Truphone Agrees to Divest Russian Investors, Pay $600K Fine
Truphone agreed to divest Russian investors and pay a $600,000 fine for failing to accurately disclose ownership stakes held by foreign entities and transferring control of FCC licenses and international Section 214 authorization without agency approval. In April, the FCC…
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proposed a fine of $660,639 (see 2204210049). The FCC said sanctioned Russian oligarch Roman Abramovich invested in the company and Truphone didn’t provide timely notice or seek commission approval. “Since 2011, Truphone’s ownership and reports regarding its foreign ownership have changed over time without accurate and requisite reporting to the Commission,” the Enforcement Bureau said in the Thursday order. The FCC is requiring divestiture of any interests held by Abramovich, Alexander Abramov and Alexander Frolov, the agency said. “Pursuing unauthorized transactions that impact foreign ownership, control, or investment in entities that possess FCC authorizations or licenses is one of our top priorities,” said Loyaan Egal, acting chief-Enforcement Bureau. “The terms reached in this settlement agreement reflect the Enforcement Bureau’s continued efforts to work closely with our colleagues in the FCC’s International Bureau" and interagency partners "to ensure that access to the telecommunications services market in the United States remains consistent with U.S. national security and law enforcement interests.”