4. Review of Joint Application
On March 23, 2009, assigned Administrative Law Judge (ALJ) Darling submitted questions to Applicants seeking clarification about Telenational's past filing omissions in other states, whether any principals of Rapid Link USA, Inc.5 were principals of Rapid Link, and if safeguards existed to protect the financial position of Telenational from the potentially adverse position of its other affiliates. On March 27, 2009, Applicants filed a response that attributed prior regulatory filing omissions to ineffective outsourced help, which has been corrected by new review procedures and retention of local counsel. Applicants denied any relationship between principals of Rapid Link and Rapid Link USA, Inc. and eventually provided documentation6 to support their claim that there was no overlap of principals at the time Dial-Thru International Corporation acquired the assets of debtor-in-possession Rapid Link USA, Inc. pursuant to bankruptcy court approval. Applicants also stated that Telenational is adequately protected financially by its form as a separate and distinct entity within the group.
No protest to the Joint Application has been filed. However, a "Response" was filed on April 3, 2009 by Golden State Cellular, CalTel Connections, Inc. Sierra Tel Internet, and Volcano Internet Provider (collectively Golden State Consortium, or "GSC"). GSC explicitly did not protest the Joint Application but conveyed information it thought the Commission might consider relevant to its review of the Joint Application. Specifically, GSC re-iterated the question about any relationship between Rapid Link and Rapid Link USA, Inc., identified Eric Shippam as an undisclosed part of Rapid Link's executive management, and attached some hearsay materials that suggest charges of consumer fraud have been made against him. Shippam is not identified in the Joint Application as a Rapid Link Principal.
On April 8, 2009, Applicants filed a Reply in which they deny Shippam is, or was, a principal of Rapid Link, and assert Shippam was employed for one year (ending in October 2008) to assist Rapid Link with integration of assets it acquired from two internet-related companies Shippam owned. Applicants claim they have severed the remaining "informal" relationship with Shippam and also re-state the lack of association between Rapid Link and Rapid Link USA, Inc. ALJ Darling requested a sworn reply from Applicants in the form of a declaration by a Rapid Link principal relating to the questions raised. On May 8, Applicants filed a Declaration of John Jenkins (Declaration), Chairman of the Board of Rapid Link, in which he affirmed that Shippam is not currently associated with or employed by Rapid Link or any of its affiliated companies, nor owns 10% or more of any of the affiliated companies. Jenkins also affirmed that Rapid Link acquired the assets of Rapid Link USA in a bankruptcy auction and provided a description of the types of inter-affiliate transactions the occur between Telenational, Rapid Link, and/or other affiliates.
5 The Certificate of Public Convenience and Necessity (CPCN) for Rapid Link USA, Inc. was revoked in 2004 by the Commission in Resolution T-16892 for failure to remit surcharges collected from customers.
6 Declaration of John Jenkins, Attachment A (Bankruptcy Court Order) and Attachment B (8-K Excerpt).
