Category Archives: government fraud spending collusion

There Goes 9 More Gitmo Detainees

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Oh, late Friday night, cloak and daggar? No White House announcement from the podium?

Since most of the remaining detainees are from Yemen, 9 were released to Saudi Arabia. Think about that for a moment. Saudi has been at war in recent months in Yemen and the United States had to literally flee during the first days of the war, terminating our CIA staff and our major drone operation against al Qaeda Arabian Peninsula, AQAP.

This is a headscratcher….unless….well nevermind.

ABC: Authorities say the U.S. has released nine prisoners from Guantanamo Bay and sent them to Saudi Arabia for resettlement.

All nine are Yemeni but have family ties to Saudi Arabia. None of the men had been charged and all but one had been cleared for release from the U.S. base in Cuba since at least 2010. One was approved for release by a review board last year.

They could not be sent to their homeland because of instability there.

The prisoners include a frequent hunger striker whose weight had dropped to as low as 74 pounds (34 kilograms) at one point.

The release announced Saturday in a Pentagon statement brings the Guantanamo prisoner population to 80, including 26 cleared men expected to leave by the end of the summer.

****

Stripes: The nine Yemenis include Tariq Ba Odah, a frequent hunger striker whose weight dropped to a dangerously low 74 pounds (34 kilograms) at one point as the military fed him with liquid nutrients to prevent him from starving to death. His lawyers at the Center for Constitutional Rights had urged the U.S. to free him earlier due to his health.

Eight of the prisoners, including Ba Odah, had been cleared for released from Guantanamo since at least January 2009, when an Obama administration task force evaluated all of the prisoners held at that time. The ninth, Mashur Abdullah Muqbil Ahmed Al-Sabri, was cleared by a review board last year.

The other prisoners in this release were identified as: Ahmed Umar Abdullah Al-Hikimi; Abdul Rahman Mohammed Saleh Nasir; Ali Yahya Mahdi Al-Raimi; Muhammed Abdullah Muhammed Al-Hamiri; Ahmed Yaslam Said Kuman; Abd al Rahman Al-Qyati; and Mansour Muhammed Ali Al-Qatta.

The last time Barack Obama was to be with the Saudis was at a Camp David Gulf Nation Summit, where he was snubbed. Furthermore in recent days there has been other hostilities over the 28 missing pages of the 9/11 report where there is text that at least one Saudi diplomatic had met with two of the hijackers in California providing them with material and monetary support. Anyway, Obama starts this coming week with his trip to Saudi Arabia mostly to meet on the fight against Islamic State.

ABC: resident Barack Obama will strategize with his Middle Eastern and European counterparts on a broad range of issues during a weeklong trip to Saudi Arabia, England and Germany with efforts to rein in the Islamic State group being the common denominator in all three stops.

Obama, who begins traveling next week, recently said defeating IS his No. 1 priority. He paid a rare visit to CIA headquarters this week for a national security team meeting focused on countering the group.

The president is scheduled to arrive in the Saudi capital of Riyadh on Wednesday, where he will hold talks with King Salman. Obama will also attend a summit hosted by leaders of six Persian Gulf countries that are members of the Gulf Cooperation Council: Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman.

The summit follows a similar gathering that Obama hosted with the Gulf leaders last year at the Camp David presidential retreat. The White House arranged last year’s meeting largely to reassure Gulf leaders who were unnerved by a deal the U.S. and other world powers negotiated with Iran to ease economic sanctions in exchange for limits on its nuclear program.

The Iran deal is now in force, and the meeting next week will focus on defeating the Islamic State militants and al-Qaida, as well as regional security issues that include Iran.

Obama will spend most of his time in England. He is scheduled to meet again with Queen Elizabeth II over lunch at Windsor Castle on April 22, a visit that coincides with her 90th birthday a day earlier.

Obama will also meet with British Prime Minister David Cameron, who is campaigning for his country to continue its membership in the European Union. Britons are scheduled to vote on its EU membership in a June 23 referendum, the first vote ever by a nation on whether to leave the 28-member, post-World War II bloc.

Obama is not expected announce a position on the referendum, although aides have voiced support for a strong United Kingdom as a member of the E.U.

