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 CBS 11 News has uncovered new information about FBI raids against Dallas companies that provide web servers for dozens of businesses in North Texas and across the country.

Court documents show it's all part of an alleged massive fraud scheme against AT&T and Verizon.

 Court records show Verizon first went to the FBI this past January, alleging some North Texas web server providers were cheating them and AT&T out of millions of dollars.

Documents show this is the second time in less than a month FBI agents raided offices inside a Downtown Dallas office tower.

The companies being investigated provide web servers for dozens of companies, including Catholic Media Group of Cincinnati, Ohio, which represents motivational speakers.

During the raid, CMG's owner, Joe Condit, says his website and business went down. "It's crippled us completely. Now that we don't have a website, we have no business, and a lot of speakers are without representation."

In Thursday's raid, the FBI seized equipment in the offices of Core IP Networks, owned by Matthew Simpson.

Court documents show agents raided Crydon Technology's offices March 12 in the same downtown building as Simpson's and at the Infomart.

Agents also raided a $600,000 house in Southlake. Crydon and the house are owned by Mike Faulkner.

AT&T and Verizon operate physical equipment and facilities for the transmission of phone calls and other communications.

Court records show federal law requires the telecom giants to provide for a fee those services to smaller telecom companies, who in turn provide services to their own customers.

Documents say AT&T and Verizon told investigators they believe they were being defrauded out of $6 million in a three to four month period by a group of investors working together, including Faulkner, Simpson, and three others.

The documents say those individuals profited more than $1 million.

In a phone conversation, Faulkner said, "The allegations that I defrauded AT&T and Verizon are ridiculous... The companies that owe money to AT&T and Verizon are clients and not owned by me."

Simpson said, "I'm not involved in alleged fraud against AT&T and Verizon, and I'm doing everything I can to cooperate with the investigation and to help my clients get back up and running."

No charges have been filed.

As for Joe Condit, he's hoping his company can survive. "We're all for catching the bad guys and the criminals. It also has to be recognized that young, small businesses can't take a hit like this, especially in this time."

 Video:  http://cbs11tv.com/video/?id=40667@ktvt.dayport.com