The Federal Communications Commission imposed a record $ 225 million fine on two Texas-based telemarketing companies for “counterfeit” robocalls, the agency said Wednesday.
Rising Eagle and JSquared Telecom were fined after placing nearly a billion robocalls in 2019 to falsely sell short-term health insurance.
“John C. Spiller and Jakob A. Mears, who used company names such as Rising Eagle and JSquared Telecom, shipped the counterfeit robocalls across the country for the first four and a half months of 2019,” the FCC said.
“Mr. Spiller admitted to the USTelecom Industry Traceback Group that he made millions of fake calls a day and knowingly called consumers on the Do Not Call list because he believed it was more profitable to target these consumers.”
According to an anti-spam app, Robokiller, the number of spam calls has increased by 26 percent in the last year.
The FCC also announced on Wednesday that it will assign 51 employees to form a “Robocall Response Team” in response to the increased robocalls. The DOJ, FTC, and Attorney Generals have also been asked to assist with the matter.
Strike letters have been sent to all companies that have violated FCC rules or that the FCC believes have violated the rules.
Today’s cessation letters should serve as a warning to other entities that believe the FCC has condoned this issue. We certainly did not and we are coming to get you, ”acting FCC Chairman Jessica Rosenworcel said in a statement.
The FCC has imposed more than $ 450 million in fines in recent years.