7. Assignment of Proceeding
Geoffrey Brown is the Assigned Commissioner and Timothy Kenney is the assigned ALJ in this proceeding.
1. D.97-12-003 authorized NTC to provide resold telecommunications services in California.
2. A.02-10-007 requests authority under § 854(a) to transfer ownership of NTC from Kathleen Helein to Karyn Bartel. The transfer was consummated without Commission authorization on March 31, 2003.
3. NCT failed to remit $174,225 of regulatory fees.
4. NCT's CPCN was revoked by Resolution T-16962.
5. NCT continued to provide service after the revocation of its CPCN.
6. NCT provided false information to the Commission on two occasions in this proceeding regarding material and relevant matters. NCT's legal counsel, the Helein Law Group, aided and abetted the provision of false information.
7. Section 854(a) requires Commission authorization to transfer control of a public utility. Any transfer of control without Commission authorization is void and of no effect pursuant to the statute.
8. § 2107 authorizes the Commission to levy a fine of $500 to $20,000 for each violation of Commission decisions, Rules, and the Public Utilities Code.
9. D.98-12-075 adopted the criteria identified in the body of this Decision for determining the amount of a fine.
10. On September 12, 2005, the Helein Law Group notified CPSD by email that (i) NCT was withdrawing A.02-10-007, (ii) NCT had ceased marketing as of January 1, 2005, and was going out of business, and (iii) NCT could no longer afford to participate in the instant proceeding or to transfer its customers to another carrier.
11. NCT had notice and an opportunity to request an evidentiary hearing, but did not do so.
1. This is a ratesetting proceeding.
2. A hearing is not necessary.
3. The unauthorized transfer of control of NCT that occurred in March 2003 is void and of no effect pursuant to § 854(a).
4. Because NCT's CPCN was revoked by Resolution T-16962, NCT is not a public utility. Consequently, § 854(a) no longer applies to NCT.
5. Application 02-10-007 should be denied because § 854(a) no longer applies to NCT. Even if § 854(a) did apply, Bartel is unfit to own a public utility due to the numerous violations of statues, Commission decisions, and Rule 1 that have occurred since Bartel acquired NCT without Commission authorization.
6. SBC California and Verizon should mail a written notice to NCT's customers that contains the information specified in the body of this Decision. The notice should be reviewed and approved by the Commission's Public Advisor prior to mailing.
7. The transfer of control of NTC from Helein to Bartel on March 31, 2003, without Commission authorization violated § 854(a).
8. NCT violated § 702 by failing to remit $174,225 of regulatory fees as required by the statutes and Commission decisions identified in the body of today's Decision.
9. NCT should remit $174,225 of regulatory fees.
10. NCT violated § 1013(a) and § 702 by operating without a CPCN.
11. NCT and the Helein Law Group violated Rule 1 by (i) knowingly providing false information to the Commission on two occasions, and (ii) failing to comply with the laws of this State identified in Conclusions of Law 7, 8, & 10.
12. Section 2107 authorizes the Commission to levy a monetary penalty when a public utility violates or fails to comply with any statute, Commission decision, or requirement where a penalty has not otherwise been provided.
13. The violations identified in Conclusions of Law 7, 8, 10, and 11 are subject to monetary penalties under § 2107.
14. To deter future violations by NTC and others, NTC should be fined for violating §§ 702, 854(a), 1013(a), Rule 1, and several Commission decisions. The amount of the fine should be based on the criteria set forth in D.98-12-075.
15. As discussed in the body of this Decision, the application of the criteria in D.98-12-075 to the facts of this case indicates that NTC should pay a fine of $5,000 for violating § 854(a), $40,000 for multiple violations of Rule 1, and $10,000 for the other violations found by today's Decision.
16. NCT should be barred from providing regulated telecommunications services in California until (i) all past-due regulatory fees owed by NCT are paid, and (ii) the fines levied by this Decision are paid.
17. Karyn Bartel should be barred from the owning, operating, or managing a public utility providing service in California until (i) all past-due regulatory fees owed by NCT are paid, and (ii) the fines levied by this Decision are paid.
18. Because the Helein Law Group cannot be trusted to provide truthful information, it is necessary to place a cautionary notice on documents filed at the Commission by the Helein Law Group. To this end, any documents filed at the Commission by the Helein Law Group during the next three years should state in a prominent manner that the firm was found by today's Decision to have violated Rule 1 by providing false information to the Commission.
19. The following Order should be effective immediately so that the fines and protective measures adopted therein may take effect as soon as possible.
IT IS ORDERED that:
1. Application (A.) 02-10-007 is denied.
2. New Century Telecom, Inc. (NTC) shall pay a fine of $55,000 for the violations of the Public Utilities Code, Commission decisions, and Rule 1 described in the body of this Order. Within 30 days from the effective date of this Order, NTC shall remit to the Commission's Fiscal Office at 505 Van Ness Avenue, Room 3000, San Francisco, CA 94102, a check for $55,000 made payable to the State of California's General Fund. The number of this Decision shall be shown on the face of the check.
3. NCT shall immediately pay to the Director of the Commission's Telecommunications Division $174,225 in overdue regulatory surcharges and fees for the period of January 1, 2003, through May 2005.
4. Within 30 days from the effective date of this Order, Pacific Bell Telephone Company d/b/a/ AT&T California and Verizon California (Verizon) shall mail to the customers being illegally served by NCT a written notice containing the information specified in the body of this Order. The notice shall be reviewed and approved by the Commission's Public Advisor prior to mailing.
5. AT&T California and Verizon shall stop routing calls to NCT beginning 30 days after they mail the notice described in the previous Ordering Paragraph.
6. NCT shall not provide regulated telecommunications services in California until (i) $174,225 of regulatory surcharges and fees owed by NCT are paid, and (ii) the fines levied by this Order are paid.
7. Karyn L. Bartel shall not own, operate, or manage a public utility serving California until (i) $174,225 of regulatory surcharges and fees owed by NCT are paid, and (ii) the fines levied by this Order are paid.
8. Any documents filed at the Commission by the Helein Law Group, LLC, during the three-year period beginning on the effective date of this Order must state in a prominent manner that today's Decision found that the Helein Law Group, LLC, violated Rule 1 by providing false information to the Commission.
9. Application 02-10-007 is closed.
This order is effective today.
Dated ____________________, at San Francisco, California.
Attachment 1
Florida PSC
Request to Establish Docket
Dated January 21, 2004
Attachment 2
Florida PSC
Staff Memorandum Recommending that NCT Be Fined $420,000. This Memorandum Was Placed on the Agenda for Formal Adoption by the Florida PSC
Dated April 21, 2004
