FCC Proposes $220K Fine Against Cleo for Apparent EBB Violations

The FCC proposed a $220,210 fine against Cleo Communications and its CEO Kyle Traxler for "engaging in conduct that violated the federal wire fraud statute" through its participation in the emergency broadband benefit program between May and August 2021, said a notice of apparent liability posted Friday. Cleo "made apparent misrepresentations" to receive authorization to participate in the program, including that it "had been providing broadband services in 54 states and territories" on Dec. 1, 2020, and "apparently used that authorization to defraud consumers using interstate wires," the notice said. The company "promised consumers that they would receive EBB program-discounted broadband services and devices in exchange for online electronic payments to Cleo, but the company never delivered the broadband services or devices."