Consumer Action :: ‘Crammers’ ring up millions

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Released: March 01, 2010

‘Crammers’ ring up millions

Source: David Cho, Washington Post (Free Registration)

Roy and John Lin made a devilish fortune in the details of phone bills, according to a federal investigation.

The San Francisco brothers hired overseas telemarketers to offer directory assistance and other services to small businesses and ordinary Americans, according to a major case to be unveiled this week by the Federal Trade Commission. But their real goal was to sneak small, unauthorized fees onto thousands of monthly bills and hope the charges would go unnoticed, court documents state.

The scheme, known as “cramming,” proved to be a boon, the documents show. The Lins’ alleged take: $19 million over five years. The Lins are among a resurgent wave of crammers who may be ensnaring millions of Americans, federal officials and consumer advocates say.

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