Investigations related documents containing presentations, reports, advisories and outreach articles.
News & Investigations Specific Documents
October 15, 2024 - DOJ Press Release
Nationwide Telecommunications Provider and its CEO Plead Guilty to Massively Defrauding Federal Government Programs Meant to Aid the Needy
We are pleased to share that on October 15, 2024, as a result of an FCC OIG/DOJ joint investigation, Q Link Wireless, LLC, and its owner, Issa Asad, pled guilty to wire fraud, stealing government money, and conspiring to defraud the United States, resulting in an unprecedented recovery.
Specifically, as reflected in the DOJ press release above, Asad and Q Link falsely claimed qualifying low-income consumers were receiving discounted phone service from the Lifeline program, a component of the FCC’s Universal Service Fund (USF) program that supports low-income households by promoting universal access to voice and broadband telecommunications service throughout the United States. The plea included restitution of over $109 million dollars fraudulently obtained from the USF Lifeline Program.
Asad also pled guilty to money laundering in relation to making false statements related to the Paycheck Protection Program created during the Covid-19 pandemic and agreed to pay restitution of $1,758,339.25 to the U.S. Small Business Administration (SBA), and to a forfeiture judgment against him of at least $17,484,118.00.
As part of his plea, Asad admitted that he personally received approximately $15 million from Q Link as a result of the fraud. In addition, Asad’s plea agreement contains a joint recommendation that he serve five years imprisonment.
In furtherance of their schemes, Q Link and Asad engaged in deceptive practices to:
• Mislead the FCC about how many people used Lifeline telephone services;
• Prevent Q-Link customers from terminating their relationship with the company; and
• Conceal these scams to continue collecting FCC reimbursements.
We are grateful to our outstanding partners in the U.S. Attorney’s Office for the Southern District of Florida, and specifically recognize Assistant United States Attorneys Elizabeth Young, Dan Bernstein, and John Shipley for their dedication and hard work on this prosecution. We also thank our law enforcement partners in the United States Postal Inspection Service, Internal Revenue Service Criminal Investigations, and Special Inspector General for Pandemic Recovery. Each of their contributions were crucial to achieving this result.
A criminal plea of this magnitude illustrates the importance and value of robust OIG oversight to protect FCC programs and the communities who rely on them.
Congratulations to Elliot Lowenstein, Peter Feinberg, Will Sapp, and Fernando Hermosa of FCC OIG, who demonstrated dedication and perseverance in vigorously pursuing this matter over the past several years under the direction of, and with critical support from AIGI Sharon Diskin. Together, this team exhibited the highest levels of professionalism, expertise, and commitment to OIG’s mission.
If you or anyone you know has been subject to FCC program fraud or misconduct or if you are aware of individuals or entities committing fraud against FCC programs, please submit a complaint to FCC OIG’s Hotline. You can help us protect these important federal programs!
July 12, 2024 - DOJ Press Release
Armstrong Group Agrees to Pay $6.5M to Settle False Claims Act Allegations Relating to Subsidies Under the FCC’s High-Cost Program
Butler, Pennsylvania-based Armstrong Group has agreed to pay $6.5 million to resolve allegations that it violated the False Claims Act by knowingly submitting improper costs in order to inflate the subsidies it received from the federal Universal Service Fund’s High-Cost Program.
The High-Cost Program provides federal funds to qualified eligible telecommunications carriers, including incumbent local exchange carriers that receive subsidies to expand connectivity infrastructure within the United States. The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Western District of Pennsylvania and the FCC’s Office of Inspector General, with assistance from the FCC’s Office of General Counsel.
Kentucky Businessmen Sentenced in Decade Long Scheme to Defraud the FCC
The US Attorney for the Western District of Tennessee announced the conviction and sentencing of two Kentucky businessmen for a decade long scheme to defraud the FCC’s E-rate program. Charles A. “Chuck” Jones and Mark J. Whitaker each pled guilty in Memphis federal court; Jones to one count of conspiracy to commit wire fraud and Whitaker to misprision of a felony (wire fraud). Jones paid kickbacks for approximately 10 years to an E-rate consultant working with Missouri and Tennessee schools and Jones, the consultant and Whitaker each made false statements and submitted fabricated documents to the E-rate program regarding copays and the fair and open competitive bidding in order to obtain E-rate funds for Jones’s companies. Jones was sentenced to 18 months imprisonment and to pay restitution of $3.5 million and Whitaker was sentenced to one year of probation. FCC-OIG and FBI conducted the investigation and the USAO WDTN prosecuted the defendants.
