FOLLOW US

Tue

August 3, 2026

America July 12, 2024 3 mins read

Armstrong Group to Pay $6.5M to Settle FCA case

America ı By Rihem Akkouche

0 Comments

Armstrong Group to Pay $6.5M to Settle FCA case

A Western Pennsylvania telecommunications company has agreed to pay $6.5 million to settle claims that it violated federal law by inflating its costs to receive greater federal subsidies under the Federal Communication Commission's High-Cost Program, the U.S. Department of Justice said Friday.

The settlement resolves the government's action filed in the U.S. District Court for the Western District of Pennsylvania, alleging that Butler, Pennsylvania-based Armstrong Group violated the False Claims Act. The company was accused of submitting inflated funding requests for money from the FCC's Universal Service Fund, which supports high-speed communications infrastructure and access.

High-Cost Program and FCC Violations

The High-Cost Program, part of the Universal Service Fund (USF), provides federal funds to eligible telecommunications carriers, or incumbent local exchange carriers (ILECs), to expand connectivity to rural or high-cost areas, the DOJ explained.

"When providers like the Armstrong Group fail to follow federal law and FCC regulations, they jeopardize not only critical government programs but also consumers' ability to access a modern lifeline — rapid, reliable, and efficient telecommunications services," said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania.

Armstrong Group to Pay $6.5M to Settle FCA case : Whistleblower and Overstated Costs

Federal authorities claimed that from 2008 to 2023, five Armstrong Group telephone companies in Pennsylvania, New York, West Virginia, and its Northern Division entity overstated costs related to telecom infrastructure to receive more money. The case was brought to the government's attention by whistleblower James Ranko, Armstrong's former controller, who is set to receive $1.26 million from the settlement.

"I have never witnessed such greed, arrogance, and mindlessness in my entire career and felt the need to come forward to address what I saw was a blatant misuse of the federal subsidy program by Armstrong's decisions to improperly allocate costs to pad their profits with government dollars," Ranko said in a statement issued by his counsel at Phillips & Cohen LLP.

Misallocation of Funds and Government Representation

The law firm statement noted that Armstrong had received tens of millions of dollars in federal funding and, beginning in 2012, misallocated $180,000 per year on company airplane costs for Armstrong Telephone. Ranko, who worked at Armstrong from 2008 to 2016, said he and others suggested developing a cost allocation manual to ensure Armstrong Telephone's expenditures complied with federal law, but the idea was rejected by executives.

"Accurate reporting of costs by rural telephone carriers is essential to ensure proper allocation of federal subsidy dollars. We applaud our client for coming forward to report his concerns to the Department of Justice and the Federal Communications Commission," said Colette Matzzie, an attorney for Ranko.

The government is represented by Benjamin C. Wei and Paul E. Skirtich of the U.S. Attorney's Office for the Western District of Pennsylvania, and Elliot Lowenstein and Peter Feinberg of the FCC Office of Inspector General. Ranko is represented by Colette Matzzie of Phillips & Cohen LLP and Andrew Stone of the Stone Law Firm.

Counsel information for Armstrong Group was not immediately available. Armstrong did not immediately respond to a request for comment.

Previous Article

Launch One Raises $200M in IPO, Eyes Healthcare Sector

Read More
4427 Posts

Rihem Akkouche

Rihem Akkouche is a passionate journalist dedicated to shedding light on compelling stories, sparking conversations, and fostering a more informed world.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America August 01, 2026
Mail Carrier Accused of Pocketing Stranger’s $2,600 Jackpot
By – Rihem Akkouche
America August 01, 2026
Westinghouse Electric Files for IPO
By – Rihem Akkouche
America July 31, 2026
Kean University Hit With Class Claims Over Data Breach
By – Rihem Akkouche
America July 31, 2026
Space-Eyes to Go Public in $638 Million SPAC Merger
By – Rihem Akkouche
Arizona January 11, 2025
Kelly Warner Law Firm Blames USA…

In what appears as a desperate attempt to defend multiple…

By – USA Herald
Arizona January 4, 2025
Aaron Kelly Law Firm Resorts To…

Attorney Aaron Kelly and his law partner Daniel Warner are…

By – Jeff Watterson
Arizona December 12, 2024
Arizona Bar Opens Investigation on Attorney…

USA Herald recently reported on a developing story involving Attorneys…

By – Paul O'Neal
America July 31, 2026
California, Arizona, Nevada would face Colorado…

The Colorado River has been running low for years, and…

By – Rihem Akkouche
America July 31, 2026
Alimentation Couche-Tard Inks $8.6B Deal For…

Alimentation Couche-Tard Inc. just made its boldest move yet, announcing…

By – Rihem Akkouche
America July 31, 2026
Netflix sued for $105M over stolen…

An unreleased World War II spy film starring Nicolas Cage…

By – Rihem Akkouche
America July 31, 2026
Sainsbury to Sell Argos for £120m…

Sainsbury’s has finally reached the finish line on something it’s…

By – Rihem Akkouche
High Profile Court Cases July 31, 2026
Colin Gray Gets 15 Years After…

Colin Gray received a 15-year prison sentence Thursday, far below…

By – Michallie Harrison
America July 31, 2026
Scouting America Jamboree Drops Diversity Spaces

The Scouting America diversity rollback has reached the organization’s National…

By – Michallie Harrison
America July 31, 2026
Scouting America Jamboree Drops Diversity Spaces

The Scouting America diversity rollback has reached the organization’s National…

By – Michallie Harrison
America July 30, 2026
Show Me the Money: Accuser in…

INSIDE THIS REPORT Aleksandra Vasilevna Mendoza is pushing Kick to…

By – Samuel Lopez
America July 30, 2026
Kohberger Gets New Taxpayer-Funded Lawyer as…