“He’ll make clear that this is a matter the British people themselves will decide when they head to the polls in June,” Ben Rhodes, Obama’s deputy national security adviser, said Thursday as he outlined the trip for reporters.

Cameron has also been stung by criticism over his investment in an offshore trust run by his late father. The revelation was part of the recent dump of more than 11 million documents from a Panama law firm that is one of the leaders in setting up offshore bank accounts for the rich and powerful.

Obama also plans a town hall-style, question-and-answer session with young adults, which has become a staple of his foreign trips. Additional stops were being planned for London.

In Germany, the final stop on Obama’s three-country trip, the president will hold talks and a news conference Sunday with Chancellor Angela Merkel. Merkel’s popularity has suffered after she angered Germans by allowing a massive resettlement of refugees from Syria and other war-torn countries. She recently helped broker a deal between the EU and Turkey to stem the refugee flow to Europe.

Obama also plans to join Merkel to open the Hannover Messe, the world’s largest trade show for industrial technology.

Before departing for Washington, Obama has scheduled a speech reviewing U.S.-European collaboration during his tenure and looking ahead to future joint efforts.

Cables: Taliban, Haqqani, Kidnapping and Bergdahl

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Facts are funny things and the CIA is fearless. Dates matter too.

For the additional details on the attack on the CIA base mentioned in the body of this post, go here.

Supporters “Are in the Oil Industry”: Declassified DIA Cables Show Haqqani Network Revenue Streams

 

Haqqani Network map; courtesy of the National Counterterrorism Center.

Haqqani Network map; courtesy of the National Counterterrorism Center.

NSAArchive: Less than a dozen men were running the militant Islamist Haqqani Network (HQN) by the time the State Department declared it a Foreign Terrorist Organization in 2012, and this extremely small group continues to determine which illicit activities the organization engages in to fund its fight against US-led forces in Afghanistan. Defense Intelligence Agency documents dated from 2008 through 2010 recently obtained by the National Security Archive in response to a FOIA request offer a window into a transitional period for the organization, before the State Department declared the group a terrorist organization and the US Treasury designated Haqqani leaders as Specially Designated Global Terrorists in 2014, subjecting them to sanctions. The documents illuminate the group’s efforts to diversify its funding away from the foreign sources it relied on during the Cold War, including the CIA and Pakistani intelligence services, and towards more traditionally criminal activity – and show squabbles over the sharing of ransom money, dispersal of funds to suicide bombers, financial links between HQN and the Karzai government, and Taliban funding for the group’s activities.

Jalaluddin Haqqani

Jalaluddin Haqqani

One of the early financial challenges for Jalaluddin Haqqani, the group’s founder, was coping with the end of the Cold War and the drying up of American resources. Barbara Elias notes in 2009’s “The Taliban File” that Haqqani received tens of thousands of dollars and weapons from the CIA between 1986 and 1994. CIA funding ended by the mid-1990s, although Haqqani’s relationship with the US only deteriorated in earnest in the late-1990s after the US bombed an HQN-linked training camp in retaliation for al-Qaida attacks on the US embassies in Kenya and Tanzania and Haqqani’s relationship with Osama bin Laden deepened.

A Confidential June 12, 1998, State Department cable, first published in Elias’s 2012 “The Haqqani History,” notes that Jalaluddin advocated for bin Laden within the Taliban, and that bin Laden’s increased power was due at least in part to “the growing strength of his supporters within the Taliban movement.” The US’s growing concern with bin Laden is shown in a May 24, 1999, cable summarizing a meeting between Haqqani and US officials, during which Haqqani agrees that bin Laden is “a problem,” but insists that “maybe the best solution is what is taking place now with him remaining in the country.” Haqqani also says that “he was deeply appreciative of U.S. assistance during the ‘jihad’ (holy war) against the Soviets and the (Afghan) communists,” but remains antagonistic over US destruction of a terrorist camp in Khost, Afghanistan, in August 1998. Haqqani even initiates the meeting by “joking” that it was “good to meet someone from the country which had destroyed my base, my madrassh [sic], and killed 25 of my mujahideen.”

Despite the historical ties  between the groups, al-Qaida funding is not a major source of income for HQN; a September 24, 2009, DIA cable shows that when al-Qaida funding was received, it was relatively small amounts that were “generally provided by Al Qaida leader Shaykh Said al-Masri through Sirajudding Haqqani and Jan Baz Zadran, who is a HQN commander in Miram Shah, PK, in amounts of approximately 3,000 – 5,000 USD.”

