- Associated Press - Wednesday, July 20, 2016

CHARLESTON, W.Va. (AP) - Frontier Communications is accused of misusing $40.5 million in federal stimulus funds in a lawsuit filed by Bridgeport-based Internet provider Citynet.

The Charleston Gazette-Mail reports (https://bit.ly/29Vvnb4) Citynet is suing Frontier under the False Claim Act, saying the company built a high-speed broadband network designed to shut out its competitors in West Virginia.

Citynet accuses Frontier of double-billing, falsifying records and charging excess fees not authorized by the federal grant that paid for the broadband expansion project completed two years ago.

The lawsuit also names Homeland Security chief Jimmy Gianato, Chief Technology Officer Gale Given and former Commerce Secretary Kelly Goes as defendants, saying the three were involved with Frontier’s scheme to defraud the federal government.

Citynet and Frontier lawyers declined comment Tuesday to the newspaper.

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Information from: The Charleston Gazette-Mail, https://wvgazettemail.com.


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