Mobile phone company to pay $30 million in U.S. fraud case

[Wireless News]

A KDDI Corp mobile phone unit has agreed to pay $30 million to resolve U.S. government claims that it defrauded a low-income subsidy program by seeking reimbursement for ineligible consumers, prosecutors said on Thursday. Total Call Mobile LLC agreed to no longer participate in the Lifeline subsidy program or reimburse tens of thousands of ineligible consumers who had enrolled, Manhattan U.S. Attorney Preet Bharara said in a statement. The settlement also ends an administrative investigation by the U.S. Federal Communications Commission, which in April announced plans to fine Total Call $51 million.

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