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RUS Says No
Friday, 03 September 2010 15:44
Peter Pratt of Stimulating Broadband and Eric Torbenson of the Dallas News reported that Tier 1 Converged Networks faced SEC charges (below). RUS has now taken action, one of the few times any part of the $700B stimulus has done. Far too many parts of government - every government - prefer to sweep things like this under the rug at taxpayer expense. The story broke Friday afternoon. I confirmed it but don't yet have the details.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21510 / April 30, 2010

Securities and Exchange Commission v. TierOne Converged Networks, Inc., Kevin Mark Weaver, and Ronald Celmer,

Civil Action No. 3:10 -CV-00840 United States District Court for the Northern District of Texas (Dallas Division).

SEC Brings Settled Civil Charges against TierOne Converged Networks, Inc. and its Senior Officers for Misrepresentations and Omissions, and Obtains Corporate Monitor

On April 27, 2010, the Securities and Exchange Commission filed a civil action in United States District Court in Dallas, Texas against TierOne Converged Networks, Inc., CEO Kevin Mark Weaver, and CFO Ronald Celmer. The Commission's complaint alleges that, from July 2006 to April 2009, TierOne raised almost $9.5 million from approximately 200 investors nationwide using incomplete and misleading offering documents. Among other things, the Commission alleges that TierOne's offering documents before June 2008 failed to mention Weaver's FINRA disciplinary history, and did not disclose over $685,000 of loans TierOne made to Weaver and Celmer over the preceding three years. The complaint further alleges that offering materials exaggerated the status of the company's agreements with customers and other third parties and the proprietary nature of TierOne's software.