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Pacific Bell Respoonse to Data Request, October 1, 2001

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Another WorldCom?

Pacific Bell executives and Attorneys have been cooking the books since 1996. The above noted phone number received service through a phone line that was known to be defective since the first day it was connected to my premises. Nobody has disputed the fact that the phone line is defective. See: Log of Defective Cable Pairs.

As a result of deregulation, which allowed phone companies to be bought and sold, the phone number proves phone company executives and Attorneys at Pacific Bell concealed problems in the infrastructure to fraudulantly inflate the value of the phone company before it was purchased by SBC.

In the Summer of 1997, SBC purchased Pacific Bell. A few years later, SBC purchased AT&T. SBC then changed it's name, and became the new "AT&T."

One of the Pacific Bell executives, who had offered me $2000 in November 22, 1996, is now one of the Presidents of AT&T. He had knowledge that the phone lines to my premises were defective, and he can be linked to repeatedly altering repair records to my business phone from 1996 through 2008 to conceal recurring problems. Altered Repair Records

In 2008, when Comcast offered business phone service in my neighborhood, I immediately switched to Comcast. Immediatly afterwards, AT&T repeatedly called, asking me to come back. I asked every AT&T sales person who called me what the number shown above looked like -- they all agreed it had the last five digits of "25093."


As a result of the defective infrastructure caused by AT&T executives who are cooking the books, Comcast has now taken over half of the landline marketshare where I live.

AT&T, which has lost over half its landline marketshare in my neighborhood, is still posting record profits that are so consistent, it could just as well be Enron or Bernie Madoff.

A map shown below, shows all of the houses that can receive service through AT&T cable 0807:


The map below shows all of the houses that have no available spare cable pairs.


The map below shows all of the houses receiving phone service through AT&T that haven't reported service problems. There is only one house that hasn't reported service problems. (Note: house below had recurring problems. 10/17/2011, AT&T responded to complaint of no dial tone. 10/19/2011, AT&T responded due to static)


The above map is evidence that AT&T committed perjury during the Formal Complaint, when it claimed there are very few service problems on the cable providing service to my neighborhood. The scary part is that, according to phone company repair technicians, the service problems on this street are not an isolated incident.

Harry Markopolos, the whistleblower who reported Bernie Madoff to the SEC in May, 2000, immediatly knew that Bernie Madoff was a fraud because the returns he reported were too consistent. After he investigated Bernie Madoff, he provided evidence of thirty red-flags to the SEC, that Bernie Madoff was a Ponzi scheme.

As history shows, the SEC failed to do its job, allowing Bernie Madoff to steal billions of dollars all the way until December 2008, when he turned himself in, because his Ponzi scheme collapsed, due to the bad economy.

History has a way of repeating itself. I have contacted the CPUC, the SEC and the FBI about AT&T. After reading the book by Harry Markoplos, "No One Would Listen," I can show a similar pattern of Government Agencies who cannot do what is right. Harry_Markopolos

The WorldCom Link To AT&T Cooking The Books

WorldCom was a house of cards that caused employees and investors to lose their life savings. It was a horrible fiasco that cost consumers and investers billions of dollars.

To conceal financial problems, WorldCom was buying other phone companies, which made it more difficult to understand the true financial condition of the parent company.

When AT&T was a long-distance company, it competed with WorldCom for customers, and stock prices.

While many WorldCom employees and investors lost their life's savings, honest AT&T employees were also hurt. For example, prior to WorldCom's demise, honest AT&T employees, who could not match the high profits fraudulently reported by WorldCom were wrongfully terminated, while the AT&T employees who could match the high profits of WorldCom, kept their jobs.

This needs to be repeated. The honest AT&T employees, who could not match the high profits fraudulently reported by Worldcom, were terminated. The not-so-honest employees, kept their jobs.

AT&T is now trying to purchase T-Mobile. I can't help but wonder if there are some parallels to WordCom.

Red Flags That AT&T Is A House Of Cards

Harry Markopolos, the Bernie Madoff whistle blower, delivered evidence to the SEC, showing 30 red flags, that Bernie Madoff was a fraud. The SEC ignored Mr. Markopolos.

