• Report: #669145

Complaint Review: SmartComm

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  • Submitted: Tue, December 07, 2010
  • Updated: Sun, November 11, 2012

  • Reported By: Investor2010 — scottsdale Arizona United States of America
SmartComm
3131 E. Camelback Rd. Phoenix, Arizona United States of America

SmartComm, SmartComm, smart commllc, smart comm scam,Carole Downs,Pendleton Waugh,Shannon Downs,smart comm white paper,smart comm az, smart comm fruad, smartcomm, smartcommllc.com, SmartComm |NOTICE: Ripoff Report VIP Arbitration Decision: A neutral and independent Arbitrator has determined that the following report contained one or more false statements of fact. The false statements have been redacted (((Statement REDACTED as false pursuant to Ripoff Report VIP Arbitration))) | (((Statement REDACTED as false pursuant to Ripoff Report VIP Arbitration))) Phoenix, Arizona

*REBUTTAL Owner of company: Response from Smartcomm CEO

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RIPOFF REPORT VIP ARBITRATION

SUMMARY OF ARBITRATOR DECISION



Smartcomm, L.L.C., Complainant

v.

Author of Ripoff Report #669145
________________________________________________________________________

Complainant has challenged the truthfulness of 9 specific statements posted on ripoffreport.com by the Author of Report #669145, believed to be a former client of Complainant. The Author did not respond to the Complaint filed by Complainant in the time allowed and therefore is not participating in this Arbitration. In accordance with the Ripoff Report VIP Arbitration Rules (the Rules), the Arbitrator will decide whether each of the 9 statements is an opinion or a statement of fact. If, and only if, the statement is determined to be a statement of fact, the Arbitrator will then go further and decide if, by a preponderance of the evidence, the statement is true or not.

In this case, the Arbitrator has only the evidence submitted by Complainant to consider. The evidence submitted includes the Ripoff Report referenced, multiple Witness Statements, and other documents.

Complainant appears to be challenging statements made by Author, who is believed to be a former customer of Complainant.

Any portions of the statements that were deemed to be opinion were not ruled upon by the Arbitrator. The Arbitrator determined that the statements which have been redacted were false. Therefore, according to the Rules, those statements have been redacted.

Decided November 1, 2012

Sandra J. Franklin, Arbitrator

* A copy of the full Arbitrators Decision is available upon request. Please e-mail arbitration@ripoffreport.com.
________________________________________________________________________

Wireless communications is an incredibly complicated and highly regulated world. Thorough research we learned that Neither SmartComm, or its multi-tiered network of sales people are licensed securities broker/dealers or certified financial advisors. In fact, some of them had such licenses and certifications revoked by the SEC due to prior legal issues involving improper activity.

Smartcomms President, Pendleton Waugh has a trail of public fraud and other legal charges by the FCC and SEC that date back to the early 1990s, including the fact hat he has had his law license revoked in at least three states including Maryland, Georgia and Texas, and was previously convicted of federal charges related to FCC licensing scams, which are outlined below.

In 1993, Waugh came under investigation by federal authorities. As a result of that investigation, Waugh was indicted in 1994 in the United States District Court for the Northern District of Texas on one count of conspiracy to structure financial transactions to evade securities and banking reporting requirements and one count of money laundering, both felonies. Waugh ultimately pled guilty to the first count, and the second count was dismissed. In 1995, as a result of the plea agreement, Waugh was sentenced to 21 months in federal prison, followed by three years of probation, and payment of $20,000 in fines.

In 1997, the United States District Court for the District of Columbia granted the SEC summary judgment against Waugh for violations of various securities regulations. Waugh was ordered to pay the federal government nearly $13 million of illegally acquired funds.
In 1999, Waugh was convicted of securities fraud, a felony, in a case brought by the State of Texas, arising from his failure, in 1993, to disclose to a potential investor that he was under investigation by federal authorities for activities. Waugh was sentenced to four years in state prison, all of which were suspended pending successful completion of probation. He also was ordered to pay $72,000 in restitution and to complete 500 hours of community service.

