Armstrong has reached a settlement agreement for receiving improper subsidies.
The Federal Trade Commission fined the Armstrong Group $6.5 million for submitting improper costs to inflate the subsidies they would receive from the Federal Universal Service Fund (USF).
USF was established to keep costs down so rural, insular, and high-cost areas could have access to modern communications networks. It provides subsidies to providers across the country to help lower costs for telecommunications carriers.
The United States alleged from 2008 to 2023 five telecommunication carriers owned by Armstrong failed to comply with FCC regulations with their claims for subsidies and received more than they were entitled to.
In the agreement Armstrong will also have to “adopt concrete changes in the company’s internal controls and implement comprehensive oversight and monitoring mechanisms.”
The case was brought upon the company by a whistle blower compliant.
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