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Telephone company facing charges for defrauding federal program

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OKLAHOMA CITY – An Oklahoma telephone company, including its owner and vendor, face federal charges for defrauding a federal program that provides telephones for low-income customers.

Icon Telecom Incorporated is accused in a $25 million scheme.

They allegedly received up to $34 per month for more than 135,000 customers.

The government says the company picked names and addresses out of phone books to create bogus Lifeline customers.

They then sold telephones registered to these fake customers on the street and during tent sales, for as little as $5 each.

Money for the Lifeline fund comes from the “Universal service fund fee” you see in the fine-print on your phone bill.