INSIDE THIS REPORT Kohberger has been appointed counsel for post-conviction…

By – Samuel Lopez
America July 30, 2026
Milwaukee Lawyer Gets 21 Years After…

INSIDE THIS REPORT — A Milwaukee jury convicted attorney Robert L.…

By – Samuel Lopez
America July 30, 2026
AI-Assisted Pro Se Litigant Faces Off…

INSIDE THIS REPORT A pro se plaintiff using AI tools…

By – Samuel Lopez
America July 30, 2026
Insurer Moves to Block $10M Punitive-Damages…

INSIDE THIS REPORT Twin City Fire Insurance seeks a ruling…

By – Samuel Lopez
America July 30, 2026
Amish Community Murder: Ohio Man Pleads…

An Amish Community murder case which stunned Ohio has ended…

By – Jackie Allen
America July 30, 2026
E. Jean Carroll Case: Trump Asks…

President Donald Trump has asked the U.S. Supreme Court to…

By – Jackie Allen
America July 29, 2026
Netflix Releases The Idaho Murders: College…

BOISE, Idaho — The Idaho Murders: College Nightmare is a…

By – Jackie Allen
America July 28, 2026
Lindsey Graham Remembered by Trump as…

 WASHINGTON — President Donald Trump remembered Lindsey Graham as a…

By – Jackie Allen
America July 28, 2026
5 of the Best Free-to-Read Online…

Online Comic Books have changed the way readers discover superheroes,…

By – Jackie Allen
America July 27, 2026
Hiring Increase as U.S. Companies Recalibrate…

A surprising Hiring Increase is emerging at some of America’s…

By – Jackie Allen
America July 27, 2026
Hiring Increase as U.S. Companies Recalibrate…

A surprising Hiring Increase is emerging at some of America’s…

By – Jackie Allen
America July 26, 2026
Kacy Corso Pleads in the Stony…

Kacy Corso, 34, of East Setauket, pleaded guilty in July…

By – Jackie Allen
America July 26, 2026
Kaylee Hottle Dies at 18 After…

Kaylee Hottle, a rising deaf actress celebrated for her breakthrough…

By – Jackie Allen
America July 25, 2026
Human Trafficking Operation Nets 15 Arrests,…

SHELBY COUNTY, Ala. — A human trafficking operation in north…

By – Jackie Allen
America July 25, 2026
Lululemon Murder: Part II — Forensic…

Editor’s Note: This is Part II of an ongoing series…

By – Jackie Allen
America July 24, 2026
Lululemon Murder: Brutal Killing of Jayna…

More than 15 years after a young retail manager was…

By – Jackie Allen
America July 30, 2026
Insurer Moves to Block $10M Punitive-Damages…

INSIDE THIS REPORT Twin City Fire Insurance seeks a ruling…

By – Samuel Lopez
America July 30, 2026
Disney and James Cameron Move to…

INSIDE THIS REPORT Disney says Neytiri was modeled on Zoe…

By – Samuel Lopez
America July 30, 2026
Defense Lawyers Warned: Use AI or…

INSIDE THIS REPORT Defense lawyers are being urged to adopt…

By – Samuel Lopez
America July 30, 2026
Could Diddy Still Cooperate? Federal Law…

INSIDE THIS REPORT A federal prison sentence does not necessarily…

By – Samuel Lopez
Entertainment July 29, 2026
Children of Blood and Bone Author…

Paramount Pictures is promoting the Children of Blood and Bone…

By – Michallie Harrison
America July 29, 2026
Grant Thornton To Buy CBIZ in…

In a move poised to redraw the map of the…

By – Rihem Akkouche
Breaking News July 29, 2026
Trump Ends Medicare Part D Subsidy,…

The Trump administration is ending a Medicare Part D subsidy…

By – Michallie Harrison
Health July 17, 2026
Taylor Farms Linked to Third Major…

Taco Bell became the public face of a massive Cyclospora…

By – Michallie Harrison
America July 4, 2026
Beach Closures Expand Across Long Island…

Beach Closures were spread across parts of New York just…

By – Jackie Allen
Health July 2, 2026
The Hidden Science Behind Why Your…

For millions of people, the first conscious act of the…

By – Tyler Brooks
Health July 2, 2026
The High Cost of the Infinite…

A significant legal chapter is closing for one of the…

By – Tyler Brooks
Health July 2, 2026
Kentucky Medicaid Alert How The Upcoming…

A significant change is arriving for thousands of Kentucky residents…

By – Tyler Brooks
Sports July 31, 2026
FIFA World Cup Stake Sale Sparks…

The proposed FIFA World Cup stake sale has triggered a…

By – Michallie Harrison
America July 25, 2026
Adrien Broner Hit With Sexual Battery…

INSIDE THIS REPORT Havana Saint accuses Adrien Broner of sexual…

By – Samuel Lopez
Sports July 22, 2026
Why the Hungarian Grand Prix Never…

The lights go out and twenty-two Formula 1 cars explode…

By – Theresa Jardim
America July 21, 2026
Professional Boxer Killed in Texas Bicycle…

Hannah Rapp, a rising professional boxer who recently challenged for…

By – Jackie Allen
America July 20, 2026
Hannah Rapp Dies at 26 After…

 Hannah Rapp, a rising professional boxer who earned a shot…

By – Jackie Allen
America July 19, 2026
World Cup Thriller: England Outlasts France…

World Cup history gained another unforgettable chapter Saturday as England…

By – Jackie Allen

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter