LITIGATION RECOVERY TRUST FILES COURT CHALLENGE TO OVERTURN FCC ORDERS ALLOWING BREAK-UP OF COMSAT GROUP SAYS FCC SHOULD HAVE REVOKED COMSAT LICENSES BASED ON COMPANY'S CRIMINAL GUILTY PLEA FOR FRAUD AND OBSTRUCTION OF JUSTICE

Litigation Recovery Trust has filed a Petition with the US Court of Appeals in New York seeking to overturn rulings by the Federal Communications Commission which authorized the break-up of Comsat Corporation, the countrys original satellite company. LRT contends that the record of Comsats past illegal actions. which included a criminal guilty plea for fraud and obstruction of justice. should have resulted in the voiding of its licenses and the seizure of all monies realized through sales of the corporation's assets. LRT seeks to have all proceeds from the Comsat asset sales turned over to a Digital Convesion Fund to assist with the upgrading of the country's communications infrastructure.

New York, NY (PRWEB) September 23, 2003 -- Litigation Recovery Trust of New York has filed a court challenge to overturn the break-up of Comsat Corporation, the countrys original satellite company. On September 17, LRT filed a Petition For Review with the United States Second Circuit Court of Appeals in New York to revoke a series of rulings by the Federal Communications Commission which authorized the sale of Comsats operating assets. LRT contends that the record of Comsats past criminal actions should have resulted in the voiding of its licenses and the seizure of all monies realized through the asset sales.

Comsat was founded by the US Congress in 1962 to establish a worldwide satellite system. It operated independently until August 2000, when the company was sold to Lockheed Martin Corporation (NYSE:LMT).

During its nearly 30 years of operation as an independent company, Comsat realized gross income of over $18 billion, generated largely through a monopoly granted by Congress over the commercial sale of INTELSAT communications satellites. Although a government founded company, Comsat never repaid- or offered to repay- any part of its billions in monopoly revenues to the United States treasury.

After Lockheed purchased Comsat in August 2000, it began selling off the corporations assets through transactions authorized by the FCC. The Comsat assets were sold to a series of companies, including Telenor ASA, an international carrier owned by the Kingdom of Norway, and Intelsat, Ltd, the global satellite operator. LRT supports the sale of assets to Intelsat.

It is LRTs position that the FCC should have prohibited the asset sales and revoked all of Comsats operating licenses based on its past record of illegal activities. Comsats record includes a criminal guilty plea for defrauding the US Government extending over a six year period and obstructing justice.

In addition, Comsat has admitted to filing misleading information with the FCC (a matter which remains before the FCC Enforcement Bureau). Also, for over a decade, Comsat operated a division which distributed pornographic films to one million hotel rooms throughout the United States in direct violation of the Communications Satellite law (a matter LRT first brought before the Commission in December 1995 and which remains pending before the agency).

LRT contends that the FCC should have approved the closure of Comsat and the sale of its assets, but should have required that all proceeds be paid to the US Treasury.

Commenting on the LRT filing, William L. Whitely, LRT executive director, said, Our six year investigation of Comsats operations has resulted in the discovery of evidence and information concerning the companys pattern of illegal, even criminal conduct. This record should have resulted in the FCC stripping Comsat of its operating licenses. We have filed with the U.S. Appeals Court to end the FCC's continuing cover-up of wrongdoing by this government sponsored enterprise. How can the U.S. Government be expected to police Enron and WorldCom, when it deliberately gives a free pass to Comsat, a company which it created and directly supervised?"

LRT has proposed that all proceeds realized from the sale of Comsat assets (estimated to eventually total in excess of $3 billion) be placed in a Digital Conversion Fund and used to support the digital upgrade of the countrys small market, public and minority owned television stations, cable and telephone systems. These under funded telecommunications companies have no present source of capital to finance the digital conversion of their facilities. The proposed Digital Conversion Fund funded in part by the proceeds from the Comsat asset sales would help to address this immediate need to modernize the countrys telecommunications infrastructure.

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For additional information contact T Payne at 775-361-5978 or lrtinfo@email.com