[Video Update] 22 Charged in $2.4M Defrauding of Comcast
Montgomery County District Attorney Ferman says ringleaders lived lavish lifestyles.
[This article was updated at 5:05 p.m. on Tuesday, Aug. 7]
Five people have been arrested and warrants issued for 17 others in an elaborate scheme to defraud Comcast of more than $2.4 million between April 2011 and April 2012, the Montgomery County District Attorney's office said Tuesday.
The district attorney's office said Alston Buchanan, 28; Leighton Harrell, 26; Kendall Singleton, 26; and Richard Justin Spraggins, 29, all of Philadelphia; and Nicholas Caputo, 31, of Virginia Beach, Va., were "top members of an elaborate criminal organization" that led Comcast customers to make one-time payments to them in exchange for a one-time reduction in their Comcast service bills.
"This is a corrupt organization involving a number of individuals who developed and implemented a very sophisticated scheme in which they would access the personal Comcast accounts of individuals and change the terms of their service for a fee," said District Attorney Risa Ferman.
Ferman said that Buchanan, the ringleader, would typically charge a $150 annual fee that could cut the customer's bill by up to half by adding unauthorized promotions to their account. She said that approximately 5,400 accounts were compromised in a year's time, costing Comcast over $2.4 million.
Authorities said that to fulfill the bogus agreement with the customers, Buchanan, a former Comcast employee and contractor for Comcast, had an associate illegally access the equipment room of a Comcast subcontractor at its office in the Hatboro section of Upper Moreland Township.
In that facility, Singleton allegedly installed an unauthorized computer, at the direction of Buchanan, that he then used to remotely access and manipulate the accounts of the customers who had been enrolled in the scheme.
Investigation begins after Comcast employee solicited
Comcast became aware of the scheme earlier this year, after an "agent" unknowingly approached a Comcast employee, authorities said.
"A woman who was a Comcast employee was sitting in a beauty salon having her hair done, and someone approached her and asked if she was a Comcast customer," Ferman said. "When she said yes, they asked if she would like to have a discount on her bill, and said they could provide that to her."
Ferman said the employee then reported the incident to Comcast's corporate security, which began an internal investigation. Comcast investigators quickly determined that a number of operator ID numbers, some of which belonged to terminated employees, were being used to manipulate accounts, including on sick days.
The internal investigation then tracked the account manipulation to the "secret server" at the Upper Moreland office of the subcontractor, ACI. Following a power outage on April 9, investigators pointed a security camera at the equipment area, knowing that a third party would need to return to reactivate the unauthorized computer. Singleton was allegedly seen accessing the equipment area on security footage the following day.
Within the following hour, authorities say, 96 customer accounts were "accessed and manipulated."
Comcast contacts authorities
Comcast then contacted police, who launched their own investigation.
"Two of our detectives reached out to a fellow named, "Nick," and said they were interested in discounted service," Ferman said. "They agreed on an amount and method of service, and the account was verified by Comcast."
Ferman says that after investigators made a deposit into a TD Bank account, they sent a picture of a deposit slip to "Nick," later identified as Buchanan, to verify the payment. Then, Buchanan allegedly made the undercover detectives an offer.
"In an ironic twist, "Nick" then tried to recruit our undercover detectives to become agents for the operation, saying 'you can make some money on the side,'" Ferman said.
According to Ferman, 17 individuals identified as "agents" worked to solicit individuals. They took a commission on each deal, earning hundreds to several thousands of dollars over the duration of the scheme.
Alleged ringleaders lived lavish lifestyles, but Buchanan told media he was modern day "Robin Hood"
A 61-page affidavit of probable cause reveals further insight into the criminal investigation. According to the document, Buchanan was listed as "Batman" on Spraggins' cell phone, and top ringleaders enjoyed a lavish lifestyle. Upon searching Spraggins' home, police found over $100,000 in cash and a number of expensive items.
Despite this, Buchanan, who turned himself into authorities, described himself as a modern day "Robin Hood" to members of the media at the Montgomery County Courthouse Tuesday.
Ferman saw things differently.
