UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

   

FORM 8-K

 

CURRENT REPORT  

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): September 8, 2014

 

FTE NETWORKS, INC.
(Exact name of registrant as specified in its charter)

 

Nevada 000-31355 81-0438093
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation)   Identification No.)
     

5495 Bryson Drive, Suite 423

Naples, FL

(Address of principal executive offices)

34109

(Zip Code)

   
   
       

877-878-8136

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 
 

 

Item 1.01. Entry into a Material Definitive Agreement.

 

On September 8, 2014, FTE Networks, Inc. (the “ Company ”) entered into an Offer of Settlement (the “ Agreement ”) with the U.S. Securities and Exchange Commission, regarding the Administrative Proceeding (File No. 3-16024) previously reported on September 8, 2014 by the Company via Current Report on Form 8-K. A complete copy of the Agreement is attached as Exhibit 10.1 hereto and is incorporated herein in its entirety by reference.

 

On September 10, 2014, the Company announced the Agreement via a press release (the “ Press Release ”). A complete copy of the Press Release is attached hereto as Exhibit 99.1 .

 

Item 9.01 Financial Statements and Exhibits.

 

(a) Not applicable.

 

(b) Not applicable.

 

(c) Not applicable.

 

(d) Exhibit No. Description :

 

EXHIBIT NO.

DESCRIPTION

LOCATION

10.1 Offer of Settlement of FTE Networks, Inc. Provided herewith
99.1 Press Release Provided herewith

 

- 2 -
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    FTE NETWORKS, INC.  
       
  By: /s/ Michael Palleschi  
    Michael Palleschi  
    Chief Executive Officer  

 

Date: September 10, 2014

  

- 3 -

 

 

 

 

UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

 

ADMINISTRATIVE PROCEEDING

File No. 3-16024

 

In the Matter of  
   
ATP Oil & Gas Corp.,
Cambridge Holdings, Ltd.,
FTE Networks, Inc.,
Raystream, Inc., and
Shelron Group, Inc.,
OFFER OF SETTLEMENT OF FTE NETWORKS, INC.
   
Respondents.  

 

I .

 

FTE Networks, Inc. (“FTNW” or “Respondent”), pursuant to Rule 240(a) of the Rules of Practice of the Securities and Exchange Commission (“Commission”) [17 C.F.R. § 201.240(a)] submits this Offer of Settlement (“Offer”) in the above-captioned proceedings instituted against it by the Commission on August 20, 2014, pursuant to Section 12(j) of the Securities Exchange Act of 1934 (“Exchange Act”).

 

II.

 

This Offer is submitted solely for the purpose of settling these proceedings, with the express understanding that it will not be used in any way in these or any other proceedings, unless the Offer is accepted by the Commission. If the Offer is not accepted by the Commission, the Offer is withdrawn without prejudice to Respondent and shall not become a part of the record in these or any other proceedings, except for the waiver expressed in Section V. with respect to Rule 240(c)(5) of the Commission’s Rules of Practice [17 C.F.R. § 201.240(c)(5)].

 

III .

 

On the basis of the foregoing, the Respondent hereby:

 

A. Admits the jurisdiction of the Commission over it and over the matters set forth in the Order Making Findings and Revoking Registration of Securities Pursuant to Section 12(j) of the Securities Exchange Act of 1934 as to FTE Networks, Inc. (“Order”);

 

 
 

 

B. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party prior to a hearing pursuant to the Commission's Rules of Practice, 17 C.F.R. § 201.100 et seq ., and without admitting or denying the findings contained in the Order, except as to the Commission’s jurisdiction over it and the subject matter of these proceedings, which are admitted, Respondent consents to the entry of an Order by the Commission containing the following findings and order set forth below 1 :

 

1. FTNW (CIK No. 1122063) is a Nevada corporation located in Naples, Florida with a class of securities registered with the Commission under Exchange Act Section 12(g). As of August 18, 2014, the common stock of FTNW (symbol FTNW) was quoted on OTC Link (formerly “Pink Sheets”) operated by OTC Markets Inc., had ten market makers, and was eligible for the “piggyback” exception of Exchange Act Rule

15c2-11(f)(3).

 

2. FTNW has failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder because it has not filed any periodic reports with theCommission since the period ended June 30, 2012.

 

IV.

 

Section 12(j) of the Exchange Act provides as follows:

 

The Commission is authorized, by order, as it deems necessary or appropriate for the protection of investors to deny, to suspend the effective date of, to suspend for a period not exceeding twelve months, or to revoke the registration of a security, if the Commission finds, on the record after notice and opportunity for hearing, that the issuer of such security has failed to comply with any provision of this title or the rules and regulations thereunder. No member of a national securities exchange, broker, or dealer shall make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce the purchase or sale of, any security the registration of which has been and is suspended or revoked pursuant to the preceding sentence.

 

On the basis of the foregoing, Respondent hereby consents to the entry of an Order by the Commission that:

 

Pursuant to Section 12(j) of the Exchange Act, registration of each class of Respondent’s securities registered pursuant to Exchange Act Section 12 be, and hereby is, revoked.

 

_____________________________

 

1 The findings herein are made pursuant to Respondent’s Offer of Settlement and are not binding on any other person or entity in this or any other proceeding.

