FCC Proposes $63 Million Lifeline Fine

Davis Wright Tremaine LLP

The FCC has proposed a $63.5 million fine against American Broadband and Telecommunications Company for alleged Lifeline violations. The Notice of Apparent Liability alleges that American Broadband falsified Lifeline customer accounts by enrolling more than 12,000 deceased customers, manipulated existing customers’ personal information to create new subscribers, and failed to de-enroll ineligible subscribers. In all, the FCC alleges that American Broadband submitted more than 42,000 improper claims to USAC. This is the largest proposed fine related the federal Universal Service Fund, which in addition to Lifeline, is comprised of the High Cost, E-Rate, and Rural Health Care programs.

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