D.A. Accuses Cellular Firm of Overcharging

Alleging that a Westlake Village cellular telephone service company has overcharged customers, the district attorney’s office filed a civil lawsuit against the company, officials said Thursday.

The lawsuit against Digital Communications Network Inc., doing business as DCN Cellular, alleges that the company committed false advertising and unfair competition violations by billing customers for two services without their authorization.

The suit, filed by the Consumer and Environmental Protection Division of the Ventura County district attorney’s office, alleges that the firm charged customers for two optional services unless they sent in a form declining these services. Such billing practices violate a law that prohibits so-called negative option plans.

The complaint also alleged that DCN Cellular misled customers by adding a $5 billing surcharge--disguised as a government-imposed charge--to customers’ bills each month.

Robert Mogadam, president of DCN Cellular, said he had been working with the district attorney’s office for the past two years to resolve the overcharges.

“We have now made a restitution to the customers that were affected,” Mogadam said. “The D.A. is filing a lawsuit because of a technicality.”

Mogadam said the prosecutor is not allowed to engage in negotiations with a company over further restitutions without filing suit.

“They want to fine us, and they can only do that by filing a lawsuit,” Mogadam said. “The whole thing should be settled quickly.”