FCC Hits 2 Companies for Reimbursement Padding
The FCC is demanding that Boomerang Wireless and Assist Wireless repay $1.18 million in what the agency says were overpayments for connected devices as part of the affordable connectivity program (ACP) and emergency broadband benefit (EBB) program. In a statement Tuesday, FCC Chairman Brendan Carr called the companies "unscrupulous providers." Some companies saw the pandemic-era programs "as a target for overfilling and padded their reimbursement requests."
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The agency said that between May 2021 and August 2023, Boomerang and Assist submitted 7,000-plus and 6,000-plus connected device reimbursement claims, respectively, for $100 Amazon Fire 7 tablets that were readily available for $49.99. After a Universal Service Administrative Co. program integrity review, the companies revised the market value assessment to $69.99 and continued to submit thousands more claims, the FCC said.
Boomerang has 30 days to repay the Treasury Department $131,027 in ACP payments and $513,608 in EBB funds, while Assist must repay $93,534 for ACP and $444,415 for EBB, the commission said. The companies didn't comment.