FCC cracks down on Universal Service Fund cheats

They rigged bidding auctions for contracts to sell computers to school libraries. They created bogus companies and billed the government for hundreds of thousands of dollars. They got school administrators to buy equipment on the false premise that funding for the gear had been secured. They inflated the cost of the products that they provided to schools. Worst of all, they demonstrated that it is just a little too easy to game the system. Another chapter in the Federal Communications Commission's troubled Universal Service Program (USF) has opened. The agency has debarred or announced suspension and debarment proceedings against seven people accused or convicted of cheating the USF's system for distributing broadband related equipment to schools.
http://arstechnica.com/news.ars/post/20080520-fcc-cracks-down-on-universal-service-fund-cheats.html