Verizon Pays $93 Million For Over Billing Government

Looks like Verizon doesn't just charge the regular customers bogus below the line fees, but tried to do the same thing with the Feds. Only thing is the Feds have the GPO doing regular audits on their contracts and Verizon got called on it. Even then, it took years to get Verizon to make good on the overcharges.
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When I get a bill I always check it for accuracy it is only prudent.

Just as prudent as it is to check your bills (because mistakes do happen), it is equally important that a business remains vigilant in confirming the accuracy of a bill or invoice. This is a good business practice and an essential part of providing good customer service.

That being said, at a certain point a simple billing error becomes incompetence, and if not corrected that incompentence becomes fraud. For $93.5 million, I would assume we've crossed into "criminal fraud" territory. This isn't just a missed line item on an invoice or two, this is something far beyond that. This is systematic and, possibly, intentional.

Yes it was intentional;

quote:

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Verizon spokesman Peter Lucht said that the company continued to disagree about whether certain fees could be charged under the terms of the contract, but that it believed settling the matter “amicably and without further litigation” to be in its best interest.

“Verizon and the U.S. government have a long and valued business relationship,” Lucht said. “It was in the best interest of all parties to settle the matter.”

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The matter is finished as far as the DOJ is concerned.

That $93.5 million is probably a fraction of what Verizon really netted. If/until the fines cost more than the ill-gotten gains, any business will consider such punishment the cost of doing business. Heck, if I had a scheme that could net me $2 billion and at worst cost me $500 million in penalties, I would go for it.
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I support the right to keep and arm bears.

Usually the settlement is about 5 times the unallowed charges. Government audits are very very harsh and they go full court press on any overcharges usually requesting treble damages, interest and full penalties. With the legal fees added in it's usually cheaper to settle and pay back 5 times the dispute than fight it.

Everyone makes errors, and the sheer size of some organizations (such as Verizon) means errors become more visible due to more people affected *, but for crying out loud! You'd hope and think they'd get their act together.

Then again, I have firsthand experience with Verizon's ineptitude. We may not be in Kansas anymore; indeed, I was in south Buffalo and apparently Dorothy's tornado came through and moved my apartment 4000 wire feet...funny, that, because the street corner right outside still had the Burch and Seneca sign(s) there.

* By the way, this is one of Google's concerns for World IPv6 Day...although the percentage of users who visit their sites which are predicted to have troubles is quite low, a tiny percentage of such a large amount of visitors is still an AWFUL LOT of people.
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English is a difficult enough language to interpret correctly when its rules are followed, let alone when a writer chooses not to follow those rules.

Jeopardy! replies and randomcaps REALLY suck!

I used to think that way then I realized that of all the errors made and all the glitches and billing mistakes made, 95% of them are in favor of the company doing the billing, so what's wrong with that picture.
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Good judgement comes with experience...Experience comes after bad judgements

Thanks. I've never thought of it that way.

But then again, less-than-honest people have a disincentive to disclose that there was an error in their favor, so I have to wonder if anyone collecting statistics on the signum of error will have biased data. Me personally, I would be inclined not to remain silent on an error in my favor. I believe too much in karma making its rounds right back on me to smack me down.

Still...it seems overwhelmingly in favor of Verizon; I agree.
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English is a difficult enough language to interpret correctly when its rules are followed, let alone when a writer chooses not to follow those rules.

Jeopardy! replies and randomcaps REALLY suck!

And how do YOU know that? I know of no companies that publish their error rates anywhere - either in their favor or not. That info might be available in transcripts from lawsuits or by independent auditing firms hired as part of a lawsuit.
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Exactly, its not published anywhere so you can't refute it either. But to answer your question, I came to this conclusion by reading the dozens of headlines and information posted by a third party like this topic for instance. I can also bring it closer to home and say that of all the billing errors I've had in my life, not just with the aforementioned, they were 95% in the companies favor, leaving me to spend hours of my time getting it right with customer service.

You come across as though they can do no wrong, but my advice to you is triple check your bill. I'm not saying that errors don't go in the customers favor, but how many times does that happen? How many times has it happened to you during your bill paying existence? Even when it does happened, it will be a one time, planets lining up sorta of thing. But when it's their turn to wield the sword, multitudes will be raped, billing period after billing period, for months or years on end until some catches wind of it.
Don't be naive.
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Good judgement comes with experience...Experience comes after bad judgements

Pats $93 Billion?

At any rate, I think they should be forced to pay a substantial more back than what they over-billed. This government money is money we pay in taxes. Eish, you get screwed even if you don't have verizon.

How about the headline, "...Pats $93 BILLION......

I love this site! The problem is the whole industry this site focus's on makes me sick. I want stiff regulations on the whole industry. I want carriers classified just like they did with phone service. I want everyone connected, even in the sticks. I want all this BS to end. Its gone too far and quite frankly its an embarrassment. I want to know whos responsible for this overcharge and I want all the people responsible for the decisions to screw the consumer to be publicized and made to look like the jerkoffs they are. I want their families and friends to be embarrassed of them, distance themselves from them and deny them the joys of being surrounded by respectable and ethical people.

We shouldnt have to continue to worry about these dirtbags. There are far bigger problems to worry about. Im starting to see that the hacker group anonymous may be on the right track. I just dont care anymore whether what they do to these companies is right or against the law anymore. I want these companies to act like they should and how we expect them too and if it takes them fearing hacker groups then its a win.

I'm used to stories getting reposted to the RSS feed when there are corrections, but this particular story is appearing again and again.
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09 F9 11 02 9D 74 E3 5B D8 41 56 C5 63 56 88 C0

An obvious question wouldn't ya say. Interest on that amount isn't exactly pennies.

See this:
»Re: Probably a Fraction
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Yea but they have this way of weasling out of crap that most companies would get nailed for...
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"I can’t give you a surefire formula for success, but I can give you a formula for failure: try to please everybody all the time."
~ Herbert Bayard Swope

Im waiting to see if there will be any backlash from uncle sam to Verizon or all the major cellular companies. For you and I know if they picked Uncle Sams wallet for this much, how much have they picked us regular joes wallets!

It appears that posters like to post but not read. Perhaps facts and the study to get them is boring.

This was not a mistake. Verizon's interpenetration of the contract was that they could charge the government the same charges they charge the common people.

The US government did not find the discrepancy a company that combs government contracts looking for this type of thing found it; they get a cut of the money BTW.

quote:

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The complaint was originally brought against Verizon as a whistleblower complaint by Stephen M. Shea and 2Probe LLC; the complaint dates from 2007 and covers billing going all the way back to 1999

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This was a civil action and Verizon disagrees but paid because yadat yadata.