Lankford: More Lawsuits "Likely' as FCC and OK Corporation Commission Crack Down on Lifeline Fraud

Press Release

Representative James Lankford (R-Okla.) issued the following statement today after the U.S. District Attorney's Office for the Western District of Oklahoma announced a pending lawsuit against an Edmond-based telecommunications company for allegations of fraudulent claims of more than $25 million against the federal Lifeline telephone program.

"As the Federal Communications Commission (FCC) and the Oklahoma Corporation Commission work together to end current fraud and abuse in the system and prevent it in the future, we will likely see more of these lawsuits as law enforcement ensures companies comply with the law," said Lankford. "The FCC continues to praise the work of Oklahoma's Corporation Commission as they work together to make necessary changes.

"Over the past two years, our office has worked with the FCC and the Oklahoma Corporation Commission to implement a pilot program in Oklahoma to reduce fraud through the new National Lifeline Accountability Database. Under the pilot program, individuals with multiple lifeline phones are exposed, and duplicate phone lines are eliminated. It is time to see the elimination of free-phone, pop-up tents and taxpayer-funded waste," concluded Lankford.

In 2012, Oklahoma had an estimated 500,000 lifeline phone users, many of whom didn't meet the minimum criteria to receive a phone. In contrast Oregon--a state of similar population--had an estimated 50,000 users. In addition to the $9.25 monthly subsidy available for non-tribal low-income individuals, low-income tribal member households can receive an additional $25 monthly subsidy. However, the federal law has not previously required tribal members to prove tribal membership, only that they live on "tribal land." Since most of Oklahoma is historic tribal land, the default subsidy in most of the state has been $34.25 per month.

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