GCI Communications Corp. to Pay More than $40 Million to Resolve False Claims Act Allegations Related to FCC’s Rural Health Care Program
GCI Communications Corp. (GCI), located in Anchorage, Alaska, has agreed to pay $40,242,546 to resolve allegations that it violated the False Claims Act by knowingly inflating its prices and violating Federal Communications Commission (FCC) competitive bidding regulations in connection with GCI’s participation in the FCC’s Rural Health Care Program. The program provides more than $570 million each year to assist rural health care providers with their telecommunications needs. The investigation and settlement resolution of this matter was a result of a coordinated effort between FCC's Office of Inspector General, FCC’s Enforcement Bureau, Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the Western District of Washington.
Seven Defendants Sentenced For Defrauding FCC's "E-Rate" Program of Several Million Dollars That Provided Technology Funding For Rockland County Schools
The US Attorney for the Southern District of New York announced the culmination of a multi-year investigation into E-rate fraud. Peretz Klein, Ben Klein, Moshe Schwartz, Simon Goldbrener, Sholem Steinberg, Aron Melber, and Susan Klein had each pled guilty in White Plains federal court to one count of conspiring against the United States and were sentenced in proceedings held between June 2022 and February 28, 2023. Defendants were sentenced to a combined 147 months in jail and were ordered to pay $2.6 million in restitution. FCC-OIG, FBI, and the Rockland County District Attorney’s Office conducted the investigation and USAO SDNY’s White Plains Division prosecuted the defendants.
Longtime Lifeline Agent Sentenced After Conviction for Conducting a Criminal Enterprise and Identity Theft in Michigan
On February 17, 2023, Dewan Williams was sentenced to 2 to 20 years in the Michigan Department of Corrections and ordered to pay restitution after pleading guilty to charges of Conducting a Criminal Enterprise and Identity Theft. Williams, a longtime sales agent for multiple Lifeline providers, used stolen personal information to fraudulently enroll unsuspecting victims into the Lifeline program and obtain free cellphones provisioned with Lifeline service. Williams later sold the illegally obtained phones for personal profit. Investigators recovered 150 new and pre-packaged Safelink cell phones as well as the stolen personal information of approximately 7,000 identity theft victims from his home. FCC-OIG assisted the investigation conducted by the Michigan Department of Attorney General, the Michigan Department of Health and Human Services, OIG and Michigan State Police.
Husband and wife sentenced for E-Rate fraud in Rockland County, NY
FCC OIG announces the first two, of several sentences, expected in the long-running investigation of fraud in the FCC’s E-rate program involving Yeshiva schools in Rockland County, New York. Last month, Peretz Klein of Spring Valley, NY, was sentenced to four years in federal prison and ordered to repay $1.14 million for stealing millions of dollars from the E-rate program. Klein’s wife Susan was sentenced to time served and one year of supervised release. Five additional individuals have entered into plea agreements related to the investigation and are expected to be sentenced in October. In the sentencing document for Klein, prosecutors said the seven people convicted "figured out how to game the program, submitting fraudulent invoices in order to get paid for equipment they did not provide, among many other deceptions."
TracFone Wireless to Pay $13.4 Million to Settle False Claims Relating to FCC’s Lifeline Program
TracFone Wireless Inc. (TracFone) agreed to pay $13.4 million as part of a civil settlement to resolve allegations that TracFone violated the False Claims Act by signing up more than 175,000 ineligible customers in connection with the Federal Communications Commission’s (FCC) Lifeline Program (Lifeline). Lifeline provides nearly $2 billion each year to assist low-income consumers with their telecommunications needs. The settlement was the result of a coordinated effort among the FCC Office of Inspector General, FCC Office of General Counsel and the U.S. Attorney’s Office for the Middle District of Florida, the Civil Division’s Commercial Litigation Branch, Fraud Section.
Kentucky Businessman Pleads Guilty to Decade-Long Scheme to Defraud $6.9 million from E-Rate
Charles A. "Chuck" Jones, a Kentucky businessman, pleaded guilty to a decade-long scheme and conspiracy to defraud the Federal Communications Commission’s (FCC) E-Rate Program of approximately $6.9 million dollars. For approximately 10 years, Jones paid kickbacks to an E-Rate consultant working with the Missouri and Tennessee schools involved in this case. Jones and his co-conspirators used the victim schools as vehicles to make false statements and submit fabricated documents to the E-Rate Program to fraudulently obtain money for Jones. The FCC Office of Inspector General and the Federal Bureau of Investigation (FBI) investigated this case.
