Light Squared & "Terrestar" Connection ( Proof of criminal complaints )

August 5, 2014

Southern District Court of New York  

One Bowling Green                

New York, New York

Case # 12-12080 (SCC) LightSquared Corporation

Attn: The Honorable Judge Shelley C. Chapman

Dear Judge Chapman,

On behalf of the minority common shareholders of Terrestar Corporation, we are grateful with your recent ruling regarding the blocking position of Charles Ergen in LightSquared Corporation. But Judge Chapman, this is precisely what occurred to the minority common shareholders of Terrestar Corporation as well. The lawyer Matthew Barr is correct! This is only the tip of the iceberg.

Your Honor, you have restored our faith for many of us in the bankruptcy judicial process in the Southern District Court of New York. We the minority common shareholders of Terrestar Corporation were completely ignored by the very same court officials that were supposed to protect us. Especially by the complete and deliberate failure in the prevention of bankruptcy fraud and bankruptcy abuse from the Appointed U.S. Trustee and the Appointed Trial Lawyer.

Your Honor Terrestar Corporation and Terrestar Networks Inc., is being tried from the wrong venue. It was taken to the Southern District Court of New York by fraudulent means by the purchased of a shelf aged company and the name was changed from World Imaging Inc., and the name was change to Terrestar of New York Inc. 

The office listed Terrestar of New York Inc., was only a Call Center, 1800-We Answer in New York City. The Appointed U.S. Trustee and the Appointed Trial Lawyer for Terrestar Corporation was supposed to block from the Southern District Court of New York. Unfortunately, they did not!

Neither an Equity Committee nor an appointment of an independent, unbiased Spectrum Valuation Expert nor an Independent Examiner was recommended to the court to identify who were those responsible parties that stole the valuable assets from the minority common shareholders of Terrestar Corporation. Let us explain Your Honor:

As per our prior letter, LightSquared Corporation, formerly named as Skyterra Communications Inc. and the assets from another telecommunication company by the name of Terrestar Corporation were carefully fleeced to financially benefit certain insiders in Skyterra Communication Inc., including Phillip Falcone. In the process of self-dealing, to financially benefit the majority key players while causing the bankruptcy and the deliberate financial collapse of first Terrestar Networks Inc., Case # 10-15446 (SHL) on October 19, 2010 and then few months later on February 16, 2011, Terrestar Corporation, Case # 11-10612 (SHL).

Skyterra Communications Inc., owned the 1.6 GHz Spectrum License granted by the Federal Communication Commission (FCC). Your Honor, if you study the 10-Q ending for the year of 2007 and 2008 for Terrestar Corporation, and fast forward to review the 10-Q for the second quarter of 2010 when Terrestar Corporation sold their interest of Skyterra Communication Inc., without a doubt, you will come to much better understanding how the asset of the 1.6 GHz was carefully diverted to create a complete new company, a competitor from the assets owned by the equity owners of Terrestar Corporation. And we were completely sacrificed by fraudulent means.

At the same time, the very same asset was concealed from the financial statements from Terrestar Corporation. It was never disclosed to the minority common shareholders of Terrestar Corporation. This being a securities violation and as well securities fraud.

Your Honor, there was also the violation of Section 548 or Fraudulent Transfer when Harbinger Capital Partners Master Fund I, Ltd, from Dublin, Ireland, (an Offshore Hedge Fund) and it’s Hedge Fund Manager Phillip Falcone paid a very low amount of $5.00 per share to Terrestar Corporation or for a total of $262,500,000 on March 29, 2010. The 1.6 GHz Spectrum was worth in the Billions of dollars, and not the amount of $262,500,000.00 that it was sold for. Yet there were conflicting numbers listed in the purchased and the sale of the similar interests of Skyterra Communications Inc., in various financial statements for Terrestar Corporation. Yet Terrestar Corporation filed the petition for Chapter 11 Bankruptcy in the Southern District Court of New York on February 16, 2011. This Your Honor is securities fraud.

We are asking the court to evaluate very carefully what we are saying. We would like to request you to study very carefully under the bankruptcy of Terrestar Networks Inc., Case # 10-105446 Docket # 206, Page # 113 to Page # 119. You will read the transcripts in which the Financial Advisor Steven Zelin from The Blackstone Group, testified under oath when he was cross examined by the lawyer Phillip Anker, the lawyer of Marathon Asset Management, LLC (the third largest common shareholder of Terrestar Corporation). In his testimony Mr. Zelin clearly states that Charles Ergen and Phillip Falcone were the so called the “BLACK MARBLES”.

Yes, Your Honor Charles Ergen and Phillip Falcone were instrumental in the financial collapse. The malicious cherry picking of the valuable assets owned under Terrestar Corporation and their largest division Terrestar Networks Inc. They were once the partners in crime in the stealing of our property along with the insiders of the management, the Board of Directors, the in-house lawyer of Terrestar Corporation. We humbly request that the asset of the 1.6 GHz Spectrum to NOT be released to JP Morgan Bank, to the Hedge Fund Cerberus Management and to LightSquared Corporation until a thorough investigation or a Special Trustee is appointed by you and a fair price has been paid to the minority shareholders of Terrestar Corporation. 

Thank you again!