DOJ Backs Down from Massive Fraud Case Against Dem Megadonor Dish CEO, BlackRock

DOJ Backs Down from Massive Fraud Case Against Dem Megadonor Dish CEO, BlackRock

Suspicious Reversal

BRIETBART

FCC insiders are raising concerns over the Justice Department’s sudden push to settle a multi-billion dollar fraud lawsuit against Democratic megadonor Charlie Ergen’s Dish Network and BlackRock, just before they were set to be deposed.

Last year, Elon Musk tweeted that Dish Network CEO and major political donor Charlie Ergen “is trying steal” wireless internet through his lobbying.  He previously accused Ergen of engaging in “sneaky moves” at the FCC. Musk was criticizing Ergen’s failed lobbying and lawfare efforts to have the government punish SpaceX who was competing for spectrum.

A Senior FCC official told Breitbart News he is raising alarm bells over what he calls “a suspicious reversal by the Justice Department” to protect Ergen, as well as executives at Blackrock, to prevent them from testifying about allegedly fraudulent conduct in a wireless auction.

Andrew Harrer/Bloomberg

Under FCC regulations, the agency grants discounted “bidding credits” to small businesses called “designated entities” in wireless spectrum auctions. In 2015, Dish Networks — hardly a small business with a valuation over $25 billion at the time — with backing from BlackRock-financed Northstar Wireless and SNR Wireless who went on to win the auctions, describing themselves as “”very small businesses”. These credits were worth $3.3 billion dollars and pushed out legitimate smaller businesses out of the auction.

Northstar and SNR disclosed they received financing from Dish but claimed to act independently. After the FCC further reviewed the arrangements, then Chairman Ajit Pai determined Dish and its “shell bidders want this spectrum at a taxpayer-funded discount” and Dish had “de facto control” over the companies and denied the credits.

The FCC and Justice Department also endorsed a False Claims Act qui tam which VermonTel, a smaller company pushed out by Dish, filed in 2015. The suit has alleged the entire bidding process was fraudulent. Qui tam actions allow certain private parties to litigate fraud cases on behalf of the U.S. government.

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After almost nine years of litigation, the case was set to be heard including deposing Dish’s CEO Charlie Ergen, which was scheduled for February 15. However, just before Ergen and BlackRock were to be deposed, the Justice Department told VermontTel to either settle or else the Department would drop the case.

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Header featured image (edited) credit: Ergen/Andrew Harrer/Bloomberg

Emphasis added by (TLB)

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