President Joe Biden's Department of Justice (DOJ) has moved to dismiss a $3.3 billion fraud lawsuit against Dish Network following revelations of significant donations to the Biden-Harris reelection campaign by the company's founder, Charlie Ergen, and his wife.
The couple contributed over $113,000 to the campaign, coinciding with a $50 million grant awarded to Dish by the Biden administration shortly thereafter.
Ergen, a former professional poker player instrumental in the establishment of what was then known as EchoStar Communications in 1980, has been embroiled in a legal battle against the federal fraud claim for nearly a decade.
His fortunes changed, however, following the sizable contributions made to Biden's super PAC and campaign committee in December, as disclosed in campaign finance filings.
In January, Dish secured a $50 million grant from the administration to bolster nationwide 5G coverage, utilizing a $1.5 billion fund established by the CHIPS and Science Act. This grant was touted as the “largest award” of its kind by the company.
The DOJ's decision to dismiss the fraud case has drawn scrutiny, raising concerns about the independence of the institution. Attorney General Merrick Garland has staunchly defended the DOJ's integrity, describing its staff as patriotic, despite widespread perceptions of partisan influence.
Critics point to instances where the DOJ has targeted journalists and pro-life activists, as well as allegations of interference in investigations involving Hunter Biden. Joseph Ziegler and Gary Shapley, two IRS agents, testified as whistleblowers, revealing purported interference from the DOJ in their inquiries into Hunter Biden's tax offenses.
The dismissal of the fraud case against Dish Network has raised further questions, particularly regarding the timing of the decision and potential motivations behind it. Attorney Ross, representing Vermont Telephone, the plaintiff in the case, has accused the DOJ of attempting to shield Ergen from scrutiny, citing substantial political contributions made by Ergen and Dish's Political Action Committee to Democratic causes over the years.
Amidst concerns over its financial stability, speculation has arisen regarding the possibility of Dish filing for bankruptcy this year. This apprehension follows an acquisition by EchoStar that left Dish financially strained, compounded by the looming threat of a substantial judgment in a civil case, potentially resulting in damages exceeding $6 billion.
Sources close to the situation have revealed that Ergen maintains a significant presence in Washington, D.C., with frequent interactions at the White House and FCC headquarters. Described as being “very close to the White House” throughout Biden's presidency, Ergen purportedly boasts about his connections and has been observed entering and exiting FCC headquarters on multiple occasions.
The move to dismiss the case was filed on March 8 by senior DC US District Judge Colleen Kollar-Kotelly and remains pending. Court filings indicate that the DOJ's Civil Division previously opposed the dismissal in 2022 and 2023.
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