A recent investigation by CBS4 has found massive fraud, waste and abuse of the government’s cell phone program.
The investigation looked at Lifeline, as the program is called, in Denver. Here’s what was found:
The 2014 CBS4 investigation showed repeated instances of fraudulent activity and waste in the Lifeline program in Denver. It’s an Federal Communications Commission (FCC) administered program designed to provide free monthly cellphone service to the needy so they can have cellphone service allowing them to seek employment or call for emergency help if needed. Recipients are required to show official documentation like Medicaid, housing assistance or food stamp cards verifying their low income status in order to receive the free phone service.
But last year a vendor in Denver working under the FCC program had employees who volunteered to use someone else’s food stamp card to secure a free phone and service for a CBS4 producer who was not eligible for the program.
Vendors typically receive $3 for every phone they are able to give out. In other cases, vendors said a CBS4 producer could simply show someone else’s electronics benefit card in order to secure a free phone and service.
The findings of the Denver investigation were revealed as the FCC members were looking into expanding the Lifeline program to broadband, so eligible recipients can receive broadband service much the same way they currently receive cellphone service.
The Lifeline program is funded by a universal service tax every cellphone user pays each month. In 2009 the program was funded to the tune of $800 million. Today, it’s a $1.6 billion program, according to CBS.
