Man blows whistle on fraudulent government-paid cell phone program

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by KMOV.com Staff

KMOV.com

Posted on July 9, 2013 at 9:29 PM

Updated Thursday, Jul 11 at 9:55 PM

(KMOV) – A man called News 4’s Investigator Chris Nagus to expose a government supported cell phone program that is reportedly riddled with waste and fraud.

Reginald Strobe said he was hired to get people to sign up for those government paid for cell phones.

He was promised $3 for every new costumer and he claims it didn’t matter if they already had a government phone.

News 4’s Chris Nagus sat down with this whistle blower to hear what he had to say.

Dale Schmick, COO of  TerraCom issued this statement;

“To ensure continued compliance while we transition to a new business model for the distribution of federal Lifeline services, TerraCom/YourTel America has made the decision to move away from the current structure in place for commissioned field agents and company sales representatives to help enroll eligible individuals in the program. On July 1st the company began the termination process for all of its regional sales workforce and is considering the best business path forward in light of the Commission’s recent enforcement advisory that specifically warns wireless carriers’ field agents not to lead Lifeline applicants to believe they have been enrolled in the program almost immediately after completing an application when, in fact, they still need to be deemed eligible for participation prior to receiving an handset as part of a thorough eligibility verification process conducted by the carrier.

 

“We support the FCC’s focus on compliance measures and look forward to working with the Commission to ensure accountability in the Lifeline program, while helping preserve its vibrancy into the future.”

Click the video player to see Nagus’ full investigation on News 4 at 10. 

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