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- Path: sparky!uunet!zaphod.mps.ohio-state.edu!news.acns.nwu.edu!telecom-request
- Date: 16 Aug 92 16:40:07 GMT
- From: 1012breuckma@vmsf.csd.mu.edu
- Newsgroups: comp.dcom.telecom
- Subject: Pager Fraud Conviction
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- X-Telecom-Digest: Volume 12, Issue 637, Message 1 of 7
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- From {The Milwaukee Journal} 8/16/92
-
- Angry Callers Help Convict Man Behind Beeper Scheme
-
- New York, N.Y. - A Manhattan man has been convicted of leaving
- messages on thousands of beepers for a telephone number that cost $55
- to call. While the defendant, Michael Brown, 23, never made a dime,
- prosecutors said he stood to make millions before he was caught last
- year. They said he tried to defraud thousand of potential victims.
-
- US Atty. Otto Obermaier said Brown hooked up two computers in his
- apartment and then attached them to two telephone lines. On one line,
- the computer placed more than 4,000 calls a day to pagers that people
- carry with them. A message said that a return call for telephone-
- based informational services should be made to a special 540 number on
- Brown's second line tied to the second computer.
-
- What the unsuspecting people who returned the calls were not advised
- is that it would cost them $55 a call, in violation of a New York
- State Public Service Commission regulation requiring operators of toll
- numbers to advise incoming callers of the cost so they can hang up
- before being charged. But Brown devised a scheme in which the
- computer kept callers on the line for at least 20 seconds, the time
- required so they could be billed for $55 by the telephone company.
-
- In a six-day period in February 1991, the first computer spewed out a
- total of 26,000 calls. But the fraud did not last long because irate
- subscribers inundated New York Telephone with complaints of the $55
- charge. By the time the company notified federal prosecutors and
- disconnected Brown's two lines, he had billed a total of $198,000.
- But prosecutors said that he never collected a dime, and that New York
- Telephone made no efforts to collect the bills. After his conviction
- last week, Brown faces up to five years in prison and a fine of
- $250,000 when he is sentenced on Oct. 28. He is free on $30,000 bail.
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