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" Remember &amp;quot;OMIGAWD, OBAMAPHONES!&amp;quot;, the very strange, Drudge-fueled talking-point in the last election about how the president was buying the votes of poor people with free cellphones? (This came complete with video accompaniment, which was not About Race because nothing ever is About Race.) Of course, the idea for the program was developed under Ronald Reagan, and the cellphone program was enacted under George W. Bush, so there was even less truth to the whole thing than is usual even for Drudge. However, it turns out that there actually is a massive scandal in that program. Thomas Biddix, Kevin Brian Cox, and Leonard Solt were charged on April 9th with 15 counts of wire fraud, false claims, and money laundering, as well as one count of conspiracy to commit wire fraud, all of which allegedly resulted in $32 million in improper reimbursements over the course of two years. While several fines have been levied since the FCC started tightening standards two years ago, this is the first time the federal government has brought a criminal case. Biddix, Cox, and Solt allegedly operated Associated Telecommunications Management Services (ATMS), a holding company that ran at least five subsidiary mobile operators. Between 2009 and 2011, the company received millions of dollars in subsidies through the Lifeline program, but its rapid growth drew the attention of investigators. A probe in Florida revealed that it had received around $37 million in 2010 alone but had misrepresented its enrollments to the government. Ultimately, ATMS agreed to a $4 million settlement with the Florida Public Service Commission but failed to pay it. Along with the indictment, the court authorized seizure of the men&amp;#039;s &amp;quot;ill-gotten gains,&amp;quot; including multiple bank accounts, a yacht, and &amp;quot;several luxury automobiles.&amp;quot; But there was that woman on the video, so that&amp;#039;s what&amp;#039;s really important. Otherwise, well, mistakes were made. "^^<http://www.w3.org/2001/XMLSchema#string>
<http://www.esquire.com/news-politics/politics/a20666/obamaphone-scandal-041114/>