The following nine red flags, provide evidence that AT&T is a house of cards:

repeatedly altering repair records to conceal recurring problems
knowingly using defective phone lines to customers
losing half of their landline marketshare for phone service to Comcast, and even more of its marketshare for internet and TV service.
high, and consistent record profits, despite the loss of marketshare
creating a fictional phone number to avoid paying fines
Terminating the honest employees who couldn't match the fraudulant numbers reported by WorldCom, and keeping the not-so-honest employees who could match the fraudulant numbers reported by WorldCom
The same dishonest executive who offered me $2000 in 1996, and who is reponsible for having Rule 11 imposed upon me for complaining to the CPUC in 1997, is now a President of AT&T
SBC, like WorldCom, has purchased numerous companies, including Pacific Bell (which was cooking the books since 1996) and AT&T (which terminated the employees who couldn't match the profits of WorldCom), and cell phone companies.
With cell phones, Verizon offers more coverage than AT&T, and better service. AT&T lost a lawsuit it filed against Verizon, when Verizon advertised it provided more coverage than AT&T. When AT&T loses its exclusive rights to the Apple Iphone, AT&T will lose a lot of customers to Sprint, Verizon, and others.

Violations To Public Utility Laws And The Cover-Up

The phone number (925-462-5093) proves that the company now known as AT&T has violated public utility laws each and everyday, since 1996, by knowingly using defective phone lines, and then committing frauds by telling me that there was nothing wrong with the phone lines. Furthermore, it proves that after I complained to the California Public Utilities Commission (CPUC) about Pacific Bell, Pacific Bell wrongfully imposed special rules upon me (which still apply to me), to conceal the use of defective phone lines.

It should also be noted that my two business phone lines (925-846-3642 and 925-462-3619) also received service through phone lines that were known to be defective (See: Trouble Code 98) and this caused my business to lose a great deal of money.

The legal costs of going through a Formal Complaint were a huge burden for my small business. The phone number in the photograph, however, provides proof as to why AT&T used defective phone lines to my business -- AT&T had run out of non-defective phone lines at my premises.

The losses to my business are in the millions, and the losses to the State and Federal Government, as a result of lost taxable revenue, is in the hundreds of thousands of dollars.

The fines for the violations to public utility laws, and for committing perjury, could have exceeded $100 million, all of which, would have gone to the California State General Fund. Unfortuneatly, unless the Federal Government gets involved, the State of California will not recover a penny.


The letters "RSA" can also be used to determine that the above noted phone number provided service to me, as I was the only person on the above document with "RSA" phone service. See: "RSA" Cable pair identification

Unfortuneatly, the politically appointed Judge at the CPUC could not determine that the AT&T attorney committed perjury, nor could she follow the Rule of Law. See The Corrupt Judge and legal error

Also, the five politically appointed Commissioners at the CPUC could not determine that AT&T committed perjury, but they have a great alibi. See: The Corrupt Judge and the Denial for Rehearing

THE FBI And New Evidence

According to the FBI Website, when a corporation lies to a regulatory agency, or a Judge is corrupt, it is within FBI Jurisdiction.

The FBI has told me that they could not determine that AT&T committed perjury. In 2007, an FBI agent threatened to have me arrested (for harassment) when I was at the San Francisco FBI office, asking the FBI agent what the number looked like.

This needs to be repeated. An AT&T document I photographed, dated March 16, 2009, provides the evidence necessary for law enforcement to prove, beyond a doubt, that AT&T created a fictional phone number. The FBI refuses to do anything about it.

In 2008, after persistant phone calls, letters and faxes to Congresswoman Tauscher, Congresswoman Tauscher sent a letter to the FBI San Francisco office, asking if the phone number in the above photograph is "25093" as I claim, or "85093" as AT&T told the California Public Utilities Commission.


The FBI has refused to respond to this simple request. But, since receiving the letter, no FBI agents have threatened to have me arrested for asking questions about whether or not the phone number is mine.


It should be noted that the State Attorney General responded to the above letter, stating that, legally, he could not help. Senator Don Perata and the CPUC ignored the letter. My interpretation of the State Attorney General letter, is that this is an issue for the Federal Government.

Congressman And Senator Campaign Donations

Congressman McNerney and Senator Boxer, who receive their largest campaign donations from AT&T, have repeatedly sidestepped the issue of whether or not the phone number is mine, and will not do anything to help. They have been "bought," and about the only thing I can do, is hope they get voted out of office.

A letter I received from Congressman McNerney's office, sidesteps the issue of whether or not the phone number is mine, and claims to have reported me to the Capital Police. According to the Capital Police, there are no reports.

Saving Jobs

This needs to be repeated: If the Federal Government were to determine that the phone number in the above photograph is "25093," it could save the jobs of over 2000 California State employees, and it could create thousands of jobs in the private sector in every State.


Establishing a Federal telecommunications consumer's bill of rights can create more jobs in the private sector, as it will force the phone companies to repair defective phone lines that phone company executives have deemed "good enough" for people like me.

