Philadelphia

Lititz Phone Dealer Admits $741K Pandemic Relief Scam, Feds Say

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Published on June 02, 2026
Lititz Phone Dealer Admits $741K Pandemic Relief Scam, Feds SaySource: Google Street View

Federal prosecutors say a 25-year-old Lititz businessman turned a federal internet discount program into a personal cash stream, and on Tuesday he admitted it in court.

Krandon Wenger, a Lititz resident and owner of K20 Wireless, pleaded guilty in U.S. District Court in Philadelphia to two counts of wire fraud in a scheme prosecutors say siphoned roughly $741,726 from the Affordable Connectivity Program. Prosecutors allege Wenger told employees to alter subscriber records and file false certifications so his company could collect higher tribal-land reimbursements for customers who were not eligible. The plea ties a Lancaster County business to a national enforcement effort targeting pandemic-era relief fraud.

According to FOX43, Wenger waived prosecution by indictment and admitted that K20 submitted applications and monthly certifications claiming many subscribers lived on tribal lands. The outlet reported Wenger is scheduled to be sentenced on Sept. 28, 2026, and that prosecutors say the false claims produced roughly $741,726 in overpayments to K20. Each wire-fraud count carries a statutory maximum of 20 years in prison. On paper, that means Wenger faces up to 40 years behind bars.

How prosecutors say the scheme worked

Regulatory filings and enforcement records show K20 repeatedly “transferred in” subscribers from other providers and then altered their addresses in the National Lifeline Accountability Database to locations on tribal lands, a tactic that yields a higher $75 monthly ACP reimbursement instead of the standard $30. The FCC’s removal order and agency documents say more than 85 percent of K20’s claimed subscribers were transferred in without consumers’ knowledge and that USAC locked out K20 agents from the enrollment database in April 2023. Those regulatory findings track closely with the allegations laid out in the court filings tied to Wenger’s plea.

Legal exposure and next steps

Wenger pleaded guilty to two counts of wire fraud tied to K20’s ACP claims, and the criminal information says the scheme caused over $741,700 in government overpayments. FOX43 reports he waived an indictment and will return to federal court for sentencing on Sept. 28, 2026. Federal wire-fraud convictions can bring prison time, fines, and restitution orders, with the exact sentence to be decided by the judge.

Part of a broader enforcement push

The plea comes as the Department of Justice has centralized anti-fraud efforts with a newly created National Fraud Enforcement Division and announced a string of prosecutions targeting pandemic-era schemes. The DOJ has pointed to major telecom prosecutions, including guilty pleas and settlements in the Q Link Wireless matter, as evidence of heightened focus on misuse of connectivity programs. For background on federal coordination and the regulatory investigatory work that preceded criminal charges, see the Department of Justice’s materials and the Universal Service Administrative Company’s investigation documents.

Court records will be updated as the case moves toward the September sentencing date, and federal prosecutors say the outcome will be part of ongoing efforts to protect ACP dollars for eligible households. The U.S. Attorney’s Office for the Eastern District of Pennsylvania is prosecuting the case.