SmartComm LLC review: Scam 11

Smartcomm - Carole Downs is getting away with a hugh scam. That Pendleton Waugh died in the mist of it - was her good luck day - as their was insurance to cover her - That Carole Downs was in "LOVE" with Pendleton and he saw her as a wicked witch - looking forward to the day he could walk out of the company and far away from the witch - is something she gets to look in the mirror everyday and be reminded. That the FCC allowed Shannon Downs with the help of Pendleton Waugh purchase spectrum after it was clear he was not allowed to - is an interesting situation. Everything that they did was under Pendleton's watchful eye and with his knowledge. that was according to the FCC illegal - but, they have looked the other way and allowed it - IF you wish to get your revenge it would be suggested you look towards the FCC - and use the articles and research that has been done by reporters - they have the tapes and the information to help you get the FCC and possible the FBI involved and right the wrongs of Smartcomm LLC

This may not have been "a long con" in the strictest sense of the word. But there was deception and obfuscation. SmartComm did what they said they were going to do...they applied for the licence. But they also intimated that they were going to coordinate an "network" amongst licencees in order to monetize, and that hasnt happened. Instead they have morphed into a company named M2M Spectrum Networks. So after waiting 8 years for the licence, in steps M2M with a one sided contract that gives them exclusive rights to it. And they want to charge the licensee for the pleasure of handing over all their rights. I was looking into "building out" my awarded channels independently but after reading the quoted article above I am hesitant. I really don't want to throw good money after bad...

Phoenix Company Prepares License Applications for Not-Yet-Available Spectrum
An Arizona company is marketing license preparation services for spectrum the FCC is not even close to making available, is not accepting applications for, and which may have little value when it does, Communi- cations Daily learned from company documents and interviews. The company, Smartcomm LLC of Phoenix, also has charged up to 280 times what others are charging for similar license preparation services.
Smartcomm was cofounded in 2007 by the late Pendleton Waugh after he served time in prison and while he was under an FCC investigation. An FCC order dated July 20, 2007, provides a summary of Waugh’s violations (http://xrl.us/bmpahu). Earlier, in 1995, the U.S. District Court in Dallas sentenced Waugh to 21 months in prison after he pleaded guilty on a count of conspiracy to structure financial trans- actions to evade securities and banking reporting requirements. In 1997, the U.S. District Court in Wash- ington ruled against Waugh in a lawsuit by the SEC and ordered him to disgorge $13 million in illegally acquired funds. The SEC subsequently suspended him from appearing or practicing before the commis- sion (http://xrl.us/bmpb7f). In 1999, he was convicted of securities fraud in a case brought by the state of Texas and put on probation. Later that year he was determined to have violated probation by traveling to Puerto Rico for business related to cellphone securities. Waugh was sentenced to four years in state prison and six months in federal prison.
In 2007, the FCC Enforcement Bureau opened a proceeding before an administrative law judge to determine if Waugh, two others and their company, Preferred Communication Systems, should remain FCC licensees. The FCC said that, among other things, they engaged in unauthorized transfers of control of commission licenses, misrepresented material facts, “lacked candor” and failed to disclose that Waugh

