A Caribbean Internet company is continuing its attempts to con hundreds of Bermudian businesses into paying for advertising space they have not agreed to, The Royal Gazette can reveal.

Caribbean-Yellow Pages, an online telephone directory service based in the US Virgin Islands, has been contacting local businesses pretending to represent Bermuda Yellow Pages and enquiring whether they would like to pay for an ?upgrade? of their Internet ad space.

Those who agree are then emailed an application form where they are asked to divulge their contact information and credit card details, while it is also understood that many businesses have been placed on the website despite turning down C-YP?s advances.

A recent newspaper article reported on December 8 that 691 Bermudian businesses were listed on C-YP?s website.

That number has now risen to 707 ? a clear sign that C-YP has not been dissuaded despite having already been reported to the US Chamber of Commerce.

Several companies contacted last night, including the Emerald Financial Group and C&N Construction, said they were unaware their names currently appear on C-YP?s website at www.cbt.cc ? although they all confirmed they have been bombarded with emails, faxes and telephone calls demanding payment.

Yesterday Sergeant David Geraghty of the Bermuda Police fraud unit urged those who have been contacted by C-YP to have no further dealings with them and to ignore all invoices. ?They are deliberately misleading businesses and are behaving unlawfully,? he said.

Fraud officers, he said, would be contacting their counterparts in the US Virgin Islands in the near future so that they could pursue the matter further.

However, it further emerged last night that C-YP has been using the debt collection department of local law firm Smith & Co. in a further attempt to force businesses to pay up.

The Royal Gazette is in possession of a letter from Smith & Co?s collections manager Cherol-Lynn Caisey which was sent to one business owner ? who wished to remain anonymous ? on January 14, threatening legal action if an outstanding fee of $359.88 is not paid by January 31.

Speaking to The Royal Gazette yesterday, lawyer Michael E. Smith conceded his firm had been asked by C-YP to assist them with their ?debt? collection.

Mr. Smith was keen to stress, however, that he was totally unaware of their dealings and revealed he would be speaking to Sgt. Geraghty today before deciding whether his firm would continue to act on behalf of C-YP. Bermuda Yellow Pages is aware of the scam, and last month wrote at length to all its customers warning them to be on their guard.

?It has come to our attention that some of our valued customers are being approached by a company called Caribbean-Yellow Pages,? the letter reads.

?We are receiving inquiries from you which have led us to believe that you may have been confused into thinking you are dealing with Bermuda Yellow Pages...with this in mind we are writing to you to ensure that you are fully informed.

?Caribbean-Yellow Pages are not entitled to use this mark on any Yellow Pages services in Bermuda...any such use constitutes trademark infringement.

?Any request by Caribbean Yellow Pages to upgrade advertisement space or service does not relate to Bermuda Yellow Pages. If you have any questions or concerns with regards to this matter please feel free to contact General Manager Gary Taylor.?

It is understood that BYP is considering legal action.