Related Federal Cases
Sprint Communications, Inc. Fined $15.5 Million for Overcharging Law Enforcement Agencies
San Francisco – Sprint Communications, Inc., formerly Sprint Nextel Corporation, has been fined $15.5 million for allegedly defrauding federal law enforcement agencies when recovering its costs of carrying out court-ordered wiretaps, pen registers, and trap devices.
A joint investigation by the U.S. Attorney’s Office and the U.S. Department of Justice Office of Inspector General revealed that from 2007 to 2010, Sprint improperly included in its intercept charges the costs of making certain upgrades to its system.
Like other telecommunications carriers, Sprint is authorized by statute to bill law enforcement agencies for the reasonable expenses it incurs in providing facilities or assistance to accomplish a court-ordered wiretap, pen register, or trap device. However, in 2006, the Federal Communications Commission ruled that carriers were prohibited from passing on the costs of their CALEA upgrades to law enforcement agencies in their intercept bills.
The investigation by OIG and the U.S. Attorney’s Office revealed that from 2007 to 2010, in violation of the FCC’s ruling, Sprint nevertheless included in its intercept charges the hidden costs of financing its CALEA upgrades.
Assistant U.S. Attorneys Steven J. Saltiel and Kimberly Friday handled the matter on behalf of the U.S. Attorney’s Office. The settlement with Sprint Communications, Inc. was the result of a coordinated effort by the United States Attorney’s Office, and the OIG.
Sprint agreed to pay $15.5 million to resolve the allegations in the complaint but did not admit to any wrongdoing or liability.
Mandatory Facts:
- Defendant: Sprint Communications, Inc.
- Criminal Charges: Defrauding federal law enforcement agencies
- City and State: San Francisco, California
- Exact Date: 2010 (alleged crime date)
- Sentence or Outcome: $15.5 million fine
- Dollar Amounts: $15.5 million
Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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