 

2
 

 

V.

 

By submitting this Offer, Respondent hereby acknowledges its waiver of those rights specified in Rules 240(c)(4) and (5) [17 C.F.R. §201.240(c)(4) and (5)] of the Commission’s Rules of Practice. Respondent also hereby waives service of the Order.

 

VI.

 

Respondent understands and agrees to comply with the terms of 17 C.F.R. § 202.5(e), which provides in part that it is the Commission's policy “not to permit a defendant or respondent to consent to a judgment or order that imposes a sanction while denying the allegations in the complaint or order for proceedings,” and “a refusal to admit the allegations is equivalent to a denial, unless the defendant or respondent states that he neither admits nor denies the allegations.” As part of Respondent’s agreement to comply with the terms of Section 202.5(e), Respondent: (i) will not take any action or make or permit to be made any public statement denying, directly or indirectly, any finding in the Order or creating the impression that the Order is without factual basis; and (ii) will not make or permit to be made any public statement to the effect that Respondent does not admit the findings of the Order, or that the Offer contains no admission of the findings, without also stating that the Respondent does not deny the findings; and (iii) upon the filing of this Offer of Settlement, Respondent hereby withdraws any papers previously filed in this proceeding to the extent that they deny, directly or indirectly, any finding in the Order. If Respondent breaches this agreement, the Division of Enforcement may petition the Commission to vacate the Order and restore this proceeding to its active docket. Nothing in this provision affects Respondent's: (i) testimonial obligations; or (ii) right to take legal or factual positions in litigation or other legal proceedings in which the Commission is not party.

 

VII.

 

Consistent with the provisions of 17 C.F.R. § 202.5(f), Respondent waives any claim of Double Jeopardy based upon the settlement of this proceeding, including the imposition of any remedy or civil penalty herein.

 

VIII.

 

Respondent hereby waives any rights under the Equal Access to Justice Act, the Small Business Regulatory Enforcement Fairness Act of 1996 or any other provision of law to seek from the United States, or any agency, or any official of the United States acting in his or her official capacity, directly or indirectly, reimbursement of attorney’s fees or other fees, expenses or costs expended by Respondent to defend against this action. For these purposes, Respondent agrees that Respondent is not the prevailing party in this action since the parties have reached a good faith settlement.

 

IX.

 

Respondent states that it has read and understands the foregoing Offer, that this Offer is made voluntarily, and that no promises, offers, threats, or inducements of any kind or nature whatsoever have been made by the Commission or any member, officer, employee, agent, or representative of the Commission in consideration of this Offer or otherwise to induce it to submit to this Offer.

 

    FTE Networks, Inc.  
       
  By: /s/ Michael Palleschi  
    Michael Palleschi  
    Chief Executive Officer  

 

____________________________

 

1 The findings herein are made pursuant to Respondent’s Offer of Settlement and are not binding on any other person or entity in this or any other proceeding.

 

3
 

 

I declare under penalty of per*jury under the laws of the United States of America that the foregoing is true and correct.

 

Executed on September 8 , 2014.

 

  /s/ Michael Palleschi
  Michael Palleschi

 

4

 

FTE Networks Provides Shareholder Update

 

NAPLES, FL -- (Marketwired - September 10, 2014) - FTE Networks, Inc. (PINKSHEETS: FTNW), a premier provider of solutions services in the telecommunications and technology vertical, today announced that it has entered into an Offer of Settlement (settlement agreement) with the SEC in response to an SEC Order Instituting Administrative Proceedings (File No. 3-16024) dated August 20, 2014 and SEC Release No. 72871 regarding the trading suspension of FTNW. Under the settlement agreement, the SEC shall deregister our shares, effectively meaning our shares will stop trading on all markets, until they are reregistered as previously announced.

 

“The action taken today by the Company will allow us to continue to pursue our business goals while we aggressively work down the path of getting our common stock reregistered”, commented Michael Palleschi, CEO of FTE Networks, Inc. “We believe this course of action is in the best interest of our stakeholders, and will allow us to continue, as previously communicated, our business as usual approach”.

 

“Committing significant resources to the financial statement audits and the ultimate completion of the Form 10 to get our shares reregistered is our top priority”, commented David Lethem, CFO of FTE Networks, Inc. “These steps and others are being undertaken now to allow for the continued progress of the Company, which we believe are in the best interests of our shareholders”.

 

 

About FTE Networks, Inc.

FTE Networks is a vertically integrated company with an international footprint.  Since its inception, FTE Networks has steadily advanced its management, operational and technical capabilities to become a leading provider of services to the telecommunications and wireless sector with a focus on turnkey solutions.  FTE Networks provides a comprehensive array of services centered on quality, efficiency and customer service.

 

Forward Looking Statements

This release may contain forward-looking statements relating to the business of FTNW. All statements other than historical facts are forward-looking statements, which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. These statements involve risks and uncertainties that may cause actual results to differ materially from those anticipated, believed, estimated or expected. These risks and uncertainties are described in detail in our filings with the Securities and Exchange Commission. Forward-looking statements are based on FTNW's current expectations and beliefs concerning future developments and their potential effects on FTNW. There is no assurance that future developments affecting FTNW will be those anticipated by FTNW. FTNW undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.