"In addition to the hundred thousand dollars, we found significant funds deposited in checking accounts and significant spending histories," Ferman said. "We're talking about thousands of dollars that were both found and seized in banks as well as records of spending in hotels, airlines, bars, strip clubs, high end stores… they were living very high on the hog on other's people's money."
An investigation of Spraggins' personal finances revealed that he had opened debit accounts with Ikea, Sunglass Hut, Armani, Macy's, Apple, Skydiving Freefall Adventures, US Airways, Harrah's Atlantic City, Miami Beach, and more.
An investigation into Buchanan's multiple phone records found text messages detailing concerns as investigators closed in. One featured a conversation between Buchanan and an associate who warned him about paper notebooks that were used to keep "customer" records.
"Get rid of that f---ing book…its paper trail. And stay the f-- off the map I know its hard for u but don't be so out in the open with all your financial moves," one read.
A second message elaborated: "i.e. your car or popping bottles in the vip…if they look at your Facebook page and see 5 cars and all of them expensive. They're going to figure out they got their guy. I'm just saying."
Buchanan responded: "Just changed my title to construction worker lol"
Charges filed
Buchanan, Spraggins, Caputo, Harrell, Irving, and Singleton are charged with criminal conspiracy, theft of services, dealing in proceeds of unlawful activity, computer theft, computer trespass, and numerous related charges. They are scheduled to be arraigned on Sept. 14 in Upper Moreland.
In addition to the ringleaders, the district attorney's office issued arrest warrants for the following 17 people, whom it described as "agents in this corrupt organization" who were involved in soliciting customers for the scheme.
- Omar Ali, 27, of Bensalem
- Timothy Boone, 30, of Langhorne
- Zindora Crawford, 32, of Philadelphia
- Francis Crowley, 30, of Philadelphia
- Joseph Dolan, 45, of Philadelphia
- Kathleen Doyle, 33, of Bensalem
- Sherree Engle, 28, of Warminster
- Michael Haldeman, 30, of Philadelphia
- Thomas Higgins, 45, of Philadelphia
- John Hoesle, 42, of Philadelphia
- Joseph Hoffman, 39, of Philadelphia
- John Macon, 42, of Philadelphia
- Brandon Massaro, 37, of Philadelphia
- Frank Provenzano, 45, of Philadelphia
- William Rodriguez, 36, of Philadelphia
- Edwardo Roman, 32, of Philadelphia
- Teresa Sterling, 33, of Philadelphia
Tired of Hypocrisy
4:12 pm on Tuesday, August 7, 2012
Easier for them to do illegal activities than be productive citizens. Would not want their 'entitlement' Money taken away. Long prison sentences forveach of them is warranted.
Scott Korb
4:24 pm on Tuesday, August 7, 2012
Idiots.
They figured 22 people would:
a. Conduct their criminal activity as planned, without making a mistake
b. Not get caught
c. Not squeal once caught
Not too bright.
Roy Martin
5:04 pm on Tuesday, August 7, 2012
Who's gonna go after Comcast for legally overcharging millions of people the past 25 years?
Dana
5:45 pm on Tuesday, August 7, 2012
Amen!!!! and they keep raising them!!!!.. :{
DA
5:51 pm on Tuesday, August 7, 2012
And while you're at it, also look into Verizon.
ButterFace
6:19 pm on Tuesday, August 7, 2012
Comcast deserved to get ripped off!
Missy Bruckner
6:40 pm on Tuesday, August 7, 2012
Mmmm yeah, because two wrongs make a right. Right?
Pat Jackson
7:35 pm on Tuesday, August 7, 2012
The monetary loss to Comcast is miniscule compared to the billions this conglomerate rakes in annually. This story, in my opinion, is pretty amusing!
tom panzano
7:38 pm on Tuesday, August 7, 2012
THESE GUYS ARE CROOKS AND SO ARE THE CABLE COMPANYS!!!!
Dina T
9:50 pm on Tuesday, August 7, 2012
My post isn't even here not cool!! Freedom of speech!! Someone needs to rob them like they have been robbing us!! Good for comcast. Delete that........
