Texas ISP fined $14 million for fraudulent subsidies

The FCC says Tone Communications, a Texas based ISP, used fake accounts and other falsified records to accept just over $14 million in fraudument ACP reimbursements from March 2022 to the present.

The fraud occurred during the Emergency Broadband Benefit (EBB) and it's replacement, the Affordable Connectivity Program (ACP). In it's ruling, the FCC said Tone enrolled subscribers with fake or false indentifying information by either using an fake address or using the same address to enroll multiple subscribers. 

"The Bureau also found that Tone apparently willfully and repeatedly made misrepresentations to the Commission in it applications and election notice to participate in EBB and ACP, and to the Bureau in the course of its, investigation, all in violation of section 1.17. Tone also failed to respond fully to two Letters of Inquiry from the Bureau, which are Commission orders. We find that the proposed $14,021,293 forfeiture penalty reflects the scope, duration, seriousness, and egregiousness of Tone’s numerous apparent violations and resulting harm to ACP." - FCC ruling on Tone Communications subsidy fraud

Tone is based in Bastrop, Texas but has also has customers in Oklahoma. It operates a 5G wireless internet service. And although the ACP is in wind-down mode, there is no reference to the ACP ending on the company's website.