The Federal Communications Commission (FCC or Commission) has announced it plans to fine Network Services Solutions and its chief executive $21,691,499 for apparent violations involving the Universal Service Fund Rural Health Care (RHC) Program. The company is charged with violating the program’s competitive bidding rules, using forged and false documents to seek funding from the program, and violating the federal wire fraud statute. In addition, the Commission expects to order the company to refund $3.5 million in improper payments that the company has received through the program, which provides discounts for telecommunications services to rural health care providers to help pay for modern telecommunications services. This is the agency’s first enforcement action involving the RHC Program, and the first time the Commission has proposed a fine for wire fraud in connection with a Universal Service Fund Program.
