http://www.csoonline.com/article/514639/ISP_Operators_Among_19_Arrested_in_Cyber_Fraud_Case 

By Robert McMillan
IDG News Service
January 12, 2010

The owner of a Dallas-based Internet service provider that was raided 
last April has been charged with participating in a conspiracy to 
defraud more than US$15 million from companies such as Verizon, AT&T and 
XO Communications.

Matthew Simpson, 25, of Red Oak, Texas, is one of 19 people charged in 
the case, according to a grand jury indictment that was unsealed late 
last week.

His Dallas company, Core IP Networks, was raided by FBI agents on April 
2, 2009. At the time, Simpson claimed that his company and nearly 50 of 
his customers were the innocent victims of another's actions.

"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," he wrote in a note posted to Google Sites on the day of the raid. 
"This company does not even colocate with us anywhere."

But according to federal prosecutors, Simpson was an active participant 
in a long-running scam to set up companies that fraudulently obtain 
lines of credit and then resell telecommunications services before 
skipping out on the bills.

[...]


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