(A). What is the title of our petition?

Financially Abused TerreStar Common Shareholders

(B). Who is the target of our petition?

This petition is intended for the following groups - 

(a). The Department of The United States Securities and Exchange Commission "S.E.C.",

(b). The United States Federal Bureau Of Investigation, "F.B.I"

(c). Chairman of F.C.C, Julius Genachowski,

(d). The Secretary of F.C.C, Marlene Dortch,

(e). Division of Enforcement-Unit, S.E.C, Robert Khuzami, Securities and Exchange Commission, 

(f). The Honorable Senator Charles E. Grassley,

(g). The Honorable Senator Marco Rubio,

(h). The Honorable Senator John McCain,

(i). The Chief of Whistle Blower Office at The S.E.C, Attn: Sean X. Mckessey,

(j). Whistle Blower Office at The S.E.C, Attn: Matthew Coughlin,

(k). Whistle Blower Office at The S.E.C, Attn: Lannette Scott,

(l). Attn: Scott A. Masel, Senior Trail Counsel, S.E.C, Miami Office

(m). Attn: Lisa T. Roberts, Chief Investigator, S.E.C, Miami Office 

(n). Attn: Eric Bustillo, Regional Director S.E.C, Miami Office,

(o). Attn: Special Agent Christopher Derks, The Chief of Securities Fraud Unit at the F.B.I., Northern Virginia Washington Field Office, 

(p). The Chief of Enforcement Unit at the F.B.I, Northern Virginia Washington Field Office.

(C). What issue best describes our petition?

WE THE UNDERSIGNED COMMON SHARE HOLDER'S HAVE BEEN "UNJUSTIFIABLY WRONGED", WE ARE REQUESTING THAT THE BANKRUPTCY REORGANIZATION PLAN BE PLACED ON HOLD UNTIL AN EQUITY COMMITTEE, AND AN INDEPENDENT EXAMINER BE APPOINTED, DUE TO NUMEROUS SECURITIES FRAUD VIOLATION'S IN THE UNITED STATES CODE TITLE 18 SECTION 151-158  AND THE UNITED STATES CODE 807 OF THE “SARBANE-OXLEY ACT”.

WE ARE ALSO DEMANDING THE ORIGINAL APPOINTED UNITED STATES TRUSTEE TO BE MORE VIGOROUS IN IDENTIFYING IMPROPER SECURITIES VIOLATIONS ON BEHALF OF THE MINORITY COMMON SHAREHOLDERS OF TERRESTAR CORPORATION. WE HAVE NO REPRESENTATION WHATSOEVER IN THESE BANKRUPTCY PROCEEDINGS ESPECIALLY FROM THE DEBTOR, THE MEMBERS FROM THE BOARD OF DIRECTORS, THE CHAIRMAN OF THE BOARD AND ESPECIALLY THE DEBTOR LAWYERS.

Dear Ladies and Gentlemen,

We are the TerreStar Corporation (TSTRQ) common share holders. We are following up on the complaint that was filed at the Miami Field office, with the F.B.I Special Agent Mr. David Nance, his telephone # is 305-944-9101, by Mr. Aldo Ismael Perez, and was referred to the Securities Fraud Division Manager located at the Northern Virginia Washington Field Office. The F.B.I Special Agent Mr. Christopher Derks contacted our legal representative.

Mr. Nance is questioning why the TerreStar Corporation and TerreStar Networks Inc., were taken to the United States Bankruptcy Court of the Southern District of New York even when they are a Delaware, Corporations and jurisdiction. It should be tried at the Bankruptcy District Court of Northern Virginia instead of the Southern District court of New York, so he forwarded the case to the Northern Virginia Washington office.

This company was once named "American Mobile Satellite Corporation".   The name was changed to Motient Corporation; then again, the name was changed to TerreStar Corporation.  We wonder what would be this company’s new name, the fourth time if the Bankruptcy Judge approves the proposed reorganization plan.

We are pleading with our Governmental Officials to intervene and assist us and closely investigate both the TerreStar Bankruptcy Cases and why they were separated into two separate bankruptcy cases instead of one.

Why is this important?

(1). Questionable management and insiders dealing –

There are many wrong doing occurring in the bankruptcy process of this company, to benefit the preferred shareholders, note holders, lawyers, insiders and its executives. Instead of looking for buyers, it chose to file bankruptcy, and break up the company's assets into two separate bankruptcy proceedings, in favor of Hedge Fund of EchoStar Corporation, Phillip Falcone, Harbinger Capital Partner's LLC, and HedgeFund Solus Alternative Management.

