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LightSquared CEO Resigns Amid Appearance of Bribery

New submitter msauve writes "LightSquared, the company who's request to use make use of spectrum in a way likely to interfere with GPS was recently denied, has suffered another setback. CEO Sanjiv Ahuja has now resigned, only a week after a report detailing political contributions and the personal financial interests of Obama and officials in his administration in SkyTerra, the precursor company to LightSquared. Ahuja's one and only contribution to the Democratic Party occurred on the same day he tried to arrange a meeting with Obama administration officials, apparently as part of LightSquared's desire to fast track FCC approval of a change beneficial to the company."

19 of 211 comments (clear)

  1. Important to note by geekoid · · Score: 4, Interesting

    He attempt to do what many /.ers say happen all the time, and got busted.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    1. Re:Important to note by ColdWetDog · · Score: 4, Insightful

      He attempt to do what many /.ers say happen all the time, and got busted.

      Oh, that's just because he tried to cheap it out. 28K for a Senate Seat, 50K for Obama.

      When you're in the big leagues, you've got to drop the big bucks. Remember this kids, you get what you pay for!

      --
      Faster! Faster! Faster would be better!
    2. Re:Important to note by ColdWetDog · · Score: 5, Funny

      Actually it was only 8K for the Senate seat. The Dems returned $20,000.

      Must have been running a special that week.

      --
      Faster! Faster! Faster would be better!
    3. Re:Important to note by Kythe · · Score: 4, Informative

      F&F began under Bush. And I'm aware only of one solar company that received a grant, yet later failed (not sure what a business failing has to do with anything, that DOES happen in a market economy). Perhaps you can elaborate?

      --

      Kythe
    4. Re:Important to note by ColdWetDog · · Score: 4, Funny

      Perhaps you can elaborate?

      It's Obama's fault!

      Further explanations are unnecessary and might complicate things.

      --
      Faster! Faster! Faster would be better!
    5. Re:Important to note by steelfood · · Score: 5, Insightful

      He wasn't doing it right.

      First off, at that level, he needs to start bri *ahem* making campaign donations to everybody, not just to the President. Senators, congressmen, judges, even the ones running the party all need their cut. And he needs to be doing it over multiple election years.

      A few thousand dollars doesn't cut it anymore these days--at least not at the Federal level. To play in that game, he needs a warchest of at least half a million.

      Additionally, he needed a lobbying firm to do the dirty work on his behalf. If it was a lobbying firm who did the brib *ahem* gift-giving instead, he would be shielded from all this by plausible deniability and would have kept his job. He could've just fired the lobbying firm and re-hired them under a different company name *ahem* I mean find another one.

      --
      "If a nation expects to be ignorant and free in a state of civilization, it expects what never was and never will be."
    6. Re:Important to note by GrumpySteen · · Score: 5, Interesting

      The only thing 'funny' about it is that LightSquared's CEO didn't anything for his 'donation'. No private audience with Obama and no fast-track approval for the company's idiotic plan.

      The Democratic Party took the donation and treated it as a donation while the administration killed the company, which is exactly what should have happened. For once, the system worked as intended.

    7. Re:Important to note by hairyfeet · · Score: 5, Insightful

      Sadly F&F was nothing under Bush, and Solyndra was just the tip of a VERY stinky iceberg, one of the Kennedy kids got millions in tax free handouts for a "green' company that had never made a single dime. I'd google it for you but I'm just about to head out the door "Solyndra tip of iceberg" in any search engine will find the info for you. Summary 19 out of the 20 companies that got huge handouts were significant donors to the elect Obama fund. I'm a democrat and hated Bush but Obama is trying his damnedest to be worse than Bush in EVERY single way, worse on human rights, worse on jack booted crap, worse on bribery, hell i can't think of a single thing the man did better and that's just fricking sad. if you want to see what changed read this. Frankly I'm voting green rather than waste my vote on such a lousy POTUS. don't worry he'll still win simply nobody is gonna vote for mittens.

      --
      ACs don't waste your time replying, your posts are never seen by me.
    8. Re:Important to note by Kozz · · Score: 4, Funny

      Actually it was only 8K for the Senate seat. The Dems returned $20,000.

      Must have been running a special that week.

      8K should be enough for anybody.

      --
      I only post comments when someone on the internet is wrong.
    9. Re:Important to note by HornWumpus · · Score: 5, Insightful

      Had it been left entirely up to the FCC they would have made their money.

      Their mistake was underestimating the strength of the push back from the GPS users and manufacturers.

      That and overestimating the power of law. They thought all they had to do was bribe someone to change the laws of physics.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    10. Re:Important to note by Kythe · · Score: 4, Informative

      See above. SpectraWatt and Evergreen Solar did NOT receive federal loan guarantees (Evergreen received no federal assistance at all). AES Eastern was a coal subsidiary of AES that went bankrupt, not the project funded by DoE. Beacon is probably the closest you get on that list, and they paid back their loan.

      When I get the time, I'll look up the others.

      My suggestion would be: perhaps before you get your "blood boiling", you should consider NOT taking what the right wing says about Obama at face value. They have a strong vested interest in generating scandal where there is none.

