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Mobile phone company to pay $30 million in U.S. fraud case
Source: Reuters
U.S. | Thu Dec 22, 2016 | 5:14pm EST
Mobile phone company to pay $30 million in U.S. fraud case
By Nate Raymond | NEW YORK
A KDDI Corp mobile phone unit has agreed to pay $30 million to resolve U.S. government claims that it defrauded a low-income subsidy program by seeking reimbursement for ineligible consumers, prosecutors said on Thursday.
Total Call Mobile LLC agreed to no longer participate in the Lifeline subsidy program or reimburse tens of thousands of ineligible consumers who had enrolled, Manhattan U.S. Attorney Preet Bharara said in a statement.
The settlement also ends an administrative investigation by the U.S. Federal Communications Commission, which in April announced plans to fine Total Call $51 million.
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In a lawsuit made public on Thursday, Bharara's office accused Total Call of knowingly submitting from 2012 to 2016 false claims for federal payments by enrolling tens of thousands of ineligible consumers into Lifeline.
The lawsuit alleged Total Call's sales agents employed a range of fraudulent enrollment practices, including tampering with identification documents and submitting false consumer addresses and social security numbers.
[font size=1]-snip-[/font]
Mobile phone company to pay $30 million in U.S. fraud case
By Nate Raymond | NEW YORK
A KDDI Corp mobile phone unit has agreed to pay $30 million to resolve U.S. government claims that it defrauded a low-income subsidy program by seeking reimbursement for ineligible consumers, prosecutors said on Thursday.
Total Call Mobile LLC agreed to no longer participate in the Lifeline subsidy program or reimburse tens of thousands of ineligible consumers who had enrolled, Manhattan U.S. Attorney Preet Bharara said in a statement.
The settlement also ends an administrative investigation by the U.S. Federal Communications Commission, which in April announced plans to fine Total Call $51 million.
[font size=1]-snip-[/font]
In a lawsuit made public on Thursday, Bharara's office accused Total Call of knowingly submitting from 2012 to 2016 false claims for federal payments by enrolling tens of thousands of ineligible consumers into Lifeline.
The lawsuit alleged Total Call's sales agents employed a range of fraudulent enrollment practices, including tampering with identification documents and submitting false consumer addresses and social security numbers.
[font size=1]-snip-[/font]
Read more: http://www.reuters.com/article/us-total-call-mobile-fcc-idUSKBN14B2D1
