Investigation Documents

Assuring effective stewardship of the federal universal service programs by guarding against misconduct is a priority shared by USAC, the FCC, and Congress, as well as program applicants, service providers, and the general public. To that end, the US Department of Justice (DOJ), the FCC Enforcement Bureau, and the FCC’s Office of the Inspector General (OIG) are committed to investigating instances of alleged misuse of funds, failure to comply with the rules, or other fraud, waste, or abuse. Read the cases highlighted on the FCC’s Investigative Documents page to learn more.

FCC Enforcement Bureau (EB)

FCC EB Removes City Communications From ACP

The FCC issued a notice of apparent liability for forfeiture and order initiating removal proceeding on May 10, 2024, proposing a penalty of over $8 million against K20 Wireless and Krandon Wenger for apparently willfully and repeatedly violating FCC rules relating to the ACP and the federal wire fraud statute. The FCC also found K20 and Wenger are, for legal purposes, one and the same entity, and are jointly and severally liable for the proposed penalty.

US Department of Justice (DOJ)

Kentucky Businessmen Sentenced in Decade Long Scheme to Defraud FCC

On June 6, 2023, Charles A. “Chuck” Jones, 52, and Mark J. Whitaker, 51, both of Murray, Kentucky, have been convicted of federal crimes and sentenced for a decade long scheme to defraud the Federal Communications Commission’s (FCC) E-Rate program.

GCI Communications Corp. to Pay More than $40 Million to Resolve False Claims Act Allegations Related to the Rural Health Care Program

On May 11, 2023, GCI Communications Corp. (GCI), located in Anchorage, Alaska, agreed to pay $40,242,546 to resolve allegations that it violated the False Claims Act by knowingly inflating its prices and violating Federal Communications Commission (FCC) competitive bidding regulations in connection with GCI’s participation in the FCC’s Rural Health Care program.

Seven Defendants Sentenced For Defrauding Federal Program That Provided Technology Funding For Rockland County Schools

On February 28, 2023, Damian Williams, the United States Attorney for the Southern District of New York, announced the sentencing of all seven defendants who previously pled guilty to defrauding the federal E-Rate program, in connection with E-Rate funds provided to private religious schools in Rockland County, New York.

TracFone Wireless to Pay $13.4 Million to Settle False Claims Relating to FCC’s Lifeline Program

On April 4, 2022, TracFone Wireless Inc. (TracFone) agreed to pay $13.4 million as part of a civil settlement to resolve allegations that TracFone violated the False Claims Act by signing up more than 175,000 ineligible customers in connection with the Lifeline program.

Illinois-Based Charter School Management Company To Pay $4.5 Million To Settle Claims Relating To E-Rate Contracts

On November 3, 2020, Concept Schools, NFP, agreed to pay $4.5 million as part of a civil settlement to resolve allegations that it violated the False Claims Act by engaging in non-competitive bidding practices in connection with the E-Rate program.

Dallas Charter School CEO Convicted in Kickback Scheme Sentenced to 7+ Years

On January 30, 2020, a Dallas charter school CEO was sentenced to more than seven years in federal prison for her role in a corruption scandal following an investigation by the FBI Dallas Field Office.