In 1999, Waugh was determined to have violated the terms of his parole from federal prison and his probation on his state conviction by traveling to Puerto Rico to engage in activities relating to cellular telephone securities. As a result, Waugh was sentenced to six additional months in federal prison and four years in state prison.
We also learned that some SmartComm sales representatives also have histories of revoked SEC licenses and similar penalties for improper investment activities.
(((Statement REDACTED as false pursuant to Ripoff Report VIP Arbitration))) (((Statement REDACTED as false pursuant to Ripoff Report VIP Arbitration))) (((Statement REDACTED as false pursuant to Ripoff Report VIP Arbitration))) This webpage outlines the scam: (((link redacted)))
There are several FCC records on these guys: More from the FCC on Waugh 2009 http://www.fcc.gov/eb/hearings/files/FCC-09M-57.pdf
Here is more Fined by the FFC - http://www.fcc.gov/eb/hearings/files/FCC-09M-51.pdf
http://precomsys.com/documents/PW_Notice_of_Appeal_EB_Action_081209.pdf
Right here he was busted by the state of Maryland, and told he could not operate under Express Communications Inc. 1995
http://www.courts.state.md.us/opinions/cosa/2001/689s00.pdf another bad one 2007 !! The feds were trying to revoke the licences
http://edocket.access.gpo.gov/2007/pdf/E7-14871.pdf
The Sales Pitch SmartComm's primary sales pitch is that for an investment of $20,000 investors will earn $7,500 to $15,000 per month for life or be able to sell their holdings for a windfall profit. When asked how they can sell such securities without a securities license, the response is that we have been cleared by the SEC that what we are selling is not a security.
(((Statement REDACTED as false pursuant to Ripoff Report VIP Arbitration))) (((Statement REDACTED as false pursuant to Ripoff Report VIP Arbitration))) Please look out and do not invest money, you can see the government records for yourself.

This report was posted on Ripoff Report on 12/07/2010 07:32 PM and is a permanent record located here: http://www.ripoffreport.com/r/SmartComm/Phoenix-Arizona-85016/SmartComm-SmartComm-smart-commllc-smart-comm-scamCarole-DownsPendleton-WaughShannon-669145. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report.

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REBUTTALS & REPLIES:
0Author 0Consumer 1Employee/Owner
Updates & Rebuttals

#1 REBUTTAL Owner of company

Response from Smartcomm CEO

AUTHOR: Carole Downs - (United States of America)

My name is Carole Downs, and I am Smartcomms CEO and co-founder.  Unfortunately, in this Internet driven world websites like this exist and posts (whether false or not) can be left by anyone. Such posts or complaints are not monitored and cannot be removed. With that said, I wanted to respond to the complaint above, as it is not valid and should hold no weight on an individuals decision to do business with Smartcomm, LLC. 

For the record, Smartcomm has been a solid company since it opened its doors in 2007. We have not closed our doors, run from our clients, or moved from state to state as this complaint implies.  We have a corporate office in Phoenix, AZ, and we have always welcomed any potential and current client to come meet us, our staff, and see our office.

Smartcomm believes in self-education and direct communication. We have done our due diligence for the opportunities we offer, and we also encourage our prospects to do their due diligence before moving forward with us as a client.  The 800 MHz license application opportunity is very real. We have an entire department responsible for research and development, and their main responsibility is to validate and research the opportunities that we offer. We have always presented our potential clients with all relevant and fair information. Weve disclosed the risks as well as the rewards of any given opportunity.

We, in no way, as the title of the complaint implies, take your money and run.  We are still here, and are waiting patiently with all of our current clients for the opportunity to come to fruition, as explained in our presentations. Time is one of the biggest risks, and we continue to disclose that.

The late Pendleton Waugh was involved in litigation to prove his innocence regarding the accusations made against him that have found their way onto the Internet, and we had formerly disclosed that in our marketing materials. Unfortunately, Mr. Waugh passed away unexpectedly in August of 2011 and can no longer defend himself. Smartcomm hopes that these allegations will be put to rest, but Mr. Waughs past does not hold any bearing on Smartcomm or its initiatives.

We continue to provide services to our clients related to the preparation for the filing of license applications, as well as the research and monitoring of FCC matters concerning our goals.

If you have any questions or concerns about Smartcomm LLC, please contact us directly at 1-877-223-1080 or send us an email to contact@smartcommllc.com.

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