The billion-dollar, high-speed internet scam

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ELIZABETH PIERCE STARTED SERVING HER FIVE-YEAR SENTENCE LAST WEEK. A LOOK-BACK AT HOW SHE GOT THERE

By BLOOMBERG BUSINESSWEEK

When he discovered that the ship’s underwater plow was stuck at the bottom of the Arctic Ocean, 50 miles off Alaska’s coast, Frank Cuccio thought of Ernest Shackleton. In October 1915, the British explorer was forced to make a desperate escape from the Antarctic after pack ice and floes crushed his ship, the Endurance.

The vessel Cuccio was aboard, the Ile de Batz, had been laying fiber-optic cable along the inhospitable route known as the Northwest Passage. But the Ile de Batz’s 55-ton excavator, which had been cutting a trench for the cable, had dug too deep in the hard-clay seabed. If they didn’t unclench it fast, the ocean surrounding them would soon freeze. “I realized we don’t have time to fool around, or we’re going to get trapped in a Shackleton situation,” Cuccio recalls. “The weather was getting uglier, and other ships had been gone for weeks.”

Cuccio worked for Quintillion Subsea Holdings LLC, a telecommunications startup in Anchorage that was trying to build a trans-Arctic data cable it said would improve web speeds for much of the planet. This idea captivated the public, but by the time the Ile de Batz’s plow got stuck, in September 2017, the company was struggling. Co-founder Elizabeth Pierce had resigned as chief executive officer a couple months earlier amid allegations of fraud.

[Read: Ambition above the law: Quintillion CEO sentenced]

Pierce had raised more than $270 million from investors, who had been impressed by her ability to rack up major telecom-services contracts. The problem was that the other people whose names were on those deals didn’t remember agreeing to pay so much—or, in some cases, agreeing to anything at all. An internal investigation and subsequent federal court case would eventually reveal forged signatures on contracts worth more than $1 billion.

[Read this long-form story at Bloomberg Businessweek]

2 COMMENTS

  1. You only have to look as far as Walker’s appointment to the PFD board chairman Craig Richards Walkers legal buddy and sb26 mastermind. Richards is position to block full dividend payments as he was the one going around to all the middle schools talking up the raiding of the fund on the grab your PFD tour in 2016…

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