FCC Issues Historic $300 Million Fine Against The Largest Robocalling Scam It Has Ever Investigated

By Federal Communications Commission & SCARS Editorial Team

U.S. Federal Communications Commission (FCC) Imposes Record Penalty Against Transnational Illegal Robocalling Operation

Robocalling Scammers Who Placed Five Billion Auto Warranty Robocalls Fined Nearly $300 Million for Robocall and Spoofing Violations

The Federal Communications Commission today issued a record-breaking $299,997,000 fine for auto warranty scam robocalling made by the largest illegal robocall operation the agency has ever investigated. An international network of companies violated federal statutes and the Commission’s regulations when they executed a scheme to make more than five billion robocalls to more than 500 million phone numbers during a three-month span in 2021, including violating federal spoofing laws by using more than one million different caller ID numbers in an attempt to disguise the true origin of the robocalls and trick victims into answering the phone.

According to CNN:

The globe-spanning illegal robocalling operation violated US telecom laws by making more than five billion robocalls to more than half a billion phone numbers over the course of just three months in 2021, the FCC said in a release Wednesday.

But the robocalling campaign had been in existence for even longer, the FCC added. Using a multitude of shell companies, aliases and fly-by-night phone providers allegedly under their control, the people behind the network — which CNN has previously reported on — had sought to dupe unwitting consumers into buying shoddy service contracts for their vehicles since 2018.

The FCC Action

The robocalling enterprise violated a multitude of robocall prohibitions by making pre-recorded voice calls to mobile phones without prior express consent, placing telemarketing calls without written consent, dialing numbers included on the National Do Not Call Registry, failing to identify the caller at the start of the message, and failing to provide a call-back number that allowed consumers to opt out of future calls. The calls also violated spoofing laws by using misleading caller ID to disguise the enterprise’s role and prompt consumers to answer.

“We take seriously our responsibility to protect consumers and the integrity of U.S. communications networks from the onslaught of these types of pernicious calls,” said FCC Enforcement Bureau Chief Loyaan A. Egal. “I want to thank the Enforcement Bureau’s Telecommunications Consumers Division for its groundbreaking work on this case, and we will continue to work with our federal and state partners to hold these entities and others engaged in similar conduct accountable.”

Since at least 2018, this robocalling enterprise operated a complex scheme designed to facilitate the sale of vehicle service contracts under the false and misleading claim of selling auto warranties. Two of the central players of the operation, Roy M. Cox and Aaron Michael Jones, were under lifetime bans against making telemarketing calls following lawsuits by the Federal Trade Commission and State of Texas. The multi-national enterprise did business as Sumco Panama, Virtual Telecom, Davis Telecom, Geist Telecom, Fugle Telecom, Tech Direct, Mobi Telecom, and Posting Express.

Last year, to stop this then-ongoing telemarketing robocalling campaign in its tracks, the FCC directed all U.S.-based voice service providers to cease carrying traffic associated with certain members of the enterprise. As a result, these illegal auto warranty robocalls dropped by 99%. That enforcement action was taken in coordination with the Ohio Attorney General’s Office, which brought a lawsuit under the Telephone Consumer Protection Act against several entities and individuals associated with the enterprise. The Commission also proposed a fine and offered the parties a chance to respond, which they did not do, resulting in today’s unprecedented fine. Should the parties not pay the fine promptly, this matter will be referred to the U.S. Department of Justice for collection.

The FCC’s Robocall Response Team today also announced new robocall investigation partnerships with the Attorneys General of Hawaii and New Mexico. Forty-six states and the District of Columbia and Guam have now signed Memoranda of Understanding to join with the FCC’s Enforcement Bureau to share evidence, coordinate investigations, pool enforcement resources, and work together to combat illegal robocalling campaigns and protect American consumers from scams.

Resources:

More:

PLEASE NOTE: Psychology Clarification

The following specific modalities within the practice of psychology are restricted to psychologists appropriately trained in the use of such modalities:

  • Diagnosis: The diagnosis of mental, emotional, or brain disorders and related behaviors.
  • Psychoanalysis: Psychoanalysis is a type of therapy that focuses on helping individuals to understand and resolve unconscious conflicts.
  • Hypnosis: Hypnosis is a state of trance in which individuals are more susceptible to suggestion. It can be used to treat a variety of conditions, including anxiety, depression, and pain.
  • Biofeedback: Biofeedback is a type of therapy that teaches individuals to control their bodily functions, such as heart rate and blood pressure. It can be used to treat a variety of conditions, including stress, anxiety, and pain.
  • Behavioral analysis: Behavioral analysis is a type of therapy that focuses on changing individuals’ behaviors. It is often used to treat conditions such as autism and ADHD.
    Neuropsychology: Neuropsychology is a type of psychology that focuses on the relationship between the brain and behavior. It is often used to assess and treat cognitive impairments caused by brain injuries or diseases.

