Vermont Prepares For Fairpoint Bankruptcy > Vermont should go after Verizon and contact the IRS

Vermont should go after Verizon and contact the IRS

Why? What did VZ do wrong? If anything, the state and federal regulators that allowed the deal should be on the chopping block.

plenty of blame to go around but yes, the Reverse Morris Trust used was completely legal. Vermont should have paid better attention.

reply to openbox9
Morbo's point is that anyone BUT Vermont's regulators saw the "dupe" of Verizon pulling out, gaining a tax-writeoff, and playing the waiting game when the "yahoos" pull a Chapter 11.

But what about all the employees? What about the former Verizon employees that were let go because of this deal? Shuffled around, pay cuts, overtime cuts, attrition...

This Failpoint took advantage just as much as Verizon did. They had no software in place for customer service (and still don't). The company they hired doesn't know how to write code, train or meet deadlines. And the former CEO of Failpoint would only profess about "pudding" ! WTF??

reply to Karl Bode
Vermont Attorney General should go after formal head of Fairpoint and Board of Director for basically lying thru their teeth. FTC should also do a thorough review.
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»www.seabee.navy.mil

Vermont should go after their own legislators who approved this deal.

reply to cableties
So VZ's liability is what? morbo insinuated that VZ is liable/guilty of something. My response was that VZ did nothing wrong and that there are others to clearly lay the responsibility/blame on to include Fairpoint's CEO and BOD as well as state/federal regulators.

VZ should be investigated along with Fairpoint. The regulators that approved this deal should be fired. Vermont should contact the IRS to see what, if anything, can be done about this shady deal. If for nothing else, to prevent loopholes like this from being exploited at the expense of customers and investors. Maybe Vermont's AG can explore options for going after Verizon.

The problem I have is that although the deal was technically legal, (almost) everyone knew that it was in actuality a horrible deal that primarily benefited Verizon.

Verizon and Fairpoint sold the idea to the states that a small company with limited assets could "take over" its landlines, even though there was much dissension in the ranks and elsewhere about Fairpoint being able to pull it off. There was initially resistance to this on the boards and the consumer advocates in all three states. The question is, how was this resistance overcome. Investigating this turn-around of the public service board may reveal some interesting results, who knows. At least it would help to prove or disprove any hanky-panky that may have gone on.

reply to rit56

reply to openbox9

said by openbox9:

So VZ's liability is what? morbo insinuated that VZ is liable/guilty of something. My response was that VZ did nothing wrong and that there are others to clearly lay the responsibility/blame on to include Fairpoint's CEO and BOD as well as state/federal regulators.

reply to Noreaster
Agreed. This investigation should be of the entities that had a hand in the approval of the business transaction, not the selling participant which did everything legal. Now if evidence arises that VZ greased a few palms in the process, then unleash the investigative hounds. There's no reason to investigate VZ at this time, which is what morbo suggests should be done.

reply to cameronsfx
No it's not "done". "Legality" is a term corporations put out to shield themselves from the common man's wrath. However in the telecom industry "legal" is meaningless when the FCC spends a decade gutting the most important Act regarding national communication services ever passed.

Verizon had a responsibility to the consumers it had been serving for years, and who had been loyally subscribing to their services for years. They were as aware as anyone that their customers would be entering a minefield with Fairpoint. They need to be held accountable for their anti-societal business decisions.

reply to openbox9

reply to rit56
Agreed...when all this went down, we all knew what would happen. But the clueless people in their "white towers" took the bait (ie, Verizon's briefcase full of cash) - hook, line, and sinker.

To play Capt. Obvious for a second...i say it's about a month away before we start reading quotes from these legislators expressing shock and dismay at the situation...that they had no idea it would go this wrong!

Maybe Verizon will come back in and scoop up the territories again for pennies on the dollar and perhaps start rolling out FIOS. (I know, it's a pipe dream)

reply to RR Conductor
Once again, what do you propose VZ be investigated for? The legally conducted their transaction with the legal approval of necessary regulatory bodies.