Wisconsin agency accuses LV company of sales fraud

Friday, Aug. 4, 2000 | 11:07 a.m.

Consumer protection officials in Wisconsin have accused a Las Vegas company of fraudulent sales practices.

David Ghilardi, assistant legal counsel for the Wisconsin Department of Agriculture, Trade and Consumer Protection, said his office has asked the state's Justice Department to prosecute NOS Communications Inc. and an affiliate company, Affinity Network Inc. of Los Angeles.

A NOS Communications representative who would not identify himself said the company has a policy of not discussing pending legal matters with the media and that he had no comment on the Wisconsin allegations.

The Nevada Attorney General's Office and the Office of the Consumer Advocate have received inquiries about NOS from other states, but wouldn't say if they have an investigation on fraudulent sales practices pending regarding NOS.

Ghilardi said NOS could be fined up to $5,000 for each violation if convicted and no decision has been made on how many separate counts are involved in the 25 recorded complaints in the state.

Ghilardi said NOS is accused of misleading customers by offering long-distance telephone service for 7.9 cents per minute, then billing customers 7.9 cents per "calling unit." He said calling units are calculated on a sliding scale based on the total time used. He said the rate worked out to a maximum of 19 cents per minute based on a chart developed by his office.

Ghilardi also said his office received complaints that NOS was slow to release customers from their contracts when asked.

Brian Kunzi, assistant chief deputy attorney general in Nevada, said state policy prevents him from confirming whether there is an investigation under way on NOS in the state.

But he said his office has received more than 25 complaints "representing thousands of claims" from all over the country.

"I have been in receipt of numerous complaints typical of what I have read about from Wisconsin," Kunzi said.