On April 7th, 2021 John Comito, CEO of AutoExec Inc., was sentenced in a case investigated by FCC Office of Inspector General and prosecuted by U.S. Attorney’s Office for the Eastern District of New York. Mr. Comito was sentenced in the U.S. District Court for the Eastern District of New York to 5 years of probation for submitting fraudulent claims for reimbursement from the E-rate fund to the Universal Service Administrative Company (USAC), as well as to multiple Catholic and charter schools for equipment and services that were not provided to the schools. As part of his sentence, the Court ordered Mr. Comito to pay $399,719.56 in restitution to the E-rate program and $105,683.10 to the victim schools for a total of $505,402.66. As part of his plea agreement Mr. Comito executed with the government, he agreed to pay $133,239.85 in forfeiture which represented the money Mr. Comito personally received in ill-gotten gains from being a one-third owner of AutoExec Inc. The forfeiture amount was paid by Mr. Comito directly to the U.S. Attorney’s Office for the Eastern District of New York. Additionally, the court ordered Mr. Comito to pay a $250,000 fine and noted that the reason for the substantial fine in this case was to deter others from committing similar acts of fraud on the E-rate program.
Illinois-Based Charter School Management Company To Pay $4.5 Million To Settle Claims Relating To E-Rate Contracts
Concept Schools, NFP, has agreed to pay $4.5 million as part of a civil settlement to resolve allegations that it violated the False Claims Act by engaging in non-competitive bidding practices in connection with the Federal Communications Commission’s (FCC) E-Rate Program. The settlement was the result of a coordinated effort by the FCC Office of Inspector General, the Department of Justice Civil Division’s Commercial Litigation Branch, the Federal Bureau of Investigation, and the U.S. Department of Education Office of Inspector General.
Chief Executive Officer of Staten Island Technology Company Pleads Guilty To Wire Fraud
John Comito, Chief Executive Officer of Staten Island Technology pleads guilty to stealing and defrauding hundreds of thousands of dollars from the Federal Communications Commission's (FCC), E-rate program earmarked for computer equipment and services at economically disadvantaged Catholic schools in New York City. The matter was investigated by the FCC Office of Inspector General and U.S. Postal Inspection Service, New York Division and prosecuted by the United States Attorney’s Office, Eastern District of New York.
Kentucky Man Pleads Guilty to Concealing Decade-Long E-Rate Wire Fraud Scheme
Mark J. Whitaker pleaded guilty to misprision of wire fraud. From 2004 until August 13, 2014, Whitaker actively concealed a scheme directed by his co-defendant, Charles "Chuck" Jones, to defraud the federal E-Rate Program. According to the Superseding Indictment, the E-Rate Program allegedly paid Jones and his companies approximately $6.9 million as a result of the fraud. Wire fraud and conspiracy charges against Chuck Jones are still pending. The matter was investigated by the FCC Office of Inspector General and the FBI and prosecuted by the United States Attorney’s Office.
Seven Defendants Plead Guilty to Defrauding Millions of Dollars from E-Rate Program that Provided Technology Funding for Rockland County Schools
Defendants charged with defrauding the E-rate program all pled guilty to conspiring against the United States and admitted their roles in a massive scheme that stole millions of dollars from the program. The matter was investigated by the FCC Office of Inspector General, FBI and the Rockland County District Attorney’s Office and was prosecuted by the United States Attorney’s Office for the Southern District of New York.
Dallas Charter School CEO Convicted in Kickback Scheme Sentenced to 7+ Years
Dallas charter school Nova Academy CEO Donna H. Woods, was sentenced to more than seven years in federal prison for her role in an E-rate corruption scandal. Her co-conspirator, Donatus Anyanwu, pleaded guilty to conspiracy in July and sentenced to 30 months in prison. The pair were also declared to be jointly and severally liable for restitution to the FCC. The matter was investigated by the FCC Office of Inspector General and FBI Dallas Field Office and was prosecuted by the U.S. Attorney’s Office for the Northern District of Texas.
CEO John Comito of Staten Island-based AutoExec Computer Systems, Inc. was charged in connection with mail and wire fraud of approximately $426,000 in federal E-rate program funds
From 2013 to 2017, 26 elementary, middle and high schools located in the Diocese of Brooklyn contracted with AutoExec to provide telecommunications equipment and services. At least eight schools received no equipment or services, and the remaining schools received partial, substandard or non-approved equipment and services. In total, Comito overbilled the E-rate program, and defrauded the program and schools, in the amount of approximately $426,000. If convicted, Comito faces a maximum sentence of 20 years' imprisonment on each count of mail fraud and wire fraud. The FCC's Office of Inspector General investigated this matter, with other law enforcement partners. "An important mission of the Office of Inspector General is to investigate allegations of fraud related to the E-rate Program," stated FCC Inspector General Hunt.
