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TELETRUTH NEWS ALERT ---July 17th, 2003 Main Audit Info Page: http://www.teletruth.org/auditupdate.html TIME FOR ACTION!
Forget about Enron, MCI or Global Crossing's accounting problems. Those companies are small potatoes compared to what the Bell companies have been able to get away with --- until now. If you're a customer of Verizon, BellSouth, SBC, or Qwest -- the Bell companies, you should be really "mad as hell". The Bell companies have been using "Holey Accounting Books", which allowed missing equipment to be added to the price of your residential and business local phone service, as well as all schools and libraries, government agencies, etc. Teletruth believes you've been made to pay an estimated extra $600 per-phoneline for 'Vaporware"--- not counting added taxes and surcharges, and it time to put an end to this now. Teletruth Releases Excerpts from Bell Books. This week Teletruth released excerpts from Verizon's accounting books of network equipment. There are tens of thousands of illegal, improper and downright fraudulent lines items, accounting for billions of dollars of missing network equipment that you, your business, school and library were charged for as added fees on phonebills. These "Holey Books are more Swiss cheese and fairy tales than accurate accounting. Simple inspection of the inventory records reveals negative quantities, zero quantities, a computer monitor costing $53,000, and a common $5000 piece of equipment with listed cost between $5.00 and $133,000. There's accounts marked "Dummy" for $2.1 million, or "Dummy for Betsy", or simply "***************" No description for millions of dollars or equipment. Over 48,000 entries of "Undetailed Investment" added up to $359 million dollars or 5% of the total. Imagine going to the IRS and showing them equipment costs with NO receipt, NO equipment, and nothing but a line item in an inventory book. Click here to see 10 pages of accounting irregularities and what each category means. http://www.teletruth.org/auditupdate.html In fact, auditors at the FCC found billions of equipment was missing when they compared these inventory records with the equipment in the networks for ALL of the Bell companies. These audits were shut down and the Accounting Safeguards Division was closed because of political pressure! Too hot to handle from pressure by too-powerful companies. The Bell companies will tell everyone that these books don't affect rates, that the FCC's auditors made up stuff, that this is old news ---- Don't believe them. They are not telling you the truth. The equipment in the network was used as a starting point for all phone rates, even deregulated services. Therefore, if the equipment in the network is missing, the books presented were a sham and need to be opened. It added to the cost of your phone service. Worse, these books are supposed to match the financial and other accounting books and they are in serious violation of every USOA accounting law. Also, an independent report by the New York Public Service Commission corroborated much of the FCC's findings. Ironically, the Bells keeps screaming that the discounts to competitors (UNE-P) rates are "below costs" and they have taken legal challenges, claiming that these prices should be determined by network costs--- based on, in part, the inventory in the network! Want proof for yourself? Look at the excerpts and wonder how did they get away with line items such as Dummy for $2.1 million or millions of dollars with "*****" as the description. This is Fraud 101. Teletruth to FCC: Open the Books Teletruth has filed a Freedom of Information Act (FOIA) petition with the FCC to open up ALL of Verizon, SBC, Qwest and BellSouth's proprietary inventory accounting books because this is only the tip of the iceberg. Unless this investigation gets going, you're going to remain being ripped off. To read our FOIA: http://www.newnetworks.com/FOIAforaudit.html IRS CLAIM: But it doesn't stop there. Teletruth has already filed with the IRS to investigate. Why? Well, the Bells have been able to take continuous TAX write-offs of equipment that is missing from the networks. Imagine being able to take bogus expenses and simply get away with it. We estimate that they've been taking write-offs on $80 billion dollars of missing equipment. (To be updated next week.) If your city, municipality, or state has financial troubles and is raising your tax rates, why haven't they demanded to get the money owed to them for back Bell taxes on non-existent equipment? SEC CLAIM: Teletruth also has an active case with the SEC, because the phone company Executives and Auditors are signing documents that there's no problems with these books, even though they have more holes than stale Swiss cheese. To read our SEC Complaint: http://www.teletruth.org/docs/SECLetter2.pdf Silence from Congress, State Commissions and the Media: What should really get you annoyed? This is the largest accounting scandal in history and the regulators, politicians and the press have just wanted to cover it up --- For it to just go away. When articles, etc. such as the recent story in Forbes comes out, outlining one of the largest scandals in history, the Bell companies seem to put a spin to shut up those who will try to tell the truth. To read the Forbes article http://www.forbes.com/forbes/2003/0512/082.html To read SBC, Verizon and BellSouth's ridiculous response: http://www.forbes.com/forbes/2003/0512/082sidebar.html Don't let them get away with this. ----Time's up. Now it's your turn Remember, this affects your local phone rates, even if you use a competitor. It affects your DSL rates, since the price is supposed to be based on network equipment, and it affects all phone rates that our schools, libraries, businesses use. Help Get This Story Told: TAKE ACTION. CONTACT THE PRESS -- Write to joe@msnbc.com or oreilly@foxnews.com, forbes@foxnews.com, Nightly@NBC.com, or hardball@msnbc.com and tell them to start investigating the largest accounting scandal in history, affecting virtually every phone customer. They're always talking about holding corporations accountable for their misdeeds. Teletruth Will Debate Any Senior Bell Company Staffer Any Time. CONTACT THE FCC and TELL THEM TO INVESTIGATE: Chairman Michael K. Powell: mpowell@fcc.gov Commissioner Kathleen Q. Abernathy: kabernat@fcc.gov Commissioner Michael J. Copps: mcopps@fcc.gov Commissioner Kevin J. Martin: kjmweb@fcc.gov Commissioner Jonathon Adelstein jadelste@fcc.gov
READ THE OVERVIEW , CHECK OUT THE Q AND A, CHECK OUT THE CARTOON http://www.teletruth.org/auditupdate.html JOIN OR DONATE TO TELETRUTH --- Help us make these companies accountable and lower your phone rates immediately. Teletruth is an independent, volunteer customer alliance and not funded by any large phone company, association, or political group. http://www.teletruth.org/TakeAction/joinTeleTruth.html CONTACT: Bruce Kushnick, Chairman, Teletruth, BruceKushnick@teletruth.org Dan Berninger, Director, Teletruth dan@danielberninger.com Tom Allibone, Director of Teletruth Phonebill Audits, tallibone@ltcconsulting.com
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