Com Systems Blames Fraud in Large Loss

Com Systems Inc., the Van Nuys-based long distance telephone company, reported a loss of $4.4 million for the third quarter that ended Sept. 30, compared to a profit of $1.1 million in the same period a year ago. The company’s revenues jumped to $26 million from $18 million last year.

Com Systems attributed the loss in part to promotional discounts. But it also blamed some of the loss on people who fraudulently obtained access numbers to charge long distance calls. The company said it had installed systems to curb the fraud.

For the nine-month period, Com Systems said it lost $6.5 million compared to a gain of $2.4 million a year ago. The company’s nine-month revenues increased 54% to $71 million from $46 million a year ago.