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4Kismet

08/26/09 6:43 PM

#17193 RE: Naman #17184

FRP NEWS FLASH: FairPoint probe takes turn
(bad news = stock goes up??)

MONTPELIER, Vt. (AP) -- Regulators in Vermont, New Hampshire and Maine are looking into an allegation that FairPoint Communications faked its readiness to take over the region's dominant telephone network from Verizon during a review by a consultant to the states, officials said Monday.

FairPoint has been hit with unprecedented numbers of consumer complaints including billing errors, service order delays and long waits on call-in complaint lines since it took over Verizon's phone networks in the three states Feb. 1.

Now state regulators are reviewing an anonymous e-mail from someone claiming that during tests leading up to the Feb. 1 "cutover," FairPoint created a computer program "to deceive the audience into believing they were watching a real demonstration" of its readiness. A Maine regulator believes the e-mail is from a FairPoint insider.

FairPoint issued a statement quoting its CEO, David Hauser, saying, "We take these allegations seriously and will do a thorough investigation." Hauser, who took over as FairPoint CEO in June, noted that the company has a link on its Web site for employees and others to report alleged ethics violations.

Two calls to FairPoint's corporate headquarters in Charlotte, N.C., seeking further comment were not immediately returned.

http://hosted.ap.org/dynamic/stories/U/US_FAIRPOINT_PROBE?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT