Advertisement

9 Indicted in Telephone Calling-Card Scam : Crime: Ring allegedly stole and sold numbers. One of those charged is the son of a Beverly Hills developer.

Share
TIMES STAFF WRITER

The son of a wealthy Beverly Hills real estate developer was one of nine people indicted Monday by a federal grand jury in Greensboro, N.C., for his alleged role in a ring that authorities say stole and then sold as many as 100,000 telephone calling-card numbers.

Facing one felony count of conspiracy to defraud is Claude Oliver Bilak, 22, of Beverly Hills, who attends USC and was known in the hacking community as “Killer.” Bilak was unavailable for comment.

His father, Milton Bilak, who owns El Cerrito Plaza, the Orangefair Shopping Center and other local malls and office buildings, denied any knowledge of his son’s alleged activities and said he was “appalled” by the indictment.

Advertisement

Also indicted was Joshua Neil Freifield, 19, of Whittier, an information and computer science major at UC Irvine who was known as “The Legend” and ran a computer bulletin board service called Road to Nowhere.

In a brief interview Monday, Freifield acknowledged his involvement in the ring but said he didn’t realize how illegal the activities were or the possible penalties for them.

“It wasn’t like we were going out there trying to make ourselves rich and getting Ferraris,” he said. “We just thought it was a small-time kind of thing.”

Others named in the indictment were Ivy James Lay, 29, of Haw River, N.C., a former MCI technician who authorities allege stole the credit card numbers from MCI’s switching centers and supplied them to others for sale; Michelle Lillian Goodzuk, 23, of Kirkland, Wash.; Enoch John White, 52, of Philadelphia; Ted Anthony Lemmy, 29, of Westmont, Ill.; Leroy James Anderson, 46, of Blaine, Minn.; Frank Ronald Stanton Jr., 22, of Wingate, N.C., and Kim Schmitz of Munich, Germany.

The indictments were the culmination of a six-month investigation into calling-card fraud by the Secret Service.

The case has attracted considerable attention due to Lay’s position as an MCI employee and the fact that stolen credit card numbers were used to make an estimated $50 million in long-distance calls.

Advertisement

If convicted, the alleged conspirators could each face a maximum of five years in prison and a $250,000 fine.

Advertisement