Founders of Bankrupt Telecom Firm Settle FTC Charges
The founders of a telecommunications firm that allegedly defrauded small businesses have settled Federal Trade Commission charges, ending a complicated two-year case.
Thomas N. Salzano and Peter J. Salzano, principals in now-bankrupt NorVergence, agreed to fully disclose terms when pitching telecom products in the future.
In addition, each received a $50 million judgment. Due to inability to pay, however, the entire judgment was suspended for Peter J. Salzano and $40 million of it for Thomas Salzano. The FTC will have a bankruptcy claim of $10 million against the latter.
Neither defendant admitted guilt.
According to the FTC, Newark, NJ-based NorVergence offered dramatic savings on monthly telephone, cellular and Internet bills. This was to be done through a
