‘Obamaphone’ program riddled with fraud: Audit

The controversial “Obamaphone” program, which pays for cellphones for the poor, is rife with fraud, according to a new government report Thursday that found more than a third of enrollees may not even be qualified.

Known officially as the Lifeline Program, the phone giveaway became a symbol of government waste in the previous administration. Now a new report from the Government Accountability Office bears out those concerns.

The report, requested by Sen. Claire McCaskill, Missouri Democrat, also says the program has stashed some $9 billion in assets in private bank accounts rather than with the federal treasury, further increasing risks and depriving taxpayers of the full benefit of that money.

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