USA based Verizon Wireless has stated that it has filed a lawsuit outlining an ongoing scheme that used Premium SMS campaigns to defraud Verizon Wireless and its customers, and asked the Court for an injunction to put an immediate stop to the activities.
The suit names Jason Hope and Wayne P. DeStefano and companies they own, including Cylon, Jawa and EyeLevel Holdings among others. The Texas Attorney General also filed a similar suit against the same defendants. Verizon Wireless states that it assisted and supported the Texas prosecutors in their investigation.
Verizon Wireless recently became aware of the possible fraud and launched an investigation. Among the things the company discovered and that are explained in detail in the lawsuit include the fact that the defendants defrauded Verizon Wireless by misappropriating approved short codes for unapproved “shadow” campaigns that did not comply with Verizon Wireless’ consumer protection and disclosure policies.
The lawsuit further shows that the defendants were blocking certain IP addresses from accessing the websites associated with these shadow campaigns or were re-directing visitors to shell websites, preventing Verizon Wireless and its auditors from finding the shadow campaign websites in the normal course of monitoring Premium SMS campaigns for compliance.
For their part, the defendants company, Jawa put out a statement claiming that neither Verizon Wireless nor the State Attorney contacted it before the lawsuit was filed and that the company strongly denies the allegations.
