Alpha Telcom, Inc.

On August 27, 2001, the SEC filed a civil complaint against Paul Rubera, Robert McDonald, Ross Ramback, Mark Kennison and entities (including Alpha Telcom, Inc.) controlled by them. The SEC alleged that the defendants obtained approximately $135 million from over 7,000 investors nationwide, purportedly to invest in pay telephones and promising investors 14% annual returns. In actuality, the defendants orchestrated a massive Ponzi-like scheme where new investors' funds were secretly used to pay the returns to existing investors. For more information about the SEC's action, you can read Litigation Release Nos. 17108 (Aug. 27, 2001), 17145 (Sept. 20, 2001), and 17408 (Mar. 12, 2002).

The Court appointed Thomas F. Lennon as Receiver. You can find the latest information on the Receivership on Alpha Telcom's website.