II. INTRODUCTION

By this Order Instituting Investigation, the Commission institutes an investigation into the fitness of Clear World Communications Corporation, U-6039 ("Clear World") to serve as a telecommunications provider in California, and into the actions of its owners, Michael, James and Joseph Mancuso, in establishing and operating Clear World and related entities in California.

We take this action based on new evidence gathered by the Commission's Consumer Protection and Safety Division and Legal Enforcement Group (Staff), indicating that Clear World, its principals, predecessor corporations and affiliates have engaged in a persistent pattern of misrepresentation to, and outright deception of, its customers and this Commission. Staff has submitted evidence showing that Clear World and the Mancusos: (1) operated two telephone utilities - Discount Long Distance (DLD) and Worldwide Telecommunications Corporation ("Worldwide") -- without a Certificate of Public Convenience and Necessity (CPCN); (2) misrepresented facts in sworn testimony to this Commission regarding such operations; (3) violated Section 854 in the sale of DLD assets to Clear World without approval by this Commission; (4) failed to disclose -- in Applications to this Commission and in a Commission-ordered audit¹ -- the significant participation of brother Christopher Mancuso (a convicted felon) in the operation of DLD, Clear World, and related entities; (5) may have underpaid regulatory fees and public program surcharges; (6) did not produce documents requested by Staff (which were later obtained from third parties) or fully cooperate in Staff's investigation; and (7) slammed and misrepresented the nature and type of services offered to California customers on an ongoing and widespread basis.

The alleged actions of Clear World and the Mancusos appear to have harmed many of its customers, the competitive marketplace, and the regulatory process, and call into question the fitness of Clear World's management.