VII. LEGACY VIOLATED THE COMMISSION'S RULE 1.1 BY FAILING TO DISCLOSE NUMEROUS REGULATORY SANCTIONS IT SUSTAINED IN 16 OTHER STATES

Rule 1.1 establishes requirements for parties appearing before the CPUC:

Any person who signs a pleading or brief, enters an appearance, offers testimony at a hearing, or transacts business with the Commission, by such act represents that he or she is authorized to do so and agrees to comply with the laws of this State; to maintain the respect due to the Commission, members of the Commission and its Administrative Law Judges; and never to mislead the Commission or its staff by an artifice or false statement of fact or law.

In his signed Verification Statement in its application for expanded CPCN (in A.06-11-003), Legacy President Curtis Brown attested that "neither applicant, any affiliate, officer, director, partner nor owner of more than 10% of applicant, or any person acting in such capacity.... has been sanctioned by the Federal Communications Commission or any state regulatory agency for failure to comply with any regulatory statute, rule or order."⁴⁵

In Legacy's response to CPSD's Data Request 1.17, it responded "no" to the question "[h]ave Companies, their affiliates, or their principals been investigated by any State or Federal agency in the last ten years for any matter related in any way to the provision of telecommunications services?"⁴⁶

In Legacy President Curtis Brown's deposition, when asked whether Legacy had been sanctioned in any of the 49 states in which Legacy does business, Mr. Brown stated "no."⁴⁷

Staff discovered that in fact Legacy had been sanctioned, investigated, penalized, had its tariff cancelled, and had its public utility registration or corporate charter revoked, in 16 other states. Legacy clearly violated Rule 1.1 repeatedly by misrepresenting to the Commission and Staff that it has never been sanctioned or investigated by any state regulatory agency. Table 6 below shows the various actions against Legacy in 16 other states. Legacy President Curtis Brown, when confronted with the facts, admitted to the above Rule 1.1 violations.⁴⁸

TABLE 6

LEGACY SANCTIONS IN OTHER STATES

⁴⁵ Appendix 31, Verification Statement of Curtis A. Brown.

⁴⁶ Appendix 32, Legacy response to CPSD Data Request 1-17.

⁴⁷ Appendix 33, Deposition of Curtis Brown, pp 162-163, lines 25-1.

⁴⁸ Appendix 8, Testimony of Curtis Brown, p. 1, lines 11-18.