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and another company official were convicted felons. The FCC and the parties, except for Waugh, agreed to a settlement in 2009. Waugh appealed and the matter remained pending at the time of his death. His estate asked to keep the proceeding going, but on Dec. 15, 2011, the Enforcement Bureau responded that Waugh’s death “moots his appeals and they should not proceed.” Waugh died last August of a heart at- tack at age 61, Smartcomm said. The company's website says: "Mr. Waugh's brilliant vision continues to pave the way for Smartcomm and its clients, and is being carried out by Smartcomm's team."
Smartcomm charged up to $42, 000 per application for 800 MHz licenses, copies of their contract agreements show. FCC-certified frequency coordinators offer the same service for $150-$200 per appli- cation. The FCC is not accepting applications for that spectrum and has no prediction on when it will start doing so. The spectrum, located in the expansion and guard bands, will not work for broadband because each channel is only 25 kHz, and is most attractive to private businesses like pizza restaurants that might use it to communicate with delivery drivers, industry experts said.
A Smartcomm spokeswoman declined to comment, saying: “At this time, our company is not adver- tising our opportunities and do not wish to make this information available in a public forum.” Smartcomm does appear to have stopped selling the applications service last year, about the time of founder Waugh's death, said a former Smartcomm employee. However, it continues to market its services on its website — www.smartcommlicenseservices.com/opportunities.aspx. Since we first contacted Smartcomm, the com- pany has deleted specific information about the 800 MHz spectrum for which it sold applications.
Before Waugh's death, the company held weekly webinars and twice-a-month seminars around the country advertising its service, the former employee said. It targeted people who years ago made millions of dollars from spectrum won in FCC lotteries, the former employee said. Smartcomm had independent marketing representatives across the country and also sent mailers into affluent neighborhoods, the former employee said.
The FCC doesn’t regulate fees companies may charge to prepare applications, an FCC official said. The commission therefore does not have a standard for what the cost should be, nor does it have any data on what companies may be charging, the official said. The FCC has not made any predictions about when the agency will begin accepting applications for the 800 MHz expansion or guard bands, the official said.
The Federal Trade Commission has never looked into Smartcomm or its cofounders, CEO Carole Downs and Waugh, an FTC spokesman said, though in past decades it has investigated other application preparation services for making unsubstantiated claims. The spokesman couldn’t say if there had been any complaints. The FTC can review application preparation firms under its general authority under the FTC Act to review potentially unfair or deceptive practices, he said. The FTC determines violations of the Act's prohibition on such practices on a case-by-case basis, he said: “Anyone who feels that may be the case is encouraged to file a complaint with the FTC."
Smartcomm charged between $24, 000 and $42, 000 to prepare each application for spectrum in the 800 MHz expansion band, according to an order form attached to a copy of a contract dated January 2011. The Utilities Telecom Council charges $150, said UTC Spectrum Services Director Donald Vasek, saying Smartcomm’s price “sounds pretty outrageous." The Enterprise Wireless Alliance charges about $200 for preparation, said EWA President Mark Crosby. EWA’s price is based largely on costs for maintaining a database of all the incumbents in the spectrum, he said. UTC and EWA are FCC-certified frequency coordinators.

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Smartcomm, EWA and UTC all charge additionally for the FCC’s $460 filing fee and frequency coordination service. Under the rules, applications must be approved by a certified frequency coordinator before they can be submitted to the FCC. Smartcomm is not certified and must submit applications to a certified coordinator like EWA or UTC before filing them with the FCC, Crosby and Vasek said. For fre- quency coordination, Smartcomm charges $300 per channel per site, its contract said. The company’s or- der form says one application includes six channels, so the company charges $1, 800 per application for coordination. EWA charges $275 and UTC charges $250 per channel per site, their officials told us.
The FCC hasn’t actually begun accepting applications prepared by Smartcomm or anyone else for the 800 MHz expansion or guard bands. It first has to make rules and release a public notice, and it’s un- clear when that will happen, said Alan Tilles, a Shulman Rogers attorney who is counsel for PCIA and helped write the consensus plan for 800 MHz rebanding that was adopted by the FCC. While likely to be made available site-by-site for licensing, it’s not a sure thing until the FCC makes its rules, Tilles said. Vasek and Crosby said they have no idea when the FCC will open up the expansion band. “The whole 800 MHz rebanding [process] has gone on longer than anybody thought it would, and so I think every- body is loathe to make any predictions about when” it will happen, Vasek said.
The 800 MHz spectrum being abandoned by Sprint Nextel will be available to a variety of services depending on the frequency, Tilles said. Expansion band spectrum (860.0125 through 860.9875 MHz) and all the 861 MHz frequencies will be available for commercial services, “but we don’t know how and we don’t know when, ” he said. Someone who invests in an application now “is betting on future rules, " he said. Vasek and Crosby have seen few applications for the 800 MHz expansion band so far, they said. “It’s possible” people are preparing applications for expansion band spectrum, “but it’s not something anyone is talking to us about, ” Vasek said. EWA prepared fewer than 50 applications for 800 MHz spec- trum last year, Crosby said.
“There will be at some point a way to apply for these frequencies, ” Tilles said. “The better ques- tion, though, is why would you apply for them?” The rules for the 800 MHz rebanding plan were written to “prevent cellularized systems from operating below 862 MHz, ” he said. “They can [operate], but only with a limited number of frequencies. The idea was not to recreate the problem of interference that caused rebanding in the first place." That limitation makes the spectrum less desirable for broadband, Tilles said. There’s also “not a ton of spectrum being released here, ” and it’s a question if there’s enough to make a business case, he said.
Paying $30, 000 per application doesn’t make approval a sure thing. “The likelihood is extremely remote” that the applicant will get the spectrum, Crosby said. “There’s no room [in the expansion band] because everybody’s moving in there." The guard band will also become available, but commercial enti- ties won’t get it because the point of a guard band is to keep commercial away from public safety to pre- vent interference, he said.
The Smartcomm contract says there are no guarantees “that either the Frequency Coordinator or the FCC will approve any Application, ” and “no assurance can be given that the Commission will grant the license for which the Application was filed." The company’s marketing, however, promises that in the case of rejection, the company will refile applications in a comparable market for no cost or refund the “application service fee portion of your payment." We couldn’t find any similar refund provision in the contract agreement we obtained, and Section 14 of the contract says: “This Agreement and the schedules attached hereto constitute the entire understanding and agreement between the parties.”

