MADISON - A Brodhead man has been charged in federal court with wire fraud in connection with an alleged scheme to bilk nearly $200,000 from a government grantee who was expanding high-speed internet to rural areas.
According to documents filed Thursday in court:
Michael W. Booth, 53, of Brodhead, owns the Satellite Store, 805 E. Exchange St., which sells and installs broadband internet services.
Hughes Network Services was awarded a $58.7 million grant funded by the American Recovery and Reinvestment Act to provide broadband service to rural areas where it wasn't available. Hughes contracted with a distributor which arranged for the Satellite Store to market and sell satellite broadband service to qualified customers.
Before installing any equipment, dealers like the Satellite Store were to obtain a valid credit card number from each customer and verify the installation location to ensure it was eligible for Recovery Act, or stimulus, funding.
Instead, between Nov. 9, 2009 and June 13, 2011, Booth allegedly obtained money from Hughes by submitting 277 fictitious orders that either contained fabricated customers names, non-existent addresses, invalid credit card numbers or, falsely stated equipment had been installed at eligible locations when it hadn't been installed or installed at ineligible locations.
Hughes relied on Booth's representations and paid him $198,485.
After noticing that many of Booth's customers had inactive credit card accounts, Hughes uncovered Booth's alleged scheme and promptly repaid the U.S. Rural Utilities Service the Recovery Act funds Booth had illegally obtained.
The single wire fraud count was based on a Dec. 20, 2010 wire transmission that stated a fictitious person in Arlington was eligible for broadband service under the Recovery Act program.
Booth had no comment on the charge when contacted Tuesday.
No court dates have been set in the case. If convicted, Booth faces maximum statutory penalties of 30 years in prison, a $1 million fine and restitution.
According to documents filed Thursday in court:
Michael W. Booth, 53, of Brodhead, owns the Satellite Store, 805 E. Exchange St., which sells and installs broadband internet services.
Hughes Network Services was awarded a $58.7 million grant funded by the American Recovery and Reinvestment Act to provide broadband service to rural areas where it wasn't available. Hughes contracted with a distributor which arranged for the Satellite Store to market and sell satellite broadband service to qualified customers.
Before installing any equipment, dealers like the Satellite Store were to obtain a valid credit card number from each customer and verify the installation location to ensure it was eligible for Recovery Act, or stimulus, funding.
Instead, between Nov. 9, 2009 and June 13, 2011, Booth allegedly obtained money from Hughes by submitting 277 fictitious orders that either contained fabricated customers names, non-existent addresses, invalid credit card numbers or, falsely stated equipment had been installed at eligible locations when it hadn't been installed or installed at ineligible locations.
Hughes relied on Booth's representations and paid him $198,485.
After noticing that many of Booth's customers had inactive credit card accounts, Hughes uncovered Booth's alleged scheme and promptly repaid the U.S. Rural Utilities Service the Recovery Act funds Booth had illegally obtained.
The single wire fraud count was based on a Dec. 20, 2010 wire transmission that stated a fictitious person in Arlington was eligible for broadband service under the Recovery Act program.
Booth had no comment on the charge when contacted Tuesday.
No court dates have been set in the case. If convicted, Booth faces maximum statutory penalties of 30 years in prison, a $1 million fine and restitution.