SEC investigates phone business


WSJ reports that the SEC has asked telecom companies for details about how they count subscribers; a routine request, but looking for inconsistencies. Those who have been asked to provide data include Cingular, AT&T, SBC, and Verizon.

The enforcement-division request is part of the SEC’s new “wildcatting” program of trying to find possible scams and abuses without necessarily having hard evidence of misconduct, according to a person familiar with the request. Indeed, the SEC letter to AT&T noted: “This request should not be construed as an indication by the commission or its staff that any violations of law have occurred, nor should it be considered an adverse reflection upon any person, entity or security.”

My guess is that SEC would not be making such an investigation unless something was going on. What really gets my goat however is that while SEC is looking into these guys, it has dragged its feet on the real crooks, aka, Broadbandits.

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