Echostar's DISH Network Pays $17.3M to Settle False Claims Act Violations of Defrauding FCC Broadband Benefits Programs

Posted May 13, 2026

By the Constantine Cannon Whistleblower Team

Last Wednesday (May 6), the Department of Justice (DOJ) announced that Colorado-based DISH Wireless agreed to pay roughly $17.3 million to settle allegations it violated the False Claims Act by defrauding two Federal Communications Commission (FCC) broadband benefits programs.[1]

How Did DISH Allegedly Defraud the FCC Broadband Benefit Programs?

The two FCC programs at issue were the Emergency Broadband Benefits Program (EBBP) and its successor program, the Affordable Connectivity Program (ACP). Congress created the EBBP during the COVID-19 Pandemic to assist low-income consumers with discounted broadband services and devices. The FCC provided $3.2 billion in low-income assistance in 2021 under the EBBP and an additional $14 billion under the ACP through 2024. Eligible consumers under both programs needed to meet certain income thresholds or participate in certain Government assistance programs such as Medicaid, SNAP, Supplemental Security Income, and the National School Lunch Program.

DISH, a wholly owned subsidiary of EchoStar Corporation, provides wireless telecommunications services through its Boost Mobile division. Between May 2021 and February 2022, DISH enrolled more than 130,000 subscribers into the EBBP and ACP programs based on their participation in the free school breakfast and lunch programs provided to students at high-poverty Community Eligibility Provision (CEP) schools. For each of these subscribers, the Government paid DISH up to $50 per month under the EBBP and $30 per month under the ACP.

According to the Government, DISH engaged in the following actions to defraud the Government under the two FCC programs:

- DISH submitted claims to the EBBP and ACP for the ten-month period (May 2021 through February 2022) for discounted broadband services and devices for subscribers who did not qualify for the programs.

- DISH failed to implement effective policies and procedures to ensure program eligibility.

- DISH did not adequately screen, train, or supervise third-party sales agents by failing to ensure they were properly registered in the Universal Service Administrative Company’s Representative Accountability Database.

- DISH sales employees in Texas, Florida, New York, and West Virginia trained and directed third-party sales agents to submit inaccurate customer applications with incorrect school information.

- These third-party sales agents submitted false or incomplete information to the FCC’s National Verifier which was used to determine participant eligibility for the EBBP and ACP.

All in, the Government alleged that DISH improperly enrolled more than 16,000 households into the two FCC subsidy programs based on purported attendance at a CEP school more than 25 miles away and without any verified school attendance. The Government further alleged that DISH improperly enrolled 130 households based on purported attendance at a CEP school by students older than 21, and that for some CEP schools, DISH enrolled more households than the school’s total student enrollment.

Has DOJ Brought Other False Claims Act Case Alleging Fraud on the FCC?

This is just the latest in a string of False Claims Act cases the Government has brought against telecommunications providers defrauding the FCC under one of its low-income assistance programs. Last July, for example, Florida-based telecommunications provider Q Link Wireless paid roughly $110 million to settle False Claims Act charges of defrauding the FCC’s Lifeline Program, which provides discounted phone services to qualified consumers. In April 2022, TracFone Wireless paid $13.4 million to settle similar False Claims Act charges of defrauding the Lifeline Program.[2] And in July 2024, Armstrong Group paid $6.5 million to settle False Claims Act charges of defrauding the FCC’s High-Cost Program, which provides subsidies to telecommunications providers servicing consumers in rural and other high-cost areas.[3]

In the Q Link matter, the Government claimed the company was enrolling Lifeline customers who neither needed nor used their phones, including customers who never even activated phones. The TracFone matter similarly involved improperly enrolling ineligible customers into the Government-funded program. The Armstrong matter involved allegations of certain carriers inflating their costs to secure higher Government subsidies under the relevant programs.

The common thread with all these cases, as with the recently settled DISH matter, is a company securing federal payouts for services it did not provide or that did not comply with the requirements of the underlying Government program. This type of fraud is at the epicenter of what the False Claims Act was designed to target and harks back to the Civil War origins of the statute, which Congress enacted to go after war profiteers trying to defraud the Union Army.

In announcing the DISH settlement, the Government stressed its “continuing commitment” to go after this kind of “shameful” conduct. DOJ Civil Chief Brett Shumate explicitly warned that his agency “will take action where companies and individuals knowingly violate the rules of federal programs and receive federal funds to which they are not entitled.”

What Role Do Whistleblowers Play in Uncovering Government Program Fraud?

The majority of False Claims Act actions are originated by whistleblowers under the qui tam provisions of the statute, which allow private parties to bring these cases on behalf of the Government. In return, successful whistleblowers may receive up to 30% of the Government’s recovery.

Whistleblowers have brought roughly 70% of all False Claims Act actions since 1986, when the statute was amended to significantly increase the protections and financial incentives for whistleblowers. This has resulted in more than $60 billion in Government recoveries and close to $10 billion in whistleblower awards.[4]

While whistleblowers initiated both the TracFone and Armstrong matters, the Government did not indicate whether a whistleblower originated or assisted with the DISH matter. However, it’s very possible whistleblowers were involved at some point in the Government’s investigation given the complicated nature of the scheme. As is the case with many of the fraudulent schemes we face today, they are extremely difficult to detect without the help of those with firsthand knowledge of or exposure to misconduct.

“That is the whole point of the whistleblower provisions of the False Claims Act,” says Constantine Cannon whistleblower attorney Dan Noel. “With its original enactment of the statute, and its many amendments to expand the scope of the qui tam provisions, Congress recognizes the unique and valuable role whistleblowers play in helping the Government uncover fraud.” Noel points to the billions of dollars in recoveries from whistleblower-prompted False Claims Act cases as a “testament to the importance of whistleblowers in helping the Government root out fraud.”

Constantine Cannon Has Substantial Experience Representing False Claims Act Whistleblowers

Constantine Cannon has substantial experience representing False Claims Act whistleblowers in matters involving government contract fraud, healthcare fraud, and other areas involving fraud on the Government fisc. If you would like to learn more about these matters, Constantine Cannon’s long list of False Claims Act successes, or what it means to be a whistleblower more broadly, please do not hesitate to contact us. We will connect you with an experienced member of the Constantine Cannon whistleblower team for a free and confidential consultation.

[1] See https://www.justice.gov/opa/pr/dish-wireless-llc-pay-more-17m-resolve-false-claims-act-and-administrative-allegations.

[2] See https://www.justice.gov/archives/opa/pr/tracfone-wireless-pay-134-million-settle-false-claims-relating-fcc-s-lifeline-program?.

[3] See https://www.justice.gov/usao-wdpa/pr/armstrong-group-agrees-pay-65m-settle-false-claims-act-allegations-relating-subsidies?.

[4] See https://www.justice.gov/opa/media/1424121/dl.

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