TELECOM Digest OnLine - Sorted: NorVergence Founders Fined For Fraud

NorVergence Founders Fined For Fraud

Kenneth P. Stox (ken@stox.org)
Thu, 29 Jun 2006 22:52:55 GMT

By Jerri Stroud
ST. LOUIS POST-DISPATCH

The Federal Trade Commission has settled charges against the founders
of NorVergence Inc., a company that defrauded hundreds of businesses,
including dozens in the St. Louis area, in a telecommunications scheme
that collapsed in 2004. Nonprofit groups, churches and towns also were
victimized.

In a ruling on Monday, the FTC barred NorVergence founders Thomas N.
Salzano and Peter J. Salzano from engaging in the fraud again and
levied fines of $50 million against each of them. The Salzanos are
brothers.

However, the fines mostly were suspended because the FTC believes the
Salzanos are unable to pay. The agency will try to collect $10 million
from Peter Salzano, who is in bankruptcy.

In the fraud, NorVergence salespeople told customers they could save
money on telephone, Internet and cell phone service by using a
"Matrix" black box.

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