HazimAlaeddin.com is owned and operated by me. I choose to exercise my right to free speech on this website. The following article is my personal opinion based on personal experiences.
“Freedom of expression is the matrix, the indispensable condition, of nearly every other form of freedom.”
—U.S. Supreme Court Justice Benjamin N. Cardozo in Palko v. Connecticut
Judicial Corruption is just as bad in the US
We are not free of judicial corruption in the US. There are many examples that this happens on a regular basis. But as long as it is happening to someone else, it’s hard to believe it really does happen. Well, I can tell you from personal experience that judicial corruption is real, and it happens even in the most obvious of cases. Take the case of Galeana Telecommunications Investments, Inc. (GTI) (a BVI Company) Vs. Amerifone Corp (A Detroit Company), et. al.
GTI Vs. Amerifone Corp (Part I)
This case goes back to the period of 2012-2014 when GTI was approached by Amerifone representatives in Jordan seeking a 3G (third generation mobile technology) license in the country. GTI already had an investment and operation in Jordan operating under the brand name Kulacom.
Kulacom was one of first companies to launch a Mobile WiMAX network in 2009 in partnership with SK Telecom of South Korea. Not only that, Kulacom was instrumental in bringing down the wholesale Internet prices in the country. This was done by negotiating and building out the first independent international gateway. This international gateway went through Israel to reach the Mediterranean by wireless means (another first). That said, Kulacom’s business plan was to focus on broadband. This was before 4G/LTE, and the iPhone was just released.
The competition was watching the WiMAX investments. Eventually they also wanted the high margin broadband business and lobbied to get 3G. They got what they wanted and encroached on the WiMAX operators hurting their margins and business plans. So, when Amerifone approached GTI of the opportunity of going for 3G, it was very welcomed.
Lobbying the Government
Lobbying the government took tremendous efforts from the team, including the leadership. Feasibility studies had to be done, consultants flown in, and government connections used. Nobody was ever offered a penny or a share in the company. Only good old data that showed a win-win for the economy, the consumer and the government.
The government was on our side, but they wanted proof that money was available for the license. Amerifone’s lawyer first provided a letter that said that $100 million is available from their investors. But the government wanted something from a bank. So, Amerifone provided a “bank guarantee” from a foreign bank, which turned out to not even be a bank. This “bank” had a cease and desist order from the state of Michigan to stop saying that they are a bank. Please remember this as we move along.
Amerifone Vs. Lebanon
Judicial corruption is rampant in Lebanon. No surprise there. Now, GTI was assured by Amerifone that they had the money and the investors. Amerifone also told GTI about a pending lawsuit they had against the Lebanese government, and the award could be in the 100s of millions. The case has been going on for more than a decade. But they basically did the same thing in Lebanon as they did in Jordan. They bid on a project using the same fake bank (I don’t think Lebanon knows this), but the government disqualified them for submitting late. However, because of the judicial corruption in the country, they got to one or more judges to hear the case. So, they might actually win it.
4th Mobile Operator Bid
After a year of lobbying the Jordanian government, GTI got the government to go ahead and bid out a new mobile license. However, they would be allowing 4G/LTE, other frequencies, and an 18 month exclusivity. That was even better than expected. Everyone was excited, but Amerifone instead told GTI that they do not have the money to bid, and that GTI needs to go at it alone.
After convincing the government, media, and industry to create such a golden opportunity, there was no turning back. Furthermore, there was interest from regional operators and investors that wanted to meet and partner up. Finally, an opportunity to raise shareholder value and possibly exit.
About 8 months went by and both GTI and Amerifone were working separately. GTI was getting ready to bid on its own, but so was Amerifone. However, sometime before the bids were due, Amerifone wanted to cooperate again. It was then agreed that both companies would submit a bid, since it was known that they are the only ones interested in the license. Furthermore, if only one entity bid, the whole process was subject to cancellation.
Kulacom did not submit a bid bond at all, while Amerifone submitted one from the same fake bank that was used in Lebanon and to “prove” they had the funds to the Jordanian government. Jordan, of course, rejected both bids and the bidding process was over. About a month later, the government began negotiating with the operators saying that the frequencies are available, and Zain took them up on the offer. The rest is history.
