News 4 investigation lands free cell phone company in hot water

Print
Email
|

by KMOV.com staff

KMOV.com

Posted on June 15, 2012 at 7:38 PM

Updated Wednesday, Oct 30 at 6:42 AM

JEFFERSON CITY, Mo. (KMOV.com) -- A cell phone company that provides discounted service to low-income Missourians may lose government support, after a News 4 investigation exposed the CEO's questionable past.

In April, News 4 reported on Paul Greene, CEO of Cintex Wireless, and the federal lawsuit accusing him of a multi-million dollar fraud deal at another wireless company he was running.

Officials from the Missouri Public Service Commission said they did not know about the allegations involving Greene when they approved Cintex Wireless for a program allowing the company to collect government money to distribute cell phones in the state.

The Securities and Exchange Commission (SEC) lawsuit alleged Greene participated in a multi-million dollar fraud deal while serving as president of an unrelated wireless company.

The Missouri Public Service Commission recently filed a complaint against Cintex Wireless, after the company reportedly sent out more than a half million cell phone offers in the mail, many to people who were not low income.

Missouri PSC Director Natelle Dietrich said the News 4 report alerted her organization to Greene's legal trouble. She said new telecommunications providers seeking government support will now face stricter scrutiny.

"The report was one thing that helped us see we had an area we needed to start questioning," Dietrich said.

PSC commissioners will decide whether the company can keep its designation as a low-income phone provider in Missouri. The commission meets next week in Jefferson City.

 

Cintex Wireless responded to the staff of the Missouri Public Service Commission recommendation that their ETC designation be revoked.  That designation allows Cintex to be reimbursed from the Universal Service Fund after signing up Missourians for free cell phones. 

News 4 posed questions to Cintex.  Click here to read the questions and answers in full.

 

 

Print
Email
|