Settlements Reached in Net Phone Schemes

Two Internet operations settled government charges that they scammed consumers out of tens of thousands of dollars in telephone payments by routing their computer connections to Africa and South America.

Visitors to the Web sites were offered access to adult materials without the need for credit cards. But when they selected that option, their computers disconnected from their Internet provider and made an international call to another computer system, the Federal Trade Commission said.

Most of the victims were unaware of this technical sleight of hand until they received phone bills for hundreds of dollars with calls costing as much as $7 a minute, the agency said.

Two Canadian companies--Virtualynx Internet Inc. and 583 665 B.C. Ltd.--and their president, Charlo Barbosa, have agreed to pay the government more than $26,000, which the FTC will try to return to the victims.

In a separate case, the FTC said Web site operator Hillary Sheinkin of South Carolina has agreed to pay about $10,000 to settle similar charges. Her Web sites promised free access to adult materials, but users had to download software that made calls to Guyana in South America.