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Two Milwaukee-area men charged with fraud and money laundering for alleged pay phone scheme

Posted on April 28, 2011

Two Wisconsin men whose pay phone company raked in $1.2 million by auto-dialing toll-free numbers were indicted Wednesday on federal fraud and money laundering charges.

Jeff Frost, 53, of Brookfield, and Colin Nordstrom, 48, of Coon Valley, programmed pay phones to take advantage of a fee that pay phone owners receive when their phones are used to dial toll-free numbers, according to the U.S. Attorney's Office in Madison.

Each faces up to 20 years in prison if convicted on wire fraud, wire fraud conspiracy and money laundering conspiracy charges. Nordstrom faces another possible five years for allegedly lying to federal agents in January and to a grand jury in March.

According to the indictment, FCC regulations require that toll-free number subscribers pay a 49.4-cent per call fee to payphone owners, called "dial around compensation," each time their pay phones are used to call toll-free numbers.

Frost, Nordstrom and their employees searched for toll-free numbers that had automated answering systems with options that placed the call into what they called "automated hell," according to the indictment.

Filed under  //   Milwaukee   crime   payphones   telephone  

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More than 2 million now on state no-call list - JSOnline

Posted on December 21, 2009

Madison — A record amount of Wisconsin telephone numbers are on the most recent list that bans telemarketing calls.

Jeanne Burt, of the state Department of Agriculture, Trade and Consumer Protection, says there are now more than 2.1 million people on the no-call list. It's the first time in the list's seven-year history that it's topped 2 million numbers.

People on the list drop off after two years. The next deadline to sign up will be Feb. 28. People who sign up by then will be added to the list April 1.

Last year the department received 2,225 telemarketing complaints - the state's top consumer complaint.

Filed under  //   telephone  

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