FCC to fine Total Call Mobile record $51M for defrauding Lifeline program

Detailing a litany of blatant, widespread and systematic abuses, the FCC late yesterday announced its intention to fine wireless provider Total Call Mobile some $51 million for allegedly creating tens of thousands of phony Lifeline accounts that defrauded the Universal Service Fund of almost $10 million.

The fine would be the largest ever levied against a Lifeline provider, according to the FCC.    

The Lifeline program, established in 1996, provides discounted and free landline and mobile phone service to low-income consumers. Derided as “Obama phones,” the program has been controversial and plagued by fraud.

“We reserve the strongest sanctions for those who defraud or abuse federal programs,” said Enforcement Bureau Chief Travis LeBlanc.  “Any waste, fraud, or abuse in the Lifeline program diverts scarce funds from the consumers they are meant to serve and undermines the public’s trust in the program and its stewardship.”

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