Tatto Media/Lin Miao/Andrew Bachman

Hurr-Durr

Hurr-Durr

Hurr-Durr.com <-OBEY
Aug 18, 2010
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This happened last year, but couldn't find any threads/posts on it on WickedFire...can't believe no one posted it...so here it is:

Operators of Massive Mobile Cramming Scheme Will Surrender More Than $10M in Assets in FTC Settlement | Federal Trade Commission

The settlement includes a monetary judgment of more than $150 million, which is partially suspended based on Miao’s inability to pay the full amount after he turns over nearly all of his and the companies’ assets.
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http://www.ftc.gov/system/files/documents/cases/140613bullroarerstiporder.pdf


Boston Man Who Runs Anti-Scam Site To Pay Millions in Scam Settlement - Massachusetts news - Boston.com

Exclusive Interview: Can Andrew Bachman Make A Comeback? | Techli.

http://www.ftc.gov/system/files/documents/public_statements/572811/140730crammingwirelessbills.pdf


Among the assets Miao and the corporate defendants will be required to surrender under the terms of the settlement are:

  • the contents of 14 bank accounts and one life insurance policy, less $5,000;
  • five real estate properties, including three in Chicago and one in each in Los Angeles and Beverly Hills;
  • four vehicles, including a 2013 Mercedes SUV, a 2014 Range Rover SUV, a 2011 Audi and a 2008 Bentley; and
  • numerous items of jewelry, including three Patek Phillippe watches, a Tiffany watch, two Tiffany rings with 10 and eight carat diamonds, a pair of six-carat Tiffany earrings, and a Tiffany necklace, bracelet and diamond bracelet.

For those that alleged non-payment from Tatto...there you have it.

BTW I'm genuinely curious - does FTC really take you for everything you've got? Or do these defendants keep some $$$ hidden offshore?
 


The telcos get to keep their 40% cut, right?
And the gov gets to keep the taxes they collected, right?

Mobile cramming is a good way to debit a bank account without dealing with the chargeback/complaint system imposed by the CC companies. The telcos probably will keep their (massive) cut of this fraud, but I do remember seeing FTC lawsuits against telcos before, basically saying that with 30%+ return rates they obviously knew that these charges were fraudulent but they just didn't care. Interesting stuff.
 
g1c9 said:
The telcos get to keep their 40% cut, right?
Click to expand...

Maybe not... AT&T To Pay $105 Million To Resolve Wireless Cramming Investigation | FCC.gov

T-Mobile Pays $90 Million Fine to FTC Over Cramming Charges | Digital Trends

FCC Reportedly Planning To Fine Sprint $105M For Wireless Bill-Cramming

g1c9 said:
And the gov gets to keep the taxes they collected, right?
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Of course. IRS has a priority over FTC fines it seems. In fact, if you read Andrew Bachman's final settlement document, on page 6, you'll notice that FTC ordered the receiver to send $50,000 that's outstanding to IRS and the rest to FTC for settlement.
 
Wow - this was a while ago...arrests and criminal charges?

Six Defendants Charged In Manhattan Federal Court In Multimillion-Dollar Text Messaging Consumer Fraud Scheme | USAO-SDNY | Department of Justice

MIAO, LEE, PEARSE, LIU, PAJACZKOWSKI, and GOFF are charged with one count of conspiracy to commit wire fraud and mail fraud, which carries a maximum term of 20 years in prison. MIAO, PAJACZKOWSKI, and GOFF are also charged with one count of conspiracy to commit money laundering, which carries a maximum term of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

MIAO was arrested yesterday afternoon at Los Angeles International Airport.
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Mirror - https://www.fbi.gov/newyork/press-r...n-dollar-text-messaging-consumer-fraud-scheme


Ouch...

EDIT - Complaint PDF http://www.justice.gov/usao-sdny/file/450731/download
 
 
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