Armstrong to Pay $6.5 Million for Overcharging FCC Subsidy Fund

The Justice Department said Armstrong failed to 'comply with FCC regulations that governed what costs they were allowed to report for purposes of claiming subsidy payments ..."

Armstrong to Pay $6.5 Million for Overcharging FCC Subsidy Fund
Photo of Armstrong President and CEO Dru Sedwick

WASHINGTON, July 14, 2024 –  Stemming from a whistleblower lawsuit, the Justice Department said Friday that Armstrong Group in Butler, Pa., has agreed to pay $6.5 million to resolve allegations it inflated costs to receive higher than allowed payments from the Federal Communications Commission’s Universal Service Fund. 

“When providers like the Armstrong Group fail to follow federal law and FCC regulations, they jeopardize not only critical government programs but also consumers’ ability to access a modern lifeline: Rapid, reliable, and efficient telecommunications services,” U.S. Attorney Eric Olshan for the Western District of Pennsylvania said in a press release.

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