Background
Speedypin Prepaid, LLC (Speedypin Prepaid or Applicant) a corporation operating and existing under the laws of the State of California, registered with the State on December 15, 2008. Speedypin Prepaid offers for sale prepaid phone products (collectively, prepaid calling cards) providing both domestic and international calling services. The official website through which Speedypin Prepaid markets and sells prepaid calling cards is www.speedypin.com. This website is operated by Speedypin Prepaid's parent company, Speedypin, LLC.
On May 22, 2009, Speedypin Prepaid filed the Application with the California Public Utilities Commission (Commission) requesting a certificate to operate as a switchless reseller in California. On June 29, 2009, the Commission's Consumer Protection and Safety Division (CPSD) filed a protest to the Application alleging that Speedypin Prepaid had been operating as a prepaid calling card company prior to filing the Application and without a valid Certificate of Public Convenience and Necessity (CPCN).
On October 26, 2009, CPSD filed an amended protest alleging that documents obtained from Applicant in the discovery process demonstrated that it had been selling phone cards in California without Commission authority. CPSD also alleged that Applicant's counsel had made statements to the Commission in violation of Rule 1.1 of the Commission's Rules of Practice and Procedure.
On November 2, 2009, CPSD filed a Motion to Compel responses to CPSD data requests. On the same day, the assigned Commissioner ruled that CPSD's Amended Protest would be treated as a motion for sanctions under Commission Rules 1.1 and 12.6.
On November 13, 2009, Speedypin Prepaid filed a Reply to CPSD's Amended Protest denying that it had been selling phone cards in California without authorization and disputing its counsel's alleged violations of Rules 1.1 and 12.6.
On November 16, 2009, Speedypin Prepaid replaced its counsel.
On December 10, 2009, the assigned Administrative Law Judge (ALJ) denied CPSD's request for sanctions and granted CPSD's motion to compel.
On January 29, 2010, CPSD and Speedypin Prepaid filed a joint Motion for Adoption of a Settlement Agreement. The proposed Settlement Agreement is attached to this decision as Appendix A.
