The $1.3 Million Phone Bill

The Whistleblower’s Dilemma

Seriously, a $1.3 million phone bill.

In my line of work, you develop a keen eye for irregularities. But sometimes, spotting the problem is just the beginning. That was certainly the case when I stumbled upon a billing discrepancy that would eventually lead to a $1.3 million settlement with one of the country’s largest telecom providers.

It started innocently enough. I was reviewing bills for a client, one of many Massachusetts municipalities I worked with. As I pored over the charges, a pattern began to emerge. The rates didn’t match what I knew to be the contracted prices for state agencies. It wasn’t just a one-off error; this was systematic.

At first, I thought it might be a simple mistake. But as I dug deeper, checking bills from other clients, I realized this was much bigger than I had initially thought. Verizon New England, Inc., a subsidiary of the telecom giant, had been consistently overcharging not just my client, but potentially every state agency, town, and municipality in Massachusetts.

The Decision to Act

I’ll be honest; coming forward wasn’t an easy decision. Verizon was (and is) a powerful company, and I was just one person. But I knew I had to do something. This wasn’t just about money; it was about trust, accountability, and ensuring that public funds were being used properly.

So, I reached out to a class action attorney I knew. He listened to my concerns and suggested we pursue a qui tam lawsuit – a type of whistleblower action taken on behalf of the government. It was a daunting prospect, but I knew it was the right thing to do.

Building the Case

What followed was months of painstaking work. My team and I dug through years of records, compiling evidence of overcharges. It wasn’t glamorous work – imagine spending your evenings poring over phone bills, looking for discrepancies in local calling usage, regional toll service, and business line charges. But each discovery fueled my determination.

We presented our findings to the Attorney General’s office. I’ll never forget the look on their faces as they realized the scale of what we had uncovered. This wasn’t just about a few errant charges; this was systemic overbilling that had been going on for years, from September 2006 through October 2012.

The Legal Battle

The Attorney General’s office took up the case, filing a lawsuit against Verizon New England in Hampshire Superior Court under the Massachusetts False Claims Act. It was a long and complex process, but finally, in January 2015, we reached a settlement.

Verizon agreed to pay $1.3 million to resolve the allegations. They didn’t admit liability, of course. They called it a “systemic billing error” – the same explanation they’d given in 2011 when they paid $800,000 to the Commonwealth and refunded $1.5 million to customers for a similar issue.

The Impact

The settlement was more than just a financial victory. It sent a clear message that even the largest companies would be held accountable for their actions. The Attorney General’s office began the process of contacting affected entities – towns, municipalities, and state agencies – to offer them a share of the settlement.

But perhaps more importantly, it highlighted the need for vigilance in managing telecom expenses. Many of the overcharged entities likely never noticed the discrepancies. It underscored the value of what we do at Chambers Advisory Group – helping organizations understand and optimize their telecom expenses.

Lessons Learned

This case reinforced several key lessons for me:

1. Always question discrepancies, no matter how small they seem.
2. Detailed record-keeping is crucial. Without those years of saved emails and documents, we might never have built a strong enough case.
3. Don’t be afraid to speak up when you see something wrong.
4. Expert knowledge in specialized fields like telecom expense management can uncover issues that others might miss.

Moving Forward

While the Verizon case was certainly one of the most high-profile in my career, it’s not an isolated incident. Overbilling, whether intentional or accidental, is a common issue in the complex world of telecom expenses.

That’s why I continue to do this work. Every day, I help organizations large and small navigate their telecom expenses, uncovering savings and ensuring they’re not paying more than they should. It may not always make headlines, but it makes a difference – to budgets, to taxpayers, and to the communities these organizations serve.

In the end, that’s what it’s all about: using our expertise to ensure that resources are used efficiently and fairly. And if that sometimes means taking on a telecom giant, well, that’s all in a day’s work.