Verizon to pay $17.7 million to resolve FCC, Justice probes (VZ)

WASHINGTON, Oct 17 (Reuters) - Verizon Communications Inc will pay $17.7 million to resolve a Federal Communications Commission and Justice Department investigation into potential violations of competitive bidding rules for a government program that helps bring broadband service to schools and libraries.

The settlement follows an investigation into Verizon’s involvement with New York City schools’ use of the E-rate program.

Verizon said on Tuesday that "today's settlements fairly resolve years of work by Verizon and the government to return funding to the program." The company added that it was a victim of fraud, citing the conviction of a former New York City Department of Education consultant. (Reporting by David Shepardson; Editing by Sandra Maler)

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