SCARS and the members of the SCARS Team do not engage in any of the above modalities in relationship to scam victims. SCARS is not a mental healthcare provider and recognizes the importance of professionalism and separation between its work and that of the licensed practice of psychology.

SCARS is an educational provider of generalized self-help information that individuals can use for their own benefit to achieve their own goals related to emotional trauma. SCARS recommends that all scam victims see professional counselors or therapists to help them determine the suitability of any specific information or practices that may help them.

SCARS cannot diagnose or treat any individuals, nor can it state the effectiveness of any educational information that it may provide, regardless of its experience in interacting with traumatized scam victims over time. All information that SCARS provides is purely for general educational purposes to help scam victims become aware of and better understand the topics and to be able to dialog with their counselors or therapists.

It is important that all readers understand these distinctions and that they apply the information that SCARS may publish at their own risk, and should do so only after consulting a licensed psychologist or mental healthcare provider.

Opinions

The opinions of the author are not necessarily those of the Society of Citizens Against Relationship Scams Inc. The author is solely responsible for the content of their work. SCARS is protected under the Communications Decency Act (CDA) section 230 from liability.

Disclaimer:

SCARS IS A DIGITAL PUBLISHER AND DOES NOT OFFER HEALTH OR MEDICAL ADVICE, LEGAL ADVICE, FINANCIAL ADVICE, OR SERVICES THAT SCARS IS NOT LICENSED OR REGISTERED TO PERFORM.

IF YOU’RE FACING A MEDICAL EMERGENCY, CALL YOUR LOCAL EMERGENCY SERVICES IMMEDIATELY, OR VISIT THE NEAREST EMERGENCY ROOM OR URGENT CARE CENTER. YOU SHOULD CONSULT YOUR HEALTHCARE PROVIDER BEFORE FOLLOWING ANY MEDICALLY RELATED INFORMATION PRESENTED ON OUR PAGES.

ALWAYS CONSULT A LICENSED ATTORNEY FOR ANY ADVICE REGARDING LEGAL MATTERS.

A LICENSED FINANCIAL OR TAX PROFESSIONAL SHOULD BE CONSULTED BEFORE ACTING ON ANY INFORMATION RELATING TO YOUR PERSONAL FINANCES OR TAX-RELATED ISSUES AND INFORMATION.

SCARS IS NOT A PRIVATE INVESTIGATOR – WE DO NOT PROVIDE INVESTIGATIVE SERVICES FOR INDIVIDUALS OR BUSINESSES. ANY INVESTIGATIONS THAT SCARS MAY PERFORM IS NOT A SERVICE PROVIDED TO THIRD-PARTIES. INFORMATION REPORTED TO SCARS MAY BE FORWARDED TO LAW ENFORCEMENT AS SCARS SEE FIT AND APPROPRIATE.

This content and other material contained on the website, apps, newsletter, and products (“Content”), is general in nature and for informational purposes only and does not constitute medical, legal, or financial advice; the Content is not intended to be a substitute for licensed or regulated professional advice. Always consult your doctor or other qualified healthcare provider, lawyer, financial, or tax professional with any questions you may have regarding the educational information contained herein. SCARS makes no guarantees about the efficacy of information described on or in SCARS’ Content. The information contained is subject to change and is not intended to cover all possible situations or effects. SCARS does not recommend or endorse any specific professional or care provider, product, service, or other information that may be mentioned in SCARS’ websites, apps, and Content unless explicitly identified as such.

The disclaimers herein are provided on this page for ease of reference. These disclaimers supplement and are a part of SCARS’ website’s Terms of Use

Legal Notices: 

All original content is Copyright © 1991 – 2023 Society of Citizens Against Relationship Scams Inc. (Registered D.B.A SCARS) All Rights Reserved Worldwide & Webwide. Third-party copyrights acknowledge.

U.S. State of Florida Registration Nonprofit (Not for Profit) #N20000011978 [SCARS DBA Registered #G20000137918] – Learn more at www.AgainstScams.org

SCARS, SCARS|INTERNATIONAL, SCARS, SCARS|SUPPORT, SCARS, RSN, Romance Scams Now, SCARS|INTERNATION, SCARS|WORLDWIDE, SCARS|GLOBAL, SCARS, Society of Citizens Against Relationship Scams, Society of Citizens Against Romance Scams, SCARS|ANYSCAM, Project Anyscam, Anyscam, SCARS|GOFCH, GOFCH, SCARS|CHINA, SCARS|CDN, SCARS|UK, SCARS|LATINOAMERICA, SCARS|MEMBER, SCARS|VOLUNTEER, SCARS Cybercriminal Data Network, Cobalt Alert, Scam Victims Support Group, SCARS ANGELS, SCARS RANGERS, SCARS MARSHALLS, SCARS PARTNERS, are all trademarks of Society of Citizens Against Relationship Scams Inc., All Rights Reserved Worldwide

Contact the legal department for the Society of Citizens Against Relationship Scams Incorporated by email at legal@AgainstScams.org