Smartcomm LLC SCAM Run and hide ! They take your money and run! Investment scam.
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.
Smartcomm's 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.
The bottom line is - Smart Comm LLC refused to refund my investment money as promised when I signed up for the program. I want to warn other investors that they verbally tell you that you can get out of the investment at any time when you are signing up, but then they change the story very quickly when it is time to get out.
I discovered the founders had mislead consumers in the past and that the president of this company had been involved in a pattern of fraud over the years and become concerned that I would be the latest victim of the 800 MHz and 900 MHz license scam. I also wonder how they can sell securities without a licence.
This webpage outlines the scam:
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
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
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.
These guys have shown a pattern of fraud over the years stealing the hard earned savings, and then moving to the next state.
Smart Comm is a scam, and I lost a great deal of money. Please look out and do not invest money, you can see the government records for yourself.