3. Procedural History

On June 30, 2008, CPSD filed a protest of the application alleging
(1) 88 Telecom has apparently been operating as a prepaid calling card company for about four years prior to filing this application absent a valid CPCN; and
(2) 88 Telecom failed to disclose in its application that one of the company's key officers (Eddie Wong) has been president of six other such telecommunications companies, one of which had been sanctioned by the CPUC.

On October 30, 2008, a prehearing conference (PHC) was held. 88 Telecom's CEO Gang Zhao attended. The presiding Administrative Law Judge (ALJ) ordered 88 Telecom to amend its application.

On December 1, 2008, 88 Telecom filed an amendment to its application (Amendment). In the Amendment, 88 Telecom explained (1) Eddie Wong, shareholder and secretary of 88 Telecom (at the time the application was filed) and formerly president of True America, has sold his interest in 88 Telecom and no longer was associated with the company. The Amendment includes documentation of the share purchase agreement from Wong, showing that he no longer has any financial ownership interest in the company. The Amendment also explained that True America failed to file its annual reports and/or remit surcharges, which was the reason for True America's CPCN revocation by the Commission on November 19, 2004. (Resolution T-16892.)

The Amendment explains (2) that Zhao and Wong incorporated 88 Telecom as equal co-owners in January 2004, and that Zhao was told incorrectly by Wong that a CPUC "license" had already been obtained, which was the True America CPCN that was later revoked. According to the Amendment, Wong returned to China and has not participated in the operation and management of 88 Telecom since 2004. The Amendment states that Zhao was unaware of the revocation of True America's CPCN and that such certificates are not transferable, until April of 2008 when Qwest
(an underlying carrier for 88 Telecom's phone cards) made a request for 88 Telecom's registration number. Qwest's request caused 88 Telecom to become aware of the problem, and shortly thereafter 88 Telecom filed this application.