By
TAWNELL D. HOBBS /
The Dallas Morning News
The Dallas school district must pay $750000 and drop more than $150 million in requests for federal technology funds to settle claims that district officials abused a program aimed at providing technology for needy schools and libraries.
The settlement is the final chapter of a scandal involving the districts former technology chief Ruben Bohuchot who was sentenced last year to 11 years in prison for a bribery and money-laundering scheme involving computer contracts paid for by the program.
Since 2005 Dallas schools have been frozen out of participating in the Federal Communications Commissions E-Rate program during the lengthy investigation.
Its unclear how many millions of potential technology dollars DISD lost out on during that time or how much is given up by forfeiting $150 million in requests.
A lot of requests do not get funded typically because theres not enough money said Eric Iverson director of external relations at Universal Service Administrative Company. We get 40000 applications a year.
But in 2003 before DISD came under scrutiny the districts federal E-rate grants were expected to surpass $125 million.
The settlement is neither an admission of guilt by the district or a concession by the federal government according to the agreement.
DISD spokesman Jon Dahlander said Friday that the district is pleased that a settlement has been reached because it means the district can apply for E-rate money again. Its been a long time coming he said.
E-Rate money can be used to pay for telecommunications services Internet access internal connections basic maintenance of internal connections hardware basic telephone service and computer technology upgrades.
Dahlander said the settlement documents were signed Thursday.
Charles Miller a Justice Department spokesman said DISD will have to pay the $750000 under the settlement when it reopens July 13 after the district offices summer break.
Dahlander said the district has already received approval from the school board to settle the matter. He downplayed having to give up more than $150 million in requests saying Those were just funding requests.
The criminal activity of Bohuchot and Houston businessman and technology vendor Frankie Wong was brought to light by a Dallas Morning News investigation.
Wong was sentenced to 10 years for bribing Bohuchot to obtain huge school district contracts. Court records showed that Wong bought a 46-foot deep-sea fishing yacht for $305000 and basically turned over control of the boat to Bohuchot an avid tournament fisherman. Bohuchot named the boat Sir Veza. Wong would later sell the yacht and buy a bigger boat called Sir Veza II for $800000.
Former DISD administrator William Coleman also was punished in connection with the case. He was sentenced to one year of probation and ordered to pay a $5000 fine for trying to influence a grand jury that was investigating the bribery and money-laundering scheme in DISD.
The governments case alleged DISD provided false information to the E-Rate program by engaging in noncompetitive bidding practices for E-Rate contracts according to Fridays news release from the Justice Department.
The United States also contended that school district officials improperly received gratuities from technology venders including trips meals golfing and the free use of a yacht.
DALLAS ISD TECHNOLOGY SCANDAL
The scheme operated by the DISDs technology boss Ruben Bohuchot and a Houston businessman Frankie Wong unraveled after The Dallas Morning News began reporting on their lucrative relationship in 2005. Both eventually went to prison.
INVESTIGATION: At trial federal prosecutors showed that Wong bought a 46-foot deep-sea fishing yacht for $305000. Basically he turned over control of the boat to Bohuchot an avid tournament fisherman. Bohuchot named the boat Sir Veza. Bohuchot used inside information help Wongs company Micro System Enterprises win technology contracts worth more than $120 million.
MORE PERKS: Later Wong sold Sir Veza and bought an even bigger boat for Bohuchot to use. Federal investigators found that Wong also bought Bohuchot airline tickets meals golf outings and hotel rooms.
MORE CONSEQUENCES: As a result of the scandal the DISD was effectively frozen out of the potential for millions of dollars in federal technology funds.
PRISON: Wong was sentenced to 10 years in prison. Bohuchot convicted of accepting an estimated $947000 in illegal gifts and cash payments got 11 years in prison.
