DOJ Indicts Three Individuals for Alleged $32 Million Lifeline Fraud

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The United States Department of Justice has indicted three individuals for their alleged roles in an approximately $32 million fraud against the federal Lifeline Program.  According to the DOJ’s indictment, the three defendants and an unnamed co-conspirator were owners of Associated Telecommunications Management Services, LLC (ATMS), and “perpetrated a scheme to defraud the FCC and USAC in connection with the Lifeline Program.”  The indictment alleges the defendants submitted false Lifeline reimbursement claims with USAC during the period of roughly September 2009 through March 2011 using the following ATMS subsidiaries: Ganoco, Inc., a Florida telephone company doing business as American Dial Tone; Bellerud Communications, LLC, a Texas telephone company; BLC Management, LLC, a Tennessee telephone company doing business as Angles Communications Solutions; LifeConnex Telecom, LLC, a Florida telephone company; and Triarch Marketing, Inc., a Louisiana telephone company doing business as Tri-Arch Communications.  The alleged false claims resulted in ATMS fraudulently receiving more than $32 million.  The three defendants are charged with one count of conspiracy to commit wire fraud and 15 substantive counts of wire fraud, false claims and money laundering.   The court has authorized a seizure warrant to obtain the defendants’ ”ill-gotten gains,” consisting of the contents of multiple bank accounts, a Beechjet 400A private jet, a 28-foot boat, and several luxury automobiles, which include a Lamborghini Murcielago convertible and a Corvette.  The criminal case will move forward in U.S. District Court for the Middle District of Florida (case number 8:14-cr-00140-SDM-MAP, USA v. Biddix et al).

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