West Point’s Combatting Terrorism Center (CTC) notes in a 2012 report that Jalaluddin was also motivated to decrease his organization’s dependence on Pakistani financing, and began vigorous fundraising efforts in the Gulf States in the 1990s to do so. A newly released April 8, 2010, DIA cable shows this practice continues. According to the cable, a well-connected individual “travels on behalf of the Haqqani network to a city in the vicinity of Dubai to collect charitable donations which are used to fund unspecified Haqqani network operations.”

However, a series of DIA cables (from January 11, 2010, and February 6, 2010) show that some funding for Haqqani attacks are still provided by the Pakistan Inter-Services Intelligence Directorate, including $200,000 for the December 30, 2009, attack on the CIA facility at Camp Chapman.

200k

Excerpt from a Feb. 6, 2010 posting on ISID funding for Haqqani attacks.

During Jalaluddin’s tenure the group also offered microloans to those living in its territory in North Waziristan, Pakistan, in a move that fostered goodwill and “really made a difference in these communities.” The attempts at public relations under Jalaluddin is not entirely unsurprising; a 1997 State Department cable reports Jalaluddin to be “more liberal” in his opinions on social policy, such as women’s rights, and seems to have understood the importance of maintaining credibility with the local community.

Jalaluddin was forced to retire in 2005, however, and his son Sirajuddin assumed the leadership, marking an increase in the group’s illicit activity.

wantedPoster

FBI Wanted Poster – Sirajuddin Haqqani, son of Haqqani Network founder Jalaluddin Haqqani.

Protecting smuggling enterprises in the border areas under its control, as well as engaging in its own, has become an important source of income for HQN under Sirajuddin. Interestingly, according to the CTC report, HQN imports “the precursor chemicals used to process raw opium into morphine base and heroin, including lime, hydrochloric acid and acetic anhydride (AA). If true, this may indicate that the Haqqanis have a non‐competition agreement with the Kandahari Taliban in the heroin business, or it could simply suggest that Haqqani leaders have realized that smuggling precursors is less risky and often more lucrative, since a glut in poppy production drives down wholesale opium prices.”

These sustained efforts have ensured that the group remains financially autonomous from the Taliban, although it receives a monthly stipend from the Quetta branch “to cover operational costs, and the budget shifts depending on the season and the funding capacity of the Taliban leadership.”

A September 24, 2009, DIA cable notes that the Quetta branch remains a stable source of HQN funding, saying that “A large majority of the Haqqani Network (HQN) funding comes from the Quetta, Pakistan-based Taliban leadership.” The cable goes on to say that “HQN pays fighters who conduct successful attacks against coalition forces (CF) Afghan National Army (ANA) or Afghan National Police (ANP), with larger amounts paid for killing a coalition member. A key point in the dispersal and receiving of funds within the HQN is the videotaping of attacks.”

Bowe Bergdahl, held by the Haqqani network. AP photo.

Bowe Bergdahl, held by the Haqqani network. AP photo.

One of the shifts that occurred along with the change in leadership was HQN’s increase of kidnap-for-ransom, a “growth industry” in which HQN cooperates “seamlessly” with other militant groups, but one that seems to have effected HQN’s credibility. Bowe Bergdahl is perhaps HQN’s most famous kidnapping victim, and would have undoubtedly been on HQN’s list of “legitimate targets,” which include “government officials and security personnel; those who cooperate with government; foreigners; transporters servicing NATO; and alleged spies.” New York Times journalist David Rohde and Afghan diplomat Haji Khaliq Farahi were also targets. The CTC report notes, however, that such behavior “appears to have lowered the network in the public estimation.”