Love25
8:41 am on Wednesday, August 8, 2012
The cable companies are theives. These guys were hooking people up with introductory rate plans that comcast actually offers, but only new customers, not the customers who have been loyal to comcast for years, paying their bills on time and do they get the introductory rate? NO, they are not eligible because they are already existing customers, instead their bill goes up 10 bucks every year for the same service.
ButterFace
9:15 am on Wednesday, August 8, 2012
I agree Love25, that additional money built the Comcast Temple! They start sneaking an additional 10 dollars on your bill until you call them out on it. My company pays 89.00 a month and I was 129 for the same service. When I called and asked them why I pay more they said I have movie channels. I laughed and said what movie channels..Sundance, Indie, Encore etc...
are you kidding me? You charge me 30 more a month for channels that aren't even premium..TAKE IT OFF!!
Larry Kohout
9:05 am on Wednesday, August 8, 2012
I agree with Love25; if Comcast were not so greedy, people would not resort to this kind of crime.
ButterFace
9:07 am on Wednesday, August 8, 2012
Missy, Yes it does. Do you think someone should have to pay 209.00 for basic cable, internet and a phone.I have two boxes I rent..RENT? Shouldn't I own them by now? .If I cancel the phone I have to pay an additional 40.00? Yeah I am tired of being raped by share holders of utility companies. If I could hack my cable and my electric I would have no shame to my game just like this man. If you sit down and compare your bill to your neighbors I bet you three months worth of cable your bills won't be the same..Nobody pays the same amount they rape everyone!!
CyD252
10:21 am on Wednesday, August 8, 2012
Are you really paying $209 for basic cable, internet and phone? Or are you also subscribed to optional movie channels, high-def service, DVR service, etc?
Bill Sword
10:26 am on Wednesday, August 8, 2012
Some of the utility practices should be reviewed.
I ditched my land line telephone because I was paying more in taxes and fees for the line then I was for the Service.
My last AQUA bill had a $16 "Customer Fee" which was 50% of the total bill.
This stuff is off the hook.
Stephen Eickhoff
10:55 am on Wednesday, August 8, 2012
The problem is crony capitalism, wherein the government imposes new taxes on the utility while allowing them to "recover" those taxes from the customer. Instead of having to honestly raise their rates to cover the taxes, they can quietly tack them on to the bill. When you start or change service, you have to ask them what the bill will REALLY be, because they'll tell you things like "$99 a month" when it's really $145 once they've tacked on "recovery fees".
The answer is not more regulation, because it's government regulation that created the hazy environment in which this corruption hides. The answer is elimination of the corrupt regulations.
Ike
10:19 am on Wednesday, August 8, 2012
Crooks they are .And the cable companies are BIGGER CROOKS.Comcast AND Verizon are bigger crooks.They both lie to keep you . Boxes they told me the dvr was free for life , than after a year i get charged for it . I told them i dont want it , didnt in the first place , now i sent it back and it cost me to do that $20. Wish i could sue them for bull craping to me . CROOKS ALL OF THEM
Suzanne
9:47 pm on Wednesday, August 8, 2012
We cancelled Verizon early this year because we were offered a better deal. They sent a final bill and we paid it. A month later we received a letter from a collection agency for just under $400.00, money that we didn't owe. It took 4 months, 12 hours on the telephone to 6 people, and finally the assistance of Todd Stephens to resolve the mess. I thought my husband would have a nervous breakdown. It took a lot of determination to see this through but it was worth it. If anyone has issues with their cable provider get help. We were told by Representative Stephen's assistant that they have a contact at Verizon just for issues like ours. Reach out to your state representative or senator. If everyone who had a problem with Comcast or Verizon did this we might have better service.
Zoey Lynne
10:54 am on Wednesday, August 8, 2012
what goes around comes around. amen..... time to police comcast now........
Paula
11:55 pm on Friday, August 10, 2012
lmao, My God, didn't you hit the nail right on the head?!!!
