Alleged Robocaller Faces Proposed Record $225M FCC Fine
Alleged robocall businesses Rising Eagle Capital and JSquared Telecom and principals of the companies were subject Tuesday to the largest fine in FCC history -- $225 million -- and litigation brought by seven states alleging Telephone Consumer Protection Act (TCPA)…
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violations. FCC Commissioner Brendan Carr said the fine proposal -- approved unanimously by the commissioners -- "represents a major win" for commission efforts to partner with the telecom industry on robocall issues. USTelecom's Industry Traceback Group traced the calls coming from the firms and passed that information on to the Enforcement Bureau, he said. USTelecom didn't comment. The FCC said the fine is for an estimated 1 billion spoofed robocalls made in the first four-plus months of 2019 by the health insurance telemarketers. It said the calls purported to be from such insurers as Aetna, BlueCross BlueShield, Cigna and UnitedHealth Group but were on behalf of unaffiliated insurer clients of Rising Eagle and JSquared. It said people on the Do Not Call registry were particularly targeted. Chairman Ajit Pai said at least one of the companies that Rising Eagle and JSquared falsely claimed to represent was sued multiple times because its number was spoofed. Commissioner Jessica Rosenworcel said the fine "sounds right [for] fraud on an enormous scale" but criticized the DOJ for its largely fruitless efforts in recent years collecting FCC-levied fines. Echoing her, Commissioner Geoffrey Starks said it's also difficult to get information from the Enforcement Bureau on collections efforts. DOJ and EB didn't comment. The states' litigation (docket 20-cv-02021) brought Tuesday in U.S. District Court in Houston makes allegations similar to those the FCC investigated and says the companies also would make robocalls trying to sell automobile extended service warranties. The suit asks for damages of $1,500 for each willful TCPA violation or $500 for each unknowing violation, plus a permanent enjoinder. It alleges 328 million robocalls made to seven states during the first four-plus months of 2019. Suing are the state attorneys general of Arkansas, Indiana, Michigan, Missouri, North Carolina, Ohio and Texas. John Spiller, allegedly a principal of the companies and named in the states' suits, told us he was unaware of any possible fine, that he and fellow defendant Jakob Mears were unaware of an FCC investigation, and he denied the commission's robocall allegations.