Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Former adviser to head of US Federal Communications Commission Ajit Pai charged with $250m fraud

Appointee said to have forged signatures on contracts

Jeremy B. White
San Francisco
Tuesday 17 April 2018 18:39 EDT
Comments
Federal Communications Commission Chairman Ajit Pai appointed Elizabeth Pierce to a broadband advisory committee last year
Federal Communications Commission Chairman Ajit Pai appointed Elizabeth Pierce to a broadband advisory committee last year (REUTERS/Aaron Bernstein)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

A business executive appointed to a government advisory panel by Federal Communications Commission head Ajit Pai has been charged with defrauding investors out of more than $250m (£175m).

A complaint unsealed last week alleges that Elizabeth Pierce duped investors into pouring millions into an Alaska-based fibre optic company she oversaw as part of an effort to finance the construction of a fibre optic system linking Alaska to the continental US.

The document alleges she lured investors by falsely giving the appearance that she had deals lined up with telecommunications firm, saying she forging signatures on contracts and thus rendered the agreements presented to investors “completely worthless”.

“As a result of Pierce’s deception, the investment companies were left with a system that is worth far less than Pierce had led them to believe”, US Attorney Geoffrey Berman said in a statement.

Charged with a count of wire fraud that could bring a 20-year prison sentence, Ms Pierce surrendered to FBI agents last week, according to the US Attorney’s office for the southern district of New York. She has not yet entered a plea.

Last April, Mr Pai announced that he had appointed Ms Pierce to head the federal communications agency’s Broadband Deployment Advisory Committee. She resigned in September.

A spokesman for the Federal Communications Commission declined to comment on the allegations against Ms Pierce. An attorney for Ms Pierce did not respond to a request for comment.

Net Neutrality: Ajit Pai and FCC scraps online regulation changing how the internet works

The company for which Ms Pierce formerly served as CEO, Anchorage-based Quintillion, said in a statement that it has been cooperating with federal investigators.“Quintillion continues to move aggressively to extend its network and provide world-class telecommunications to Alaska and beyond”, the statement said.

Read more on fibre broadband

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in