Kidnapping-for-ransom, however, remains a way for unpaid Haqqani militants to make money. Low-ranking militants earn little, if any, money, and operate with a great deal of autonomy – making the occasional moonlighting – and tension over it – all but inevitable.  A Secret September 29, 2009, DIA cable recounts one such ransom dispute. “As of late September 2009, Spera District Haqqani Network (HQN) commander Hamid (Rahman) had strained relations with the HQN leadership, including senior commander Siraj (Haqqani), over ransom money embezzled by Rahman. Rahman and an unidentified Iraqi Al-Qaida associate had kidnapped a road construction worker in Spera District for ransom and neglected to send the ransom money obtained to HQN leadership in Pakistan. As a result, Siraj Haqqani ordered Rahman to return to Miram Shah/[redacted] north Waziristan, PK, in order to account for the money. Rahman ignored the order and did not travel to Miram Shah due to fear that he would be killed by HQN leadership for his transgression.”

transgression

Donations and fundraising continue to be an important for HQN. A Secret March 22, 2009, DIA cable provides an example of a routine donation for HQN. It notes, “As of mid-February 2009, the Hadika ta Uloom madrassa in Dera Ismail Khan, PK was facilitating financial support for the Haqqani Network (HQN). The leader of the mosque, Maulawi din Mohammad (Khalifa), was facilitating contact between HQN commanders and local businessmen willing to donate money and assistance to the HQN.” The five businessmen contacted, all from the oil industry, provided a total of $17,000 USD.

HQN leaders also recognize the importance of a good media campaign. The CTC report finds that “Just as Jalaluddin before them, network leaders today conduct fundraising road shows, visiting large mosques around the region where they ask for alms from worshipers. As in the past, the Haqqanis appear to realize the importance of publicity materials to communicate their successes and to help to generate donations at these events. The network publishes considerable multi‐media material concerning its activities, and appears to consider publicity a core aspect of financial operations.”

HQN’s complicated relationship with the Afghan government, and its financial payoffs, are also highlighted in a Secret August 31, 2010, cable. The cable explains how a security manager in Khost province, Qabool Khan, simultaneously provides HQN with intelligence on US bases in Salerno and Chapman, while providing HQN with money and the license plate numbers of US vehicles of military personnel and contractors that serve on the two bases. Khan obtained his position with the security company – which posted private security guards on US bases – through Mahmoud Karzai, brother of Afghan president Hamid. “Khan receives $800.00 U.S. dollars per guard, per month, in which $200.00 U.S. dollars goes to the guard, $300.00 U.S. dollars to Khan, and $300.00 U.S. dollars is given to the Haqqani network… in return Khan is not attacked by Haqqani operatives leaving the American base or Khan’s personal residence. Khan leaves his window down when leaving the American base as a signal to Haqqani operatives not to attack his vehicle.”

These documents were requested under the FOIA as part of the Archive’s Afghanistan, Pakistan and Taliban project, and we will continue to post on interesting documents as they come in.

Obama Executive Orders on Rotary Phones and Cable Boxes

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It is all to level the playing field eh? An executive order will fix corporate competition. I see another objective to punish corporate success and likely a matter of picking winners and losers. Read on, your thoughts are invited.

If this really does stimulate quality competition without raising costs, then great….skeptics abound. Frankly this has all the hallmarks of providing free cable and internet access to a sector of the population, with hidden charges in our bills much like the Obamaphone program.

Oh yeah, just what are the hidden technologies of those cable boxes anyway? Example, the Comcast culprit.

Thinking Outside the Cable Box: How More Competition Gets You a Better Deal

Summary:
Learn how President Obama’s new efforts are spurring competition to make life better for consumers.

Today, building on efforts over the last seven years, the President is launching a new initiative to stoke competition across our economy, so that no corporation can unfairly squeeze their competitors, their workers, or their customers at everyone’s expense. Stronger competition matters because it can deliver lower prices, higher quality, and better customer service for consumers. It gives workers more of a voice and can help strengthen wage growth.  And it’s what entrepreneurs need to get a fair shot at growing their businesses and creating jobs.

Before There Were Cable Boxes

Before getting into the details, a little historical context (and more on a specific action we’re taking today).

Millenials are often defined as the generation born after 1980. But they could also be described as the generation that doesn’t remember what it’s like to be forced to rent a big, overpriced, basic phone from the phone company.

Until the early 1980s, the phone company had a monopoly—not just on the wire to your house but, in many cases, on the phone you plugged into that wire.

And the result wasn’t pretty.

Phones had little variety, evoking the famous Henry Ford quote — “You can have any color, so long as it’s black” — and only the most basic functionality. Worse yet, households had to pay a fee each month to rent these phones that added up over time to many multiples of what they would have paid to purchase a similar (or fancier) phone themselves.

