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Guilty Plea in Web Host Frauds.
2005-02-16, HostMan.biz Alleged members of a notorious New York Mafia outfit pleaded guilty Monday to conspiracy and fraud involving an Internet and phone billing scheme that cost victims more than $650 million, in one of the largest consumer fraud cases ever prosecuted. Prosecutors alleged that the principles of the scam, which ran from 1996 to 2003, are members of the Gambino crime family, a crime organization perhaps best known for its gambling, loan sharking, protection rackets and creative bookkeeping for construction projects and garbage collection. According to prosecutors, the criminals duped phone customers and Internet users into responding to false offers of free pornography, psychic readings, dating services and sports picks, and then made a series of unauthorized credit card and telephone charges. The scheme also raided two federally supervised funds that subsidize rural phone companies. |
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