The Armstrong Group, owner of five ILECs, has agreed to pay $6.5 million as part of a False Claims Act settlement with the U.S. Department of Justice to settle allegations related to FCC subsidies. The DOJ alleged that between 2008 and 2023, the Armstrong ILECs submitted improper costs, as part of the FCC’s high-cost program, in order receive greater subsidy payments from the Universal Service Fund than those to which they were entitled. The Armstrong Group has also entered into a corporate compliance agreement with the FCC to adopt concrete changes to the company’s internal controls and oversight mechanisms.