Beth Strobe
10:57 am on Wednesday, August 8, 2012
How about the one "ring leader" & an agent both are current employees of Verizon! Maybe they made their money by taking customers from their employer & selling them to the competitor. Maybe this is a lot bigger than some think
Concerned in Horsham
11:44 am on Wednesday, August 8, 2012
Comcast has been ripping off the public for years!!! I wish they lost more than a couple of Million!
worldpeace2013
12:18 pm on Wednesday, August 8, 2012
WOW so comcast did not disable the ex employees ids? ... hum whats up with that IT... Also why are the promo codes the same... wow comcast is sooooo ready for more scams to come out of their blue soon
Mallison Schwartz
12:19 pm on Wednesday, August 8, 2012
Lets talk about the biggest crook of them all, career Phila. politician Allyson Schwatrz who has been on the recieving end of tens of thousands of Comcast dollars for her never ending re-elections. She is a money hungry pig.
CyD252
1:16 pm on Wednesday, August 8, 2012
What on earth does this have to do with the subject??? Comcast has given money to many hundreds of politicians.
http://www.opensecrets.org/orgs/recips.php?cycle=2012&id=D000000461
Ike
3:05 pm on Wednesday, August 8, 2012
Does anyone know if they can sue Comacst or Verizon?
Verizon , told me they will give me a dvr box for free , now after a year i got changed for it it like $17.I only got it cause it was free . I call they and they told me that the guy who told me m should had not of.Now i have to pay for it .I dont want it so i told them to take it back .They had me mail it and CHANRGED ME $20..IAM SICK OF THES CABLE COMS. COMAST DID SOMETHING LIKE THIS BEFORE TOO.
Mallison Schwartz
3:32 pm on Wednesday, August 8, 2012
Can we sue career Phila politician Allyson Schwartz for services not rendered ? How many terms has this Philly Pig been our Congresswoman ? Why wont she do a "Town Hall" or some type of a meet & greet so she can hear from her suburban constituants ? She is a P O S !
CyD252
3:48 pm on Wednesday, August 8, 2012
Beary Bearington - You have issues. I suggest you stop spamming before your account gets locked.
http://abington.patch.com/users/beary-bearington
http://tinyurl.com/98wvvao
Fauxy
8:20 pm on Wednesday, August 8, 2012
I'm so sad that none of these people asked me if I wanted free cable. :-(
Adam Sariego
10:29 am on Thursday, August 9, 2012
"costing Comcast over $2.4 million".... It didnt cost them a dime. It was the money comcast Didn't make. They never made it, so they didnt lose it. But when PECO and comcast rip us off every month, God only knows how many billions, thats ok because us little people have no recourse.
CyD252
1:12 pm on Thursday, August 9, 2012
Technically, they did lose it. Comcast used its resources to provide about $445 worth of services to 5400 customers. If someone were to obtain free electricity from PECO, saving $4000 in the process, that would constitute PECO's loss of $4000, even though they would have generated the electricity anyway.
Yugo Free
11:22 am on Thursday, August 9, 2012
You should look into Charter. They have started absorbing all internet and telephone taxes and fees. Yes i know they are all crooks, but this saved me around $22/month on my taxes/fees. At least they are trying to show the customer some good faith....
John Sanderson
11:41 am on Thursday, August 9, 2012
Yes, Charter also is a ripoff, however i did that and it saved me $33/month... so i guess i just take what i can when i can, and also no outage when it storms, and it rains a lot in my area!!!
Cassandra
4:39 pm on Thursday, August 9, 2012
Stop complaining about how Comcast, Verizon, and any other service provider rips you off! Those services are a luxury not a necessity! How many of you call you water company or power company and complain about their rates? Either you want the service or not, and if you do shut the heck up and pay for it or go sit down and read a book!!!!
Fauxy
4:58 pm on Thursday, August 9, 2012
I disagree with you. Yes, cable tv/movie channels are a luxury, but this day in age internet is not. You need to to look for a job and keep up with your kids schools (since everyone is now paperless!) Either company will charge you$50+ for just Internet (b/c it is not "bundled"). And they $50 a month is the sucky internet that doesn't always work, for Comcast anyway.
