Apr 23, 2004 : Potential CassTel Link to Mob Explored

📅 April 23, 2004 - According to a report in the Kansas City Star, regulatory authorities in Missouri are looking into a possible relationship between Cass County Telephone Company (CassTel) and defendants with links to two Overland Park, Kansas companies allegedly perpetrated by members of the Gambino crime family. Federal prosecutors allege that a dual phone and Internet scam carried out by Cass and the mafia-backed companies generated $430 million in revenue, a total that would make it one of the largest consumer frauds ever.

Last month, US prosecutors made several indictments against Lexitrans Inc. and other shell companies based in Overland, Kansas, believed to be linked to the mafia. These companies allegedly ran adult Web sites and 900 numbers that defrauded customers by illegally charging for subscriptions to services advertised as free.
According to the report, Kenneth Matzdorff, president of Cass Telephone, said in testimony Monday before the Missouri Public Service Commission in Jefferson City that his company did help form an Overland Park, Kansas-based Internet payment service provider, a company authorities allege was controlled by members of the Gambino crime family. CassTel has also contracted with Overland Data Center, a company also believed to have mob ties, to provide data services.
Matzdorff has denied any wrongdoing by his company, the report said.