Same Old Same Old

With the exception of Congresswoman Tauscher, no government officials or agencies have been willing to get involved in this issue. Please look at a list of twenty people and agencies who have ignored or sidestepped the issue. One reason that nobody has been willing to do this has to do with human-nature.

I hope your administration will do the right thing, and declare the phone number has the last five digits of "25093," fine AT&T for violating laws, and establish a Federal telecommunications consumer's bill of rights that will save money, create jobs, and provide better phone service.

Even If I Am Wrong

Even if I am wrong about AT&T being a House of Cards, Public Utility Laws are very clear: If a phone company knows a phone line is defective, the law requires the phone company to fix it -- no exceptions. The Rule of Law states that if the phone company violates the law, they have to pay from $500 to $20,000 per day in fines to the California State General Fund. The minimum fines would have been several million dollars. The maximum fines could now exceed $200 million.

By claiming the phone number wasn't mine, and committing about 20 other criminal acts to conceal other problems, AT&T defrauded the State of California out of millions of dollars, as well as me, and my family, by concealing it was liable for business losses. Criminal acts are supposed to be handled by law enforcement, not Civil suits.

Protecting At&T

This needs to be repeated: The company that has the most to gain if you officially declare the number is mine, is AT&T. AT&T is an American icon, and sadly, like Enron and WorldCom, high-level executives are violating laws while the regulatory agencies turn a blind eye. A recent article by a former phone company employee, and an expert in phone repair states that phone companies are wasting millions of dollars by not repairing phone lines (OSP Magazine May 2009, "What Does It Take to Get a Cable Replaced?") The costs to businesses that can't function when the phones don't work is even greater, and as a result, the businesses pay less taxes, and this causes the State and Federal governments to lose even more money.

Who benefits from not repairing the infrastructure? Only a few high-level executives can benefit from cooking the books -- everybody else at the company loses. See this page on Altered Repair Records which links an AT&T President, Rick Resnick, with repeatedly altering repair records to conceal recurring problems on the phone lines to my business, and using fraud, threats, and intimidation tactics to conceal that he was altering the records when he was a regional manager and the Vice President of Repair and Maintenance in Northern California (See: Rule 11, a Scary Number).

Criminal Acts

There are over twenty criminal acts linked to the above noted phone number. For example, phone company Attorney, Michelle Galbraith , obstructed justice by providing documents to me that had been altered to conceal that there were multiple troubles on my business phone lines for many years (See: Trouble Code 98). When I contacted Ms. Galbraith, asking her if she knew the documents had been altered, she refused to answer the question, and then she contacted her local Police, who "admonished" me. If the FBI would do an investigation into whether or not Michelle Galbraith altered the documents, as I have repeatedly asked them to, I would not have contacted Ms. Galbraith.

A corrupt Judge at the CPUC refused to follow the Rule of Law (The Corrupt Judge and legal error), and made up fraudulant statements in her Decision to avoid the issue of the phone number in the above photograph, altered repair records, and the trouble code 98 (The Corrupt Judge and the "admittedly defective DAML")). It appears that nobody in the State of California has jurisdiction with CPUC judges -- the California Commission of Judicial Performance told me the Judges at the California Public Utilities Commission are not within their jurisdiction. Furthermore, a letter from the California Attorney General explains that the Office of the Attorney General cannot investigate the behavior of the Judge. (See: State Attorney General).

More Defective Cable Pairs And More Missing Repair Records

A phone company document I recently photographed, dated March 16, 2009, shows that in my neighborhood, over half of the AT&T phone lines are now known to be defective, and at least a few of them can be linked to my address. Other documents I have obtained prove that when cable pairs are found to be defective, they are not being logged as defective, as required by Federal law.

The document dated March 16, 2009 also provides evidence that the Direct Testimony of Bob Alex on Behalf of Pacific Bell Telephone Company, which claimed there were 35 good cable pairs pairs, was, statistically, a complete fraud. It is possible the Attorneys who fabricated the fictional phone number, also fabricated the Testimony, as I recently learned that Bob Alex is a black man, and no black men were present in Court when written Testimony was handed in. Also, there were no signatures on the Testimony. I have asked law enforcement (FBI) to contact Bob Alex, to determine if he will admit or deny that the Testimony was his, but nobody in law enforcement is willing to take on this issue. It should be noted that I did contact Bob Alex by postal mail, and he has not responded to my request as to whether or not the Testimony was his.

