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Data Center Raid About Unpaid Telco Fees
craig writes "CBS11 News reports that the raid on Core IP networks is in the result of an investigation into unpaid telco access fees paid by CLECs and VoIP carriers to terminate calls on their networks. They also report that this raid is linked to the March 12th raid on Crydon Technology's datacenter, which also hosted VOIP providers. Anyone in the telco business will tell you access fees to other carriers are a total mess and lots of carriers have unpaid balances out there. It gives you the feeling that the FBI is acting as a collection agency for AT&T and Verizon."
It gives you the feeling that the FBI is acting as a collection agency for AT&T and Verizon
Well, AT&T and Verizon did "favors" - Patriot Act - for the FBI, perhaps this is the FBI payin' them back?
If you want news from today, you have to come back tomorrow.
So yesterday this very story was on how the FBI was acting as the RIAA's paid hitmen. Today we get a story about how theyre collection agents for AT&T (but no comments about wiretapping? im disappointed). I look forward to tomorrows article, Im sure it will be filled with useful, non-speculative bullshit. Incidentally, isnt it sort of in the FBI's realm to investigate large-scale fraud?
"It gives you the feeling that the FBI is acting as a collection agency for AT&T and Verizon."
Wouldn't that be a civil matter rather than criminal? I call unlikely.
Deleted
During the raid, CMG's owner, Joe Condit, says his website and business went down. "It's crippled us completely. Now that we don't have a website, we have no business, and a lot of speakers are without representation."
Without saying that this raid should have occurred in the way that it did, what's stopping this guy from setting up a webserver elsewhere and getting his business back online?
In an emergency, I'm pretty sure I could have a basic but "adequate" webserver for most small businesses up and running on just about any Internet connection within about 6 hours, even if I had to buy a new computer to install it on and find another Internet connection. Point the DNS records to the new address and he's back in business.
He would be in exactly the same situation if the colo building burned down. Why risk your business that way? If it's important to you, back it up and have some idea of what you're going to do if it goes down.
If you're a zombie and you know it, bite your friend!
First the Wolverine story from yesterday, now this? I find it hard to believe that this is really over some unpaid bills.
The game.
Even better! We can blame the telecos for this one! I can't remember the last time I got to use my sardonic AT&T-Death Star Logo!
Demented But Determined.
> It gives you the feeling that the FBI is acting as a collection agency for AT&T and Verizon.
"I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents."
- Maj.Gen.Smedley Butler, 1935, awarded 2xCMOH
Discuss the use of Federal agencies in protecting commercial intersts of large corporations. 2000-3000 words. Citations in Harvard style.
Doesn't matter what the motive or rationalization is: Unreasonable seizure by the federal government is forbidden in the Constitution.
There's no way they needed all this "evidence" for some unpaid bills. Nice story, but I call bullshit.
God knows what is really going on here, but I hope it eventually sees the light of day. This is reminding me of Waco, with 98% less people being burned alive involved.
--
Toro
Not really, reciprocal arrangements are made by telecommunications companies a thousand times every day, to say that they are complex is perhaps a bit of an understatement. Usually they work out pretty well and everyone is happy, but sometimes someone gets an agenda, or just plain greedy and this is the end result.
While poignant, I hardly think a quote from damn near a century ago is particularly relevant. You might as well be quoting Shakespeare.
Because the world is so different now?
Let's update it a little then:
"I helped make Iraq a decent place for the Haliburton boys to collect revenues in....I tried to bring light to Afghanistan for the Unocal Central Asian oil pipeline in 2002."
The first step in repeating history is failing to see the relevance of past lessons. Whenever someone says "but things are SO different now" my bullshit detector goes off. Human beings aren't any different now than they were a thousand years ago.
index
Matthew Simpson
Core IP Networks LLC
Dear Customers,
Today at 6:00am, the FBI conducted an unwarranted early morning raid of our 2323 Bryan Street Datacenters, on the 7th and 24th floors.
I received a phone call at 6:05am from our NOC that the entire network was powered off. I called Capstar Commercial and TELX, our landlord, and was told that the FBI was in the datacenter with a search and seizure warrant. I asked that the agent in charge call me immediately.
