$1M VoIP Scam
The basic service that Pena provided is not uncommon. Telecommunications brokers often buy long-distance minutes from carriers—especially VoIP carriers—and then re-sell those minutes directly to customers. They make money by marking up the services they buy from carriers.
Pena sold minutes to customers, but rather than buy the minutes, he instead decided to hack into the Internet phone company networks, and route calls over those networks surreptitiously, say prosecutors. So he had to pay virtually no costs for providing phone service.