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“We’re the ones who are going to get the spectrum because we’re the ones who thought of it first, ” Waugh told clients at a January 2011 seminar in Ft. Lauderdale, six months before he died. “Most people think [the spectrum] is relatively worthless, ” he said. But in five years those same people will think Smartcomm clients were “geniuses, ” he said.
Hazy Business Case
“Your goal is to make 50 to 100 times your money ... in five to 10 years, ” Waugh told clients at the seminar. People who won spectrum in lotteries back in the 1980s made 100 times their money in 10 years, he said. When Waugh was asked at the seminar about the value of an application for the San Fran- cisco market, he said if the owner entered a joint venture with other Smartcomm customers, he would probably make over 100 times his investment. Asked when that would happen, Waugh told the Ft. Lauderdale attendees, “You’ll get your license probably in a year to a year and a half. And then within three years you’ll start getting checks.”
Crosby and Tilles said they get many calls from Smartcomm clients asking for advice, and the cus- tomers rarely have any experience or expertise with spectrum. Some of the Smartcomm clients are doc- tors who don’t know anything about spectrum, Crosby said, and the callers don’t always listen to experts’ warnings. “They don’t want to hear it, ” Crosby said. It’s unusual that people with no spectrum experi- ence would apply, said Vasek.
It would be difficult for a person without spectrum expertise to develop a valid business case for investing in the 800 MHz guard or expansion bands, Vasek said. “Sure, a doctor may want to invest some money, but unless he knows somebody” who can build and run the system for him or “wants to quit being a doctor and become a radio operator, ” he probably shouldn’t buy, he said. The 800 MHz expansion band spectrum is most valuable to manufacturers, utilities and similar companies that want to use the spectrum for internal purposes that require little bandwidth, Crosby said. For example, a manufacturing facility might use the spectrum for security, product handling or communicating with its trucks, he said.
The expansion band is not appealing for a communications network, Crosby said. A commercial entity wanting to put up a regional communications system that’s not interconnected with the public switched telecom network would need about 10 channels, he said. “To make any money, you have to have a lot of” devices on the network, raising costs, he said. At the same time, the commercial entity would have to compete with the prices of major carriers. Broadband is not an option because each chan- nel is only 25 kHz, Crosby said. Even with ten channels, “you got a quarter of a meg, and you have to be lucky to get them all in a line, " he said. One could get more with smart radios, but they're not yet avail- able, he said. Minimum bandwidth for 4G LTE is 1.4 MHz, said Issam Toufik, a technical officer at 3GPP and the European Telecommunications Standards Institute.
A Smartcomm marketing pamphlet titled “A Rare Opportunity” suggests leasing or selling the spectrum to major carriers like Sprint, Verizon Wireless and AT&T. Smartcomm’s marketing also says new spectrum owners can sign joint venture agreements with large wireless or regional carriers, creating “considerable monthly cash flow.”
Clients’ licenses will be even more valuable if combined with Sprint Nextel’s spectrum holdings and the 700 MHz D-block, which was then required by law to be reauctioned, Waugh said at the Ft. Lauderdale seminar. Sprint has “14 megs, you’re going to have 14 and a half and then you look at the D-

