2 Background

This investigation is an outgrowth of a February 2003 decision by the Commission, Decision (D.) 03-02-006, that denied Clear World's application to expand its services to include local exchange calling, imposed sanctions on the company, and directed further investigation of alleged wrongdoing by Clear World and its officers. That decision also found at least three incidents of slamming (unauthorized switching of long distance provider) and other infractions that made Clear World unfit to expand its service beyond the sale of long distance and local toll services.

The Commission directed its Consumer Protection and Safety Division (CPSD) and Legal Division to conduct further investigation of Clear World and its principals and, if they decided it was appropriate, to recommend an Order Instituting Investigation (OII) on or before May 8, 2003, seeking further sanctions.

The subsequent investigation was wide-ranging and intense, evoking numerous objections by the respondents. Because Clear World resisted what it deemed unreasonable data requests, and because CPSD was compelled to gather information from entities other than Clear World, CPSD twice petitioned the Commission for stays in the date for its recommendation of an OII. The OII was finally filed and adopted by the Commission on June 9, 2004.

Based on the evidence it had gathered, CPSD urged the Commission to revoke the operating license of Clear World, to permanently ban brothers James, Michael, and Christopher Mancuso, and their father, Joseph Mancuso, from regulated utility service in California, and to impose fines and reparations on both Clear World and on James and Michael Mancuso as individuals for alleged slamming, other misrepresentations to customers, failure to cooperate with the Commission in this investigation, and earlier unlawful operation of telecommunications companies.

Prehearing conferences in this matter were conducted on July 27 and October 8, 2004. The Commission, through the assigned Administrative Law Judge (ALJ) Glen Walker and Commissioner Geoffrey F. Brown, conducted 10 days of hearings on November 9 through 24, 2004, during which time CPSD presented the testimony of 18 witnesses and introduced 423 exhibits or attachments. Latino Issues Forum presented the testimony of three witnesses and introduced three exhibits. Clear World presented the testimony of seven witnesses and introduced 44 exhibits. By pre-arrangement at hearing, bank records subpoenaed by CPSD were received as a late-filed exhibit on January 5, 2005, and Clear World's response to that showing was received on January 15, 2005. Concurrent briefs were filed on January 31, 2005, and concurrent reply briefs were filed on February 22, 2005, at which time this matter was deemed submitted for Commission decision. The Commission was notified on February 14, 2005, that Joseph Mancuso, father of the three Mancuso brothers, died on or about December 28, 2004.

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