FCC: TracFone made up “fictitious” customers to defraud low-income program

Enlarge (credit: Getty Images | Jozef Polc | 500px)

TracFone Wireless is facing a potential $6 million fine for allegedly defrauding a government program that provides discount telecom service to poor people.

The Federal Communications Commission proposed the fine against TracFone yesterday, saying the prepaid wireless provider obtained FCC Lifeline funding by "enroll[ing] fictitious subscriber accounts." TracFone improperly sought and received more than $1 million from Lifeline, the FCC said.

The FCC press release said:

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