Smart Comm SmartComm LLC Smart Comm investment fraud Internet

The author of this Complaint is Chris Kay, a Phoenix businessman.  In mid-2009, he was contacted by Dave Alcorn, an independent marketing representative in Scottsdale, who introduced the opportunity to file 800 MHz SMR license applications with a certified frequency coordinator to be processed on a first come, first served basis.  Once a certified frequency coordinator's notification period is triggered by the FCC's release of a Public Notice for the NPSPAC Regions in which Mr. Kay selected markets, the frequency coordinator will review and approve his license applications than forward them to the FCC for license grant.  The value of these licenses will far exceed the amount he paid for his license applications.  The truth is that Mr. Kay has not "lost" anything. Nor will he.

Mr. Kay chose, for his own financial reasons wholly unrelated to his purchase of license applications or my long past legal difficulties, to seek a refund after Smartcomm License Services, LLC already had completed the work for which Mr. Kay contracted. After Smartcomm, LLC rejected Mr. Kay's refund request, he visited our Company's offices and threatened us physically. He then called Carole Downs, Smatcomm, LLC's Chief Executive Officer, and left a threatening voice mail and then a similar e-mail.

He then anonymously posted defamatory comments on numerous websites such as this one.  Apparently still unsatisfied with his efforts to harm Smartcomm, LLC and me, he then filed a false report with the Phoenix Better Business Bureau and Arizona Corporations Commission.

You should note that Mr. Alcorn and Shannon Downs, then Smartcomm, LLC's Director of Sales, fully disclosed both the risks of purchasing the 800 MHz SMR license applications and my backgound that is also set forth in Smartcomm, LLC's Marketing Package.

In reading what the FCC set forth in its Designation Hearing Order, in EB Docket 07-147, you should note that all of the allegations with respect to my involvement with Preferred Communication Systems, Inc. and Preferred Acquisitions, Inc. proved to be wholly unfounded. You may wish to confirm my statement by reading the FCC's Enforcement Bureau's Fairness Statement filed on August 31, 2009.

Finally, you may wish to note that while serving as a consultant to Preferred Communication Systems, Inc., together with Alejandro Calderon, Concepts To Operations, Inc.'s President, and Chandu Patel, a highly successful businessman and investor, I was responsible for creating a successful bidding strategy for FCC Auction 34 (800 MHz Specialized Mobile Radio General Category licenses)(2000) that I personally executed that enabled Preferred Acquisitions, Inc. to win 38 Economic Area market licenses covering a total of 32.4 million Pops. The value of such licenses using a $4.00 MHz/Pop figure is $554.4 million.  PAI's net winning bids were $31.67 million.

When Nextel Communications, Inc. sought to reverse the results of this Auction by proposing a reconfiguration of the 800 MHz Private Land Mobile Radio Band, Mr. Calderon and I assisted Preferred Communication Systems, Inc. and its FCC FCC attorneys in drafting a Petition for Review that was filed with the U.S. Court of Appeals for the District of Columbia on February 27, 2006 (Case No. 06-1079).  This case is still pending. 

I invite anyone reading Mr. Kay's "complaint" and my response who still believes Mr. Kay's statements or is confused to contact Smartcomm, LLC and request that we conduct a Due Diligence Online Webinar for him and others interested in participating in mobile broadband investment related opportunities.

Pendleton Waugh
President
Smartcomm, LLC