|The Vaporware Scandals
Forget about Enron, MCI or Global Crossing's accounting
problems. Those companies are small time compared to the Bell companies.
Files Complaint With SEC Against Verizon This letter seeks
an investigation into New York Telephone's (Verizon - NYSE: VZ)
accounting for equipment expenses and the value of assets reported
to the SEC and other regulators.
Teletruth received a tip from a person with direct knowledge of
a Federal Communications Commission audit that revealed discrepancies
between equipment lists used for cost accounting purposes and the
actual inventory of equipment.
filed Complaints in New York, New Jersey and Massachusetts
requesting the Public
Service Commissions and state Attorney Generals' Offices to investigate
Verizon's alleged multi-billion dollar accounting discrepancies
that has thus far been ignored by regulators.
In 1999, the FCC released audits of the Bell companies,
which found $19 billion dollars of missing or unverifiable phone
network equipment.... and this represented only 1/4 of the potential
audit areas to be investigated.
To date, nothing has been done --- And this missing
equipment has inflated the price of your local phone service. To
read the rest of this story: "Accounting
Scandals: Enron, Worldcom, and now.Verizon?"
||FCC Released the Audits in 1999
Believe it or not, in 1994 the FCC conducted audits of the Bell
companies and found serious accounting problems. Then, again,the
FCC conducted another series of audits and they were released in
||Politicians Friendly to the Bell Companies
and Big Business Helped to Block Audits. In 1999, Congressmen
Tauzin and Dingell wrote a letter to stop the audits from being release.
read their Letter to the FCC.
||The FCC Sweeps Audits under the Rug.
In 2002, the FCC closed its
"Accounting Safeguard Division. Though the FCC is now
questioning, the FCC's Chairman Powell fiddles while the Telecom
and Broadband sector are in hell.
||State Commissions Haven't Done a Thing.
New York is the only state that has to date, done any work on these
audits. A Staff
New York Attorney General filed Comments with the FCC that the
missing equipment directly affects customer rates.
- They agreed with most of the FCC's findings.
- $633 million in "undetailed" investment missing.
- Unfortunately, they did not finish the audit or give refunds.
||TeleTruth's and New Networks Institute's History
on this Topic.
Starting in 1999, New Networks Institute (NNI) and members of TeleTruth
have been attempting to get the FCC and states to complete these
Up the Bells:.Is it time to take further steps -- including
breaking up the local monopolies