My family business lost millions of dollars caused by recurring phone problems and the costs of the Formal Complaint. Most importantly, virtually every recurring service problem could have been prevented had there been a telecommunications consumer's bill of rights that would have allowed me to see the test results of my phone lines, and know the meanings of the trouble codes.

With this webpage, I am begging you to look at internal phone company documents I obtained that prove phone company executives sabotaged my business by refusing to repair the defective phone lines providing service to my business since 1996, after they offered me $500 on October 17, 1996. In a letter date November 22,1996, AT&T offered me $2000, and denied there were recurring service problems. These documents prove that there was nothing I could do, legally, to protect myself or my business while it was being sabotaged. As a result of deregulation and corporate fraud, the phone company executives spent more company resources to cover up the the use of defective phone lines, than they spent to repair or maintain the phone lines.

Many people in government have verbally agreed the phone number has the last five digits of "25093" and not "85093" as AT&T claims, but will not do so "officially." This list includes:

The Governor's Office. At the request of the Governor's staff, which demanded that I put my concerns in writing, and send it through the mail, I mailed a letter to the Governor's Office Feb 2008. I called the Governors office on April 29, 2008, and the man who answered the phone acknowledge that they received my letter. He agreed the phone number has the last five digits of "25093". He told me he would forward the complaint to the Governor. Governor Arnold Schwarzennegger
The FBI duty agents in the San Francisco Office.
The local police department determined that the phone company attorney committed perjury, and agreed this was a case for law enforcement. The Officer contacted the District Attorney, who told the Officer this was not within their jurisdiction. The police officer agreed this was within FBI jurisdiction, and then told me, "Good luck." He told me he could not put anything in writing.
Congresswoman Tauschers staff in the Concord Office.
Senator Barbara Boxer's staff in the San Francisco Office.

A document I photographed shows that in 2001, Pacific Bell (Now the New AT&T) already lost over half of its marketshare in my neighborhood to the company now known as Comcast. (See: MLT Test Results of Cable Pairs on my Street). When Comcast recently offered business service in my neighborhood in 2008, AT&T lost even more business.

Between March 23, 2009 and April 21, 2009, 40% of the houses on my street that received phone service from AT&T lost service for four or more days. April 20, 21 2009, AT&T cable repair.

On January 14, 2010, an AT&T technician was attempting to restore service to cable pair 1137, using the service box in front of my house. The following day (January 15, 2010), a cable splicing technician was attempting to restore service -- apparently, there were no available spare pairs at the service box in front of my house. Because of a lack of equipment, the cable splicing technician was unable to restore the service until January 16, 2010. And don't forget, AT&T has already lost over half of its marketshare to Comcast, and therefore, based on their Testimony, should have plenty of spare pairs.

Currently, AT&T is trying to make me pay for an early termination fee because I switched my business phone service to Comcast because of the recurring service problems. AT&T has refused to credit my account for the ongoing service problems. AT&T letter January 27, 2009.

In response to an informal complaint I filed on February 2, 2009, requesting that AT&T credit my account for recurring service problems, the California Public Utilities Commission refused to ask AT&T questions, and instead, Answered questions on behalf of AT&T (See 4/22/09).

I received another letter from the CPUC dated August 3, 2009, which was probably prompted by the Reward I posted in July 2009, as I had no contact with the CPUC since April, 2009. The letter states that AT&T is denying that there were any reported service problems on my lines from 2004 through 2008 -- a pattern of behavior that began in 1996, when AT&T offered me $2000.

I was able to photograph AT&T documents from 2006-2009 which absolutely prove there were recurring service problems on my business phone lines (Request to Consider New Evidence). When AT&T told the Commission that it has no records of service problems from 2004-2008, I believe that AT&T was telling the truth. Somebody, or some group of employees at AT&T are purposefully and methodically concealing problems found on the phone lines, which is causing confusion, frustration, and lost productivity among the honest AT&T employees.

I don't believe the concealment of problems is an isolated incident. The article (OSP Magazine May 2009, "What Does It Take to Get a Cable Replaced?") corroborates my beliefs. What is an isolated incident is that I was able to photograph phone company documents proving the phone company was (and is) using defective phone lines, and that repair records are methodically being altered to conceal recurring problems. I hope you will ask the FBI to open an investigation into the altered repair records, to prevent further problems that AT&T (and AT&T customers) may experience.

Most importantly, I hope you will acknowledge the phone number is mine, and help establish a Telecommunications Consumer's Bill of Rights that can save this country billions of dollars each year, while making jobs easier for phone company employees, government employees, and ordinary citizens.

Thank You

Mike Knell



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