Two Indicted for VRS Scam

Two individuals have pleaded guilty to their involvement in a massive scam targeting the Federal Communications Commission’s (FCC) Video Relay Service (VRS) program, according to a recent indictment.

Ellen Thompson, 44, pleaded guilty to one count of conspiracy to commit wire fraud, while Wanda Hutchinson, 36, pleaded guilty to one count of conspiracy to commit mail fraud. Both defendants were indicted in 2009 along with others accused of participating in the scheme.

According to court documents, Thompson was the chief operating officer for Deaf Studio 29, Verson Studio and Deaf News Network, California corporations that contracted with a certified VRS provider company to use the company’s VRS service. Hutchinson was a call center manager for Innovative Communication Services for the Deaf Corporation (ICSD), a company that operated VRS call centers in Florida.

The defendants, along with their co-conspirators, are accused of causing the FCC to pay millions of dollars in fraudulent reimbursements. VRS 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.

The scam was perpetrated by generating illegitimate VRS call minutes for reimbursement by the FCC. VRS is funded by fees assessed by telecommunications providers from telephone customers, and is provided at no cost to the VRS user.

Thompson and Hutchinson face a maximum sentence of 20 years in prison, a fine of $250,000 and mandatory restitution and forfeiture. They are scheduled to be sentenced on September 6, 2011.

This case was prosecuted by Deputy Chief Hank Bond Walther and current and former Trial Attorneys Robert Zink and Brigham Cannon of the Criminal Division’s Fraud Section. The case was investigated by the FBI’s Washington Field Office, the U.S. Postal Inspection Service and the FCC Office of Inspector General.