$200 a month is definitely a rip-off for three bundled services. So I have a digital antenna. It sucks. *Sometimes* ch 6 comes in, sometimes it does not. We went thru buying and returning three different antennas to find one that would work most of the time. I bit the bullet and no longer have a landline. But now I cannot fax anything or leave my kids alone in the house unless I buy them their own cell phone (in case there was an emergency).
The Fiber Optic line Verizon raves about *is* awesome, but they have the ability to give us instant internet, but they turn it down and then tier the speeds and make us pay for something faster than what they used to offer. Notice that rolled out when Comcast started upping their speeds?
Cassandra
5:36 pm on Thursday, August 9, 2012
in internet service is a luxury because you can live without it. If you can't afford it then go to the library for free. If you had to choose either cable or food which would you choose? Cable is a luxury and food is a necessity.
CyD252
9:43 pm on Friday, August 10, 2012
Fauxy: All television providers are required by law to offer ultra-low-cost tiers. For example, you can get a VERY basic Comcast package (I think it's called a "lifeline package") for as low as $20/mo. They aren't required to advertise it (and of course, they don't), but the 15-20 channel package can be requested when ordering.
Comcast also offers low-cost internet access, but in order to qualify, I believe you have to have a child receiving state-sponsored school lunches (which allows Comcast to avoid messy financial assessments).
Tom Bartman
10:36 pm on Friday, August 10, 2012
Ultimately Comcost is responsible for the safety and security of customer accounts. The fact this happened is a breach of user privacy. 22 crooks with access to Comcost customer accounts should be a story in itself. I am 100% Comcost free. No money from me for their $540 million dollar building in Philly, or the $31.1 million dollar salary of the Comcost CEO. Dig deeper on that next cable bill.
CyD252
11:36 pm on Friday, August 10, 2012
"No money from me for their $540 million dollar building in Philly, or the $31.1 million dollar salary of the Comcast CEO."
That's great to hear! So, been enjoying the Olympics on NBC?
Paula
11:53 pm on Friday, August 10, 2012
if people included in this case did not make a dime from it, how in the hell can they have chargers brought up against them? What in the hell ever happened to innocent until proven guilty, what country are we living in?! Cause man, we're not in Kansas anymore, this is really scary shit!
CyD252
12:10 am on Saturday, August 11, 2012
Two points... First, the people charged in this case made rather a LOT of money on it. And second, you do not have to profit from a crime in order for it to be a crime. If I embezzle money from a company, and donate all of the stolen money to charities, it's still a crime.
Paula
12:03 am on Saturday, August 11, 2012
We are living in a world run by Corporations, no judge, no lawyer,or no politician decides who is guilty or innocent anymore, global corporations who bought our judges and bought our congress and all our lawmakers, will decide who is guilty and who is innocent, corporations will ALWAYS win, because they OWN THIS COUNTRY, LOCK, STOCK AND BARREL. a JUDGE DOESN'T DECIDE WHO IS INNOCENT AND WHO IS GUILTY, A LOBBYIST for the biggest companies in the world decides, not any government or judicial system, Corporations ARE YOUR GOVERNMENT NOW!
Mike Lavanga
2:22 am on Tuesday, August 14, 2012
Tell Comcast that you have a better deal with Verizon. You'll get the same promotion as these guys were offering.
Smedley
10:36 am on Tuesday, August 14, 2012
Paula I couldn't have said it better. Thank you republicans and democrats for passing the laws that allow these corporations to suck the money out of you while the government gets in another tax or two. It wasn't long ago they broke up Bell Telephone because they said it was too big. If you really want to be happier turn the dumb thing off. I can say that comcast or verizon will never get a dime out of me. When their salesman came around I told him the same thing and said to tell them to stop sending me all that junk mail. Amazingly I stopped getting it from them. I have DSL thru earthlink but got rid of my cable and got a great antenna from believe it or not antenna deals.com. I got the best one. It only costs around 70.00 and no cable bill. Has over a 100 mile range. Lots of stations. You really don't need all that stuff. Go out and do great things in the community. Save money too !
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