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Private Jets, Ferraris, and False Claims: Inside An Obscure Federal Program Rife With Fraud

 The Universal Service Fund (USF) is a government program aimed at subsidizing communication services for low-income consumers. However, it has faced severe fraud issues, leading to significant losses.

• Jeffrey Ansted, an Ohio telecommunications company owner, embezzled millions from the USF, funding a lavish lifestyle with a private jet and luxury car.

• He fraudulently signed up deceased individuals for services to obtain subsidies and transferred funds into his personal accounts.

• The FCC fined Ansted’s company over $63 million for this fraud.

• Experts criticize USF for having a flawed structure that allows potential for fraud, as the program relies on a private company, the Universal Service Administrative Company (USAC), to set its fees while also being a beneficiary.

• The surcharge on consumer phone bills has sharply increased from 5. 7% in 2000 to 36. 6% in 2025.

• Legal challenges have questioned the program’s constitutionality, focusing on its funding practices and how much control is held by a private entity.

• A serious lack of oversight has resulted in widespread fraud, with many ineligible individuals receiving benefits. Reports show significant improper payments attributed to the program.

• Critics argue that the way USF operates undermines taxpayer interests, with little accountability for expenditures.

The issues surrounding the USF highlight significant flaws in its administration, leading to major fraud problems and questioning its future sustainability and oversight.

https://freebeacon.com/politics/private-jets-ferraris-and-false-claims-inside-an-obscure-federal-program-rife-with-fraud/

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