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block reauction for another 10. That’s 38 and a half megs, ” Waugh said. “Verizon averages 32, AT&T averages 30 across the country. As a group, if you joint venture with the holder of the eastern block, and together you happen to win the D-block reauction, which you probably will, you’re looking at having 38 and a half megs." Under spectrum legislation passed Feb. 17, Congress cancelled the D-block reauction, reallocating that spectrum instead to public safety.
But major carriers are unlikely to come knocking at the doors of Smartcomm clients, the wireless officials said. “Do you honestly think that Verizon, who spent billions in broadband auctions, will be in- terested in your single 25 kHz channel that is nowhere near the spectrum that they bought for billions?” asked Crosby. The technology doesn’t align with major carriers’ LTE systems, he said. Vasek said he “can’t imagine” top carriers making a play for spectrum in either the 800 MHz expansion or guard bands. Major carriers like Verizon are likely to be interested only in areas where they can “amass a chunk of spectrum, ” but that can’t happen anymore in the 800 MHz band, he said. “There’s not enough spectrum grouped together.”
The other problem is that FCC rules prohibit selling a license before making an investment. Under the rules, a winning applicant must build out the spectrum within a year. The FCC “doesn’t want traffick- ing in licenses, ” Crosby said. Vasek agreed: “You have to demonstrate construction and usage before you can flip the license." It can cost an additional $10, 000 to $40, 000 to put in place an operational sys- tem, Crosby said. Smartcomm informs clients about the one-year construction requirement in promo- tional materials and again in the contract, but in the marketing advises applicants to install “frequency scanning repeaters” as “an economical way to preserve your licenses." That’s legal, Crosby said, but the applicant would still need to pay site costs for the repeaters. “You can build a system within your one- year limit and send out one radio transmission and then you’re good for another year, ” Vasek agreed. “But you’ve still got to build the system, and you’ve still got to buy a repeater box.”
There is some value to application preparation services, Tilles said. “While anyone could apply for spectrum, it takes telecom expertise to do it correctly, ” he said. But besides ensuring everything is in or- der, there is no advantage to applying through a firm that handles many applications, Crosby said. “The FCC doesn’t know and doesn’t particularly care who prepared the application, ” he said. “They care that the frequency advisory committee does its job that it has been certified to perform.”
Lawsuits
Smartcomm has taken to court former employees who have publicly condemned the company’s practices. The company has a lawsuit against two former employees (http://xrl.us/bmoi9y), Tina Ellis and Kent Maerki, in the state superior court of Arizona. Maerki started a website advocating against Smart- comm that the lawsuit said was illegal. The suit alleged that Maerki and Ellis’s actions were a misappro- priation of trade secrets, breach of contract and violations of common law obligations.
In a comment last year responding to a complaint online (http://xrl.us/bmoi98), Waugh said Smart- comm was pursuing another lawsuit against a client named Chris Kay after a dispute over whether he should be allowed a refund. Waugh said Kay had filed complaints with the Phoenix Better Business Bu- reau and the Arizona Corporations Commission. The Phoenix BBB website shows that it received one complaint against Smartcomm — a BBB-accredited business — but indicates that the company resolved it. Smartcomm's updated website now highlights that it has an "A" rating from the BBB. An Arizona Corporations Commission spokeswoman said she “cannot confirm or deny whether there have been any

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complaints filed or if there is any investigation under way.” Smartcomm also threatened legal action against Communications Daily, saying "You should also be aware that the information you are intending to publish is confidential, proprietary information. ... It is no defense to claim you found it on the Internet. ... Even if factually accurate, publishing your story would result in a lawsuit by Smartcomm."
Smartcomm is a member of major telecom associations, including CTIA, NAB, the Association of Public-Safety Communications Officials, the Rural Cellular Association, the Radio Club of America and the Arizona Technology Council. — Adam Bender

I suspect they performed due diligence on you, Janice, and saw the judgments against you and the fact that you no longer have a license to sell real estate due to fraud and decided they could do without a partnership with a crook. Have you retained a full-time FBI agent who deals only with YOU and your various "complaints?" According to you, everyone is "out to get you". Dumb is one thing, but paranoid and dumb is hardly a suitable character for a business partner.

I have the following names For Sale ~ SmartcommVentures.com & SmartcommVenturesllc.com if anyone is interested please contact me at mobilebv@gmail.com

Quite apart from whether or not the "original poster" above is truly "John", or rather Chris Kay (as Mr. Pendleton Waugh asserts), Mr. Waugh is indeed a convicted felon (for securities fraud), as evidenced by the Federal Communications Commission in 2009 at http://transition.fcc.gov/eb/hearings/files/FCC-09M-57.pdf...

