TELECOM Digest OnLine - Sorted: NorVergence Founders Fined For Fraud

NorVergence Founders Fined For Fraud

Kenneth P. Stox (
Thu, 29 Jun 2006 22:52:55 GMT

By Jerri Stroud

The Federal Trade Commission has settled charges against the founders
of NorVergence Inc., a company that defrauded hundreds of businesses,
including dozens in the St. Louis area, in a telecommunications scheme
that collapsed in 2004. Nonprofit groups, churches and towns also were

In a ruling on Monday, the FTC barred NorVergence founders Thomas N.
Salzano and Peter J. Salzano from engaging in the fraud again and
levied fines of $50 million against each of them. The Salzanos are

However, the fines mostly were suspended because the FTC believes the
Salzanos are unable to pay. The agency will try to collect $10 million
from Peter Salzano, who is in bankruptcy.

In the fraud, NorVergence salespeople told customers they could save
money on telephone, Internet and cell phone service by using a
"Matrix" black box.

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