Adds statement from DISH, US Attorney's Office, in paragraphs 3-7

By David Shepardson

WASHINGTON, May 6 (Reuters) - DISH Wireless agreed to pay $17.3 million to resolve a U.S. government investigation that it signed up ineligible consumers to take part in a pandemic-era program that provided subsidized broadband services to millions of Americans.

DISH, a subsidiary of EchoStar SATS.O, provides service through Boost Mobile and allegedly received payments for thousands of ineligible consumers, the Justice Department said.

Congress allocated $17 billion to help lower-income families and people affected by COVID-19 gain internet access through a $30-per-month voucher toward paying for internet service that was used by about 21 million U.S. households.

"DISH and its employees fraudulently signed up ineligible applicants to receive federal monies,” said U.S. Attorney Jeanine Pirro of the District of Columbia. “By doing so DISH received payments which they were not entitled. This is a shameful act on the part of a large corporation that is rightfully required to pay $17 million."

DISH said it relied on government systems for eligibility determinations. "We cooperated with government inquiries and proactively instituted process improvements to address gaps and potential abuse by third-party retailers," the company said, adding it denied wrongdoing but "agreed to this settlement in the interest of moving forward."

The Federal Communications Commission inspector general said, "DISH continued seeking FCC program funds for months after its executives learned about its agents’ enrollment fraud."

The government alleged DISH submitted claims for more than 66,000 subscribers who did not identify a school-aged student in their applications and enrolled more than 2,400 subscribers using duplicate beneficiaries as the basis for eligibility.