      --

      Kythe
    11. Re:Important to note by im_thatoneguy · · Score: 4, Interesting

      I don't buy the "Bribery" angle that's just more anti-obama birther nonsense.

      It's true that the Democratic party received about $20k from Falcone in 2010. But the Republican Party received nearly $50k in 2008.

      If you go through his political contributions he tended to shotgun across party lines. And none of the money in 08 was for Obama. It was almost exclusively for Senatorial candidates and Giuliani and Chris Dodd.
      http://www.campaignmoney.com/political/contributions/philip-falcone.asp?cycle=08

      And yes I do imagine there was some Lightsquared/Obama white house conversations--One of Obama's campaign promises was broadband for all. Lightsquared promised to deliver on that promise for the president. I'm unaware of another company which Lightsquared favoritism would have pushed out of business. By the very nature of their technology it seemed that there *can't* be a competitor since they themselves don't work. ;)

  2. Re:Wow by GodInHell · · Score: 4, Informative

    Actually... this keeps happening when people try to buy Obama. He got burned by his dealings with Rezzko and has been really strict about reporting and clean hands accounting since.

    -GiH

  3. Re:I knew it was too good to be true. by OverlordQ · · Score: 5, Informative

    You know, really depressing thing I've found is that there appears to be no proof of this allegation. The accusation enough seems to have been sufficient to stop anyone from even trying to prove it.

    Because there isn't anything to prove, it's basic physics. But to appease shills like you, they did do that test.

    --
    Your hair look like poop, Bob! - Wanker.
  4. Why Bother resigning? by geminidomino · · Score: 4, Insightful

    Seriously? Chris Dodd basically dick-smacked the entire concept of "bribing government is bad" into non-existence, but they force this guy out?

    I guess that "contribution" wasn't big enough.

  5. Re:I knew it was too good to be true. by Baloroth · · Score: 5, Informative

    You've obviously not been looking hard enough. The Ars Technica article sums up the science behind it pretty well (basically, they did a test run of the terrestrial base-stations and it interfered with ~75% of GPS devises, after LightSquared reduced the stations power to try to fix the problem). There is a ton of proof that they actually interfere with GPS signals, namely, actual experiments.

    --
    "None can love freedom heartily, but good men; the rest love not freedom, but license." --John Milton
  6. Re:Implications for the administration? by msauve · · Score: 4, Informative

    "the intended effect (fast track approval) didn't happen."

    Actually, it did, in a way. The fast track process was started, the filing was accepted in one day (a process which normally takes months). The normally required 30 day comment period was reduced by the FCC to an effective 5 1/2 days (it was 10 days, but across a long US holiday weekend). Granted, the actual approval didn't end up happening, but not because the FCC didn't try to help them out. It was an alert CTIA which filed an extension request, and alerted GPS users of the potential issues.

    --
    "National Security is the chief cause of national insecurity." - Celine's First Law
  7. Re:Of course it was Bush's fault! by Anonymous Coward · · Score: 4, Informative

    Rejected? Rejected is a bit of a strong word. Try deferred until they met certain conditions like raising further outside capital.

    Which they met.

    And no, it was not Bush's fault. Nobody is saying that. They are saying that Bush originated the program, and that Solyndra was a fast-track candidate, but fault is distinct from the clarification. When it comes to fault, It was China's. Because China massively subsidized their own solar industry.

    However, Solyndra DID build their factory, they DID follow through on what they claimed to do, so you know what? The people who claim it was a fraud and a scam are wrong.

  8. Re:Implications for the administration? by vlm · · Score: 5, Informative

    For them to offer conditional approval later shows someone was pushing for Lightsquared to succeed.

    They appear to be crooks and what they're doing was a dumb idea from a tech standpoint ... but... from personal experience the FCC will license almost anyone to do almost anything on a conditional experimental non-interfering basis. I know this goes against /. group think about the govt, but at least WRT to temporary conditional experimental licenses the FCC has always been very libertarian, perhaps the most so of all the fedgov, maybe more than all the rest of the fedgov put together.

    The way its supposed to work, for a real world example, is 20 ham radio guys who know what they're doing, get a temporary experimental license to F around near the now unused traditional 500 KHz marine radio band, mostly trying to figure out how they can do it without interfering with any remaining primary users (if any?). Then the experiment ends and everyone goes away, more or less happy. Someday, maybe Very Soon the data those guys gathered will get the hams a 500 KHz allocation ... or maybe not. What LS did instead of basically a big lab experiment, was get their standard off the shelf FCC response of "go out there, F around, and for gods sake don't break anything and stop the moment I tell you to" permission slip that anyone else can get for the asking, and then used it to raise Billions of dollars and make campaign contributions and then started crying unfair when it turns out it didn't work out.

    Its not like the FCC was "pushing" just for LS, they pretty much rubber stamp any non-totally stupid experimental request. LS is just crying because the experiment failed and they owe Billions and though thousands in campaign contributions would fix it. Millions in bribes might have. But thousands? Not gonna work.

    --
    "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger