A settlement has been reached to resolve False Claims Act allegations against Total Call Mobile LLC.
The allegations arose from a lawsuit that claimed Total Call Mobile LLC defrauded the Lifeline Program, a federal government subsidy program that offers discounted mobile phone services to eligible low-income consumers.
According to the Department of Justice, Total Call Mobile LLC, with the knowledge and involvement of its affiliate, co-defendant LOCUS TELECOMMUNICATIONS LLC, and their shared corporate parent, co-defendant KDDI AMERICA INC, knowingly submitted false claims for federal payments by seeking reimbursement for consumers who did not meet Lifeline eligibility requirements.
Specifically, Total Call Mobile repeatedly used the same eligibility proof to enroll multiple consumers, altering identification or eligibility proof documentation, deliberately altering the way consumer information was input to avoid the detection of duplicate subscriber enrollments, and submitting false consumer addresses and social security numbers. Even though the Company's managers were aware of fraudulent practices, Total Call Mobile continued to approve enrollments and request government reimbursement.
As part of the settlement, Total Call Mobile LLC admitted and accepted responsibility for its misconduct, including seeking reimbursement for tens of thousands of ineligible consumers, and agreed to no longer participate in the Lifeline Program.
Under the settlement, defendants are required to pay approximately $22.54 million to the United States, and to forego payment of approximately $7.46 million in Lifeline reimbursements claimed by Total Call Mobile but held by the Government pursuant to a prior FCC Order.
