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July 30, 1997updated 05 Sep 2016 12:02pm


By CBR Staff Writer

AT&T Corp has filed a $7m suit against Connect America, its parent ICB Telecommunications, OneSource Communications and a number of individuals in an alleged fraud case. AT&T contends that Riverside, California-based internet access provider Connect America and its affiliates failed to pay millions of dollars in charges for toll-free services that they, in turn, resold to various internet service providers for profit. The suit alleges the group is guilty of wire fraud, racketeering, civil conspiracy and violations of the Communications Act. The telecom giant says the fraud was carried out through the establishment of fictitious accounts. When AT&T restricted the accounts due to non-payment and what it describes as suspicious calling patterns, the group allegedly opened additional phony accounts and continued the scam. The suit seeks an injunction and an attachment of the defendant’s assets. The $7m sought is to cover the unpaid charges, as well as legal fees and punitive damages. AT&T maintains that it may name other defendants in the suit and increase its monetary demands as the case progresses.

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