GTI Vs. Amerifone Corp (Part II)
Initially, the judge presiding over the case saw that there was a problem with what Amerifone did. He even denied that they get dismissed from the case personally. But slowly, things started to shift. A big law firm came in with huge connections in the city and state. It was obvious to me where the case was going. I kept telling myself, “there is no such thing as judicial corruption in the US”, but not after today.
Today, the judge threw out every single count against Amerifone Corp. Not only that, he kept the counts against GTI in there. He said lack of evidence, which is hogwash. He just made up things as he went along. When he took so long in making his decision, I knew exactly what he was doing. It is the same pattern I use to see in the developing world from corrupt politicians and judges. There is no difference in this case.
GTI sued Amerifone for breach of contract. If Amerifone submitted a proper bank guarantee, then they would have won the license, and GTI wouldn’t’ have lost time, money and effort into creating the opportunity Amerifone wanted. Today, the judge released his decision, and since it is in the public domain, I must defend myself and the company.
Let’s go point by point on what the judge decided:
1.) Page 3: “As a result, Galeana decided to pursue a license to provide 3G and 4G services” – this is factually wrong. Despite GTI providing email evidence that they were approached by Amerifone representatives for the opportunity. GTI did not “decide” to pursue the license. The judge decided to ignore the evidence provided. Biased.
2.) Page 5: “Ultimately, the TRC awarded the license to a third provider, a company called Zain, based on its bid of 160 million JD (approximately $225 million)” -this is factually wrong, again. There was no third bidder. After the TRC cancelled the bid, they offered the license(s) to all the operators, and Zain took them up on the deal. The judge is using this “fact” saying that GTI was not injured by the fake bank guarantee because Zain’s bid was higher. Zain never bid! Incompetent or corrupt? A Harvard Law School graduate is not incompetent. Biased.
3.) End of Page 6: “Amerifone and Beydoun argue that Galeana was not harmed by the alleged breach of the contract, because the ninety million JD bid would have been rejected due to Zain’s bid of 160 million JD” -as mentioned above, this is factually wrong. The judge just takes the side of Amerifone and believes them without any independent research and despite anything GTI has submitted. Zain’s proposed amount was for double the frequency, which still puts them below the amount Amerifone bid. Fair or Biased? Unfortunately, Biased.
4.) Page 7: “Amerifone also points to Hazim’s admission that the failure to supply a proper bid bond had nothing to do with the loss of the bid. Hazim Dep., Ex. 2 to Amerifone Mot. for Sum. Judg., at 224 (Dkt. 88-3) (confirming that the chairman of the TRC had said the “offer will not be refused due to not submitting bank bond”) -this factually wrong. I was referring to GTI’s bid and not Amerifone’s bid. GTI already had an operating license and business in Jordan. We told the government to use our license (which we paid $15 million for) as the bid bond, and the TRC told me that they would not disqualify us (GTI) for not having a bid bond. The judge was only listening to Amerifone’s interpretation. Biased. Want more proof?
5.) Page 7: “Due to all of this, Amerifone argues that there can be no genuine dispute that the TRC was going to accept Zain’s bid regardless of whether the Amerifone bid had included sufficient security.” Who is the judge listening to here? Is he biased? Zain did not bid!!!! It is as if Amerifone wrote the decision for him! Biased.
The entire decision is filled with similar biases where the judge says that GTI did not provide any evidence while Amerifone did. It is unfortunate that a band of criminals with a bad history (and suing governments for that matter) get to have their way, while a legitimate business with legitimate businessmen have to suffer. Judicial corruption is here. We will be appealing this case, but mark my words, it will be a miracle if this is ever overturned.
I don’t think anything was offered monetarily, that’s too risky, but I could be wrong. However, Amerifone’s lawyers probably see the judge in social situations, but I can’t prove that–today. But the above narrative proves bias, which proves something very serious and very wrong in my opinion.
We filed a Motion for Reconsideration with the above information, and the judge has asked the opinion of the other parties. Will he grant our motion? We’ll see, but for now, I might be wrong about my opinion about the judge. Probably just misinformed and trusted the other side too much. Will update soon.
Corruptionism Website and Podcast
I will launch a website and podcast called Corruptionism so that others can come forward with their stories about government corruption and judicial corruption. The people need to awaken to the fact that lives are ruined and these people must be held accountable for their actions. There should be no immunity for anyone.
Please leave a comment below or contact me here with your own story of corruption.