PHILADELPHIA, PA — A Pennsylvania telecommunications company owner pleaded guilty Tuesday to federal wire fraud charges stemming from a scheme that caused the federal government to overpay more than $741,000 in pandemic-era broadband subsidies, according to the U.S. Attorney’s Office.
Krandon Wenger, 25, of Lititz, admitted before U.S. District Judge Joseph F. Leeson Jr. to two counts of wire fraud related to fraudulent claims submitted through the federal Affordable Connectivity Program, a COVID-era initiative designed to help low-income households maintain internet access.
Federal prosecutors said Wenger owned and controlled K20 Wireless LLC, which became an approved provider under the program in April 2022. The company subsequently enrolled subscribers and sought monthly reimbursements from the federal government.
According to court filings, the fraud centered on reimbursement rates available to households located on tribal lands. While most eligible households qualified providers for monthly reimbursements of $30, households on tribal lands generated reimbursements of $75 per month.
Prosecutors alleged that Wenger directed employees and agents of K20 Wireless to alter subscriber addresses, changing them from locations on non-tribal lands to addresses on tribal lands before reimbursement claims were submitted to the government.
As a result, the Federal Communications Commission overpaid K20 Wireless by approximately $741,726, according to court records.
The Affordable Connectivity Program was funded through the 2021 Infrastructure Investment and Jobs Act and provided subsidies intended to help low-income Americans maintain broadband service during and after the COVID-19 pandemic.
Wenger was charged by information in May and, by entering the guilty plea, waived his right to prosecution by a grand jury indictment.
He is scheduled to be sentenced on September 28. Each wire fraud count carries a maximum statutory penalty of 20 years in prison, though any sentence will be determined by the court after consideration of federal sentencing guidelines and other factors.
The case was investigated by the FBI with assistance from the FCC Enforcement Bureau. Assistant U.S. Attorney Francis A. Weber is prosecuting the case.
The guilty plea comes as federal authorities continue pursuing pandemic-related fraud cases involving government benefit programs. The Department of Justice earlier this year established a National Fraud Enforcement Division as part of a broader federal effort targeting fraud involving taxpayer-funded programs.
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