Sting Operation Breaks Up Cellular-Phone Fraud Ring

Relying on an impromptu sting operation, Glendale police have broken up what allegedly was one of the largest and most active cellular-phone fraud rings in Southern California, officials said Sunday.

After arresting the owner of a Los Angeles cellular phone store Friday afternoon, police took control of the business’ operations--nabbing customers as they came in either to purchase illegal phones or bring phones back to be reprogrammed, according to sources familiar with the operation. In addition to a number of arrests, more than 50 reprogrammed cellular phones were seized and thousands of dollars in specialized computer and cellular equipment confiscated, said Steve Crosby, director of external affairs for L.A. Cellular, one of the main providers of cellular telephone service in the Southland.

Members of the ring allegedly “cloned” cellular phones, a process in which the phone is illegally altered so that calling charges end up on the bills of legitimate subscribers.

Glendale Police Lt. Ray Edey acknowledged the operation but declined to comment further in advance of a news conference scheduled for this morning.

L.A. Cellular officials say “clone shops” set themselves up as mini telephone companies, charging $60 to $100 a month for illegal cellular phone service. When the illegal calls are discovered, the phone is deactivated. Customers then must return to the store and have the phone reprogrammed to enable the illegal phone service to continue.

Law enforcement officials say cellular-phone fraud has reached epidemic proportions in Southern California, the nation’s largest mobile-phone market.

Officials of cellular phone companies said some electronic countermeasures being put in service are only now beginning to stem the tide of phone cloning. Several such measures are not yet fully operational.