VZW sues for alleged premium SMS 'shadow' campaigns

Verizon Wireless and the Texas attorney general have filed lawsuits against a company that they say used premium SMS campaigns to defraud VZW and its customers.
The lawsuit is the latest in a string of 20 lawsuits Verizon Wireless has filed against companies over premium texting campaigns that can trick customers into signing up for services they didn’t want, among other things. In this instance, Verizon Wireless said the companies misappropriated approved short codes for unapproved “shadow” campaigns that did not comply with Verizon Wireless’ policies. The lawsuit charges Jason Hope and Wayne P. DeStefano, as well as companies Cylon, Jawa and EyeLevel Holdings, as well as others, with the alleged fraud.
“The lawsuit further shows the defendants were blocking certain IP addresses from accessing the websites associated with these shadow campaigns or were re-directing visitors to shell websites, preventing Verizon Wireless and its auditors from finding the shadow campaign websites in the normal course of monitoring Premium SMS campaigns for compliance,” the company said in a prepared statement.
Verizon Wireless said it assisted the Texas prosecutors in their investigation. “Texas Attorney General Greg Abbott has been a strong partner in shutting down this fraudulent activity. Verizon Wireless also is suing Jason Hope and his associates and co-conspirators who established this intricate fraudulent enterprise,” said Steve Zipperstein, general counsel and VP of legal and external affairs, Verizon Wireless. “As our work in the judicial system continues, I urge our competitors to quickly follow and put a stop to this fraud and ensure all mobile customers are protected.”