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Keyword: long-distance fraud


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Phone company accused of fraud, switching long-distance accounts

   1529 days 17 hours ago (10.09.2004 20:50)

ST. PAUL — Attorney General Mike Hatch has sued a long-distance telephone company, accusing it of switching the long-distance service of thousands of Minnesota businesses and residents without their permission.

Hatch accuses Michigan-based LCR Telecommunications of consumer fraud for «slamming,» the industry term for switching phone service without permission. The lawsuit, filed Wednesday in Ramsey County District Court, seeks unspecified restitution and damages.

An LCR spokesman, Martin Tibbitts, said he hadn’t seen the court filings and couldn’t immediately comment.

Some shady phone companies get consumers to switch service with misleading pitches or trick e-mails, but LCR took a novel approach, Minnesota officials said: Its telemarketers posed as business owners and OK’d the switches.

«This is definitely the most offensive case we have ever seen,» Chief Deputy Attorney General Kris Eiden said at a news conference. «It’s just beyond belief.»

Officials played recordings of several phone conversations in which telemarketers hired by LCR posed as the account holder and agreed to switch phone service. One telemarketer identified himself as Richard Lambert, owner of R. C. Lambert & Associates of St. Paul. When asked to verify his date of birth, he said it was in January.

But the real Richard Lambert, who was present at the news conference, said that’s not true.

«I’m the real Dick Lambert, and actually, my business is in Roseville, not St. Paul,» Lambert said. «I wasn’t born in January. The conversation was obviously totally bogus.»

LCR’s tactics enabled it to grow its Minnesota customer base from four accounts in January 2003 to more than 2,700 customers 16 months later, Eiden said. The total amount due to affected consumers could approach $1 million.

Hatch’s office cannot bring criminal charges, but Eiden said she would refer the case to the proper authorities for prosecution.

Hatch said the case is a lesson to consumers.

«With telephone companies and telemarketing, it’s buyer beware,» he said. «Don’t trust these people. They’re there to take your money.»



Keyword: long-distance fraud


entries 1-1 from 1 total