Why secure actual signatures from partners on multi-million dollar contracts to install fiber-optic cable at the bottom of the Arctic Ocean when you can just forge them? At Bloomberg Businessweek, Austin Carr reports on scam-artist extraordinaire Elizabeth Pierce, the former CEO of Quintillion Subsea Holdings LLC. Pierce created fictitious contracts to fund an Anchorage telecom startup, fleecing investors for a billion dollars before getting caught.
Arctic fiber has been an entrepreneurial fantasy for decades. Soaring demand for broadband helped drive companies, including Google, Facebook, and Amazon.com, to spend tons on high-speed underwater cables that keep customers watching Netflix and YouTube with minimal delay. But many of those lines run in parallel in the Atlantic and Pacific along well-established ocean routes, leaving the world’s internet vulnerable to earthquakes, sabotage, and other disasters both natural and human-made. A trans-Arctic route would help protect against that while offering a more direct path, potentially making internet speeds much faster.
Pierce scribbled her first forged signatures on contracts with the Matanuska Telephone Association, which services south-central Alaskan towns such as Wasilla, in May and June 2015. Although Matanuska CEO Greg Berberich had been reluctant to strike a deal, Pierce assured her investors in New York in an email that Berberich was “nervous but very committed.” The next day she uploaded a contract, worth hundreds of millions of dollars, with what looked like Berberich’s signature to a personal Google Drive account she shared with Murphy, the CIP managing director. Pierce also said she was close to locking in another gigantic sale with the nonprofit Arctic Slope Telephone Association Cooperative, whose customers include residents of remote Inupiat communities and the city of Utqiagvik. Soon she sent Murphy a contract with a phony version of the Arctic Slope CEO’s signature, too.
Pierce executed similar deceptions at least eight times, and the fraudulent contracts totaled more than $1 billion, according to court filings. Sometimes she completely fabricated deals; other times she negotiated real contracts, then changed key pages with more favorable terms.