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Cable Scam? Mid-Michigan ‘Cable Company’ Accused of Retransmitting DISH Network, Suddenly Pulls the Plug on Customers

Phillip Dampier December 31, 2009 Public Policy & Gov't, Video No Comments

CableMax's "channel lineup" isn't exactly a piece of art

A few warning signs that your “cable company” may not be completely up front about their service:

  • They don’t have a website.
  • The programmers they carry never heard of them.
  • No readily apparent cable franchise agreements seem to be available for inspection.
  • The number of customers seem to range between 50 and “several thousand.”
  • The channel lineup guide looks like it was done up with Microsoft Word and printed on a laser printer.
  • Channels in your service package suddenly start to become “deauthorized” and then the entire lineup goes dark.
  • Company officials either left town, won’t appear on camera to answer questions, or issue vague statements about refunds.

CableMax Communications, which claims to “maximize your cable experience,” instead maximized collection of subscriber fees and minimized their cable package down to nothing.  When it all fell apart a few days before Christmas, subscribers were out an installation fee and any payments they made for a full month of service.  Subscribers were charged $65 for installation and paid $24.95 for a package of 41 channels.

WNEM-TV in Saginaw, Michigan suggested the entire affair could have been a “scam,” interviewing one CableMax installer who claimed the service was quietly sending signals received from DISH Network, a satellite dish service, down the cable to paying subscribers.  If true, either the money to pay for multiple subscriptions to the satellite provider ran out, or DISH Network discovered the unauthorized distribution and cut off service.

If CableMax was reselling DISH Network programming, it would not be unprecedented.  In the 1980s and early 1990s, informal cable systems in the Caribbean maintained multiple subscriptions or hacked the satellite signals of satellite-delivered programming and resold it to subscribers, without bothering to pay the programmers involved.

One of the owners finally reached by phone by WNEM denied he was obtaining programming from DISH Network and promised refunds, claiming the system had approximately 50 subscribers, many who were late on their bills, and the entire enterprise ran out of money.

The village of Unionville, Michigan got itself caught in the middle when local residents approached the town hall to inquire about what happened to the village’s cable system.  A message on the village website states:

THE VILLAGE IS AWARE OF THE PROBLEMS WITH CABLE MAX AND ARE UNABLE TO RESOLVE THE PROBLEMS AT THIS TIME. THE VILLAGE OFFICE WILL TRY TO KEEP YOU INFORMED AS INFORMATION IS RECEIVED. WE ARE VERY SORRY FOR YOUR INCONVENIENCE.

CABLE-MAX
103 SOUTH WESTLAWN DR.
MIDLAND, MI. 48640

IF YOU NEED SERVICE CALL: 1-888-308-8782 (THIS NUMBER HAS BEEN DISCONNECTED)

That South Westlawn address appears to be in a residential area to the west of Midland, and is likely a residence.  We couldn’t find a cable programmer on their lineup that heard of the company or was authorized to cablecast its programming.  Although the state of Michigan does include the company on a generic cable complaint form, we could not locate any formal cable franchise agreements for CableMax Communications.  Further, the state government only had one contact e-mail address for the company – a Gmail account.

Although WNEM notes the Better Business Bureau has rated the company “F,” that rating appears to be based on a single complaint.

Very little additional information is known about CableMax Communications, and no active investigation was currently underway by Michigan authorities.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/WNEM Saginaw Cable Provider Accused Of Defrauding Customers 12-30-09.flv[/flv]

WNEM-TV in Saginaw opened its 6pm newscast last night with this exclusive story about CableMax Communications. (3 minutes)

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/WNEM Flint Cable Company Ripoff 12-31-09.flv[/flv]

Today, the station aired a follow-up report about the latest developments with the cable company that closed down operations, leaving cable customers without service. (1 minute)

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