Wednesday, February 09, 2022 3:14:01 PM
Three government entities — the Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS) and the Federal Communications Commission (FCC) — worked together on the investigation and to bring the charges against the three men.
“Lifeline helps ensure that all Americans can afford phone service, providing connections to jobs, family and 9-1-1,” FCC Chairman Tom Wheeler commented. “But we will not tolerate abuse of this program and are gratified to see the results of our hard work to battle fraud.”
Here’s how the government says alleged scam worked: Biddix, Cox and Solt knowingly submitted wildly inflated claims to Lifeline during an 18-month period from September 2009 to March 2011. In total, $32 million in fraudulent claims were submitted on behalf of a company named Associated Telecommunications Management Services. According to the indictment, Biddix also serves as the chairman of ATMS.
The indictment accuses the three men of using the fraudulently-obtained funds, and we quote, to “finance their personal business ventures and lavish lifestyles, including personal living expenses, luxury automobiles, yachts and private jet airplanes.”
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