Then, all that changed when the Federal Communications Commission (FCC) and others took action to open up phones to competition. This competition and the technological progress it helped drive, led to a proliferation of digital dialing, built-in answering machines, a panoply of styles, cordless phones, and other innovations.

A similar dynamic has taken hold elsewhere in American homes today: According to a recent study, 99 percent of all cable subscribers lease a set-top box to get their cable and satellite programming.

It sits in the middle of our living rooms, and most of us don’t think twice about it. But that same study found that the average household pays $231 per year to rent these often clunky boxes. And, while the cost of making these boxes is going down, their price to consumers has been rising.

Like the telephones in 1980s, that’s a symptom of a market that is cordoned off from competition. And that’s got to change.

How We’re Taking Action To Fix It

That’s why today the President announced that his Administration is calling on the FCC to open up set-top cable boxes to competition. This will allow for companies to create new, innovative, higher-quality, lower-cost products. Instead of spending nearly $1,000 over four years to lease a set of behind-the-times boxes, American families will have options to own a device for much less money that will integrate everything they want — including their cable or satellite content, as well as online streaming apps — in one, easier-to-use gadget.

But we’re not stopping there. In many ways, the set-top box is the mascot for a new initiative we’re launching today. That box is a stand-in for what happens when you don’t have the choice to go elsewhere—for all the parts of our economy where competition could do more.

Across our economy, too many consumers are dealing with inferior or overpriced products, too many workers aren’t getting the wage increases they deserve, too many entrepreneurs and small businesses are getting squeezed out unfairly by their bigger competitors, and overall we are not seeing the level of innovative growth we would like to see. And a big piece of why that happens is anti-competitive behavior—companies stacking the deck against their competitors and their workers. We’ve got to fix that, by doing everything we can to make sure that consumers, middle-class and working families, and entrepreneurs are getting a fair deal.

That’s why today, the President announced a broader new initiative through an Executive Order that calls on departments and agencies to make further progress through specific, pro-competition executive actions that empower and inform consumers, workers, and entrepreneurs. In 60 days, agencies will report back on specific areas where we can make additional progress.

Alongside that announcement, the White House Council of Economic Advisers (CEA) released a new issue brief that describes the many benefits of competition, highlights recent work by the independent antitrust authorities, and argues that consumers, workers, entrepreneurs, and small businesses would benefit from additional policy actions to promote competition within a variety of industries. These new steps will build on pro-competition progress we’ve made—from cell phone unlocking to net neutrality, from cracking down on conflicts of interest in retirement advice to efforts to free up essential technologies so that big incumbent companies can’t crowd out their competitors.

In the coming months, we’ll be doing everything we can across government to build on that progress and deliver on the pro-competition initiative we’re announcing today.

Marines Salvaging Aircraft Parts to Keep Flying

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Congressional failures just forced the Marines to raid a museum for aircraft parts

MilitaryTimes: Marine aviation squadrons are salvaging aircraft parts from museums in order to keep planes flying, according to anecdotes from a key congressional leader.

During a recent trip to several Southern U.S. military bases, Marines told House Armed Services Committee Chairman Mac Thornberry, R-Texas, that they’ve been paying for their units’ supplies like pens and paper towels, and were forced to raid decommissioned aircraft for parts.

“I have heard firsthand from service members who have looked me in the eye and told of trying to cannibalize parts from a museum aircraft … getting aircraft that were sent to the boneyard in Arizona back and ready to fly missions, pilots flying well below the minimum number of hours required for minimal proficiency,” Thornberry said.

To see the short real time video go here.

Lawmakers are livid about the fiscal shortfalls, even if their budget infighting in Congress is partly to blame.

At issue are military readiness accounts stretched thin by more than a decade of war and four years of defense penny pinching. Earlier this month, chiefs from each of the four services told lawmakers that those two stressors have led to belt-tightening headaches for units across the military, in some cases deferring long-term needs in favor of short-term solutions.

 PhotoCamel

Thornberry would not identify which Marine air station had the parts shortage, and Marine Corps officials at the locations he visited would not confirm the stories.

But Joint Chiefs Chairman Gen. Joseph Dunford did not dispute and seemed to confirm the incidents when confronted with the anecdotes at a March 22 hearing.