Please note, the major preferred share holders and note holders are also insiders. With their new restructure plan, the new company will go to the same insiders and wipe out public Minority Common Share Holder's. Please see Docket #611, section J.

http://www.terrestarcorprestructuring.com/maincase.php

(2). Questionable favorable lease agreement to the insider, Harbinger –

In September 2009, Harbinger agreed to lease the 1.4GHz Spectrum from TerreStar for an initial amount of $1 Million Dollar per month, increasing to $2 Million Dollars per month in June 2010, locking up this valuable asset until Lightsquared filed for bankruptcy, Phil Falcone, known as LightSquared and Harbinger.

Please note, Harbinger, an insider also is a competitor. Leasing the 1.4 GHz Spectrum, the asset of TerreStar Corporation, below market value to a primary competitor of TerreStar Corporation, LightSquared, is a complete conflict of interest to the company and was never a part of the business plan.

(3). Undervalued the TerreStar Networks Spectrum License –

TerreStar Networks Inc. is the largest division of TerreStar Corporation. The valuable asset of the TerreStar Networks Inc. is the primary reason majority of the investors invested in TerreStar Corporation. Both TerreStar Networks Inc. and TerreStar Corporation held assets such as the 2.0 GHz Spectrum license, TS-1 and TS-2 satellites, 1.4 GHz Spectrum license etc. They undervalued the TerreStar Networks and were sold for the deliberately low amount of $1.375 Billion Dollars. The true valuation is for the amount anywhere from $4.7 Billion Dollars to nearly $10 Billion Dollars. Please refer to Docket #179, the UBS and Jefferies & Company telecommunication study for this case at:

http://www.terrestarcorprestructuring.com/maincase.php

The 2.0 GHz Spectrum was sold to EchoStar Corporation, Charles Ergen. They only paid a measly $391 Million Dollars for the 2.0 GHz Spectrum License alone, and paid $984 Million Dollars for both satellites TS-1 (Currently in space since July 1, 2009) and TS-2, making it a total amount of $1,375,000,000. It is unfair and illegal to maliciously undervalue this valuable spectrum asset so significantly. This is a clear case of stealing and bending rules to benefit a selective few.

(4). Undervalued the 1.4 GHz Spectrum, the very valuable asset of the TerreStar Corporation –

Now the same shenanigans are maliciously undervaluing another valuable asset, the 1.4 GHz Spectrum once again. A study was done by the Plum Consulting, a very respected telecommunication consultants based in London, England. According to Plum, the 1.4 GHz Spectrum is a very valuable asset for the European telecommunication market and perhaps Northern African region as well. They are undervaluing and stealing the 1.4 GHz Spectrum in the same manner as the 2.0 GHz Spectrum asset. The 1.4 GHz Spectrum is worth multiple Billion Dollars in Europe and that has been established and known by different means already.

Based on the last Spectrum Management Conference (The equivalent of the F.C.C, in the United States) that held in Brussels, Belgium in June 2011 the 1.4 GHz Spectrum Band can generate at least in revenues over $7.7 Billion Dollars in the European region. Undervaluing such an important and valuable spectrum, resulting to the common share holders getting wiped out. They are doing this deliberately to benefit a selected few once again. This company should not have been in bankruptcy in the first place.

This was being done exactly the same way as was done with bankruptcy cases of Loral Aerospace Corporation, Leap Wireless Corporation, DBSD/ North America (Former name was ICO Global Corporation), Global Star Corporation, TerreStar Networks Inc., TerreStar Corporation. Perhaps there are others incolved in this very well crafted scheme. This remains to be investigated.

Please note, a suspicious pattern that all bankruptcy were taking place in the same United States Bankruptcy Court at the Southern District Court of New York instead of their proper jurisdiction.

By the way, we would like to point out that the current Chairman of the Board of TerreStar Corporation, William H. Freeman was once the C.E.O of Leap Wireless Inc., and they were taken to the bankruptcy Chapter 11 also.

