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                            Before the
                Federal Communications Commission
                      Washington, D.C. 20554


In the Matter of                )
                                )
Liability of Kenneth B. Ulbricht )
                                )
Assignee of License for Station KSWB,       )
Seaside, Oregon                        )
                                  )     
For a Forfeiture                )


                 MEMORANDUM OPINION AND ORDER 
                      AND FORFEITURE ORDER

   Adopted:  December 23, 1996                              Released:  December 31, 1996  


By the Chief, Mass Mass Bureau:  

     1.  The Commission, by the Chief, Mass Media Bureau, acting pursuant to authority
delegated by Section 0.283(c)(3) of the Commission's Rules,  has before it for consideration: (1)
a Notice of Apparent Liability ("NAL") for forfeiture in the amount of $10,000, issued on
October 5, 1995; and (2) an October 30, 1995 response thereto submitted by Kenneth B. Ulbricht,
d/b/a Seaside Broadcasting ("Ulbricht").  Ulbricht requests that the forfeiture be rescinded.  For
the reasons that follow, we deny Ulbricht's request and hereby impose a forfeiture in the amount
of $10,000, pursuant to Section 503(b) of the Communications Act, as amended, 47 U.S.C. 
503(b). 

     2.  In the NAL, we determined that Ulbricht had willfully and repeatedly violated Section
310(d) of the Communications Act, as amended, 47 U.S.C.  310(d), and Section 73.3540 of the
Commission's Rules, by assuming control of Station KSWB, Seaside, Oregon without
Commission authorization.  The apparently unauthorized transfer of control occurred no later than
April 1, 1995, when a Lease Management Agreement ("LMA") between Ulbricht and "God's
Ministry of Deliverance and Restoration" (the "Ministry"), an entity apparently controlled by
Monte Clark ("Clark"), went into effect.  Clark, in addition to his role in the Ministry, was the
sole principal of Monte Corporation, licensee of KSWB.  The LMA itself and information
provided by Ulbricht and Clark indicated that Clark had relinquished control of KSWB to
Ulbricht prior to Commission action on the pending application to assign the station's license from
Monte Corporation to Ulbricht (File No. BAL-950110EH).  Because the Commission granted that
application on October 5, 1995, the period of unauthorized transfer of the station lasted slightly
more than six months.  

     3.  In his response to the NAL, Ulbricht disputes that he assumed control of the station
prior to our authorization.  Ulbricht claims that all programming and personnel issues were
discussed with Clark's personal representative, Ujual Strestha ("Strestha"), at weekly staff
meetings.  According to Ulbricht, Strestha never objected to staff recommendations, and Strestha's
only directive to Ulbricht was that the station refrain from broadcasting specific religious
programming that Clark might find offensive.  Ulbricht also contends that Strestha "dealt with"
compliance with Commission rules at the weekly staff meetings but provides no further
explanation.  Ulbricht admits that he paid Strestha but insists that such payment was at Clark's
direction and that Strestha was never his (Ulbricht's) employee.  In his statement, Strestha
describes himself as a manager for the station, hired by the Ministry, to look after the Ministry's
interests, and as a salesman.  He further states that his work for the Ministry included assuring
that the station is "running without any FCC violation."  Strestha does not explain how he
managed the station or who, if anyone, reported to him.

     4.  With respect to station finances, Ulbricht acknowledges that Clark has not had access
to the station's checkbook.  Ulbricht contends that, when the LMA was entered into, Clark had
no working capital, the station's accounts payable were seriously in arrears, and there were
virtually no accounts receivable.  Further, Ulbricht states that the station's equipment was
transferred to him following foreclosure by the equipment company.  Ulbricht submits that any
working capital that the station now has was contributed by him or was generated from operations
under the LMA.  Ulbricht further contends that he denied Clark access to station finances because
he was concerned Clark would use the money for a Nigerian oil venture.

     5.  Finally, regarding ability to pay, Ulbricht submits that a forfeiture would seriously
impair the station's ability to continue operations.  In this regard, while the station's balance sheet
shows that liabilities exceed assets by $73,000, the station's largest liability is a debt due to
Ulbricht for $107,000.  Further, while the station's income statement shows a loss of more than
$63,000 over five "periods," the most recent period shows a modest profit of $1,000.  