Curious that Janice Wolk Grenadier, posts effectively the same message (that Smartcomm and its founder are bad news)...

Consider yourself warned.

JW Grenadier

April 24, 2011
To: Carole Downs - President & Co- Founder Smartcomm / Secretary to PSI
Pendleton Waugh – Vice President & Co Founder Smartcomm
Shannon Downs – Director of Sales and Marketing
Michael Judy - PSI President
Paul Tucker – PSI Investor
Ken Fry – PSI Investor
Linda Allen – PSI Treasurer
Alan Pelton – PSI Investor
Michael Scott – PSI Investor
3131 E. Camelback Rd,
Suite 450
Phoenix, AZ 85016

Dear: Ladies & Gentlemen,

I am writing this to announce the exciting news of my new venture – Mobile BroadBand Ventures - With this company I plan on exploring new and exciting opportunities for my investors with Spectrum. As some of you may or may not know I had the opportunity to participate in the Investors’ Meeting the weekend of February 24th. I very much enjoyed listening to the presentations, learning more about Smartcomm & Preferred Spectrum Investments, LLC (“PSI”).

In January 2010 Pendleton Waugh, Smartcomm, LLC’s President, introduced me to Spectrum Basics and Mobile Broadband-related investment opportunities. I since have devoted considerable time to learning more about them. Pendleton also introduced me to Bart Caso at Smartcomm, LLC’s Fort Lauderdale Investors’ Meeting. Since that time I have attended the International CTIA Wireless Convention in Orlando Florida and the NAB (National Association of Broadcasters) in Las Vegas, Nevada where I had the opportunity to speak with our FCC Chairman Juliues Genachowski. I have also spent several hours reading and learning about different Broadband related opportunities
.
Pendleton Waugh saw certain strengths and weaknesses in Bart and myself and that by working together we could create a successful team approach to sell PSI’s Class C Units of Membership Interest offering and other Mobile Broadband-related investment opportunities thru Smartcomm, In late January Bart and I reached an agreement pursuant to which I would assist his sales efforts as a consultant. I subsequently executed a Consulting Agreement both with respect to Smartcomm’s 800 MHz License Applications and PSI’s Class C Units offering. Bart and I then forged ahead on a number of projects that I believe would have provided PSI a major sales increase this year. For six weeks, I assisted Bart by contacting clients and individuals with whom he had previously communicated, scheduling conference calls and online webinars.
Unfortunately, Bart chose not to continue our business relationship. As some of you are aware, I was contacted by Pendleton Waugh the morning of February 27 to inform me that Bart was no longer interested in working with me. My understanding is that this information had been expressed by Bart to Dana Amato, Smartcomm’s Sales Manager and Michael Judy.

I had hoped to continue to sell Smartcomm’s sponsored Mobile Broadband-related investments opportunities including, but not limited to, PSI’s Class C Units offering to other individuals I knew. Smartcomm & PSI took the position that they did not want me working with them and did not execute the Consultant Agreements that I had provided them. After 6 weeks of my time and my own travel expense to Ft. Lauderdale to work with Bart Caso, along with the time I had spent learning about Spectrum and the products – I was put in the position of having to walk away from what I had earned.

The situation thou opened a door for me that took me to the CTIA & NAB conventions – and now I am excited to also share with you the formation of my new company Mobile BroadBand Ventures!

You may ask why I am announcing it to ya’ll first. Since I became associated with Smartcomm & PSI – I have been treated unprofessional and with disrespect. I have had my Facebook Pages, my Twitter accounts – Gmail – Aol accounts hacked, along with several other situations. I believe Smartcomm & PSI employees to be involved in these actions. I have collected the evidence needed to not accuse but, to let you know when I sit down with authorities (FBI & Police) the first place they will show up is the offices of Smartcomm & PSI. Facebook, Google, AOL & Twitter are watching my accounts – they don’t look favorable to having their security hacked. To this point I have been gathering all the information I need to take action instead of turning the other cheek as I have been doing. Once my company is up and running - I will not tolerate this type of illegal - unprofessional behavior as I would believe neither would any of you.
An example you may want to look at is the White Pages that were done in regard to Pendleton Waugh & Smartcomm. These people didn’t put a name and phone number to it. I am putting my name and phone number right out here for any of you to call me and ask me any questions you may have about this.

