FCC seeks $1.18 million from wireless providers for pandemic overpayments

In September 2023, the U.S. Federal Communications Commission (FCC) issued a demand for over $1.18 million in repayments from Boomerang Wireless and Assist Wireless. These companies allegedly submitted inflated claims for reimbursement from taxpayer-funded programs aimed at increasing internet connectivity during the COVID-19 pandemic. Through the Emergency Broadband Benefit (EBB) and the Affordable Connectivity Program (ACP), the FCC noted that both Boomerang Wireless, based in Iowa, and Assist Wireless, headquartered in Texas, made claims that exceeded the market value of tech devices provided to low-income customers. The claims made by these wireless providers included demanding as much as $100 for tablets designated for reimbursement under the federal programs. However, federal officials pointed out that similar tablets were widely available for around $50, indicating a substantial discrepancy in the valuation put forward by Boomerang and Assist. Between May 2021 and August 2023, Boomerang Wireless and Assist had submitted claims for over 7,000 and 6,000 tablets, respectively. After a federal integrity review prompted the companies to revise their market value assessments, it became apparent that their original $100 claims were still above the actual value. FCC Chair Brendan Carr criticized the actions of Boomerang Wireless and Assist Wireless, stating that FCC programs were not designed to benefit unscrupulous providers. He emphasized the importance of the broadband reimbursement programs established during the health crisis, which were intended to help connect more Americans to wireless internet amidst the unprecedented demand created by the pandemic. The investigation into their claims revealed that despite having to reassess their claims, the companies continued to submit thousands of additional claims that were deemed excessive. As a consequence of these overpayments, both companies were ordered to make significant repayments. Boomerang was required to repay a total of $644,635, which included approximately $131,000 from the ACP and over $513,600 from the EBB program. In comparison, Assist Wireless faced repayment demands of more than $537,900 from the same two federal Wi-Fi programs. The FCC granted both companies 30 days to return the full amount of overpaid reimbursements to the U.S. Treasury. This incident highlights ongoing concerns regarding the misuse of federal funds and the need for stringent oversight of pandemic-era assistance programs.