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DISH Wireless Agrees to $17.3 Million Settlement Over Federal Benefits Program Fraud
DISH Wireless LLC has agreed to pay more than $17.2 million to resolve allegations that it improperly enrolled ineligible subscribers in federal broadband assistance programs, the U.S. Department of Justice announced yesterday.
The settlement addresses violations of the False Claims Act, common law, and the Communications Act of 1934 related to the company’s claims to the Federal Communications Commission’s Emergency Broadband Benefits Program (EBBP) and its successor, the Affordable Connectivity Program (ACP).
“The Justice Department will take action where companies and individuals knowingly violate the rules of federal programs and receive federal funds to which they are not entitled,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “This settlement demonstrates our continuing commitment to ensure integrity in the FCC’s programs.”
The programs in question were created during the COVID-19 pandemic to help low-income consumers access discounted broadband services and devices. The EBBP provided $3.2 billion in 2021, while the ACP allocated an additional $14 billion between 2022 and 2024. Eligible consumers could receive discounts if they met certain income thresholds or participated in specified federal assistance programs such as Medicaid, SNAP, or the National School Lunch Program.
DISH, a Colorado-based subsidiary of EchoStar Corporation, operates wireless telecommunication services through its Boost Mobile division. Between May 2021 and February 2022, DISH enrolled more than 130,000 subscribers based on their participation in the Community Eligibility Provision (CEP) of the school meal program, which makes all students at high-poverty schools eligible for free meals.
For each enrolled subscriber, DISH received up to $50 monthly during the EBBP period and $30 monthly under the ACP. However, federal investigators found that many of these enrollments were improper.
U.S. Attorney Jeanine F. Pirro for the District of Columbia was direct in her assessment: “DISH and its employees fraudulently signed up ineligible applicants to receive federal monies. By doing so, DISH received payments which they were not entitled. This is a shameful act on the part of a large corporation that is rightfully required to pay $17 million.”
According to the settlement, DISH’s fraudulent practices included enrolling more than 16,000 households claiming attendance at CEP schools located over 25 miles from their addresses without verification. The company also enrolled 130 households based on purported dependents over age 21 attending CEP schools. In some cases, DISH enrolled more households into the program than the actual student enrollment at the cited schools.
FCC Inspector General Fara Damelin noted, “DISH continued seeking FCC program funds for months after its executives learned about its agents’ enrollment fraud and after an FCC OIG advisory warning.”
The investigation revealed that DISH failed to implement effective policies to ensure subscriber eligibility and inadequately screened and supervised third-party sales agents. More troubling, DISH internal sales employees in Texas, Florida, New York, and West Virginia allegedly trained and directed these agents to submit inaccurate customer applications with incorrect school information.
Even after discovering problems with their CEP enrollments, DISH corporate executives failed to take corrective action from September 2021 through April 2022.
The settlement also resolves allegations that DISH submitted claims for more than 66,000 subscribers who didn’t identify a school-aged student on their applications and enrolled over 2,400 subscribers using duplicate beneficiaries as the basis for eligibility.
This resolution is part of a broader government initiative to combat fraud in federal programs. Earlier this year, the Biden Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance efforts against fraud, waste, and abuse in federal programs.
The civil False Claims Act investigation was handled by Trial Attorney Jennifer Chorpening, Assistant U.S. Attorney Stephanie Johnson for the District of Columbia, and former Assistant U.S. Attorney Christopher Hair, with assistance from the FCC’s Office of the Inspector General and Office of General Counsel.
The settlement also resolves an administrative order by the FCC’s Wireline Competition Bureau against DISH for similar allegations.
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12 Comments
Interesting to see DISH Wireless facing such a significant penalty for improperly enrolling subscribers in these federal broadband initiatives. It’s a cautionary tale for companies tempted to game the system.
You’re right. Accountability is key to ensuring these programs reach the intended beneficiaries and aren’t exploited for corporate gain.
While the settlement amount is substantial, it’s important that the DOJ sends a strong message about the consequences of defrauding federal assistance initiatives. Transparency and compliance should be the priority.
Absolutely. Upholding the rule of law and ensuring fair access to these programs is crucial, especially during times of crisis.
The pandemic highlighted the urgent need for reliable and affordable broadband access. I’m glad to see the government taking steps to protect the integrity of these support programs.
Agreed. Misuse of these vital programs undermines their purpose and hurts the communities that rely on them. Vigilance is required.
This case raises questions about the oversight and due diligence processes in place for these broadband assistance programs. Stronger controls may be needed to prevent future abuse.
Good point. Continuous improvement and vigilance are necessary to protect the integrity of these vital initiatives and safeguard taxpayer funds.
This settlement highlights the importance of oversight and accountability in government assistance programs. It’s good to see the DOJ taking action against fraudulent claims and misuse of federal funds.
Absolutely. Maintaining integrity in these critical broadband access programs is crucial, especially during challenging times like the pandemic.
The settlement serves as a reminder that companies must prioritize ethical practices and compliance, even when navigating complex government programs. It’s a cautionary tale for the industry.
Well said. Maintaining high standards of integrity should be a core part of any company’s operations, especially when dealing with public funds and services.