CABLE TV RING UNPLUGGED : SEVEN SUSPECTS LINKED TO CONVERTER BOX SCAM.

Byline: Laurence Darmiento Daily News Staff Writer

A local ring that sold stolen cable TV converter boxes that had been altered to receive pricey premium channels for free has been broken up, authorities said Wednesday.

The investigation into the alleged ring, believed to have operated out of a Canyon Country house for at least several months, wrapped up this week when detectives presented cases against seven suspects to prosecutors.

Authorities said the suspects obtained the cable boxes from participants who falsely reported them stolen. The converter's memory chips were then altered and sold to cable customers for $250 to $500.

``The boxes were from many, many sources,'' said Detective Bob Campbell of the Santa Clarita Valley Sheriff's Station. ``We had companies from all over the place.''

Three people were arrested and 18 boxes from six California cable companies were recovered, including the Santa Clarita Valley offices of Continental Cablevision and Time Warner Cable. Private detectives with the companies assisted in the investigation.

The case against the three suspects, who were later released pending further investigation, and four others is being considered by prosecutors with the Los Angeles County District Attorney's Office.

Deputy District Attorney Dan Damon said some charges may be filed as soon as Friday.

The investigation was prompted by a theft report in April by a 20-year-old Castaic man who had ordered three converter boxes for his home. Campbell said he gave suspicious conflicting statements about the theft.

After being questioned, he eventually admitted his role in the scheme and turned over several names, investigators said. Campbell said computer equipment used to reprogram the boxes later was found in homes in Canyon Country and Saugus.

The last suspect arrested June 18 was a cable installer for Time Warner, who helped find customers willing to buy the boxes, Campbell said.

``He had helped with the marketing,'' Campbell said.

The cable television industry estimates it loses up to $4 billion annually from theft of its services nationwide.

Michael Bates, chief of security for Continental Cablevision in California, said that scams involving stolen and reprogrammed converter boxes are common.

``It's an ongoing problem, and it's large and getting larger as more thieves see the money that can be made,'' Bates said. ``There is a market for the product.''