The Federal Communications Commission (FCC) is this week proposing to fine an Ohio-based company $63 million for multiple violations of the Lifeline program.

The Lifeline program is aimed at low-income consumers in America and offers them a way to secure both a phone and broadband service at reduced cost. Eligible consumers receive a $9.25 discount on their phone service and a further $9.25 discount on broadband service. Those discount amounts are received by the service providers who signed up to provide the Lifeline connections.

What the FCC discovered is that wireless reseller American Broadband and Telecommunications Company, based in Ohio, has been carrying out large-scale violations of the Lifeline program rules. In order to maximize the discount funds received, American is thought to have created fake accounts using details of deceased people. Lifeline subscribers also had their personal details tweaked to ensure the funds kept on flowing.

The size of the fine, which totals $63,465,500 may seem large until you consider it is based on claims made in August 2016. American is accused of making 42,309 improper claims that month with 12,000 of those attributed to people who had died. Combining the phone and broadband discounts of those claims would amount to well over $7 million.

According to the FCC, it's Jeffrey Ansted, the owner of the company who is liable for the fine. The investigation revealed that the money sent to his company as part of the Lifeline program was used to buy personal items including a Ferrari convertible, an $8 million Cessna jet, and a Florida condominium thought to be worth $1.3 million.

For now, this remains a proposed action by the FCC and takes the form of a Notice of Apparent Liability for Forfeiture (NAL). Ansted and his company will be given the opportunity to respond to the allegations and present evidence and legal arguments. Only after that will further action be taken, but it seems unlikely the fine will disappear if the FCC has hard evidence of deceased people being used to commit fraud on a massive scale.