SEC Charges Individuals, Companies With Defrauding Clients Through 800 MHz License Deals
The SEC alleged 12 companies and six individuals defrauded investors by offering to help clients apply for licenses in the 800 MHz expansion and guard bands, claiming "money from thin air" when the potential payoff was allegedly very small. The…
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SEC brought the action in federal district court in Arizona against David Alcorn and Kent Maerki who “orchestrated the offering fraud through Janus Spectrum,” a Glendale, Arizona-based company, said a Monday SEC news release. “Janus Spectrum and the fundraising entities claimed that investors could profit because Sprint and other major wireless carriers needed licenses in this spectrum,” the SEC said. “In fact, the value of the licenses was small because this spectrum cannot support cellular systems and is generally used for ‘push-to-talk’ services for local law enforcement or businesses like pizza delivery companies that require less bandwidth.” Michele Layne, director of the SEC’s Los Angeles Regional Office, said Janus and its supporters “allegedly engaged in the unregistered offer and sale of securities in violation of the federal securities laws and repeatedly lied to investors regarding the value and use of the FCC licenses,” according to the news release. Janus could not be reached for comment.