Calling Card Research
In two previous issues we've suggested that you investigate companies that you are planning to represent with due diligence. We have learned more about the problems we highlighted in, "Calling Card Sales Opportunity has Problem," (issue 97:08:02) which furthers our point.
According to Randal Simonetti, VP of Communications for Frontier Corp. (NY),"Frontier Corporation has never had a business relationship with Blackstone. The history of the Blackstone pre-paid calling cards goes something like this.
An individual in Dallas, Texas-unaffiliated with Frontier Corporation-contracted with Blackstone to supply a prepaid calling card product. That individual used network access obtained from a company in New York City known as Communication Opportunity, Inc. (COI). COI in turn, was an 800 number customer of Frontier Corporation. Although not licensed or certificated to do so, COI resold its 800 numbers to the individual in Dallas, who sold those numbers to Blackstone as part of the prepaid package. The individual in Dallas also misrepresented to Blackstone that his operations were part of Frontier Corporation. When Frontier Corporation learned that its 800 numbers were being utilized unlawfully and without authorization, it immediately shut down access to its network through those numbers.
Blackstone paid approximately $500 thousand to the individual in Dallas and recovered $162 thousand since the scheme was uncovered by Frontier Corporation in June. Blackstone subsequently commenced litigation against the individual in Dallas, COI, and Frontier. Motions to dismiss the lawsuit have been filed by COI and Frontier and have not yet been ruled on by the federal court in Miami."
What all this shows is that before you sign a contract it is most prudent to do thorough research on the companies involved. This can be done easily through a number of on-line services or by visiting your local library.
