TerreStar Corporation - 1 dot 6 GHz Spectrum Fraud
December 4, 2014
United States Bankruptcy Court
Southern District of New York
One Bowling Green
New York, New York - 10004
Attn: Honorable Judge Shelly C. Chapman
Ref: Case # 12-12080 (SCC), LightSquared Corporation
Dear Judge Chapman,
We start by thanking the court for giving us a glow of hope in our battle of trying to recover the 58 % equity ownership what was fraudulently stolen from the minor common shareholders of Terrestar Corporation. And the indirect and fraudulent blocking position imposed by EchoStar Corporation and its majority owner Charles Ergen acquiring the 2.0 GHz Spectrum as well.
There is something rotten in Denmark! And it continues to be. The lawyer representing the Hedge Fund, Harbinger Group and its former Manager Phillip Falcone was correct when he said there are egregious acts of R.I.C.O., violations occurring.
The 1.6 GHz Spectrum License was owned by a former telecommunication company by the name of Skyterra Communications Inc. The court knows this information for quite some time. But the corporate assets of Terrestar Corporation were deliberately fleeced and drain to financially benefit certain insiders including Phillip Falcone and its former partner in crime Charles Ergen.
Terrestar Corporation assets were fraudulently diverted and dividends were paid to a sister company of Skyterra Communications Inc., by the name of Mobile Satellite Ventures or M.S.V. Both M.S.V., and Skyterra Communications Inc., later merged on December 8, 2008 and became one company, Skyterra Communications Inc.
Both Charles Ergen and Phillip Falcone were those key players with their inside assistance from the members from the Board of Directors, from the members from the Management and other insiders including our own former in house lawyer for Terrestar Corporation, Douglas I. Brandon. They were instrumental in the deliberate financial collapse of Terrestar Corporation and of Terrestar Networks Inc.
Fraudulent Transfer or the violation of Section 548 under the S.E.C., occurred when the sale of the 1.6 GHz Spectrum License, in which the 58% equity ownership was owned by Terrestar Corporation back on March 29, 2010. It was sold to a foreign owned Hedge Fund by the name of Harbinger Capital Partners Master Fund I, Ltd., and it was sold for a deliberate low amount of $262,500,000.00 or for only $5.00 per share. This sale was reported in a Skyterra Communications Inc., media release and by their spoke person by the name of Tom Surface. This particular transaction was reported for an amount of $1,849,000,000.00. But it is not reflected in the financial statement for the multiple years of Terrestar Corporation. It was deliberately concealed from the financial statements.
Yet Your Honor, Terrestar Networks Inc., first filed their petition for Chapter 11 bankruptcy on October 19, 2010 and shortly thereafter, Terrestar Corporation filed their petition Chapter 11 bankruptcy on February 16, 2011. It was within the two years time frame of the sale of the asset of the 1.6 GHz Spectrum License. This Your Honor, is a securities violation of Section 548 or a Fraudulent Transfer.
FRAUDULENT WRONG VENUE
Mr. Brandon was hired to work for the very same law firm representing Terrestar Corporation during the bankruptcy proceedings. He was hired by Akin Gump Strauss Hauer & Feld, LLP, in their Washington law office effective as of May 1, 2013. It appears to many of the common shareholders of Terrestar Corporation, he was seeking protection due to his prior acts of deceit and lies that occurred in Terrestar Corporation and Terrestar Networks Inc. Today, he is a partner in the firm.
Your Honor, it was our former in-house lawyer Douglas I. Brandon, purchased a shelf aged company from a corporate service company Wyoming Corporate Services Inc., located at Cheyenne, Wyoming. The company former name was Worldwide Imaging Inc. The name was change to Terrestar of New York Inc. It was deliberately change shortly thereafter for the purpose of filing the bankruptcy in the wrong venue which was in the Southern District Court of New York .Douglas I. Brandon and a certain lawyer from the firm of Akin Gump knew they open an office in a Call Center without any presence whatsoever in the State of New York. It was simply a Call Center, 1-800 We Answer. This information was concealed from the court.
There were no employees and there was no presence whatsoever in the state of New York to begin with. When Terrestar Corporation Confirmation Hearing occurred back on October 10, 2012, the Management of Terrestar Corporation failed to pay the annual dues to the State of New York, Division of Corporation for renewing their license to maintain the corporation of Terrestar of New York Inc., in the state of New York.
What is a travesty of justice is the Appointed United States Trustee had an obligation and a duty to block this bankruptcy proceeding and prevent this bankruptcy fraud. They simply failed to be our “Watchdog”. And what occurred is they became the “Lapdog”.
This matter was brought to the attention to the Bankruptcy Judge Sean H. Lane, and to the Department of Justice, Executive Committee for the United States Trustee. What we were able to find out later, the appointed United States Trustee Tracy Hope Davis was transfer across the nation to a Federal District in California. But the appointed trial lawyer still remains on the Terrestar Corporation case. The Office of the Executive Office of Trustee is currently in damage control with their failure to act accordingly.
We the minority common shareholders of Terrestar Corporation are seeking the necessary relief from the court, in which Your Honor can appoint a Special Trustee that will respond and report only to you. The bankruptcy hearing of LightSquared should and must be suspended until the necessary investigative procedures are fully completed by the Department of Justice. And the 1.6 GHz Spectrum License should not and must not be release to Charles Ergen. Neither to his different affiliates including EchoStar Corporation, Gamma Acquisitions, LLC, Dish Networks Inc., neither any other division or affiliates directly or indirectly connected with him in any form whatsoever.
And as well neither with Douglas I. Brandon and his connections through his or any affiliates or third parties connected to him in anyway, shape or form.
Along with the so called Spectrum Valuation Expert, in which Steven Zelin from The BlackStone Group is not a Spectrum Valuation Expert. Once again, we agree with the lawyer of Harbinger Group, the credential of Steven Zelin has no knowledge of any expertise whatsoever in the field of telecommunication engineering or any expertise in the intrinsic knowledge in spectrum or frequencies valuation. The true valuation of the 1.6 GHz Spectrum License is worth in the billion and billion of dollars. And a true independent expert in the field of Spectrum Valuation Expert must be appointed by Your Honor to determine the true and realistic cost of the 1.6 GHz Spectrum.
But in the meantime, the LightSquared hearings should and must be suspended Your Honor. And the 1.6 GHz Spectrum License belongs to the minority common shareholders of Terrestar Corporation and should and must be returned to the treasury of Terrestar Corporation.
Due to the fraudulent diversion and draining of corporate assets of TerrestarCorporation to begin with, and the full scope of the nature of Fraudulent Conveyance that occurred in Terrestar Corporation and Terrestar Networks Inc., we were never be in this particular situation in bankruptcy to begin with.
Your Honor, we are very grateful once again for giving us this opportunity to express what truly occurred to the victimized minority common shareholders and their families of Terrestar Corporation. We seek the necessary relief for the sake of the rule of law and for the sake of justice.
From behalf of many minority common shareholders of Terrestar Corporation we thank you.