I received a call 15 minutes later from FBI Agent Allyn Lynd. Mr. Lynd would not tell me why he raided our datacenter or what he was looking for. He also accused me of hiding inside my house in Ovilla, Texas. I was actually in Phoenix, Arizona when this happened. I told him that, and he told me that he was "getting the dogs" after me, and hung up on me. I found out from an employee that there were 15 police cars and a SWAT team at my home in Ovilla.
The FBI has seized all equipment belonging to our customers. Many customers went to the data center to try and retrieve their equipment, but were threatened with arrest.
Neither I, nor Core IP are involved in any illegal activities of any kind. The only data that I have received thus far is that the FBI is investigating a company that has purchased services from Core IP in the past. This company does not even colocate with us anywhere, much less 2323 Bryan Street Datacenter.
Currently nearly 50 businesses are completely without access to their email and data. Citizen access to Emergency 911 services are being affected, as Core IP's primary client base consists of telephone companies.
If you run a datacenter, please be aware that in our great country, the FBI can come into your place of business at any time and take whatever they want, with no reason.
I can be reached for further comment at: mnsclec@gmail.com
Further information will be given as it becomes available.
Yours,
Matthew Simpson
CEO, Core IP Networks, LLC
direct link: http://sites.google.com/site/mnsclec/index //Just made an account to post this.
the speculation was that the FBI raided the data center for IP piracy. Which would, assuming they in fact had a warrant, be within the scope of criminal law, e.g. The Copyright act.
However, I was under the impression that, in America, it was no violation of the law to owe someone money; at least until that person or corporation showed that money was owed or a contract was breached in a CIVIL suit.
Or has the Federal Government legislated itself into that area as well?
IANAL, etc.
If its really about money owed to the telcos by these VoIP providers, the right way for Verizon, AT&T etc to get their money back is to cut off whatever VoIP->PSTN gateway setup is being used. If its a 3rd party gateway, the third party gateway should be responsible for paying the telco and then the VoIP provider should be paying the 3rd party gateway.
In any case, its possible to shut down whatever links are used to connect to the telcos networks
As long as power is wielded at the discretion of human beings who can be influenced by wealth, capitalism will always tend toward fascism.
The main sign that a company is about to go under is when they get the law involved. For some examples see the record labels, film studios and patent trolls. Even Apple is infamous for being excessively litigious prior to their current windfall.
Normally business arrangements are reciprocal and it's in the best interests of a company to avoid publicizing that their partners are in breach of a contract. There are plenty of collections agencies in the private sector that they could have consulted instead, but instead it's being treated as a criminal matter. This is the sort of behavior you see when a company realizes that their business model is flawed.
Late payments are one of the signs that a company is about to go under.
Not if lawyers are involved?
I'm seeing more and more of this in non-related businesses, but what it boils down to is this:
Customer finds a discrepancy and needs to get it worked out, so they call an audit and find a MAJOR snafu. To protect themselves, they bring in the lawyers.
All payments stop until the issue is resolved. Usually, the money is placed into an escrow during the legal proceedings, especially if the customer has the money to pay the bill.
Provider's lawyers work with the customer, but this takes time. Take too long, and the statute of limitations will run out.
More time passes. Customer has the money and can pay, but lawyers say no.
Provider sends a final notice: pay up.
Customer sends a letter: Our lawyers aren't done, and we can't send the money yet. Look! The money is right here in this account, just WAIT A FEW MORE DAYS!
Provider turns to their lawyer: If you wait one more day, the statute of limitations will expire and they could walk away scott free.
Now the provider has no choice? They MUST take action to protect their interests, so they seize the assets of the customer in some fashion. Most of the time this involves filing a lien on those assets, but in some cases-like this one-they can physically collect those assets.
[End Of Line]
Mr Simpson said that he found out that his home was raided as well.
You don't raid the HOME of the CEO of a company because you think their customers are involved in fraud. That makes less sense than the copyright violation speculation.
LedgerSMB: Open source Accounting/ERP
That is true, one of the reasons for the 2nd amendment is to put down an out of control government.
However, one of the responsibilities that we have as possessors of the right to bear arms is to not start shooting with out good reason and clear heads. You, I, and everybody else on Slashdot don't know yet what the purpose of the fed's action was. Maybe the CEO is a criminal, and a number of the businesses are fronts. Maybe there was some clear and eminent danger that required a (legally warranted) search of the CEO's house and servers. We just don't know, the coverage of this event has been lousy. Don't run off half-cocked.