California 'Toner Pirates' barred from IowaStaff Writer | October 12, 2016
Three California companies that allegedly engaged in so-called “toner pirate” schemes to deceive Iowa office employees into overpaying for copier toner.
Iowa Paying hundreds of dollars for only $60
The consent judgment and permanent injunction, entered today by Polk County District Court Judge Jeffrey D. Farrell, resolves a lawsuit brought last month by Miller’s office.
The defendants are Central Supply Center, of Orange, and owner Sandra Steinmetz; Elite Supplies, of Irvine, and owner Krystle Lester; and Central Supply Solutions, of Orange, and owner Brittany Hertsch. The three owners are related—Steinmetz is an aunt of Lester and Hertsch, who are half-sisters.
The lawsuit had accused the defendants of making calls and sending invoices to Iowa offices as part of their schemes to collect money, in what Miller calls “classic toner pirate scams.” The defendants targeted libraries, care facilities, professional offices, and other businesses across the state.
Complaints to the Consumer Protection Division revealed a pattern:
A cold call to a targeted library or business insinuates that the call is coming from the office supply company that provides toner for the office copier and other supplies. The staff member who answers the phone is asked to “confirm” the make and model number from the front of the office copier, and provide the name of the staffer in charge of ordering supplies.
If the staff member cooperates by supplying the requested information – and all-too-often they do – the caller sends an invoice for copier toner, billing at three or four times the retail price. At a glance, the invoice looks legitimate – it has the right make and model, and even names a supposed “contact person” in the targeted office.
If the target pays the grossly-inflated bill, the toner pirate attempts to repeat the billings, sometimes resulting in thousands of dollars in losses over time.
“Schemes like these tend to exploit offices with new employees, organizations staffed by volunteers who answer phones, and situations where an employee who orders toner doesn’t also handle bookkeeping,” Miller said.
“Institutional victims of these schemes may end up paying hundreds of dollars for only $60 worth of toner.” ■