JAMES E.-RISCH, IDAHO MARCO RUBIO, FLORIDA RAND PAUL, KENTUCKY TIM SCOTT, SOUTH CAROLINA DEB FISCHER, NEBRASKA CORY GARDNER, COLORADO JONI ERNST, IOWA KELLY AYOTTE, NEW HAMPSHIRE MICHAEL B. ENZI, WYOMING MARIA CANTWELL, WASHINGTON JEANNE SHAHEEN, NEW HAMPSHIRE HEIDI HEITKAMP, NORTH DAKOTA EDWARD J. MARKEY, MASSACHUSETTS CORY A. BOOKER, NEW JERSEY CHRISTOPHER A. COONS, DELAWARE MAZIE K. HIRONO, HAWAII GARY C. PETERS, MICHIGAN 2.4-'0 itntted ~tates ~enate DAVID VITTER, LOUISIANA, CHAIRMAN BENJAMIN L. CARDIN, MARYLAND, RANKING MEMBER February 25,2015 COMMITTEE ON SMALL BUSINESS & ENTREPRENEURSHIP WASHINGTON, DC 20510-6350 TELEPHONE: (202) 224-5175 FAX:(202) 224-5619 uJD6 Ci\P~,.-.lc,I: r.e.- ZAK BAIG, REPUBLICAN STAFF DIRECTOR ANN JACOBS, DEMOCRATIC STAFF DIRECTOR The Honorable Tom Wheeler Chairman Federal Communications Commission 445 12th Street SW Washington, DC 20554 Dear Chairman Wheeler: I write amid new reports of blatant fraud and abuse within the Lifeline program, which reinforce the program's reputation as one of the 1118stcorrupt fe,de,Tal progralTISinr,CCC~)'tmemory, and Vihi.Ch is supported by taxes paid by individuals a~d small bu~~~esses across America, The FCC' s failure to . conduct appropriate oversight and enforcrment OfltHel~,~esp~,omulgated by the ~CC is unacceptable and appalling. i I I II '~IIIIIII\ I I . . !Zecent reports from Colorado document.the bllft~n.t~bus.e of this cell phone elf~re program by a nationwide cell phone company, Total Call Mobile. Nersllinvestlgators were able to ecerve taxpayer- subsidized cell phones from this company under clearl~ f~audulent circumstances. TI e investigators found Total Call Mobile agents deliberately circumventing Lifeline program rules b allowing non- eligible individuals to sign up for free phones using fOQ):@stamp cards that were not tl eir own, which undoubtedly violates federal law. This case makes Ob1~(i)USthe need for the FCC to I'mmediately prioritize enforcement of the program rules and regulations. Without aggressive enfd cement of Lifeline's eligibility rules, fraud will continue to plague this taxp~yer subsidized welfare progri m. The FCC must hold vendors, each of which reiLve millions of dollars per y ar in government subsidies through Lifeline, accountable for deliberatel~l~ircumventing the rules. In J letter to you last year, I emphasized the need for additional criminal investigators to provide program'oversight. Instead, you decided to rely on the FCC's "strike force." Unforthnately, your decision has clearly been ineffective in limiting abuse and deterring ongoing fraud. Again, I urge you to take action to increase accountability within Lifeline and administer quick enforcement against vendors who violate the rules. By Wednesday, March 18,2015, please provide me with your specific plan to enforce eligibility rules and what penalties Total Call Mobile will face for deliberately allowing illegal behavior as part of its business strategy. More than two years have passed since the FCC's initial push to curb fraud and abuse within Lifeline, yet instances of fraud similar to Total Call Mobile continue to be uncovered. Far more needs to be done. Your response can be directed to Drew Feeley on the Committee's staff at drew jeeley@sbc.senate.gov and (202) 224-3497. Sincerely, 1dJ\/~avid Vitter ' . Chairman U.S. Senate Committee on Small Business andfl3~rJ1§m~~ffs~jgCted