Unauthorized Transfer Of LPFM Draws $20k NAL
January 27, 2010: The FCC has issued a $20,000 notice of apparent liability to a Louisiana company called Ethics Inc. for unauthorized operation of an LPFM and dismissed modification applications filed by Ethics.
Ethics was an unsuccessful bidder for an LPFM construction permit that was awarded in 2004 to Baton Rouge Progressive Network, with an expiration date of March 14, 2006. Ethics' principals, using the station's call sign of WHYR-LP, then filed a series of applications to modify BRPN's construction permit, using the names of both its own board members and BPRN's. Another application filed by Ethics used only BPRN's board members as parties; the grant of that modification application automatically converted the name of the CP holder to Ethics on the FCC database.
In March 2006, Ethics filed a license application for the LPFM. That was granted, and Ethics proceeded to build and operate the station. Soon after that license application was submitted, BPRN filed a request for an extension of time to construct the station, citing delays after Hurricane Katrina.
In April 2006, BPRN filed a petition for reconsideration with the FCC, saying it did not file the modification applications and license application that had granted by the FCC, adding that Ethics did not have authority to file those applications and had "hijacked" the LPFM. Ethics responded that it didn't do anything wrong and claimed BPRN had abandoned the CP and "tacitly approved" Ethics' construction and operation of the station.
In 2008 and 2009, Ethics filed two more applications, for a temporary relocation of the station and for authority to take the station silent, though the second was filed on the wrong form.
The commission has granted BPRN's petition for reconsideration, saying Ethics principals "perpetrated a fraud on the agency by filing a series of unauthorized applications with the intent of taking control of the station from BPRN." The fraud was exacerbated, says the FCC, by several errors on the part of commission staff. The NAL read, "The status quo in this proceeding, i.e. Ethics having gained control of the station without prior commission consent based on unauthorized filings, is manifestly unconscionable."
The FCC has issued a notice of apparent liability for $20,000 to Ethics, citing "the continuing, intentional, and egregious nature" of the company's conduct. Ethics has 30 days to pay or file a written response.
Due to the "exceptional circumstances" of the case, the commission has extended BPRN's construction permit for its LPFM until June 11, 2011.
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