• Report: #670022
Complaint Review:

Smart Comm

  • Submitted: Thu, December 09, 2010
  • Updated: Fri, June 17, 2011

  • Reported By: JosePhoenix — Phoenix Arizona United States of America
Smart Comm
3131 Camelback Road Internet United States of America

Smart Comm SmartComm LLC Smart Comm investment fraud Internet

*REBUTTAL Owner of company: Setting the Record Straight

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Smart Comm

I was going to invest, but not now!

The links in the rip off report complaint are very damning indeed. Now I feel that SmartComm should have informed me of all the trouble the founder was in many times before.

It is clear this guy has changed company names many times, keeps doing the same thing. I am glad I googled this, dont really have to money to lose at my age. Here is the offical document I read from the complaint, and it is legit - direct from the FFC website -


I was shocked by this, I really do not need to say more - here is part of the FCC document on Smart comm president Waugh

A. Pendleton C. Waugh 2. In 1990, Waugh, an attorney who was licensed to practice law in Texas, formed Express Communications, Inc. ("Express") and several affiliated entities, to acquire wireless licenses. Waugh became president and was a majority owner of Express. In 1993, Waugh came under investigation by federal authorities for activities relating to his involvement in Express. 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. As part of his plea agreement, Waugh agreed not to violate any federal, state, or local laws, and specifically regulations or orders issued by the United States Securities and Exchange Commission ("SEC") or any equivalent state agency. He also agreed to divest himself, without compensation, of any ownership interests in Express and its affiliated entities. 3. Thereafter, 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 stemming from his involvement in Express. Waugh was ordered to pay the federal government nearly $13 million of illegally acquired funds. He also was permanently enjoined from violating various securities laws. 4. 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 relating to his involvement in Express. 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.

This report was posted on Ripoff Report on 12/09/2010 11:05 PM and is a permanent record located here: http://www.ripoffreport.com/reports/smart-comm/internet/smart-comm-smartcomm-llc-smart-comm-investment-fraud-internet-670022. 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.

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Updates & Rebuttals

#1 REBUTTAL Owner of company

Setting the Record Straight

AUTHOR: fasteddie75234 - (United States of America)

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
Smartcomm, LLC 
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