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Prediction: Case closed
The operators of Miss Cleo's psychic hot line agreed Thursday to cancel $500 million in customer bills to settle federal charges that the service fleeced callers while promising mystical insights into love and money.
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In settlement, two companies that hosted psychic hot line infomercials will pay $1.9 million to Connecticut residents

Miss Cleo's not talking
Outspoken television psychic Miss Cleo repeatedly invoked her Fifth Amendment right against self-incrimination, refusing to discuss a birth certificate showing she was born in Los Angeles to American parents.
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'Miami Vice' star wins suit
He didn't have to chase down Colombian drug runners, bust a diamond-smuggling ring, or catch a bribe-taking politician in the act, but former "Miami Vice" star Philip Michael Thomas scored a big takedown Wednesday — by winning a suit against the psychic network he used to represent.
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Lawyer: Miss Cleo targeted in 'witch hunt'
Miss Cleo's lawyer issued this press release dismissing as a "Modern-day witch hunt" a Florida lawsuit that charges his client — as well as ARS, the company running the psychic service for which she is a spokesperson — with consumer fraud allegations.
Read the release

'Miss Cleo' mansion for sale
The posh waterfront mansion owned by businessman Steven Feder, who has made millions on a telephone psychic business helmed by a would-be shaman named Miss Cleo, is on the block for the low, low price of $8.9 million.
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Miss Cleo's a Valley girl
Though the commercials for her psychic hotline tout her as a Jamaican shaman, a birth certificate for the purported soothsayer shows she was born in California. It's only the latest in a string of accusations against the lucrative hotline.
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What's in the cards for "Miss Cleo" psychic hotline?
In commercials, she claims to be a psychic from Jamaica who can predict your future over the telephone — for a per-minute fee. But the Miss Cleo's Mind and Spirit Psychic Network is actually part of Florida businessman Steven Feder's empire. Now the hotline is facing lawsuits ranging from allegations that prewritten advice was stolen from a book to charges they hound people on no-call lists.
Read our investigative report

Courttv.com puts it to the test
Reporter Matt Bean called the psychic hotline — only to find that the revelations were strikingly close to a prewritten script he had obtained. Even his "free" minutes were spent on hold or giving personal information.
Read about his experience
Listen to the call
Read along with the script

More troubles for hotline
The Federal Trade Commission filed a suit seeking to shut down the hotline.
Full story
Read the complaint


    A psychic hotline, popularized on television by "Miss Cleo," is under fire by users who say it's a fraud and government agencies who charge the company behind it of unfair business practices.    
   
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  • Our experience
    Listen to CourtTV's Matt Bean get his own reading
  • Feder's talk, part 1
    Magnate talks to his psychics about new dating service
  • Feder's talk, part 2
    Feder encourages staff to keep callers on phone
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  • FTC suit
    The Federal Trade Commmission filed this suit seeking an injunction
  • Psychic script
    This prewritten script used by the psychics followed closely with our own call to the hotline
  • Garen suit
    A judge refused to dismiss a suit by author Nancy Garen, who says the information disseminated to callers is taken from her book, Tarot Made Easy
  • Lawyer's declaration
    One of Garen's attorneys claims Miss Cleo herself apologized for using parts of the author's book without permission
  • Affidavit e-mail
    This e-mail Feder reportedly sent to the "psychics" asks them to sign an affidavit that they weren't asked to use Garen's book
  • Missouri suit
    The state filed this suit against the hotline for calling people on the "no-call" list
  • FTC rules
    The Federal Trade Commmission made these rules about contested 900-number calls
  • Job application
    This application for a telephone psychic asks the applicant about "special gifts"
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