I write this in hope that this ends the unprofessional behavior that Smartcomm & PSI employees have portrayed. There is enough business for everyone out there. Again I am not accusing nor am I threatening Smartcomm & PSI – this is an opportunity to prevent further scrutiny regarding a situation that could hurt your company and your investors.

I only wish Smartcomm & PSI the best – I wish all of us much success. But, I want it to be completely understood – I am not threatening or am I accusing anyone of anything – But, I want to make it quite clear with no misunderstanding I will do whatever it takes to get the invasion of my Personal & Business life halted, as I believe any of you would do in a similar situation.

Any questions you may have please contact me at [protected] (you can also text me). I would love to give you an e-mail address – But, someone else is getting those.

Again, please feel free to call me with any questions. I pray this takes care of the situation and we all prosper!

Warmly,

Janice Wolk Grenadier
Mobile BroadBand Ventures!

The have chosen not to get out of my life - out of my Email - Computers - Facebook - Twitter - Blackberry - Iphone - ipad - Be very careful of Carole - Shannon - Jeff Downs - I believe it to be under the direction of Carole Downs that my agreements were not signed.

BTW--if anyone reading the above "complaint" checks the negative comments re Smartcomm, LLC and me they will discover the following:

1. they initially were anonymous; and

2. they were written either by the independent marketing representatives terminated by my in August 2010 who were the individuals who drafted the anonymous so-called "White Paper" and posted it on the Internet through a Ukrainian web hosting service or Chris Kay, the individual described above.

All of these individuals have been identified by us and either have been sued or soon will be.

Forest Gump was right. Stupid is as stupid does.

Try not to react to this BS with emotion and fear. Reason and analysis will serve you much better.

Pendleton Waugh, President
Smartcomm, LLC

I would like to add a couple of points to my previous comment.

First, Mr. Kay has not "lost" anything. When the FCC releases a Public Notice that triggers the certiifed frequency coordiators' thirty-day notification period for the NPSPAC Regions in which Mr. Kay decided to file 800 MHz SMR license applications, Smartcomm License Services, LLC immediately will forward them to one of the SMR certified frequency coordinaters for review and approval. Thirty days thereafter, the FCC will grant him licenses that will have a value far in excess of the amount that he paid for the license applications.

Second, everything Mr. Kay claims was "fraudulent" was disclosed to him in Smartcomm License Services, LLC's Marketing Package and in meetings with Dave Alcorn, the independent marketing representative who present the opportunity to Mr. Kay, and Shannon Downs, then Smartcomm, LLC's Director of Sales.

Only one person is lying and making misrepresenttaions of material facts here. And that would be Mr. Kay.

As I previously wrote, Smartcomm, LLC has filed a lawsuit against Mr. Kay for compensatory and punitive damages. I will keep you apprised of the status of this lawsuit.

Pendleton Waugh, President, Smartcomm, LLC

The person who wrote this "complaint" is Chris Kay, a Smartcomm License Services, LLC ("SLS") client who lives in the Phoenix/Scottsdale area and purchased two 800 MHz Specialized Mobile Radio license applications approximately eighteen months ago.

The truth is that Mr. Kay's business experienced financial difficulties in late 2010 due to the contiuing weakness of the economy and he determined to seek a refund even though SLS already had performed the license application preparation services for which it had been paid. As a result, SLS denied Mr. Kay's refund claim.

Following such denial, Mr. Kay then determined to "extort" a return of his monies by threatening SLS' management both by teleehone call and e-mail and then posting defamatory comments about SLS and one of its principals on multiple websites including Ripoff.com.

Mr. Kay also file false complaints with the Phoenix Better Business Bureau and the Arizona Corporations Commission which caused that regulatory agency to undertake an investigation of his clearly false and defamatory allegations.

At this point, this matter is in litigation. Smartcomm, LLC and SLS intend to pursue Mr. Kay though the litigation process and obtain both injunctive relief and considerable compensatory and punitive damages.

By the way, when someone posts these type of negative comments about a company or its principals and does anonymously, it means almost invariably that such comments are knowingly false.

http://www.azcc.gov/Divisions/Securities/Complaint_Form/plaincomplaintformupdate.pdf

File a complaint with the AZ Securities Division, if you believe you have been scammed by Smartcomm.