3. Protest Previously Filed and Withdrawn by
Commission Consumer Protection and Safety Division
On August 10, 2009, the Consumer Protection and Safety Division (CPSD) filed a protest to this application on the grounds that Applicant may have failed to disclose its association with other companies, all the names of its officers, that a current officer may have served as an officer of a company that filed for bankruptcy, and that it and its affiliates received sanctions from various other state regulatory agencies in violation of Rule 1.1 of the Commission's Rules of Practice and Procedure.
Specifically, CPSD's research revealed that in addition to the two officers disclosed on the application, that the following persons may also have been officers of United Telecom, Inc.:
· Bill Freeman
· Scott Landis1
· Richard Palmeri
· Diane Grajeda; and
· George Collins
CPSD's review further revealed that United Telecom was a dba for United Services and United Group Inc. CPSD believed that United Telecom also operated under the dba of Foxtel, Inc. CPSD's research showed these companies had been sanctioned by various state commissions.
On August 19, 2009, after discussions with CPSD, Applicant filed an amendment to the application explaining that CPSD's allegations were the result of mistaken identity. Applicant provided responses to CPSD's requests for additional information to show that it had not misrepresented itself in the pending application.
Applicant explained that California does not preclude the use of a corporate name when another corporate entity maintains a similar or like name. Applicant's research revealed that there were 11 entities that incorporated the name "United Telecom" as a part of their corporate name. Applicant confirmed that its sole officers are Sapina Quayum (President) and Imtiaz Hossain (Vice President), as stated in the company's pending application. Applicant clarified that Diane Grajeda and George Collins had been officers of Applicant, but that they were no longer employed by the company and both had surrendered their positions as officers.2 Applicant explained that Bill Freeman, Scott Landis, and Richard Palmeri had never been affiliated with or otherwise associated with Applicant.
Applicant confirmed that it never had any relationship with Scott Landis and thus, it has no relationship or affiliation with the entity CPSD found had entered into bankruptcy. Applicant reiterated that, as it stated in its application, none of the entities listed in CPSD's protest are or have ever been affiliated with United Telecom, Inc.
Finally, applicant provided additional information regarding the alleged sanctions imposed by other state regulatory agencies many of which were imposed prior Applicant's formation or were imposed on a company not affiliated with Applicant.3 Applicant clarified that it had been the subject of limited state regulatory inquiries from time to time, but that in all instances it immediately responded to and adequately resolved any arising issue before it rose to the level requiring a formal sanction by a regulatory agency and that no formal sanctions have been levied on applicant. Applicant maintained that it accurately and truthfully represented itself to the Commission through its pending application.
Based on the above explanation of the issues raised by the protest, and CPSD's statement that it no longer objects to this application, we find it appropriate to grant CPSD's Motion to Withdraw its Protest to the Application of United Telecom, Inc.
1 CPSD's research revealed that Landis was president of NetVersant Solutions, Inc. during the time that company filed Chapter 11 bankruptcy.
2 Grajeda surrendered her position as an officer in August 2007. Collins surrendered his position as an officer in February 2008.
3 United Telecom Inc., the applicant, was not formed until October 2004.
