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Of course, stuffing unauthorized charges onto your phone bill is a violation of the FTC Act. But depending on the circumstances, such cases may also result in criminal prosecution. Two brothers who defrauded consumers of millions of dollars in a improvised scam that gave a whole new meaning to the word “cell phone” are now behind bars. Assistant U.S. Attorneys Hallie Mitchell Hoffman and Kyle F. Waldinger, who prosecuted the case, just received the Federal Trade Commission’s Criminal Liaison Division’s annual award for their work in combating fraud.

The FTC’s civil complaint against brothers Roy Lin and John Lin, INC21, and related defendants alleges that they used third-party billing aggregators to illegally charge unauthorized charges on consumers’ phone bills. The presiding judge quoted an expert survey that showed that 97% of the defendant’s “customers” did not agree to purchase the defendant’s things. “Even more shocking,” the court held, “only five percent knew they had been charged.” The court also concluded, “The record contains substantial, undisputed evidence showing the extent to which defendants’ telemarketing processes Fraud was committed every step of the way.” The FTC’s action resulted in a permanent injunction, a judgment of nearly $38 million, and the return of $5.4 million to defrauded consumers.

But the story doesn’t end there. In 2012, the Lins were charged with mail fraud, conspiracy and money laundering. In cooperation with the Federal Trade Commission, the U.S. Postal Inspection Service and the Internal Revenue Service, AUSA Hoffman and Waldinger pleaded guilty and were sentenced to 30 months in prison. John Lin received a 20-month prison sentence for his role.

What should entrepreneurs learn from this cautionary tale? If eight-figure sentences, lifetime bans and bans aren’t enough of a deterrent (which, by the way, they should be), then the wrongdoing against consumers can easily turn out to be criminal. In the decade since the FTC established its Criminal Liaison Division, the CLU has worked with prosecutors to uncover hundreds of fake telemarketers, mortgage relief scammers, fake debt collectors, immigration fraudsters and others who ended up in their Where it belongs: behind bars.

More realistically, at some point in your career, a colleague may suggest a trial balloon that strikes you as of questionable legitimacy. If you reject that advice based on well-honed business ethics, good for you. But if your refusal is motivated by a desire to avoid incarceration, we’re okay with that.

Watch this video to learn more about how the CLU coordinates with criminal prosecutors.