The FCC has proposed a record-high USF-based forfeiture of $63,465,500 against Ohio wireless reseller American Broadband and Telecommunications Company (American Broadband) for “apparent repeated, systematic, and large-scale” Lifeline rule violations. Among the litany of American Broadband wrongdoings found by the FCC are creating numerous fake Lifeline subscriber accounts, filing inaccurate Lifeline forms, and failing to de-enroll subscribers it knew or should have known were Lifeline ineligible. The FCC also found company owner Jeffrey Ansted liable after finding that Lifeline funds were used for his personal benefit (e.g., to pay for a Ferrari, a $1.3 million condominium, landscaping, club memberships, and an $8 million Cessna jet). The FCC indicated in a release that the $63.5 million proposed fine is the largest ever proposed for Universal Service Fund rule violations.
