Judge: MCI May Have Violated Court Order on Certain Fees
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A federal judge in Manhattan said Wednesday that MCI Inc., formerly known as WorldCom, may have violated a court order by paying more than $25 million in professional services fees as part of its bankruptcy proceedings.
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(InfoWorld) - A U.S. district court has ordered a halt to an operation that allegedly added unauthorized charges to the phone bills of small businesses and nonprofit groups for Web sites services that, in many cases, they didn't know they had and didn't request, the U.S. Federal Trade Commission (FTC) said. Judge Kenneth Hoyt of the U.S. District Court for the Southern District of Texas has approved a temporary restraining order halting the activity and freezing the assets of a group of businesses and individuals, the FTC announced Thursday. The FTC's complaint named defendants WebSource Media, BizSitePro, Eversites, Telsource Solutions, Telsource International, Marc R. Smith, Kathleen A. Smalley, Keith Hendrick, Steven Kennedy, John O. Ring, and James E. McCubbin, Jr. The defendants illegally billed thousands of customers, according to the FTC. The operation was a maze of interrelated companies directed by the people named as defendants, the FTC said. The operation used telemarketers to make cold calls to small businesses and nonprofits, and offered a âfreeâ 15-day trial of a Web site design. The customers were told there was no charge or obligation and that the Web site would be cancelled automatically if it was not approved by them. Whether the customers agreed or not to be billed after the trial, their phone bills were often charged. When consumers called to dispute the charges, the operators told them they had âverification recordingsâ of an employee authorizing the charges. The FTC said the operation is typical of fraudulent Web cramming operations -- by using sales pitches to employees who frequently lack authority to make commitments for their employers and failing to effectively notify consumers that a Web site has been set up. The operators repeatedly changed the names of their companies to avoid detection by telephone companies they rely on to bill consumers and to evade scrutiny from law enforcers, the FTC said.
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The judge who presided over the Securities and Exchange CommissionÂs fraud suit against MCI threatened to punish the company for not receiving approval from a monitor before paying fees to lawyers, accountants and other professionals.
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SAN DIEGO A federal judge in San Diego issued an order today freezing about 600 (m) million dollars tied to a company that peddled allegedly fraudulent tax avoidance schemes to doctors.
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Â· Consumer revolt on hold while court case is heard  Â· Ruling may lead to refunds but also end free banking
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The Recording Industry Association of America opposes a judge's recommendation that it reimburse Tanya Andersen for legal defense bills she incurred to fight piracy charges that were dropped for lack of evidence. Andersen's defense bills could amount to hundreds of thousands of dollars.
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A federal judge has ruled that Visa USA, the largest U.S. credit card group, must stop charging a special fee when a big debit card client jumps to rival MasterCard Inc. .
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Attorney General Thomas F. Reilly yesterday accused a major mall operator in a suit of illegally selling a gift card with numerous fees and a one-year expiration date, but the terms haven't deterred the Massachusetts Department of Social Services from purchasing $250,000 worth of the cards this year for its clients.
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MCI Inc. reported yesterday that it will take a $3.5 billion non-cash charge in the third quarter to reflect the severe downturn in its consumer long-distance telephone business.
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ATHENS, Greece - They were the kind of mistakes only judges see - little touches that seem so inconsequential. But they add up, and they cost the U.S...
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Is this money mistake costing you millions?
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Don't assume that your complicated medical bill is correct. Errors on bills for doctors, medical tests or hospitals can result in overcharges that run from a few dollars to tens of thousands of dollars.
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MCI Inc., the long-distance provider, said yesterday that it planned to take a $3.5 billion charge in the third quarter to better reflect the loss in value of its phone and data networks.
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Â· Judge says company fell seriously short of its duty  Â· Firm admits testing procedure badly flawed
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When New York Attorney General Eliot Spitzer accused insurance broker Marsh &amp; McLennan Cos. last month of taking kickbacks from insurers, resulting in higher premiums for clients, he raised questions for the
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The judge who presided over the Securities and Exchange Commission&#39;s fraud suit against MCI, the long-distance telephone company, threatened to punish the company yesterday for ignoring his
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In a fresh blow to Europe&#39;s antitrust enforcers, a top appeals tribunal said regulators wrongly blocked MCI WorldCom&#39;s aborted bid to buy Sprint Corp in 2000.