Mobile dealers sentenced for £1.6 million clawback fraud

Mobile phone dealers Jonathan Shulton and James Cahill have been convicted of fraud at Southwark Crown Court for their parts in a £1.6 million abuse of commission schemes. They'd claimed commission for connecting new customers and then liquidated their companies before networks had the opportunity to realise that the connections were fraudulent. Following a Serious Fraud Office investigation, Jonathan Shulton has been sentenced to a total of 27 months imprisonment, with James Cahill sentenced to a 240 hours community punishment order. [Press release]

Dealers want non-paying customers blacklisted

A number of independent dealers have complained that networks are refusing to blacklist mobile phones when a customer connects using fraudulent information or doesn't pay their bill. They say that networks claim the handset is still owned by the person who bought it, while the dealers say the handset belongs to them until the end of the customer’s contract. The dealers point out that they're being 'clawed back' for commission when customers don't pay. [Source: FoneMag.co.uk; 'The Voice' column]

Clawback protection from T-Mobile?

Here's a topic we touched on in our podcast this week. T-Mobile is said to be considering a trial of a new clawback protection procedure for dealers. It would reduce the risk of dealers having to repay commission when a customer defaults on the mobile phone bill. T-Mobile will apparently require participating dealers to take a deposit from the customer or to match their address with their payment details. [Source: Mobile News]

Dealers lobby Ofcom with scheme to end clawback

The Independent Mobile Phone Dealers Association (IMPDA) has suggested to Ofcom that dealers would be prepared to accept a £10 reduction in commission if this insured them against immunity from network clawbacks. Networks currently retain or "claw back" commission they've paid dealers for connecting new customers if the customer defaults on their bills. IMPDA chairman Chris Caudle said "no dealer should be clawed back unless there is sufficient proof of wrongdoing, such as fraudulent connections.” [Source: Fone magazine]

New edition of 'The Fonecast' now online

This week's free edition of The Fonecast, a weekly downloadable podcast about the mobile industry (in partnership with Mobile News), is now available to download from TheFonecast.com. Our main feature is an interview with Jez Harris about the new Orange commission clawback changes that'll affect dealers. There's a quick look at the new Sony Ericsson C902 Cyber-shot camera phone - and you'll also discover the latest mobile industry news and gossip. Each broadcast can be downloaded by including us in your RSS reader, by using iTunes, by visiting TheFonecast.com or by visiting the Mobile News website.