Feds Crack Down on Call Center Scheme
Actor Matthew Broderick attends the 78th annual Drama League Awards Ceremony and Luncheon at the Marriott Marquis Times Square on May 18, 2012 in New York City. / Mike Coppola/Getty Images
In a widespread scheme one assistant Attorney General described as "outrageous and insidious," 26 people from seven companies in eight states were indicted Thursday for stealing more than $50 million from a government fund that provides video interpreters that translate sign language for the deaf and hearing impaired outside their world. The service, overseen by the Federal Communications Commission (FCC), allows more than 30 million hearing disabled Americans to communicate with those who can hear.
"It's not going to be tolerated," Assistant Attorney General Lanny Breuer told CBS News. "They were running up the money, and taxpayers were paying for services that weren't really occurring."
In a series of coast-to-coast raids, individuals from New York, New Jersey, Florida, Texas, Arizona, Nevada, Maryland and California were arrested. They allegedly submitted thousands of "false and fraudulent" claims for Video Relay Service (VRS) calls that never involved hearing impaired people. Instead, the government charged, scammers placed millions of dollars of phony calls to pre-recorded radio programs, 800 numbers or podcasts - never translating anything but billing the FCC's fund nearly $400 an hour for every hour the employee was on the phone.
"The fraud issue is something we're going to have to deal with," prominent disabled rights attorney Jeff Rosen told CBS News."But we can't allow that to diminish the access that deaf people have."
Begun back in 1993, in recent years VRS calls have skyrocketed - rising from about 100,000 minutes per month in 2004 to nearly 9 million minutes per month in 2009. Overall, the industry is expected to generate nearly $800 million in revenue this year alone.
Copyright 2009 CBS. All rights reserved. "It's not going to be tolerated," Assistant Attorney General Lanny Breuer told CBS News. "They were running up the money, and taxpayers were paying for services that weren't really occurring."
In a series of coast-to-coast raids, individuals from New York, New Jersey, Florida, Texas, Arizona, Nevada, Maryland and California were arrested. They allegedly submitted thousands of "false and fraudulent" claims for Video Relay Service (VRS) calls that never involved hearing impaired people. Instead, the government charged, scammers placed millions of dollars of phony calls to pre-recorded radio programs, 800 numbers or podcasts - never translating anything but billing the FCC's fund nearly $400 an hour for every hour the employee was on the phone.
"The fraud issue is something we're going to have to deal with," prominent disabled rights attorney Jeff Rosen told CBS News."But we can't allow that to diminish the access that deaf people have."
Begun back in 1993, in recent years VRS calls have skyrocketed - rising from about 100,000 minutes per month in 2004 to nearly 9 million minutes per month in 2009. Overall, the industry is expected to generate nearly $800 million in revenue this year alone.
Don't believe me? Look at what FCC Chief of Staff Edward Lazarus had commented recently (read the last sentence): "Today's events represent both a tragedy and an opportunity. "The tragedy is the unfortunate truth that a significant number of unscrupulous individuals, at great cost to the nation, have preyed on a very important program for delivering essential telecommunications services to persons with hearing disabilities. The 'opportunity' is the chance to reiterate our commitment to the VRS program and to follow through on efforts, <b>already begun at the FCC, to safeguard the program against further waste, fraud, and abuse</b> and to improve its delivery of VRS services to consumers."
So, you see! FCC has committed a monstrous stupidity and has seen its flaccid action torpedoeing the reputation amongst the VRS call centres way down south. Shame on you, FCC! Shame on you, FCC! Shame on you FCC!
Oh, I forgot! It is American penchant to wait until the accident or disaster to happen before acting or implementing the rules and regulations. It is so "unamerican" to take responsibilities for one's action.
What's more, HOVRS, CSD-VRS, and Sorenson have filed the legal documentations for Chapter 5 protection. In other word, if FBI decides it's really slow day at the office and wants to have fun, exerting its almighty Congress-granted power, they CANNOT announce the raids or arrests at HOVRS, CSD-VRS, and Sorenson. So what are those companies hiding or should I daresay add, scheming against the government.
The boys at the Department of Justice are really clueless about the VRS regulations and are acting on the obscure information from FCC. What obscure information? See? The problem is that FCC doesn't have any clear guidelines as I stated earlier. The investigator who handles this fraud case is a rookie who just joined the department earlier this year. When he doesn't understand something about the VRS, he just doesn't care because he had a personal agenda: promote himself higher and higher on the totem pole.
Anyone ever wonder why Department of Justice has not gone after the Wall Street brokerage and investment companies whose greed and recklessness definitely precipitated the worst financial crisis and affected so many more people and economy. They ought to be indicated under RICO Act and Patriot II Act for conspiring against the people and the federal government and for causing the economic terrorism that require massive federal bailout (which incidentally lined the velvet-lined pockets of bankers and carpetbaggers)...
If FBI is acting on the interpreters, um, witnesses and their statements, hello! FCC stipulates that all of the VRS calls must be confidential at most strict and that the nature of calls CANNOT be documented in any way. FCC does not take it lightly when the interpreters flip the bird at the confidentality rules.
I notice some of comments about the Yeh families. If they are smart, it is unfortunate that they got vilified for being the first deaf people to establish the VRS call centres and to develop its own videophones at the same time. Crab theory at its finest. Pity that the deaf people never learnt after all. The competition is violent when providing the products or services to the deaf communities. Somebody gotta get killed in the process.
How come none of you stand up against Sorenson for obfuscating the FCC regulations on 10-digit phone numbers, on allowing the VRS competitors to be listed in the address books, etc.? How come none of you ever have half a brain to realise that Sorenson is just bilking millions of dollars from the NECA and giving very little to the deaf community, let alone employing the deaf people in the upper level of management?
Yeah, yeah, free videophones are Sorenson's way of keeping your mouth shut. Tsk. Tsk. Tsk.
I've done venting out. All I am hoping is that Department of Justice and FBI regret dipping their fingers in the batter. And everything's dandy on the way to the Oz!
Read this again... "follow through on efforts, already begun at the FCC" already b
Wake up>>>>>>>>>>>>>>>>>>>>>>>>>>>> Wake Up
FCC staff need to do thier job to go inspect to VRS companies and set up rule before give them money.
If FCC does not do well, why donot FBI warn them First ???..
Remember FCC?s money came from America people?s taxes. it is worth more than trillion dollar.
FCC had warned the other VRS companies before. Those VRS cleaned up the mess, and paid the money back to FCC. However, Viable, Inc didn't because they viewed it as golden opportunities. They continued and fully ignored FCC's warning.
Viable, Inc was acting dumbly but they are true insidious. Yeh family is very smart people. In case you don't know what insidious means. It means "Working or spreading harmfully in a subtle or stealthy manner"
Get it?
Right now, those people who have been arrested are seeking for a mercy.
http://money.cnn.com/2008/09/11/smallbusiness/helping_deaf_callers_connect.fsb/index.htm
It's sad that CNN nor Fox News have reported on latest news.
Could you gather some mugshots of those people who are arrested? We will prefer to see the mugshots of Yeh, Berke, Azrelyant, and Mowl. Those people are the most important people on this ongoing investigation. You will be surprised how strong connections among those people. They are family and closed friends to each other.
Get mugshots or it didn't happen.
Many thanks.
Could you gather some mugshots of those people who are arrested? We will prefer to see the mugshots of Yeh, Berke, Azrelyant, and Mowl. Those people are the most important people on this ongoing investigation. You will be surprised how strong connections among those people. They are family and closed friends to each other.
Get mugshots or it didn't happen.
Many thanks.