FCC fines telemarketer nearly $10M for spoofed Caller ID

SAN DIEGO — The Federal Communications Commission has fined a San Diego man and his telemarketing company nearly $10 million for “spoofed” Caller IDs on robocalls made ahead of the 2018 primary election that contained false accusations about a candidate in a North County state assembly race.

According to the FCC, Ken Moser and his company, Marketing Support Systems, displayed the Caller ID number of a rival telemarketing company on some 47,610 pre-recorded robocalls in violation of the Truth in Caller ID Act.

The act prohibits manipulating Caller ID information with the intent to defraud, cause harm or wrongfully obtain anything of value.

The competitor, HomeyTel Inc., received many angry complaints from consumers and a cease-and-desist letter from the candidate, according to the FCC.

The pre-recorded calls made May 30-31, 2018, raised accusations of sexual harassment against Phil Graham, a Republican who was battling several others in the June 5, 2018 primary for the 76th state assembly district seat.

The accusations had already been debunked by the San Diego County Sheriff, which released results of an investigation on May 29, 2018. The accuser eventually pleaded guilty to filing a false report.

Moser disputes the $9,997,750 fine, calling the action politically motivated. “I was told by two top attorneys that specialize in FCC matters that it’s normal that this process can take two years,” he said. “So today’s quick work without a counter to my answer (to the FCC allegations) appears unusual.”

Among his many assertions in defense, Moser contends that Marketing Support System used a spoofed Caller ID to protect the identity of its client, who feared reprisals.

While he knew the spoofed Caller ID number once belonged to HomeyTel, he says that he believed the company was no longer using it because it was inactive. HomeyTel’s last filing with the California Secretary of State’s Office was in 2015 and its corporate status was listed as “suspended.” Its owner, Conrad Braun, moved to Mexico in 2014, according to court documents.

Since the fine is based on Moser's intent to harm a competitor, "the obvious non-existence of this competitor seems to be vital evidence missed by the FCC," Moser said in a filing with the agency.

In a written statement, FCC Chairman Ajit Pai said Moser's assertion that he didn't intend to harm HomeyTel isn't credible. The two companies had been involved in a lawsuit in 2013.

"Moser intentionally chose to use a phone number he knew belonged to a business rival with whom he had a bitter, litigious history," wrote Pai. "One would have to be rather naive to think that this was not done with the intent to cause harm."