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The telecommunications company Toledo American Broadband was fined $ 63 million for allegedly creating more than 40,000 fake low-income accounts so that its owner, Jeffrey Ansted, acquires a Ferrari convertible and a Cessna.
A Toledo telecommunications company is accused of having created more than 40,000 Lifeline accounts for low-income people, based on deceased customers, in order to buy from the company's owner a Ferrari convertible and a plane $ 8 million.
Federal Communications Commission fines US $ 63.5 million for Broadband and Telecommunications Co., a wireless reseller, which also has offices in Grove City and Plain City, for alleged use of public funds intended for Lifeline to support the company. luxurious lifestyle of the owner.
The FCC accuses American Broadband's general manager, Jeffrey Ansted, of using Lifeline funds, intended to provide telephone services to low-income Americans, for an $ 8-million jet, a convertible Ferrari from $ 250,000, a $ 1.3 million condominium in Florida, and a yacht club. club memberships.
The federal Lifeline program provides a monthly rebate of $ 9.25 on voice and broadband services for low-income consumers. The service providers participating in the program receive funds for each Lifeline subscriber and must pass on the savings to those customers.
In a statement, FCC President Ajit Pai described American Broadband's activity as "apparent fraud."
"FCC's Lifeline program is designed in part to help deliver affordable broadband and deliver the benefits of digital opportunities to the Americans who need them the most," said Mr. Pai. "The funding for this program, which comes from taxpayers, should be used to empower low-income consumers – not to line the pockets of unscrupulous wireless marketers participating in the program." But that's apparently what's going on. 39 is passed in this case. "
American Broadband, however, said in a statement it had communicated "more than two years ago" to the FCC "significant issues of administrative compliance and accountability" and presented a repayment plan for the service fund.
"We worked tirelessly with FCC staff to ensure the disclosure was complete and correct, providing independent auditor evaluation and a huge amount of data," Ansted said in a statement. "We have also almost completed the repayment of each penny due, plus interest.In this light, the apparent liability notice of the FCC released today is a surprise."
The FCC accuses American Broadband of creating fake accounts by registering deceased persons and manipulating the personal information of existing Lifeline subscribers. In addition, the FCC stated that the company had sent inaccurate forms to the Lifeline Program Administrator and had not canceled the subscription of subscribers of which it knew or ought to have known that they would not be eligible for the service. Lifeline support.
In August 2016 alone, American Broadband reportedly sought and received help from Lifeline for more than 12,000 people, the FCC said.
The proposed $ 63.5 million fine is the largest ever imposed for violating the rules governing carriers seeking assistance from the Federal Universal Service Fund, which funds Lifeline and three other support programs.
The FCC claims that the amount is based on 42,309 apparently inappropriate claims submitted by Lifeline in August 2016, after the company informed the FCC that it had corrected its system and process to ensure compliance with the rules of the FCC. the FCC.
The proposed penalty comes at a time when the FCC is considering significant changes to Lifeline that could significantly reduce the ability of companies such as American Broadband to participate. The part of the FCC's proposal to exclude so-called "wireless resellers" comes up against a wide range of consumer groups and the telecommunications sector, fearing to leave many subscribers to Lifeline without a provider.
@ Timferan
The Washington Post information is used in this story.
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