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Businessman makes $2 million in scams involving pay phones

By Mason White 3:32 PM September 19, 2017
Payp hones (illustration)
Payp hones (illustration)
By: Alexis Bell

(Scroll down for video) Most business people who used to make money off pay phones, moved on to different fields once cell phones became popular.

However, one businessman in Texas, came up with an illegal solution to keep making money off of his pay phones.

According to his arrest report, David Grudzinski, who owns 450 pay phones across Texas, used them for an elaborate fraudulent scam.

The federal government uncovered that Grudzinski used a computer program to “robotically place repeated telephone calls to toll-free phone numbers.”

Most of those calls were placed to government offices such as the IRS and the Texas Health and Human Services.

His purpose was to take advantage of the FCC’s (Federal Communications Commission) regulation, which approved a fee of 49 cents for every toll-free call made from any pay phone.

The 49 cents is paid to the owners of the pay phones.

Court documents state that he began the scheme in 2005 and it lasted through July 2015. As a result, Grudzinski raked in close to $2 million.