Alaskan Telecommunications Company to Pay Over $40 Million for FCA Violations
- posted: Sep. 21, 2023
- Whistleblower Litigation, Fraud
The U.S. Department of Justice (DOJ) announced that GCI Communications Corp. (GCI), a telecommunications company based in Anchorage, Alaska, has agreed to pay over $40 million to settle charges related to False Claims Act (FCA) FCA violations. The case originated from a qui tam suit filed by a whistleblower, who will receive a reward of $6.4 million for exposing the company's wrongdoing.
Case background
Between 2013 and 2020, GCI allegedly failed to comply with FCC regulations governing the calculation of telecommunication service prices for claiming subsidy payments. Consequently, GCI received more significant subsidy payments than it was rightfully entitled to. The DOJ further found that GCI induced Eastern Aleutian Tribes Inc., a rural healthcare provider in Alaska, into agreeing to inflated prices after the relevant contract was competitively bid. By doing so, GCI knowingly obtained higher payments under the program, exploiting the funds allocated for healthcare services in rural areas.
The DOJ's investigation uncovered that GCI willfully inflated its prices and violated Federal Communications Commission (FCC) competitive bidding regulations concerning the FCC's Rural Health Care Program. The program aims to provide financial assistance to rural healthcare providers for their telecommunications needs, amounting to over $570 million annually.
Whistleblower receives $6.4 million award
The qui tam provisions of the FCA enable private individuals to file lawsuits on behalf of the government if they possess knowledge of an individual or company defrauding the government. In this case, Robert Taylor, GCI's former Director of Business Administration, filed the qui tam suit against GCI before the DOJ intervened. As a result of his actions, he will be rewarded with $6.4 million as his share of the government's recovery.
If you’re ready to blow the whistle on fraud against the government, contact a knowledgeable whistleblower attorney at Kardell Law Group today.