“What you saw in the Marine Corps I think reflects in some part what you’ll see in all the services, perhaps not to the same degree as Marine aviation,” he told the chairman. “But that same dynamic exists in each one of the services.”

The Marine Corps has about 180 F/A-18A-Ds, said Marine Corps spokesman Maj. Clark Carpenter. Typically, 43 F/A-18s from deployable squadrons and nine from training squadrons are in depot for maintenance at any given time. That leaves only about 60 percent of the deployable aircraft in flyable, “fight tonight” status.”

Lt. Gen. Glen Walters, the Corps’ deputy commandant for programs and resources, told lawmakers earlier this month that budget cuts have left the entire service “under-resourced” for spare parts.

The Marine Corps has requested $460 million from Congress in fiscal 2017, some of which would buy spare parts for aircraft, but aviation readiness is not expected to fully recover until at least 2020.

Thornberry said the museum salvage attempt he learned about didn’t work, and the Marines were forced to find another fix to get the aircraft ready for an overseas mission.

“The part they took off the museum aircraft did not fit the aircraft they were trying to keep flying,” he said. “But they’re looking for whatever they can do to keep these things up in the air. It’s just amazing.”

Earlier this month, Marine Commandant Gen. Robert Neller blamed some of the maintenance and repair woes on the continued high tempo of operations.

“The fight in ISIL continues to put stress on equipment, particularly aviation,” he told lawmakers, using an acronym for the Islamic State group. “We’re in the process of resetting our equipment and then you’re trying to maintain legacy gear, and at the same time modernize every model type series of aircraft.”

Other service officials have echoed similar problems. Dunford and Defense Secretary Ash Carter point to Congress’ defense spending caps, which have limited maintenance and investment accounts in recent years, and begged for relief in upcoming budgets.

But committee members have questioned the Pentagon leaders’ assessments that the White House’s fiscal 2017 budget request is truly enough to fix the deep-seated problems, criticizing their promises that next year’s spending caps will be enough to right the force.

Thornberry said that several service members have told him they’ve started buying “basic supplies” like pens and cleaning products “because otherwise it would take three to four months to get them if they could get them at all.”

“I’d say my concern level was very high when I hear [anecdotes] like that. You have folks out there doing their job and they can’t get a pen from the federal government procurement system.

“It just makes you think ‘my gosh, can’t we do better than this?’”

Obamaphones Back in the News, the Scandal was a Secret

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Primer: Remember YOU, the taxpayer are subsidizing this program.

FNC/WSJ: The U.S. government spent about $2.2 billion last year to provide phones to low-income Americans, but a Wall Street Journal review of the program shows that a large number of those who received the phones haven’t proved they are eligible to receive them.

The Lifeline program—begun in 1984 to ensure that poor people aren’t cut off from jobs, families and emergency services—is funded by charges that appear on the monthly bills of every landline and wireless-phone customer. Payouts under the program have shot up from $819 million in 2008, as more wireless carriers have persuaded regulators to let them offer the service.

The FCC on the Lifeline program.

FCC Kept ‘Obamaphone’ Fraud Under Wraps Until After It Expanded Program

Commissioners were instructed not to reveal $5 million fine until day after controversial Lifeline expansion vote

 Tom Wheeler / APTom Wheeler / AP

Federal regulators were instructed to keep a massive fraud investigation under wraps until a day after a controversial vote to expand a program that was allegedly used to bilk taxpayers of tens of millions of dollars, one those regulators claims.

The Federal Communications Commission on Friday announced that it would seek $51 million in damages from a cell phone company that allegedly defrauded the federal Lifeline program of nearly $10 million.

The commission’s five members unanimously backed the Notice of Apparent Liability (NAL), but Republican commissioner Ajit Pai parted from his colleagues in a partial dissent. According to Pai, he and other commissioners were told not to reveal the details of its investigation until April 1, a day after the FCC voted to expand the Lifeline program.

“Commissioners were told that the Notice of Apparent Liability could not be released or publicly discussed until April 1, 2016, conveniently one day after the Commission was scheduled to expand the Lifeline program to broadband,” Pai wrote. “That’s not right.”

