Investigation Documents
Assuring effective stewardship of the federal universal service programs by guarding against misconduct is a priority shared by USAC, the FCC, and Congress, as well as program applicants, service providers, and the general public. To that end, the US Department of Justice (DOJ), the FCC Enforcement Bureau, and the FCC’s Office of the Inspector General (OIG) are committed to investigating instances of alleged misuse of funds, failure to comply with the rules, or other fraud, waste, or abuse. Read the cases highlighted on the FCC’s Investigative Documents page to learn more.
FCC Enforcement Bureau (EB)
The FCC issued a notice of apparent liability for forfeiture and order initiating removal proceeding on May 10, 2024, proposing a penalty of over $8 million against K20 Wireless and Krandon Wenger for apparently willfully and repeatedly violating FCC rules relating to the ACP and the federal wire fraud statute. The FCC also found K20 and Wenger are, for legal purposes, one and the same entity, and are jointly and severally liable for the proposed penalty. |
US Department of Justice (DOJ)
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Kentucky Businessmen Sentenced in Decade Long Scheme to Defraud FCC |
On June 6, 2023, Charles A. “Chuck” Jones, 52, and Mark J. Whitaker, 51, both of Murray, Kentucky, have been convicted of federal crimes and sentenced for a decade long scheme to defraud the Federal Communications Commission’s (FCC) E-Rate program. |
On May 11, 2023, GCI Communications Corp. (GCI), located in Anchorage, Alaska, 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. |
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On February 28, 2023, Damian Williams, the United States Attorney for the Southern District of New York, announced the sentencing of all seven defendants who previously pled guilty to defrauding the federal E-Rate program, in connection with E-Rate funds provided to private religious schools in Rockland County, New York. |
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TracFone Wireless to Pay $13.4 Million to Settle False Claims Relating to FCC’s Lifeline Program |
On April 4, 2022, 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 Lifeline program. |
On November 3, 2020, Concept Schools, NFP, 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 E-Rate program. |
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Dallas Charter School CEO Convicted in Kickback Scheme Sentenced to 7+ Years |
On January 30, 2020, a Dallas charter school CEO was sentenced to more than seven years in federal prison for her role in a corruption scandal following an investigation by the FBI Dallas Field Office. |