[IMAGE: A photo of John T.C. Yeh and Joseph Yeh]
Washington – In a shocking turn of events, John T.C. Yeh, the owner of Viable Communications Inc., and his brother, Joseph Yeh, the former vice president for corporate strategy, have pleaded guilty to engaging in a conspiracy to defraud the Federal Communications Commission’s (FCC) Video Relay Service (VRS) program.
The scheme, which began in fall 2007, involved paying individuals to make fraudulent VRS phone calls using Viable’s VRS service. Viable then submitted the fraudulent call minutes to the FCC and was paid approximately $390 per hour for all VRS calls that Viable processed.
The VRS program is an online video translation service that allows people with hearing disabilities to communicate with hearing individuals through the use of interpreters and Web cameras. A person with a hearing disability who wants to communicate with a hearing person can do so by contacting a VRS provider through an audio and video Internet connection.
According to the indictment, VRS is funded by fees assessed by telecommunications providers to telephone customers, and is provided at no cost to the VRS user. The scheme resulted in a total of approximately $55 million in VRS claims being submitted to the FCC.
John and Joseph Yeh each face a maximum sentence of 20 years in prison, a fine of $250,000 and mandatory restitution and forfeiture. Their sentencing is scheduled for February 9, 2011.
This is not the first time Viable Communications has been involved in a scandal. In 2009, the company was one of six companies indicted for engaging in a scheme to defraud the FCC’s VRS program. The indictments charged owners and employees of the companies with engaging in a scheme to steal millions of dollars from the FCC’s VRS program.
The cases are being prosecuted by Deputy Chief Hank Bond Walther and Trial Attorneys Brigham Cannon and Robert Zink of the Criminal Division’s Fraud Section, with the investigative assistance of the FBI’s Washington Field Office, the U.S. Postal Inspection Service and the FCC Office of Inspector General.
John and Joseph Yeh’s guilty plea brings an end to the conspiracy, but raises questions about the effectiveness of the FCC’s VRS program in preventing such schemes in the future.
As the investigation continues, one thing is clear: the VRS scam has left a trail of devastation for those who trusted Viable Communications with their business.
The Grimy Times will continue to follow this story and provide updates as more information becomes available.
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Key Facts
- State: Washington
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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