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Lifeline Law Advisor Insight & Commentary on Lifeline Program Compliance & Regulatory Issues

FCC Settles Largest Lifeline Enforcement Case for $30 million and Permanent Ban from the Program

Danielle Frappier Posted in FCC

We reported last spring on the FCC’s accusations against Total Call Mobile and proposed fine of more than $51 million relating to agent misconduct and the failure of company management to take sufficient and early corrective action.  The company has now settled the FCC enforcement case, as well as a related civil fraud case for $30 million, in which it admitted to having violated the FCC’s Lifeline rules.  The FCC’s news release states that the company “admits that hundreds of its sales agents enrolled duplicate and ineligible subscribers into the Lifeline program by using fake and repeated eligibility cards and false subscriber information. . . that its managers failed to take corrective action when they received reports of these fraudulent activities and failed to put in place systems to prevent fraudulent conduct.”  As part of the settlement, Total Call has also agreed to relinquish its FCC and state authorizations to participate in the Lifeline program and not apply for any such authorizations in the future.