The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Satellite Bahamas allegedly used more than three times’ the number of accounts initially thought to pirate DIRECTV’s signal, with the programmer having added the wives of the company’s two principals as defendants.

The US’s largest satellite TV programmer, in its amended complaint alleged that the Mackey Street-based business and its owners, the Garraway brothers, had “admitted” that the alleged scheme was far more extensive that initially thought.

DIRECTV had accused Peter and Michael Garraway, and Satellite Bahamas, of illegally accessing its signal outside the US through a scheme that involved false subscriber names, accounts and service addresses.

Its amended lawsuit, filed in the south Florida courts last month, acknowledged that initial investigations had revealed Satellite Bahamas owned 621 subscriber accounts. These were used to activate 5,803 satellite receivers, which were “exported and sold in the Bahamas”.

DIRECTV, though, is now alleging that the claimed scheme, based on information received from Satellite Bahamas - presumably through discovery - was much broader than even it first realised.

“Subsequent to the filing of this action, defendant Satellite Bahamas admitted that between 2001 and 2013, it used 2,043 subscription accounts to provide DIRECTV satellite television programming to its customers,” the US satellite programmer’s latest lawsuit version alleged.

“Upon information and belief, each account was created by defendants using false subscriber names, false service addresses and other false information.

“DIRECTV is continuing to analyse the accounts identified by Satellite Bahamas, and the losses associated with those accounts, but has tentatively determined that 1,032 accounts were used to activate at least 9,099 receivers which, upon information and belief, defendants exported and sold in the Bahamas.”

DIRECTV then alleged that after cutting off Satellite Bahamas’ subscription accounts in January 2013, and informing Michael Garraway about this, the company continued to establish new accounts.

“Unbeknownst to DIRECTV, and evidencing a knowing and willful intent to violate DIRECTV’s rights and United States law, defendants continued to create new DIRECTV subscription accounts after January 2013,” the US satellite programmer alleged.

“Defendant Satellite Bahamas has admitted to receiving DIRECTV television programming service from 108 subscription accounts that were created after the January 2013 shut off of service.”

DIRECTV alleged that Satellite Bahamas used addresses such as a fictitious medical centre in Brooklyn, New York, and a beauty academy in Miami, Florida, to conceal the fact the subscribers were in the Bahamas.

It added that the new accounts were used to activate another 1,405 satellite receivers, and that Satellite Bahamas continued to make payments on these accounts.

DIRECTV’s signal is supposed to be restricted to the US only, something it alleges the Garraways knew well, having terminated an arrangement for one of their Florida companies to act as an authorised dealer because they were allowing non-American subscribers to access the signal.

The US satellite programmer is also claiming, meanwhile, that Satellite Bahamas’ activities extend beyond Bahamian borders.

“Defendants have received and assisted others in receiving DIRECTV television programming in the Bahamas and, upon information and belief, other countries not authorised by DIRECTV,” the lawsuit claimed.

It claimed the company, and its principals, were still continuing to export and install DIRECTV satellite receiving equipment at homes and businesses in the Bahamas and other countries, plus charge customers for those services.

The Garraways’ spouses, Caroline and Phyllis, have also been added as defendants to the lawsuit on the grounds that they used numerous credit cards to make account payments and conceal the alleged scheme from DIRECTV.

And, taking its complaint beyond Satellite Bahamas, DIRECTV also named 10 Bahamian businesses as so-called ‘John Doe’ defendants because it has yet to uncover their names.

“Defendants have supplied activated satellite receiving equipment to defendants’ customers in the Bahamas,” DIRECTV alleged.

“Upon information and belief, the Bahamas Does own and/or operate commercial establishments in the Bahamas, including, by way of example, casinos, hotels, restaurants, bars and other commercial establishments, that receive and display DIRECTV programming, without authorization from DIRECTV.”

The US satellite programmer added that these businesses knew accessing DIRECTV’s service outside the US was illegal, and they aided Satellite Bahamas’ endeavours.

The Garraways, meanwhile, in a Monday filing with the south Florida court, are arguing that DIRECTV’s action against them should be dismissed on jurisdictional grounds because they - and Satellite Bahamas - are domiciled in this nation, not the US.

They are arguing that the legislation cited by DIRECTV does not apply to communications activities that took place inside the Bahamas, and that Satellite Bahamas’ website was only a marketing tool to customers within this nation.