FraudNews
01-09-2012, 06:42 AM
A Washington, D.C.-area man who rigged pay phones (http://www.nbcwashington.com/news/local/Rigged-Pay-Phones-Owner-Sentenced-in-4-Million-Fraud-Case-136689313.html) to mechanically dial up toll-free numbers so he would be able to collect a 50-cent fee was sentenced to 90-days in prison and must pay $20,000 in fines.
In September, former pay phone operator Nicolas Kantartzis, 63, pled guilty to rigging over 100 pay phones to make eight million ghost calls to toll-free numbers. Although legitimate users are free to make the calls, the party who receive them must pay costs associated with it, which includes some kickback to the pay phone operator. Each time Kantartzis’ phones rang, he was paid even when calls lasted just several seconds.
According to authorities, Kantartzis’ scheme lasted for six years with more than eight million bogus calls being made. David Irwin, Kantartzis’ attorney, said Kantartzis has paid the millions back he had received from the scheme and has given back his phones, which are now disconnected. Irwin told a Maryland federal judge that the fraud ruined his client and he would be returning to Greece with his wife since it’s not as expensive to live there.
Kantartzis said he accepts responsibility for his actions. He said his failing business was his main motivation because more and more people are using cell phones, making pay phones obsolete.
Kantartzis could have faced a six year prison sentence. However, Judge Rogetr W. Titus did not agree with the guidelines, citing that Kantartzis had paid back the money he had received.
Kantartzis’ scheme was discovered when a General Services Administration employee detected an irregular pattern of inbound calls on the GSA’s toll-free line and decided to investigate. Brian D. Miller, inspector general, said Kantartzis’ sentence should serve as a warning to other folks.
Kantartzis’ scheme is certainly not original. Last year, two Wisconsin men were also charged with a smaller operation similar to Kantartzis. They had received more than $1m in over three years.
In September, former pay phone operator Nicolas Kantartzis, 63, pled guilty to rigging over 100 pay phones to make eight million ghost calls to toll-free numbers. Although legitimate users are free to make the calls, the party who receive them must pay costs associated with it, which includes some kickback to the pay phone operator. Each time Kantartzis’ phones rang, he was paid even when calls lasted just several seconds.
According to authorities, Kantartzis’ scheme lasted for six years with more than eight million bogus calls being made. David Irwin, Kantartzis’ attorney, said Kantartzis has paid the millions back he had received from the scheme and has given back his phones, which are now disconnected. Irwin told a Maryland federal judge that the fraud ruined his client and he would be returning to Greece with his wife since it’s not as expensive to live there.
Kantartzis said he accepts responsibility for his actions. He said his failing business was his main motivation because more and more people are using cell phones, making pay phones obsolete.
Kantartzis could have faced a six year prison sentence. However, Judge Rogetr W. Titus did not agree with the guidelines, citing that Kantartzis had paid back the money he had received.
Kantartzis’ scheme was discovered when a General Services Administration employee detected an irregular pattern of inbound calls on the GSA’s toll-free line and decided to investigate. Brian D. Miller, inspector general, said Kantartzis’ sentence should serve as a warning to other folks.
Kantartzis’ scheme is certainly not original. Last year, two Wisconsin men were also charged with a smaller operation similar to Kantartzis. They had received more than $1m in over three years.