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[Mark Fowler]

You say it is free. When I tried to enter the "Travel" section, I was shown that I needed to join with a $199 fee.

Perhaps you could explain what is free?

[Sonja T Hunter]

Hi Mark,
When you entered the travel section which is part of a service. When you get VOIP from eStar it will cost you for the service.
Joining eStar is free, which gives you the oppertunity to see if this business is for you, if it isn't then there is no cost and you did not lose anything. If you want to talk to me you can give me a call 336.254.6583 and i would be happy to explain to you.

[Doctor Doolittle]

http://www.thedigest.com/articles/187/3.html

CHARGES FILED AGAINST ONESTAR INSIDERS

Evansville, IN, April 3, 2006 (TheDigest.Com) � Just when we thought that the saga of OneStar Long Distance was over, along came a bombshell complaint filed by U.S. Bankruptcy Trustee Elliott D. Levin this past week.

Levin's complaint asks the court to level penalties against numerous parties connected with OneStar, including its legal counsel Reed Smith. Although no exact numbers are available, Levin is asking for what equates to millions of dollars each for the company's officers, and even worse punishment for Reed Smith, which he accuses of having committed fraud and criminal conduct.

The complaint itself weighs in at almost 700 pages, including exhibits. We have the entire filing available for download on our current issue page free of charge.

Trying to summarize such a huge filing in nutshell is an unenviable task. Given that most of you probably do not want to sift through all 700+ pages, we'll do our best to recap though.

As you may recall, OneStar Long Distance was a former long distance and CLEC provider based in Evansville, IN. It had a large agent base at one time, and had a huge customer base in the Northeastern United States. Most of us first realized that the financial situation at the company had gone South when it was unable to pay its underlying carriers for service, and its entire CLEC customer base was disconnected.

Apparently, the problems existed long before that though, which was cleverly covered up by the principals and board members, who quietly had been sucking the company dry of cash for quite some time. A later investigation by the court revealed that the principals of OneStar had created a complicated maze of corporations, LLCs, trusts, friends and family members to siphon off the company's revenues.

In the final stages of its history, the filing alleges that the principles conspired to bankrupt the company, while making sure that no friends or family members of OneStar insiders lost any money. All the while, Alan Powers and other officers were raking-in huge salaries with enormous �bonus� payments each year, despite the fact that the company was going broke.

The Trustee lists the following entities as defendants in the complaint: ALAN POWERS, SUSAN POWERS, MICHAEL HANUS, MARY HANUS, WILLIAM STAPLETON, MARTIN HUEBSCHMAN, REED SMITH LLP, WINTERHAVEN, INC., VANTAGE FUNDING, LLC, MARK W. POWERS, MARCY POWERS, JOHN POWERS AND MARK POWERS, AS CO-TRUSTEES FOR THE JOHN M. POWERS JR. FAMILY TRUST, ALICE POWERS, RUTH ANN POWERS, JONATHAN POWERS, MATTHEW POWERS, JULIE POWERS, DR. CHESTER HIGDON, NORMA RAE HIGDON, HARRIET HIGDON, MICHAEL HIGDON, DR. R. PATRICK KOLLKER; DR. R. PATRICK KOLLKER, AS TRUSTEE FOR THE R. PATRICK KOLLKER TRUST, DR. R. PATRICK KOLLKER, AS TRUSTEE FOR THE DANIEL KOLLKER TRUST, DR. R. PATRICK KOLLKER, AS TRUSTEE FOR THE STEPHEN KOLLKER TRUST, DR. R. PATRICK KOLLKER, AS TRUSTEE FOR THE NANCY TRAYLOR TRUST, DANIEL KOLLKER, STEPHEN KOLLKER, SUSAN KOLLKER, SHAWN GALLAGHER, PATRICK GALLAGHER, MARILYN MYERS, PAUL MILLER, CATHERINE MILLER, SCOTT MILLER, LINDA MILLER, DANIEL MILLER, MARY MILLER, JAMES RANDY MILLER, LINDA MILLER, AS TRUSTEE FOR THE JEFFREY RYAN MILLER TRUST, LINDA MILLER, AS TRUSTEE FOR THE JILL RENEE LUCY TRUST, DR. ALVIN KORBA, JOAN PICOU, SHERI KNIPPENBERG, ROBERT JOHN, PATRICIA JOHN, GAYLE SCHWEITZER, PATRICK :

FREEMAN, AS TRUSTEE FOR THE TELSTAR INSURANCE TRUST, EAGLE CREST BUILDING LLC, CLOVERLEAF PROPERTIES, LLC, GROWTH PARTNERSHIP, WOODWARD, LLC, ESTAR NETWORK, LLC, eSTAR COMMUNICATIONS, LLC, eSTAR, LLC, TROY CARL, AND TROY CARL COMMUNICATIONS, INC.

