20030127_373.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
COMMISSION STAFF
LEGAL
FROM:JOHN HAMMOND
DATE:JANUARY 23, 2003
RE:REVOKING GLOBAL TELELINK SERVICES, INc.'S AUTHORITY TO
PROVIDE LOCAL EXCHANGE TELECOMMUNICATIONS SERVICES.
CASE NO. GNR- T -03-
This Decision Memorandum is submitted to address the failure of Global Telelink
Services, Inc. to post a bond as a condition for issuance of its CPCN. Furthermore, The
Company has had its Certificate of Authority to transact business in the State of Idaho
administratively revoked or cancelled. See Idaho Code 99 30-128, 1-1501 and 1-1530.
Global Telelink Services, Inc. (Previous Case No. GNR-00-22).
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'
Application and found that the Certificate should be issued subject to the posting of a $25 000
bond. See Order No. 28611.
Global has never provided evidence that it had posted the required bond. Further, on
January 6 2003 , 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
DECISION MEMORANDUM
administered by a court-appointed receiver." This statement is corroborated by information Staff
has obtained about Global from the Secretary State s Office for the State of Idaho and the
Securities and Exchange Commission ("SEC"). First, Staff has learned that Global's Certificate
of Authority to transact business in the State of Idaho was administratively revoked by the
Secretary of State on August 6 2001. Second, Staff learned from the SEC web site that:
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 umegistered securities in a Ponzi scheme that
raised over $10 million from more than 300 mostly elderly investors. . . . The
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
STAFF RECOMMENDATION
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, Staff recommends that the Commission revoke any authority given to the
Company in Order No. 28611 , Case No. GNR-00-, to provide local exchange
telecommunications services in Idaho. In addition, Staff recommends that the Commission
should remove Global's illustrative price lists and tariffs from its active files.
COMMISSION DECISION
Does the Commission wish to revoke Global Telelink Services, Inc.s authority to
provide local exchange telecommunications services?
DECISION MEMORANDUM
If so, does the Commission wish to remove Global's illustrative price lists and tariffs
from its active files?
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DECISION MEMORANDUM