Pai did not say who issued that directive. However, it had the effect of preventing public knowledge of widespread fraud in the Lifeline program ahead of a contentious vote on expanding it despite persisting concerns about a lack of internal safeguards.

FCC spokesman Will Wiquist insisted that the timing was completely coincidental. “The timing of the enforcement action was in no way related to the timing of the vote on the program modernization,” he said in an email.

Lifeline has faced controversy over enrollment requirements that its critics say are too lax and vulnerable to fraud. The service, which subsidizes cell phone plans for low-income Americans, allows beneficiaries to enroll using cards issued for the Supplemental Nutrition Assistance Program (SNAP), a welfare program that has also faced fraud allegations.

Critics of the Lifeline program began calling its subsidized cell phones “Obamaphones” early in the Obama administration in response to viral YouTube videos of beneficiaries thanking the president for their free phones. The program was actually created under President Ronald Reagan.

The FCC’s NAL last week accused cell phone provider Total Call Mobile, which provides Lifeline services in 19 states, of “systematic and egregious misconduct” and “widespread enrollment fraud.”

According to the commission, Total Call employees enrolled tens of thousands of duplicate Lifeline beneficiaries and pocketed the extra subsidies. The FCC caught onto the scheme when the company enrolled an undercover FCC investigator in the program without asking for any eligibility documentation.

“Since 2014, Total Call has requested and received an estimated $9.7 million dollars in improper payments from the Universal Service Fund for duplicate or ineligible consumers despite repeated and explicit warnings from its own employees, in some cases compliance specialists, that company sales agents were engaged in widespread enrollment fraud,” the FCC said in a news release.

A common means of fraudulent enrollment was the repeated use of a single SNAP identification card, according to the FCC. That drew the ire of Commissioner Michael O’Reilly, who said the use of SNAP cards as Lifeline verification mechanisms is woefully inadequate.

“I must once again lodge my extreme frustration that the Commission continues to rely on SNAP as an entry point in the Lifeline program, and has the gall to claim that it is a highly accountable program, when it is painfully obvious to anyone paying attention that SNAP is riddled with waste, fraud, and abuse,” he wrote in a partial dissent in the Total Call case.

Despite those ongoing concerns, the FCC recently voted to expand the Lifeline program to include subsidies for 3G wireless broadband service.

That vote followed a contentious debate over the scope of the expansion and its accompanying price tag. The commission approved the expansion by a narrow 3-2 vote on March 31, a day before the FCC announced its Total Call NAL.

The existence of a massive ongoing Lifeline fraud investigation might’ve affected public perception of that vote, if not the vote itself, leading Pai to call the muzzling of commissioners on the Total Call investigation “conveniently” timed.

Pai also objected to commission delays that he said prevented it from sanctioning Total Call for the full scale of its apparent misconduct.

“Even though [the FCC] identified 32,498 intra-company duplicates, we pursue only 2,587. Even though we have evidence that Total Call Mobile bypassed federal safeguards to enroll 99.8% of its subscribers, we hold the company liable for only 16%,” Pai wrote.

“Under these circumstances, our precedent suggests that a forfeiture of at least $84,295,910 would have been appropriate. Yet the Commission settles for something much less.”

Even as the FCC was investigating this pattern of alleged fraud, Total Call was pouring money into its new Washington lobbying operation. According to disclosure forms, it hired lobbyists with the firm ML Strategies in June of last year, a month after the FCC subpoenaed the company.

ML Strategies has reported collecting $120,000 in fees from Total Call to lobby Congress and the FCC on “general issues related to the Lifeline program.”

The FCC’s investigation is not Total Call’s first time running afoul of federal regulators: the commission issued a $12,000 NAL in 2010 accusing the company of failing to abide by regulations on hearing aid compatibility.

Its sister companies have faced far larger fines for more egregious offenses.

Total Call Mobile is wholly owned by prepaid phone card company Total Call International, which is wholly owned by Japanese telecommunications giant KDDI. KDDI is also the sole shareholder of Locus Telecommunications.

The FCC has targeted Locus in numerous enforcement actions over the past decade, and sought fines reaching into the eight figures.

The FCC levied a $5 million penalty against the company in October “for deceptively marketing its prepaid telephone calling cards.” Previous Notices of Apparently Liability sought fines from the company of $5 million, $330,000, $25,000, $23,000, and $12,000.