netTALK Accuses Iristel Of Reneging On Deal To Release Numbers [UPDATED]
I am so glad that I didn’t have anything planned for today as the saga of netTALK’s Canadian customers not having phone service due to their phone numbers being held “hostage” by Iristel continues to evolve. netTALK has seemed to have fired the latest salvo in this dispute by sending the e-mail below to all their users a few minutes ago:
Dear netTALK Canada Customer,
As promised, we want to provide you with regular updates regarding the issues with your incoming phone service, as previously noted in several communications.
Following an outpouring of criticism of Iristel from you, which we greatly appreciate, Iristel finally relented early yesterday and agreed to reactivate your numbers rather than holding them hostage in their dispute with us. However, since agreeing, Iristel thus far have failed to reactivate the numbers. We continue to attempt to force their hand as quickly as possible, but we ask once again for your support in communicating to them your ongoing frustration with their tactics.
As previously noted, we cannot express enough our frustration with and apologies for the interruption in your service, and greatly appreciate your continued loyalty and trust. We look forward to resuming full service very soon.
Sincerely,
The netTALK Team
Hmmm….. From where I sit, all sides are getting criticism, but the lion’s share appears to be aimed at netTALK. But that may just be how I perceive things based on my observations of Social Media. Be that as it may, it’s interesting that they claim that they had a deal with Iristel, and then Iristel backed out of it. Since there’s two sides to every story, I’ve reached out to Iristel for a comment. When I get one, I will update this story.
UPDATE: I just heard back from Iristel and here’s all you need to know:
Iristel is working with the CRTC for a solution and made no such statement to netTALK.
I am in the process of arranging an interview with a representative from Iristel. Expect an update soon.
January 19, 2016 at 7:42 pm
It’s interesting to see that Iristel claims to be working with the CRTC while nettalk is threatened with legal action because they have failed to join CCTS – – but Iristel can not be found on the CCTS member list either.
I question how Iristel can be cooperating with the CRTC while they are not in good standing.
January 19, 2016 at 8:55 pm
The CRTC did put out several Tweets saying that they are aware of the situation and are working with both parties to resolve it: https://itnerd.wordpress.com/2016/01/19/new-plot-twists-in-the-nettalk-iristel-dispute/
January 20, 2016 at 9:11 am
nettalk and iristel dispute news article update
CEO of Iristel Samer Bishay was also the ceo of Nettalk
So this is a big fraud holding our Canadian phone numbers hostage
http://www.bloomberg.com/research/stocks/people/person.asp?personId=224448082&privcapId=52892952
http://biz.yahoo.com/e/150518/ntlk10-q.html
http://edgar.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=10628503-136669-140370&type=sect&TabIndex=2&companyid=729033&ppu=%252fdefault.aspx%253fcompanyid%253d729033
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=10708350
http://www.sec.gov/Archives/edgar/data/1383825/000114420414065208/v393322_def14c.htm
http://www.sec.gov/Archives/edgar/data/1383825/000114420415031800/v410502_10q.htm
Mr. Samer Bishay serves as the Chief Executive Officer and President at Iris Technologies Inc. Mr. Bishay served as the President of Net Talk.com, Inc. until November 26, 2014. Mr. Bishay is Founder of Iris Technologies Inc., and led it from a small startup to an international telecommunications service provider with domestic infrastructure licenses on three continents. Prior to founding Iristel, he was a lead Systems Engineer in the Radarsat program at the Canadian Space Agency. He brought about optimization techniques which further improved performance and significantly increased revenues for the Space Agency’s satellite mapping initiative. He has been a Director of Net Talk.com, Inc., since April 23, 2014. He won numerous awards and accolades. He is the recipient of Profit Magazine’s Young Entrepreneur Award as the youngest CEO among the Top Profit 100 companies in Canada. He is a graduate of the Space & Communications program at York University, Toronto, with an Honours Bachelor of Science Degree.
Iristel, Inc. (“Iristel”), a vendor that previously provided a significant portion of netTALK’s telecom service in 2013 and 2014, is owned by Samer Bishay, who was President and member of the board of directors of netTalk.com, Inc. until removed from the board of directors by a majority of the Company’s shareholders on November 26, 2014. Mr. Bishay also owns and or controls Telestrata, LLC (“Telestrata”), a debt and equity holder of netTalk.com, Inc., a significant portion of which debt and equity was issued in full settlement of amounts due to Iristel.
On October 10, 2014, Mr. Bishay caused Iristel to terminate all its contracts with netTalk.com, Inc. On October 17, 2014, Mr. Bishay, purporting to act as President of netTalk.com, Inc., attempted to cause netTalk.com, Inc. to reinstate one of its contracts with Iristel, which he had previously caused Iristel to terminate. The Company continues to deny that the reinstatement was effective.
On or about October 24, 2014, Mr. Bishay, despite being obviously conflicted, despite acting without authorization and against the wishes of the board of directors, and despite the absence of the Company seal, filed an unauthorized mortgage on certain real property of the Company, in favor of Telestrata, which he owns and or controls. The Company is continuing to dispute that mortgage.
On November 5, 2014, Telestrata filed an action against the company in the United States District Court for the Southern District of Florida titled: Telestrata, LLC v. netTalk.com., Inc. et al., 1:14-cv-24137. See footnote 14 for further discussion.
On October 10, 2014, the Company received a termination letter from its primary vendor, Iristel (owned by, and with its CEO being, the previous President of netTALK), which provides telecommunications service and phone numbers (“DID”), with respect to two contracts between Iristel and the Company, one dealing with carriage and one dealing with DIDs. Upon being informed of the termination, the Company ported its carriage to a new carrier, and informed Iristel that, pursuant to its rights under the DID contract, it would port the DIDs promptly to a new provider. On October 17, 2014, Samer Bishay, previous President of the Company and CEO of Iristel, purporting to act on behalf of both the Company and Iristel, without conflict waivers of any sort, attempted to agree to rescind the termination of the DID contract, which neither Iristel nor the Company had the power to do. The Company attempted to shift the DIDs to new carriers, but Iristel, through Samer Bishay, the previous President of the Company, refused to allow these customers to be moved to new DID vendors.
On October 15, 2014, Telestrata LLC (“Telestrata”), a Colorado limited liability company, owned or controlled by three members of the NetTalk board of directors that were removed from the Board November 26, 2014, exercised its warrant for 19,424,000 shares of netTALK common stock. On October 16, 2014, (1) members of management exercised their warrants for 24,280,000 shares of netTALK common stock and (2) shareholders representing more than a majority of the then outstanding common stock of the Company voted, via written consent in lieu of a meeting, to remove each of Samer Bishay (President), Maged Bishara, and Nardir Aljasrawi from their positions as members of the Company’s Board of Directors (the “Director Removal”). The Director Removal became effective November 26, 2014.
On October 27, 2014, Company was notified that Samer Bishay, current President of the Company, on or about October 24th, 2014, through counsel for Telestrata, an entity with which he is affiliated, unilaterally filed a mortgage in the amount of approximately $4.5 million, encumbering certain real property of the Company. The Company’s Board of Directors (the “Board”), through a unanimous written consent executed September 2, 2014, by all directors including Mr. Bishay, authorized the company to undertake such action only under certain conditions, including the condition that only the Chief Financial Officer of the Company could execute and authorize any such filing. Such written consent has not been revoked, modified or superseded by any subsequent valid action of the Board, and accordingly, the Company is working with counsel to rescind such unauthorized encumbrance and pursue any causes of action it or its shareholders may have against Mr. Bishay.