Phone Company ‘Outraged’ By Fraud, Abuse In ‘Obamaphone’ Program

Posted by on Jan 27, 2015 at 10:29 am

A nationwide cellphone company distributing phones and cellphone plans in Denver as part of a massive government program says it is “outraged by the unacceptable actions” uncovered by a CBS4 undercover investigation.

The response from Total Call Mobile comes nearly three months after an undercover CBS4 investigation revealed multiple examples of fraud and cheating in the phone distribution program.

The Lifeline program is aimed at providing free cellphone service to the poor and needy. It handed out more than 13 million free cellphone plans in the first six months of 2014. In Colorado, the program handed out more than 117,000 free cellphone plans in the first half of 2014 or about 20,000 cellphones every month.

If you own a cellphone, you pay for the free phones and their wireless plans via a monthly tax on your cellphone called the Universal Service Tax. Although the Lifeline wireless program has been around since 2005 and started under President George W. Bush, it ballooned under President Obama and the phones are often referred to as Obamaphones.

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