The Department of Justice has indicted three men for allegedly abusing the Lifeline program, which provides low-income Americans with subsidized landline or prepaid wireless phone service. Thomas Biddix, Kevin Brian Cox, and Leonard Solt were charged on April 9th with 15 counts of wire fraud, false claims, and money laundering, as well as one count of conspiracy to commit wire fraud, all of which allegedly resulted in $32 million in improper reimbursements over the course of two years. While several fines have been levied since the FCC started tightening standards two years ago, this is the first time the federal government has brought a criminal case. Biddix, Cox, and Solt allegedly operated Associated Telecommunications Management Services (ATMS), a holding company that ran at least five subsidiary mobile operators.
Three men charged with cheating federal phone subsidy program for $32 million
11
Apr
2014
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