Traxler’s scam lasted from May to August 2021, during which he “repeatedly engaged in conduct that violated the federal wire fraud statute and the Commission’s rules,” the FCC said. The proposed $220,210 forfeiture penalty is “the statutory maximum we can impose, and reflects the scope, duration, seriousness, and egregiousness of Cleo’s apparent violations,” according to the commission.
When Cleo applied to be in the EBB program, the FCC initially told the entity that its application would be “denied as it lacks sufficient information for approval.” But Cleo subsequently gained FCC approval by offering documents including copies of two invoices “with customer-identifying information removed, which Cleo claimed was ‘due to CPNI and privacy.'” Cleo also claimed to the FCC that it “had been providing high-speed wireless Internet” to 500 customers.
Dozens of Nearly Identical Complaints
The FCC said it reviewed 41 complaints about Cleo, all of which “focused on the same types of allegations. According to the complaints, consumers searched the list of participating EBB Program providers through individual states’ Universal Service or EBB Program websites, the FCC website, or USAC’s [Universal Service Administrative Company] website and followed links to Cleo’s website. The complaints alleged that Cleo accepted payment for EBB Program discounted broadband services or connected devices from these consumers electronically, failed to send the ordered product or provide the requested…