Two plead guilty to wrongdoing in connection to federal E-rate program funds totaling over $3.9 million
A former executive director of the South Central Ohio Computer Association (SCOCA) pleaded guilty to submitting false claims to the federal government and a former information technologies director of the Diocese of Columbus Office of Catholic Schools pleaded guilty to making false statements. The former director of SCOCA unlawfully delayed and/or withheld E-rate reimbursements to schools, but continued to invoice the E-rate program as if all program rules and regulations had been followed. Ultimately, SCOCA failed to reimburse schools for a year of E-rate reimbursements and instead used these funds for SCOCA operating costs. The missing reimbursements to schools and other debts incurred by SCOCA, which SCOCA-member schools were required to cover, totaled over $3.2 million. The former IT director of the Diocese of Columbus Office of Catholic Schools negotiated a five-year contract with SCOCA for internet services, which was E-rate eligible, but knowingly included inflated charges and funding for ineligible E-rate expenses in the contract. The IT director falsely certified in documents submitted to USAC that all ineligible services had been disclosed. Over the course of the five-year contract, more than $700,000 was for undisclosed purposes. The FCC's Office of Inspector General investigated this matter in conjunction with the FBI, the Ohio Auditor of State and the United States Department of Education Office of Inspector General. The matter was prosecuted by the United States Attorney's Office for the Southern District of Ohio.
October, 7 2019 - DOJ Statements & Indictment
Dallas Charter School CEO involved in Contractor Kickback Scheme Found Guilty
After an investigation by the FCC Office of Inspector General, a Dallas charter school CEO involved in the E-rate program was found guilty of one count of conspiracy to commit mail and wire fraud, and three individual counts of wire fraud announced U.S. Attorney for the Northern District of Texas. The original indictment was unsealed on 01/04/2018, after the arrest and arraignment of defendants.
Indictment for conspiracy to commit wire fraud to defraud the E-rate Program
Two co-conspirators indicted on conspiracy to commit wire fraud and wire fraud charges to defraud the E-rate Program, based on an investigation by the FCC Office of Inspector General and the Federal Bureau of Investigation. The DoJ indictment alleges the co-conspirators utilized an unindicted co-conspirator's position with schools in Tennessee and Missouri to violate E-rate rules, including making false representation that schools had been invoiced the proper co-pay amounts. These false representations were made to obtain funds from the program.
Florida-Based Broadcasting Company Ordered to Pay $910,700 to Federal Communications Commission for False Claims Act (FCA) violation
The FCC Office of Inspector General presented the case to the U.S. Attorney for the District of Columbia for pursuit under the FCA. The case resulted in a settlement against Newman Broadcasting for claiming a 35% bidding credit for FM radio frequencies in Florida for which the company was not entitled.
Vendors, Consultants, And School Administrator Charged In Wide-Ranging Scheme To Defraud Federal "E Rate" Subsidy Program of $14 million
After referral from the FCC Office of Inspector General and an extensive investigation, the U.S. Attorney's Office for the Southern District of New York announced the indictment and arrests of seven defendants -- two E-rate consultants, four E-rate service providers and one private school official -- on wire fraud and conspiracy to commit wire fraud charges in connection with schemes that, from 2009 through 2016, defrauded the E-rate program of over $14 million.
