Digicel calls the cops over alleged fraud

Denis O'Brien's Digicel may be gearing up for a near $10 billion flotation to finance its rollout of fibre fixed-line services, but that isn't preventing it from baring its teeth at what it alleges are illegal threats to its mobile revenues. And it has enlisted the boys in blue to help.

Digicel has the hump over so-called "bypass fraud", where internet telephony firms allegedly connect calls over its network without paying a fee. Its two biggest units, Haiti and Jamaica, where revenues are under pressure when converted into US dollars, have both teamed up with police to tackle alleged fraudsters.

This week, the Jamaican Observer newspaper reported that a man was arrested at a house in Montego Bay for allegedly defrauding Digicel of $70,000 in a bypass scheme.

Somewhat scarily, in my opinion, the newspaper’s report states that the bust was “a joint operation . . . carried out by members of the counterterrorism branch and Digicel employees”.

Digicel's Haitian unit has also enlisted the police there to help it combat alleged bypass fraud. In a civil court case recently filed by the unit in Oregon against a US internet telco, Digicel's affidavits stated that Haitian police had turned up evidence that implicated the company.

Digicel is also attempting to sue the US company, UPM Technology, under Rico organised crime legislation. UPM Technology is trying to get the case thrown out, and oral arguments are due to be heard later this month.

Everybody sing along, now, to the reggae theme tune of Cops: "Bad boys, bad boys, whatcha gonna do, whatcha gonna do when they come for you. . ."