A SPECIAL REPORT: FRAUD

‘HELLO, CENTRAL’: Orange County’s most infamous new export is a cellular telephone wired to make free phone calls. Police call it the Bailey phone after Kenneth Steven Bailey, the Laguna Niguel man indicted for allegedly inventing it. He denies any responsibility. . . . The Bailey phone, which has cost the industry more than $135 million in lost revenue, is a must-have among drug dealers calling Colombia. Scoundrels like it because calls can’t be traced and, as Secret Service Agent Earl Devaney puts it, “The Bailey phone doesn’t send you a bill.”