AT&T Rate Bribery Case Continues

<p>&nbsp;A group of prominent Oklahoma citizens -- all of them former Southwestern Bell customers -- are in disbelief. Despite undisputed proof that the bribed vote of a corporation commissioner cleared the way for the phone company to maintain rates that were arguably higher than necessary, these customers cannot get anywhere in their attempt to reopen the case and potentially force Bell -- now AT&amp;T -- to pay out a massive refund.</p>

Monday, August 22nd 2016, 7:16 pm

By: News 9


 A group of prominent Oklahoma citizens -- all of them former Southwestern Bell customers -- are in disbelief.

Despite undisputed proof that the bribed vote of a corporation commissioner cleared the way for the phone company to maintain rates that were arguably higher than necessary, these customers cannot get anywhere in their attempt to reopen the case and potentially force Bell -- now AT&T -- to pay out a massive refund.

Today the group of plaintiffs, which include Nichols Hills Mayor Sody Clements, Edmond Police Chief Bob Ricks, and former commander of the Air Logistics Center at Tinker Air Force Base, Lt. Gen Richard Burpee, hit their latest roadblock.

A hearing before the Oklahoma Corporation Commission was supposed to resolve several issues, including the applicants' motion for a full evidentiary hearing on the case.

But it became clear from the outset that there would be no resolution to anything today when it was announced that Commissioner Dana Murphy would not be in attendance, due to a scheduling conflict. Further, Commissioner Todd Hiett announced that, following his own independent review of the case, he was making a motion to dismiss the applicants' motion.

Both developments seemed to catch Commission Chairman Bob Anthony off guard.

First elected to the Corporation Commission in 1988, Anthony was the only 'no' vote when, in 1989, Southwestern Bell (SWB), petitioned the OCC to let it maintain its rates, in the wake of a change in federal tax law that lessened its annual tax burden. Anthony and other consumer advocates felt the windfall should be returned to customers in the form of a rate reduction.

But the other two commissioners voted in support of Bell and the company was allowed to let its rates stand.

In the early 90's, however, the FBI determined that one of those commissioners, Bob Hopkins, had been paid $15,000 by an attorney working for the phone company to vote 'yes.' Both men did jail time.

Since then, Commissioner Anthony, has tried on several occasions to have the case reopened and vacated, only to be turned aside by Attorney General's opinions, questions of jurisdiction, and statutes of limitations.

While Anthony didn't initiate the current effort to re-visit the case, he is most certainly in league with it. As a result, he did his best to push today's planned proceedings forward, despite Commissioner Murphy's absence and Commissioner's Hiett's stated opposition. It was only when attorneys representing the parties agreed that it would be "judicially inefficient" to move forward today that Anthony relented.

The applicants were not pleased.

Sody Clements says, taking into account all that customers overpaid SWB/AT&T over the years, with interest, consumers could be owed as much as $16 billion. She says it's extremely troubling to her that procedural issues continue to prevent her group from being heard.

"The merits of the case, the fraud, the bribery, whether it's right or wrong," said Clements following the hearing, "have never been heard, in any court, period. And it's really, really frustrating."

And now it's possible that it will never be heard.

Among the decisions today was one to postpone a hearing to establish a procedural schedule for the case until September 8. But, if Commissioner Hiett is able to get a second vote in support of his motion to dismiss before then -- clearly, that would have to come from Commissioner Murphy -- then there will be no need for a scheduling hearing.

An AT&T spokesperson gave this statement following the hearing:

"In the last 25 years, the Commission and the Oklahoma Supreme Court have considered - and rejected - this matter on at least five occasions.  In fact, the Commission itself has repeatedly determined that the original decision served the best interests of Oklahoma consumers, including a unanimous decision in 2003. We are hopeful that the final order proposed by Commissioner Hiett will bring an end to this matter."

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