Global Tel Link Complaint - The Real Story on Global Tel Link
People should check out p. C1 of the 14 October Wall St. Journal. Behind the high charges and poor and rude customer service I've read about on other postings is a paragraph that GTL is borrowing money to pay out a very large dividend of $173 million to Veritas Capital, a private equity outfit, and other investors, including Goldman Sachs. Last year Veritas paid $70 million to buy control of GTL; this year it will get back $80 million of that $173 million dividend--that's over a 14% return on its investment, and it still controls the firm to be able to get future payments. Does this look like legalized looting, first of GTL, and then of us through GTL's state-sanctioned monopoly powers?