2 Sentenced In $14 Million Rockland Yeshiva Tech Fraud Scheme

ROCKLAND COUNTY, NY — The ringleader of a $14 million scheme to steal from a federal program for poor students has been sentenced, The Journal News reported.

Peretz Klein heads to Otisville Correctional Facility Aug. 8 to serve a four-year sentence plus two years of supervised release. He and his wife Susan must repay $1.14 million. She was sentenced to time served and one year of supervision. The sentencings of the others involved in the scam are pending. Read the entire article on lohud.com.

The seven people involved in the multi-year thievery cut a deal in 2020 allowing them to plead guilty each to one count of conspiring against the United States.

In addition to the Kleins and their son Ben, the conspirators are Simon Goldbrenner, Moshe Schwartz, Sholem Steinberg and Aron Melber.

The Monsey and Spring Valley residents had for years billed the government for telecommunications equipment and services that were not actually provided to Jewish religious schools and used the money for themselves. Between 2009 and 2016, the schemers applied for $35 million in E-rate funding, meant to bridge the technology gap for underprivileged schoolchildren, and received $14 million, prosecutors alleged.

In one particularly egregious example, a daycare center serving 2- to 4-year-olds received almost $500,000 for video-conferencing, distance learning and high-speed internet technology.

In return for their participation in the scheme, prosecutors said school officials took freebies including cellphones for staffers' personal use and security and alarm systems (which are not covered under the program).