ACCC obtains orders against 1Cellnet LLC

The Federal Court in Perth has made orders restraining 1Cellnet LLC, a company incorporated in Delaware USA, from establishing, promoting, taking part in or otherwise participating in, or inducing any person to establish, promote, take part in or otherwise participate in the 1Cellnet Scheme, which was a type of discount telephone call service, or any similar scheme identically
structured.

Justice Nicholson's orders follow an application by the Australian Competition and Consumer Commission to have 1Cellnet's defence struck out as a result of 1Cellnet's failure to comply with various discovery orders made by the Court on 5 November 2004, 25 February 2005 and 7 April 2005.

The ACCC began proceedings in the Federal Court in Perth on 16 August 2004 against 1Cellnet and three other parties, for alleged breaches of the pyramid selling scheme provisions of the Trade Practices Act 1974.

The ACCC alleged that the parties participated in, promoted, induced or attempted to induce, persons to take part in an illegal pyramid scheme in contravention of section 65AAC of the Act. The court also ordered that 1Cellnet publish a notice on the internet at any website which is owned, operated or maintained by 1Cellnet and publish an advertisement, in nominated Australian newspapers, setting out the court's orders. A costs order was also made against 1Cellnet. The orders do not in any way affect or relate to the other parties, all of whom are continuing to contest the proceedings.

Release # MR 162/05
Issued: 28th June 2005