Regional CLEC U.S. Signal has undergone an abrupt change in management, as three of its key officials are being investigated for allegedly stealing millions of dollars in the form of kickbacks on overpriced construction projects, according to the Grand Rapids Press.

None of the three – President Barry Raterink, Director of Operations Tim Hall, and Vice President of Engineering and Operations James Collins – is still with the company, although Raterink was there as recently as June 2007. None of them has been charged, as yet, but federal authorities raided the offices of U.S. Signal last week and filed documents in U.S. District Court based on recorded conversations involving Collins, who apparently is cooperating with the investigation, and the others.

According to those documents, the scheme involved a second company, Turn-Key Network Solutions, co-owned by Raterink and Douglas Lautenbach, which would submit inflated bids on U.S. Signal construction projects. The extra cash, as much as $5 million in total, was then funneled back to Raterink, Lautenbach, Hall and Collins, the federal government has alleged.

U.S. Signal is cooperating with the investigation, according to the company. Stephen Oyer, who was executive vice president of sales and marketing, is now listed as the company’s executive vice president and highest ranking official.

“U.S. Signal, with the assistance and cooperation of the local offices of the FBI and the Criminal Investigation Division of the IRS, has determined that several of its employees have likely engaged in an improper relationship with one of the company’s vendor suppliers for personal gain,” the company said in a prepared statement. “The individuals are no longer affiliated with U.S. Signal. Pending the conclusion of any ongoing investigation, the company will have no further comment.”

U.S. Signal operates fiber optic networks in the four upper Midwest states – Illinois, Indiana, Michigan and Wisconsin, providing wholesale and business services including private line services, dedicated Internet access, transport and collocation.