With few exceptions, just about all of these entities are either friends or family members (or family members of friends) of Alan Powers. Others are mainly corporations or trusts managed by those same individuals. We will list the notable exceptions below.

All of the defendants are being asked to repay any loans due to OneStar that are still outstanding. Most �loans� to insiders were never repaid. In many cases the defendants were also paid on loans that they supposedly extended to the company at high interest rates. Many of these transactions are being charged as �fraudulent conveyance�. All defendants are being asked to reimburse the court for investigation expenses and legal fees, which are yet to be determined.

The directors of the company (Powers, Hanus, Stapleton, Huebschman) are not only being asked to return any outstanding loans, but to also return all pay and bonuses that they made from working at the company during periods of time where they clearly were not acting in the best interests of OneStar, due to conflicts of interest. The Trustee is also asking that certain �consulting fees� paid by the company to these individuals be paid back, and numerous other instances where they allegedly personally benefited at the expense of creditors and solvency of the company. This equates to millions of dollars for each director, on top of any monies owed by their family, business entities or family trusts.

Some of the entities named as defendants not directly controlled by Alan Powers and his friends and family include eStar, Troy Carl and law firm Reed Smith.

In the case of Troy Carl and eStar, the filing alleges that Carl helped OneStar to accomplish what sounds to resemble something akin to money laundering via his telecom multilevel marketing agency eStar Communications. Carl, eStar, Carl Communications, etc. are charged with multiple counts of fraudulent conveyance under the U.S. Bankruptcy Code.

The case of law firm Reed Smith is much, much more serious. In fact, if anyone looks to be brought up on criminal charges, it is most likely the law firm that once represented OneStar. The complaint accuses the law firm of fraudulent conveyance, aiding and abetting in a breach of fiduciary duty, aiding, inducing or causing criminal fraud and legal malpractice or negligence. Essentially, Reed Smith, chiefly Reed Smith Partner Many Emamzadeh, is accused of orchestrating the events that led to the purposeful demise of OneStar. It is believed that the firm actually represented multiple entities that the principals of OneStar had set up, including those which put the firm in a direct conflict of interest.

Among other things, the Trustee stated that Reed Smith, �Acted with malice, fraud, gross negligence, or oppressiveness. Reed Smith also acted willfully and wantonly. Accordingly, the Trustee is entitled to recover punitive damages from Reed Smith in an amount to be determined at trial to punish, penalize or deter Reed Smith from engaging in similar misconduct.�

Reed Smith is the only entity in the filing from which the Trustee is asking for punitive damages. The complaint levies a total of 160 counts against those named above. The next hearing in the case is scheduled for April 25, 2006. We will bring you more news of this event as it develops.

Source: TheDigest.Com Editors

[Jaylee]

Anyone who was knowling involved in this fraudulant action should be asked to return the money that was obviously laundered. I'm guessing that these people were sly enough to hide this money somehow and they are probably still living a charmed life with the customers having been cheated.

What a shame.

[Former employee of Michael Hanus (the Crook!)]

As someone who is quite familiar with Hanus and the way he does business (he fits the definition of corporate psychopath to a tee) I have no doubt that he masterminded most of this. He is one of the greediest people I have ever had the displeasure of meeting.

And he has millions stashed, I know....still living high on the hog, and thinking he got away with it.

I hope that justice is done, and he ends up broke. He deserves it.

[Joseph Kennedy]

Before Troy Carl went to OneStar he was with "Cognigen". I was their #1 salesman. Pure luck to be online in 1995 and start selling teleocm during the unique time of opportunity from 1995-2001.

It was a pretty decent experience. That was before Troy Carl arrived 4 years later and was inserted as my sponsor in the company. In fact it wasn't an MLM till he got there. Needless to say he cost Cognigen allot of revenue also. I'm positive thre was shady stuff going on their because they made no attempt to mask the downline engineering and expounding upon their rediculous MLM tripe. Maybe someone should look at Cognigens books.

[JayDee]

Someone must have told this group of people that what they were doing was a good idea. I would hate to think that everyone on the list is a criminal

[no fool]

The principles all knew exactly what they were doing and that it was wrong, and their wives went along because of the money. I was there to watch it. They figured they'd never get caught because of the spiderweb of corporations they formed to launder the money, and again, raking in the dollars was far more important than integrity. They don't care about anybody but themselves when it comes down to it. The primary purpose for starting the company was to make millions for themselves, not to have a good business, and that's why it failed. They had their priorities seriously screwed up.