The Mo. PSC declined to certify 2 rural incumbent telcos as quali...
The Mo. PSC declined to certify 2 rural incumbent telcos as qualified to continue receiving federal universal service funds. The PUC notified the FCC that it was decertifying Cass County Telephone and New Florence Telephone, both run by an…
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executive that the FBI alleged has ties to organized crime. The PUC said there were unanswered questions about whether the telcos had knowingly overpaid for data services provided by a firm the FBI alleged had Mob connections, thereby misrepresenting their costs of doing business. The FBI in July arrested Kenneth Matzdorff, alleging he was a front man for the Gambino crime family in a fraud scheme that involved deliberate large overpayments for business services from Mob-connected companies. Matzdorff still is CEO of Cass County Telephone but quit New Florence Telephone in Aug. The telcos serve about 8,500 lines total, and last year received about $3.2 million in universal service subsidies. Officials of the telcos denied any improper spending. They said a pending 3rd- party audit will show the subsidy money was spent properly. They said once the audit vindicates them, they will move for reversal of the PUC decision.