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DISH Wireless Agrees to Pay $17.28 Million in FCC Program Fraud Settlement
Federal authorities announced Wednesday that DISH Wireless LLC has agreed to pay $17,280,240 to settle allegations it violated the False Claims Act by fraudulently enrolling ineligible subscribers in federal broadband assistance programs.
The Englewood, Colorado-based telecommunications provider, a subsidiary of EchoStar Corporation, was accused of improperly claiming millions in federal funds from the 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 were established during the COVID-19 pandemic, with the EBBP providing $3.2 billion in 2021 and the ACP allocating an additional $14 billion between 2022 and 2024. Both initiatives aimed to help low-income consumers access discounted broadband services and devices.
According to the Justice Department, between May 2021 and February 2022, DISH enrolled more than 130,000 subscribers based on their purported participation in the Community Eligibility Provision (CEP) for free school meals. For each subscriber, DISH received up to $50 monthly during the EBBP period and $30 monthly under the ACP.
The investigation revealed numerous fraudulent enrollment practices. DISH allegedly enrolled more than 16,000 households claiming attendance at CEP schools located more than 25 miles from their addresses without verifying actual attendance. In some cases, DISH enrolled more households for certain CEP schools than the actual student enrollment at those institutions.
“DISH and its employees fraudulently signed up ineligible applicants to receive federal monies,” said U.S. Attorney Matthew M. Pirro for the District of Columbia. “By doing so, DISH received payments which they were not entitled to. This is a shameful act on the part of a large corporation that is rightfully required to pay $17 million.”
Particularly troubling, federal investigators found that DISH corporate executives failed to take corrective action after learning about problems with the company’s CEP enrollments, continuing the improper practices from September 2021 through April 2022.
FCC Inspector General Fara Damelin emphasized the severity of the misconduct, stating, “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 settlement resolves several specific allegations, including that DISH submitted claims for subscribers who didn’t qualify for the programs, failed to implement effective eligibility verification procedures, and inadequately screened and trained third-party sales agents.
In Texas, Florida, New York, and West Virginia, DISH internal sales employees reportedly trained and directed third-party agents to submit inaccurate customer applications with incorrect school information. These agents then submitted false or incomplete information to the FCC’s National Verifier system used to determine program eligibility.
The settlement also addresses allegations that DISH submitted claims for more than 66,000 subscribers who did not identify a school-aged student on their applications and enrolled over 2,400 subscribers using duplicate beneficiaries as the basis for eligibility.
This case emerges as part of a broader Biden Administration initiative launched this year through the Task Force to Eliminate Fraud and the National Fraud Enforcement Division, aimed at combating fraud, waste, and abuse in federal programs.
The civil False Claims Act investigation was conducted by the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Columbia, with assistance from the FCC’s Office of the Inspector General and the FCC’s 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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10 Comments
I’m curious to learn more about how DISH Wireless allegedly misused these federal broadband funds. Were there specific enrollment or eligibility verification failures? Transparency around the details could help inform policy improvements to safeguard these important consumer assistance programs.
$17 million is a significant penalty for DISH Wireless. I hope this case serves as a wake-up call for the industry on the importance of transparent, compliant participation in federal broadband subsidy programs. Maintaining public trust should be a top priority.
Absolutely. Settlements like this highlight the need for telecommunication providers to rigorously vet their enrollment processes and internal controls. Accountability is essential to upholding the intent and legitimacy of government assistance programs.
The pandemic drove a greater reliance on broadband, making access assistance programs more vital than ever. It’s troubling to see allegations of DISH Wireless exploiting these initiatives. Robust auditing and enforcement are needed to protect the integrity of such initiatives.
This settlement serves as a cautionary tale for companies participating in government aid initiatives. Careful compliance is essential to uphold the integrity of programs meant to support vulnerable populations. Kudos to the DOJ for taking action to recoup misused taxpayer dollars.
Well said. Maintaining trust in government programs is crucial, especially for critical initiatives like expanding broadband access. Rigorous oversight and accountability measures are key to ensuring funds are used as intended.
This DISH Wireless case underscores the challenges in administering large-scale broadband benefit programs. While the pandemic created an urgent need, clearly more robust safeguards are required to prevent abuse of taxpayer funds. Reinforcing compliance should be a top priority going forward.
This $17 million settlement highlights the need for robust compliance and oversight in government programs. While providing internet access support is crucial, any abuse of funds should be swiftly addressed. It’s good the DOJ is committed to maintaining integrity in FCC initiatives.
Interesting to see DISH Wireless settle this fraud case with the FCC. Misusing federal broadband assistance programs is a serious matter that erodes public trust. Glad to see authorities taking action to ensure integrity in these critical pandemic-era initiatives.
The ACP and EBBP programs aim to bridge the digital divide, so it’s disappointing to see allegations of fraud. $17 million is a substantial penalty – I wonder what internal controls DISH Wireless will need to implement to prevent similar issues going forward. Accountability is key.