December 22, 2016 - Statement
Total Call Mobile Agrees to Pay $30 Million and A Permanent Ban For Defrauding Government Program Offering Discounted Mobile Phone Services To Low-Income Consumers
Icon Telecom and its Owner Plead Guilty and Agree to Forfeit More Than $27 Million in Connection with Federal Wireless Telephone Subsidy Program
ICON Telecom, Its Owner, and a Former Associate Charged in $25 Million Fraud in Federal Wireless Telephone Subsidy Program
Three Men Charged with Allegedly Defrauding the FCC of Approximately $32 Million
USF Low Income Program Indictment of Thomas E. Biddix, Kevin Brian Cox, and Leonard I. Solt
AT&T Agrees to Settle Allegations Involving IP Relay Services Provided To Hearing- And Speech-Impaired Persons
Texas Businessman Agrees to Settle False Claims Allegations Involving the E-Rate Program
United States Files Lawsuit Against AT&T in Telecommunications Relay Services Fraud Case
Former Owner of Illinois Technology Company Sentenced to Serve 30 Months in Prison for Role in Multi-State Scheme to Defraud Federal E-Rate Program
Montgomery Man Sentenced To 51 Months In Prison For Stealing $892,000 From Schools In 13 States
Maryland-Based Viable Communications, Its Owner and a Former Executive Sentenced for Roles in $20 Million Scheme to Defraud the FCC's TRS/VRS Program
Montgomery Man Pleads Guilty To Stealing $892,000 From Schools In 13 States
Michigan Businessman Sentenced to 15 Months in Prison for Defrauding the Federal E-Rate Program
Former Owner of Illinois Technology Companies Pleads Guilty in Multi-State Scheme to Defraud the Federal E-Rate Program
Former Owner of Illinois Technology Company Pleads Guilty in Multi-State Scheme to Defraud the Federal E-Rate Program
Owner of Illinois Technology Company Pleads Guilty in Scheme to Defraud the Federal E-Rate Program
Alaska-Based Company Pays U.S. More Than $1.5 Million to Settle False Claims Allegations
Two Individuals Plead Guilty to Defrauding FCC Video Relay Service Program
Michigan Businessman Pleads Guilty to Defrauding the Federal E-Rate Program
Individual Pleads Guilty to Defrauding FCC Video Relay Services Program
Advisories and Outreach
Inspector General Issues Notification of Identity Theft Against 35 FCC Employees
As a result of the significant levels of Unemployment Insurance (“UI”) and Paycheck Protection Program (“PPP”) fraud being reported by other Federal Inspectors General, the FCC Office of Inspector General (FCC OIG) conducted and completed a proactive investigation to determine if current Commission employees fraudulently obtained benefits during the Covid-19 pandemic. The Pandemic Response Accountability Committee (PRAC) and the Department of Labor Office of Inspector General (DOL OIG) provided us with data from state UI benefits programs and loans from the U.S. Small Business Administration’s PPP Program to assist in this matter. After a thorough investigation of the data provided, we did not identify any FCC employees who fraudulently obtained UI or PPP benefits. However, we determined that the stolen identities of 35 current FCC employees were used to fraudulently obtain UI benefits during the Covid-19 pandemic.
September 28, 2023 - Release and Advisory
FCC OIG announces the voluntary repayment of $49.4 million of improperly claimed Affordable Connectivity Program (ACP) subsidies after OIG sent the provider a warning letter and issues an advisory notifying other ACP providers of its concern that dozens of other providers are likely not complying with FCC usage and related de-enrollment rules.
Advisory Regarding Fraud in Provider Enrollments of Multiple ACP Households Based on the Same Child/Dependent
OIG issues this advisory letter to alert consumers and providers to an improper and fraudulent enrollment practice by some providers of Affordable Connectivity Program (ACP) services. Providers and their agents have enrolled many households into the ACP based on the eligibility of a single Benefit Qualifying Person (BQP) child or dependent. A single BQP cannot be used to qualify multiple households for ACP support simultaneously.
March 11, 2022 - Advisory & Release
OIG issues an Immediate Release and Advisory alerting Lifeline, Emergency Broadband Benefit, and Affordable Connectivity Program providers and consumers to improper and abusive enrollment practices that are part of some providers’ online enrollment processes.
November 22, 2021 - Advisory & Release
OIG issues this advisory regarding Fraudulent Emergency Broadband Benefit (EBB) Enrollments Based On USDA National School Lunch Program Community Eligibility Provision.
OIG Letter to Public Utility Commissions Regarding Complaints and Other Information Related to the Lifeline Program
On August 10, 2020, OIG sent letters to the leadership of state and territorial public utility commissions seeking to strengthen its ongoing relationships with these important partners. Frequently the first to receive complaints and concerns regarding the Lifeline program (and other FCC-administered programs) from beneficiaries and the public, OIG encourages public utility commissions to continue sharing information critical to fulfilling our mandate to detect and combat fraud, waste and abuse in FCC programs.
Advisory Notice Regarding Lifeline Usage Compliance
FCC OIG Press Release
OIG issues this advisory letter to alert Lifeline carriers, consumers and the public to the potential for widespread carrier non-compliance with the Lifeline usage rule.
Inspector General Issues Advisory Regarding Fraud in Lifeline Program
OIG issues this advisory letter to alert Lifeline carriers, carrier agents, consumers, and the public regarding pervasive, fraudulent practices that violate program rules and divert monies from the intended beneficiaries of the program.