FCC Inspector General's Report On Satmar Abuse Of The E-Rate Program

Recommendation 1 of 3 - We recommend that the Wireline Competition Bureau direct the Universal Service Administrative Company to recover the amount of $934,300 disbursed on behalf of UTA in funding year 1999.

 

Here is a brief excerpt from the conclusion of the Inspector General's report:

…Recommendation 1 of 3 - We recommend that the Wireline Competition Bureau direct the Universal Service Administrative Company to recover the amount of $934,300 disbursed on behalf of UTA in funding year 1999.

Recommendation 2 of 3 - We recommend that the Wireline Competition Bureau take steps to ensure that funding requests are adequately reviewed in accordance with existing program rules and implementing procedures to ensure that funding requests associated with these areas of noncompliance with program rules and regulations are not approved.

Recommendation 3 of 3 - We recommend that the Wireline Competition Bureau review those program rules and implementing procedures governing the areas of noncompliance cited in this report to ensure that those program rules and implementing procedures are adequate to protect the interests of the fund.…

Satmar did not repay the money, largely because the program regulations did not contain a specific deadline for appropriately using the money it received from the FCC. So even though it was almost four years after it was given the money for the computer technology, Satmar was able escape repayment.

Worse, it was still able to get E-rate money – even though its students are forbidden to have Internet access and their schools have only token access, if any at all.

In other words, Satmar has taken millions of dollars to fund a program it really doesn't have, and the FCC – despite this Inspector General's report – has allowed Satmar to get away with it.

Why?

Aside from what probably are political reasons, the FCC really has no clear idea what is going on with the hundreds of millions of dollars it disburses for this program – money we all pay to the FCC through a tax on our phone service.

Every time you you pay your phone bill, remember that the extra tax you're paying is funding a Satmar scam – a scam being replicated, allegedly, by several other hasidic and haredi schools.

Here it is as a PDF file:

Download United Talmudical Academy FCC OIG Report E-rate Fraud 2004 watermarked

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Comments

[dh]

Oh puhlease. The FCC doesn't do anything about anything. They collect data. There isn't even any way on their site to report this. Everyone should go there, pick someone's email and send them a copy of this article.

[mytake]

You should do a little more research on the e-rate program before "reporting" on this again and again blasting all chasidic schools... for starters, E-rate funding, including "internal connections" is for PHONE SYSTEMS and the like... not necessarily internet connection... (Not that the reporter at the Jewish Week is any better)

[Jeff]

Well, there you have it. Their larceny is finally having repercussions for all of us, not merely those fortunate enough to live in New York City.

[SkepticalYid]

Posted by: Jeff | February 24, 2013 at 05:23 AM

Jeff, haven't you heard of Section 8 housing assistance? Food Stamps? Medicaid? Welfare? These are all federally subsidized programs as well. The repercussions have been universal for decades.

[balderdash]

SEND ALL SATMAR TO ALASKA.Tell natiomal security that these yjdden are too strange to stay in a place in new york state. there maybe an alternative like the state of IOWA.the jews are already there are they not

[Alter Kocker]

These people bring shame on all of us, and yet when they are exposed for the charlatans, thieves, liars and frauds that they are, they are perfectly willing to point fingers at their accusers and call us anti-semites or self-hating Jews.

It is time to begin excommunicating these leeches.

[Rocky]

At the rate at which the Haredi communities are growing in the New York City area, they will soon become very noticeable. But for the time being Jewish members of the US House and Senate continue to bury their heads in the sand and pretend a problem does not exist. Don't expect any Satmar school administrators to go to jail over E-rate.

I suspect that Orange or Rockland Counties will become ground zero for the Haredi problem, as rising Medicaid costs put a severe strain on the budgets of these counties. In New York state, counties are required to pick up a significant part of Medicaid costs for their residents. Poor Haredi families with lots of children are contributing to the rapid rise in county Medicaid costs.

In Rockand County, property tax levies have more than doubled since 2007, even as assessed values have fallen. The county tax rate rose by more than 20% from 2012 to 2013. See: http://budget.rocklandgov.com/propertytax/index.php

The goyim and even most Jews may not understand the finer points of the E-rate program. But they know when they are being crushed by property taxes. One day, there will be hell to pay.

[mytake]

you guys... are barking up the wrong tree. Really. I'm with you when you are3 all over the guys that cover up abuse, or harass accusers...!!!!! But e-rate is a legitimate source of technology and telecommunication funding for schools, haredi/satmar/chasidic or other... and it's quite common for disbursements to be "requested to be recovered"...

While I'm not condoning any under the table deals around the e-rate funding (if there indeed are any), but don't paint the whole idea of a yeshiva rightfully applying for, and being eligible for funds as wrong!

[Rocky]

Mytake: I don't think anyone is condemning a Yeshiva from getting e-rate funds when it uses the money for its intended purpose: Internet services in schools for the education of students. But many yeshivas are apparently not using the money according to the rules and don't even offer Internet access to their students. If the yeshivas are using the money to pay for religious texts or rabbis' salaries or any other non-approved purpose, then they are breaking the law. You need to re-read the articles at jewishweek.com

[Jewish Week Defender]

@Mytake: I am afraid you neglected to read the portions of The Jewish Week's article in which it detailed the extensive amount of INTERNET connections some of these schools requested on their 470 forms, which are public records:

eg: Yeshivat Avir Yakov submitted requests in 2012 seeking, among other things: 65 direct connections to the Internet, wiring that would provide 25 classrooms, as well as 40 computers or other devices, with Internet access; phone service for 95 classrooms; more than 260 cell phone lines with data plans; various PBX (phone) equipment and wire and cable upgrades.
...In 2012, Dynalink Communications received $81,600 just to supply Internet access to UTA.

Furthermore, it is difficult to see how a school could legitimately rack up millions of dollars in phone lines and phone connections.
Were the public schools spending this kind of money on phones, taxpayers would be outraged.