Teleline Inc. ran a telephone gambling game called “Let’s Make a Deal” using a 900 phone number. Playing the game cost $3.88 a minute. People who called were not charged for the phone calls, but only for the ability to gamble provided by Teleline. AT&T carried the calls over its long-distance lines, and Teleline paid AT&T for the cost of the calls. Felix’s grandson called the 900 number. AT&T listed Teleline’s charges under the heading “direct-dialed-calls' , as long-distance charges for long-distance calls on phone bills mailed to Felix. AT&T’s name and logo were displayed on the pages showing the LMD charges. The LMD charges were illegal gambling debts not collectable under state law. Felix’s local phone company told him he had to pay the charges or his phone would be disconnected. He paid the phone bill and sued AT&T for violating RICO, claiming mail fraud. Were the bills so misleading that they constituted fraud?
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Teleline Inc. ran a telephone gambling game called “Let’s Make a Deal” using a 900 phone number. Pla...
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