20030128Minute Order.pdf

Office of the Secretary
Service Date
January 28, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF REVOKING GLOBAL
TELELINK SERVICES, INC.S AUTHORITY TO PROVIDE LOCAL EXCHANGE
TELECOMMUNICATIONS SERVICES.
CASE NO. GNR-O3-
MINUTE ORDER
On July 20, 2000, Global Telelink, LLC ("Global") filed an Application for a CPCN
in Case No. GNR-00-22. Global was a Georgia corporation with headquarters in Atlanta
Georgia. The Company was owned entirely by two stockholders, one being Robert Smith, who
served as its president and vice president. Global did not own any subsidiaries or maintain
offices in Idaho. The Company was certified to transact business in Idaho on May 5, 2000.
Global sought Commission authorization to provide facilities-based and resold local exchange
services to Idaho customers pursuant to Title 62 of the Idaho Code within the Qwest (North and
South) and Verizon service areas. On January 22, 2001 , the Commission granted Global's
Application and found that the Certificate should be issued subject to the posting of a $25 000
bond. See Order No. 28611 , Case No. GNR-00-22.
Global has failed to provide evidence that it has posted the required bond. Further, on
January 6 2003, the Commission Staff received an e-mail from Ron Jackson, Global's former
legal counsel stating "(O)ur firm withdrew as counsel to Global TeleLink Services, Inc. during
the Spring of 2001. It is our understanding that (the company) ceased business operations and its
assets were administered by a court-appointed receiver." This statement about the Company
status was corroborated by further information Staff obtained about Global from the Secretary
State s Office for the State of Idaho and the Securities and Exchange Commission ("SEC"
First, Global'Certificate of Authority to transact business in the State of Idaho was
administratively revoked by the Secretary of State on August 6, 2001. Second, the SEC website
provided the following information:
On March 9, 2001 the SEC had obtained preliminary injunctions, asset freezes
and other relief against Global Telelink Services, Inc. (GTS) Global Contact
Corporation (Global Contact), and Robert Smith III (from the United States
District Court for the Northern District of Georgia). The SEC alleged that the
defendants were illegally selling unregistered securities in a Ponzi scheme that
raised over $10 million from more than 300 mostly elderly investors. . . . The
MINUTE ORDER
Court appointed Lloyd T. Whitaker as Receiver for GTS and Global Contact.
He has sold the assets of the companies and anticipates collecting
approximately $275 000. With potential claims amounting to nearly $14
million, the Receiver has cautioned claimants that the distribution, if any, will
be a very small fraction of the claims.
www.sec.gov!divisions!enforce!claims!globtelelink.htm
COMMISSION DECISION
A CPCN is subject to and contingent upon statutory conditions, regulations and
restrictions. See Order No. 26665. The nature of the grant is such that it is always subject to
review. The grant of a CPCN entails a reciprocal acceptance of responsibility and duties by the
regulated utility. Failure to perform those duties makes it fair, just and reasonable for the
Commission to revoke its privilege to provide service. Breach of condition whether express or
implied upon which the grant depends is grounds for termination or recission.
Because Global Telelink Services, Inc. has failed to meet the conditions proscribed by
the Commission to receive a CPCN, has had its Certificate of Authority to transact business in
this State revoked and has been completely dissolved as a result of legal action against it in the
State of Georgia, any authority previously given by the Commission to Global in Order No.
28611 , Case No. GNR-00-, to provide local exchange services is revoked. The Commission
also finds that Global's illustrative price\ list(s) and tariff(s) shall be removed from the
Commission s active files.
MINUTE ORDER
DATED at Boise, Idaho this J,.g-fl.day of January 2003.
IilfP UL K.J L. 'ANDER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~5!/r~
Commission Secretary
0: GNRT03 04-.Jh
MINUTE ORDER