World Surveillance Group Inc (fka WSGI)

[owlnight]

actually there was 2 problems.....the first was accounting.....even if he didn't make the stuff up and it really happened......which btw cole is perfectly legit biz.....it shouldn't have been put on the top rev line.....tho i get the feeling that was joes idea and the company listened to joe.....kinda get the feeling this is what all the tension with D is.....GTEM dropped them cuz they didn't think it should be done that way......so they got new accountants that would do it joes way.....this is the part that GTEM is in trouble for....or more to the point.....huff and the CFO........GTEMs main problem in all this is the lack of over sight.

there seems to be a misunderstanding what the off-net is all about......here is an example......lets say centerline is selling $50 mil in minutes......the next price break is at $100 mil minutes......well u partner up......xyz telecom needs $20 mil mintues......so instead of each buying they partner up.....now centerline buys $70 mil minutes.....no price break so GTEM doesn't expect to make a dime on this.....GTEM orders the minutes....and bills xyz for the $20 mil....however it tells xyz to send the money directly to the vendor......this is done to protect xyz.....if they send the money to centerline.....and centerline doesn't pay the vendor and goes belly up......xyz just got screwed out of 20 mil.....now do u understand why money never hit GTEMs account....its NOT supposed to.....at some point GTEM signs up enough partners to get that price break at $100 mil minutes....this is were the profits finally kick in.....and if u remember they were supposed to happen in Q2 of 06.....instead joe gave some excuse as to why it didn't happen.....something about new billing software......he didn't need to come up with an excuse(well atleast not publicly) for the next Q cuz GTEM never reported after that.....if all joe did was provide fake invoices he would have got busted right from the get go......its the faking of the CDR's that allowed joe to get away with what he did.....now it would appear from the complaint that if GTEM has the CDR than it gets booked.....i assume the CDR shows the minutes going thro the centerline switch.....and this is why GTEM booked it......so it looks like GTEM didn't even really screw up the accounting.....well thats how i understand it....everyone understand now.....the off-net program is NOT the problem.......the problem is the off-net is NOT booked as revs.......unless it goes thro the switch....so joe just made up CDR's showing that.....so GTEM booked it.