(5). Clearly questionable asset valuations - Asset valuations were inflated and deflated at varies time to favor their circumstances –

In February 21, 2012, Mr. David Goldman of CNN Money said that there is a Spectrum Crunch and AT&T said that the demand for wireless data traffic grew 20,000% since the iPhone was introduced in the market. However, according the debtors’ lawyers and experts 2.0GHz Spectrum license is worth only $391 Million Dollars and 1.4 GHz Spectrum is worth only $80 to $100 Million Dollars. The Blackstone Group valued the 1.4GHz Spectrum only in the range of $175 Million Dollars to $185 Million Dollars.  There should have been other expert opinions. In Europe once again the valuation is or should be in Billions of Dollars. For the record, back in February 2008 the respected Investment Banker Jefferies & Company made an analysis the 1.4 GHz Spectrum was worth at that time $532 Million Dollars in the low end and $836 Million Dollars in the high end that is public record!

(6). Securities Fraud and violation's of the regulatory requirement of the Sarbane-Oxley Act –

The TerreStar corporation diverted over $622 Million Dollars and perhaps greater to create a new network by the name “SKYTERRA", later, on March 29, 2010, the Hedge Fund Harbinger Capital Partner paid $5.00 per share to take the company private, Skyterra became "LightSquared" by using the revenues from the common shareholders to compete against the nationwide Satellite network TerreStar Networks Inc., a complete conflict of interest!

The management including the former C.E.O "A former S.E.C inspector", the C.F.O, the in-house lawyer Doug Brandon, the members of the Board of Directors and the Chairman of the Board approved and consented of not disclosing the valuable information about 1.6 GHz Spectrum License and asset on the Consolidated Financial Statement, from 2006 until the first two quarters of 2010. Please review very carefully Docket #556.

Further research indicated that TerreStar Corporation is not a stranger to controversies. TerreStar Corporation was formerly known as Motient Corporation. The name was changed to TerreStar Corporation during an IPO on August 16, 2007 but the former executives, including the former Chairman of the Board of Motient Corporation were arrested for securities fraud and barred from the security industry, and the former New York state senator was also prosecuted for receiving a pay off of $250,000.00 Dollars. It appears scam continues but with different faces. It never went away.

(7). Two separated bankruptcies – 

TerreStar Networks Inc. and TerreStar Corporation were taken to bankruptcy separately only benefiting insiders, HedgeFund, the Blackstone Group especially the law firm Akin Gump & Strauss Hauer & Feld LLP. Charging the estate outrageous and down right abusive attorney fees amounting to $700.00 -$1,050.00 per hour by one of the lawyers, Mr. Ira S. Dizengoff.

Clearly, two separated bankruptcies benefit no one but insiders, corporate executives and lawyers. Yet the bankruptcy Judge approves it.

(8). Why file bankruptcy at Southern District Court of New York? To garner favoritism?

(9). Timing and sequence of the bankruptcy –

In October 2010, TerreStar Network Inc. filed for Chapter 11 and stated that TerreStar Corporation was not in need of Chapter 11 but Insiders were quietly selling common shares and purchasing notes. Much later, in February 2011 TerreStar Corporation also filed Chapter 11 bankruptcy. Please note, Harbinger sold millions of common shares and used those funds to buy notes before the filing of the bankruptcy. They knew the very same amount of the dollars was worth more in notes than the common shares value. They benefited significantly from the inside information. Please note, the timing and sequence of the bankruptcy, such as, Oct 2010 TerreStar Networks and July 2011 Terrestar Corporation bankruptcy were approved and consented by the management, the in-house lawyer, the members from the Board of Directors including the Director of TerreStar Audit Committee and the Chairman of the Board, Hedge Fund Harbinger Capital Partners, LLC., and their Hedge Fund Manager.

(10). Victimized Common Shareholders –

The common shareholders are being victimized by an "A very well crafted scheme by using the bankruptcy laws to launder assets" and the involvement of very powerful and well connected individuals in Washington D.C. and in New York City, to financially benefit a selective few and disregarding the honest and hardworking common shareholders. We found that they not only failed to disclose some of the critical and valuable assets (1.6 GHz Spectrum license) in their financial statements for multiple years but also deliberately undervalued very valuable assets, such as the 2.0 GHz Spectrum License, 1.4 GHz Spectrum license etc.

For more details please see Docket #331, Docket #553, Docket #556, Docket #579, docket #607 and all dockets filed by Mr. Jeffrey Swarts, Mr. Aldo Ismael Perez.

For all the reasons we have listed above, we the common shareholders jointly object to the way these valuable assets are being undervalued to benefit a few. We are pleading the government officials to stop this bankruptcy proceeding immediately and investigate it thoroughly to insure justice and fairness for all affected shareholders.