Respondents' Reply to Alter Ego Allegations

Respondents contend that cash transfers from ACI to Bucci were lawful and proper for "Subchapter S" corporations such as ACI and that there was no commingling of funds or assets. Respondents offered the opinion of one of ACI's accountants, James Jamieson, that the payments to Bucci were permissible for "Subchapter S" corporations.

Respondents assert that CPSD failed to prove its assertions of any failure to keep appropriate records. Respondents also contend that ACI's records were surrendered to the corporation's receiver according to the terms of the workout agreement between Bucci and MCI WorldCom Network Services, Inc. (MCI). Respondents further contend that MCI backed out of the workout agreement. Finally, Respondents note that Bucci was not a party to the Commission's action against ACI and contend that ACI's receiver essentially allowed a default judgment to the Commission's action against ACI in which it was assumed 100% of ACI's remaining 10,000 customers had been obtained by slamming.