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Dec. 29, 2011 / 3:05 PM

Lawsuit charges Verizon Wireless with fraud

Verizon Wireless has tried to inflate its number of phone activations to raise the company's value, a lawsuit filed in New York says. UPI/Roger L. Wollenberg

Verizon Wireless has tried to inflate its number of phone activations to raise the company's value, a lawsuit filed in New York says. UPI/Roger L. Wollenberg | License Photo

NEW YORK, Dec. 29 (UPI) -- Verizon Wireless has tried to inflate its number of phone activations to raise the company's value, a lawsuit filed in New York says.

The lawsuit was filed by ZCom, a firm that operates 120 Verizon Wireless stores in the greater New York area, the New York Post reported Thursday.

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ZCom attorney John Sampson, who is also the state Senate minority leader, said Verizon Wireless was "steroid enhancing" to appear more profitable.

Accusations, however, are ricocheting around New York courtrooms. A ZCom sub-lessor, Shelly Bhumitra, has filed a lawsuit claiming ZCom and a Verizon Wireless executive were involved in a phone activation scam.

Verizon Wireless has also filed a lawsuit against ZCom in an attempt to cancel their business agreements on the basis of ZCom engaging in fraud.

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