     6.  Section 310(d) of the Communications Act and Section 73.3540 of the Commission's
Rules require the consent of the Commission prior to effectuation of a voluntary assignment of
license or transfer of control.  In ascertaining whether an unauthorized transfer of control has
occurred, the Commission focuses on whether an individual or entity other than the licensee has
obtained the right to determine the basic operating policies of the station.  See WHDH, Inc., 17
FCC 2d 856, 863 (1969), aff'd sub nom. Greater Boston Television Corp. v. FCC, 444 F.2d 841
(D.C. Cir. 1970), cert. denied, 403 U.S. 923 (1971).  After carefully considering Ulbricht's
response, we continue to believe that Ulbricht prematurely assumed control of KSWB, contrary
to the Act and our Rules.  

     7.  From Ulbricht's submissions, it appears that Ulbricht, not Clark, had the ultimate
control over the station's personnel, programming and finances.  In this regard, the only person
at the station who ever reported to Clark was Strestha.  However, Strestha was paid by Ulbricht,
not Clark.  Likewise, although Strestha may have viewed himself as a manager working on behalf
of the Ministry, there is no evidence that he managed anything or supervised anyone.  As for
programming, while Strestha supposedly had some authority to object to religious programming
that Clark might find objectionable, there is no evidence that Strestha ever exercised such
authority.  On the contrary, it appears that all programming decisions were made by Ulbricht. 
Finally, with respect to finances, Ulbricht has acknowledged that Clark had no role whatsoever. 
Indeed, Clark never saw the station's checkbook, and all equipment at the station was owned by
Ulbricht.  Because all of the foregoing occurred before the Commission granted the application
to assign the station's license to Ulbricht, we conclude that an unauthorized transfer of control to
Ulbricht took place in violation of both Section 310(d) of the Communications Act and Section
73.3540 of the Commission's Rules.  

     8.  In determining the amount of a forfeiture, the Commission is to consider "the nature,
circumstances, extent and gravity of the violation and, with respect to the violator, the degree of
culpability, any history of prior offenses, ability to pay, and such other matters as justice may
require."  Section 503(b)(2)(D) of the Communications Act of 1934, as amended, 47 U.S.C. 
503(b)(2)(D).  As described above, Ulbricht willfully exercised complete control over the station
prior to having obtained Commission authorization.  The violations began at least by April 1,
1995, the date the LMA became effective, and continued until the grant of the referenced
assignment application on October 5, 1995, a period of slightly more than six months.  Thus, the
violations were repeated.  Further, we perceive no mitigating circumstances with respect to
Ulbricht's actions.  Ulbricht has advanced no reason why he could not have waited for the
Commission to grant his application prior to his assuming control over the station.  In addition,
Ulbricht has made no argument that the amount of the forfeiture is inappropriate in light of the
precedent cited in the NAL.  Finally, we conclude that the station's financial situation does not
warrant a reduction in the forfeiture.  The information submitted shows that the largest single
creditor of the station is Ulbricht, himself, and that the station is beginning to turn a profit.   
Accordingly, we conclude that the $10,000 forfeiture is warranted.  
  
     9.  Accordingly, IT IS ORDERED that, pursuant to Section 503(b) of the Communications
Act of 1934, as amended, 47 U.S.C.  503(b), Kenneth B. Ulbricht, d/b/a Seaside Broadcasting
FORFEIT to the United States the sum of Ten Thousand Dollars ($10,000) for the willful and
repeated violations of Section 310(d) of the Communications Act of 1934, as amended, 47 U.S.C.
 310(d), and Section 73.3540 of the Commission's Rules, 47 C.F.R.  73.3540 as described
above. Kenneth B. Ulbricht may take any of the steps outlined in the attachment to this letter
regarding payment of the forfeiture pursuant to Section 1.80 of the Commission's Rules.

     10.  The Mass Media Bureau will send by Certified Mail -- Return Receipt Requested,
copies of this Memorandum Opinion and Order and Forfeiture Order to Kenneth B. Ulbricht. 


                         FEDERAL COMMUNICATIONS COMMISSION



                         Roy J. Stewart
                         Chief, Mass Media Bureau