools had been invoiced for their required program co-pay, and falsely certifying that the companies had not paid any kickbacks to the schools or their agents.
This comes after Jones had allegedly paid the schools' consultant bribes, and gave him valuable gifts. He also reportedly knew that Technology Associates and Integrated Computer Solutions did not bill the Missouri schools for their full required co-pays, but did not report it. Due to the fraud, the program allegedly paid the companies approximately $6.9 million.
U.S. Attorney D. Michael Dunavant shared his thoughts on the case.
"Protection of federal grant programs that provide needed services and equipment to our schools in West Tennessee is a top priority of this office. When dishonest offenders conspire to defraud these programs for their own selfish gain and unjust enrichment, they not only steal tax dollars, but also hurt local schools in the process." Dunavant continued, "We will continue to work with our federal partners to root out and expose such fraud against the government, to hold offenders accountable, and to recover ill-gotten gains."
Whitaker is set to be sentenced on July 23, before U.S. District Court Judge Mark S. Norris. He is facing a maximum of three years in prison, one year of supervised release, and a fine of $250,000. Wire fraud and conspiracy charges against Jones are still pending.
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