More Mudslinging in GeoBroadcast Fight

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As the NAB works furiously to try to kill the proposed rule change before the FCC from GeoBroadcast Solution to super target programming, the mudslinging continues.

A letter from Luke Allen, which was filed with the Commission, was sent around by the NAB on Friday. Allen accuses GeoBroadcast Solutions founder Chris Devine of taking advantage of his father Robert Allen when he was in declining health and suffering from diminished mental capacity.

Allen says starting in 2000 Devine induced his father to make a series of loans to Superior Broadcasting Company totaling nearly $70 million. Devine was the President of Superior, and his father had a majority interest in the company. “Devine initially told my father that Superior would use his money to purchase radio stations near large and mid-market urban areas, and after obtaining necessary FCC approvals, would move those stations into urban areas, where they could generate more cash by reaching a much larger audience and charging more for advertising. Later, Devine told my father that Superior needed more money in order to participate in FCC auctions for FM station construction permits. Then, after my father had exhausted all of his liquid assets, Devine told him that Superior was in financial trouble and that he needed to put additional money into the company or his prior investments would be lost. This led my father to take out over $20 million in loans against his bond portfolio and provide those funds to Superior.”

So what did Devine actually do with Devine’s money? According to Luke Allen, Superior never purchased or owned a radio station. “Instead, Devine misappropriated my father’s money for his own benefit. For example, he diverted millions of dollars from Superior to Lakeshore Media, Devine’s management company and a company in which my father had no interest. Devine diverted other funds to his own radio and marathon businesses, entities in which my father also had no interest and of which he had no knowledge. Devine also authorized millions of dollars to be used for travel and entertainment expenses, including private jet charter service for non-business travel.”

Allen urges the FCC to fully research and independently verify any assertions or representations made by Devine or his company before approving any proposal in this proceeding.

GeoBroadcast Solutions responded to the letter with the following statement: “There’s no point in relitigating this matter, which was long ago resolved. The conclusion of the litigation speaks for itself.”

If a rule change, proposed by GeoBroadcast Solutions is approved, broadcasters would be allowed to use FM boosters to hyper-target local content to communities for several minutes per hour. There’s no word on when the Commission will decide on the proposal.

 

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