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Before the
FEDERAL COMMUNICATIONS COMMISSION
Washington, D.C. 20554
)
)
)
)
In the Matter of )
COMMERCIAL RADIO SERVICE, INC. )
Licensee of Private Land Mobile Stations )
WNDS861, Reelsville, Indiana; WNIL729,
Paxton, Indiana; WPCJ772, West Terre )
Haute, Indiana; and WPNU312 Greencastle, EB DOCKET NO. 06-168
Indiana/West Terre Haute, Indiana )
File No. EB-06-IH-1362
Licensee of Commercial Land Mobile )
Station WNGE348, West Terre Haute, NAL Acct. No.
Indiana ) 200632080166
TIMOTHY M. DOTY )
Licensee of General Radiotelephone )
Operator License PG1814366; and Amateur
Radio Operator and Licensee of Amateur )
Radio Station WB9MDC, West Terre Haute,
Indiana )
)
)
)
)
SETTLEMENT AGREEMENT
1. The Enforcement Bureau of the Federal Communications Commission,
Commercial Radio Service, Inc., Timothy M. Doty, and Gary C. Doty
hereby enter into this Settlement Agreement for the purpose of
resolving and terminating the above-captioned proceeding initiated by
an Order to Show Cause issued by the Commission on August 30, 2006.
2. For purposes of this Settlement Agreement, the following definitions
shall apply:
a. "Act" means the Communications Act of 1934, as amended, 47 U.S.C. S
151 et seq.
b. "Approving Order" means an order of the Presiding Administrative Law
Judge or the Chief Administrative Law Judge approving this
Settlement Agreement and terminating the proceeding in EB Docket No.
06-168.
c. "Any" shall be construed to include the word "all," and the word
"all" shall be construed to include the word "any." Additionally,
the word "or" shall be construed to include the word "and," and the
word "and" shall be construed to include the word "or." The word
"each" shall be construed to include the word "every," and the word
"every" shall be construed to include the word "each."
d. "Attributable Principal" means the following:
1. in the case of a corporation, a party holding 10 percent or more of
stock, whether voting or nonvoting, common or preferred;
2. in the case of a limited partnership, a limited partner whose
interest is 10 percent or greater (as calculated according to the
percentage of equity paid in or the percentage of distribution of
profits and losses);
3. in the case of a general partnership, a general partner;
4. in the case of a limited liability company, a member whose interest
is 10 percent or greater;
e. "Bureau" means the FCC's Enforcement Bureau.
f. "Commission's Rules" means Part 47 of the Code of Federal
Regulations.
g. "CRS" means Commercial Radio Service, Inc., licensee of Private Land
Mobile Stations WNDS861, Reelsville, Indiana; WNIL729, Paxton,
Indiana; WPCJ772, West Terre Haute, Indiana; and WPNU312
Greencastle, Indiana/West Terre Haute, Indiana; and licensee of
Commercial Land Mobile Station WNGE348, West Terre Haute, Indiana.
h. "Effective Date" means the date on which the Presiding
Administrative Law Judge or the Chief Administrative Law Judge
releases the Approving Order.
i. "FCC" or "Commission" means Federal Communications Commission.
j. "Final Order" means that, with respect to the Approving Order: (1)
no administrative appeal of any kind has been filed or is pending
before the FCC, and the time for filing any such appeal has lapsed;
(b) no request to stay, vacate, annul, reverse, or set aside has
been filed, and the time for filing any such request has lapsed; (c)
no order staying, vacating, reversing, setting aside, annulling or
suspending the Approving Order has been released; (d) the
Commission, on its own motion, has not proposed or taken any action
inconsistent with or adverse to the Approving Order, and the time
for doing so has lapsed; (e) no judicial appeal of any kind has been
filed or is pending, and, if permitted, the time for filing any such
appeal has lapsed.
k. "Gary C. Doty" means Gary C. Doty, one of two principals in CRS.
l. "Order to Show Cause" means Commercial Radio Service, Inc., Order to
Show Cause, FCC 06-128 (rel. August 30, 2006).
m. "Parties" means the CRS, Timothy M. Doty, Gary C. Doty, and the
Bureau, collectively; and "Party" refers to CRS, Timothy M. Doty,
Gary C. Doty and the Bureau, individually.
n. "Proceeding" means the evidentiary hearing initiated by the Order to
Show Cause.
o) "STA" means Special Temporary Authority.
p) "Timothy M. Doty" means Timothy M. Doty, one of two principals in CRS
and the licensee of General Radiotelephone Operator License PG1814366; and
Amateur Radio Operator and Licensee of Amateur Radio Station WB9MDC, West
Terre Haute, Indiana.
I. BACKGROUND
3. CRS is engaged in the sales and service of two-way radio
communications equipment in the Terre Haute, Indiana, area. CRS is the
licensee of the FCC licenses identified in paragraph 2(g), above.
4. Since at least January 1, 1990, Timothy M. Doty has been a Director
and 50 percent voting shareholder of CRS. Timothy M. Doty also was
President of CRS from January 1, 1990, through May 9, 2006. Timothy M.
Doty, in his individual capacity, holds the licenses identified in
paragraph 2(p), above.
5. Since at least January 1, 1990, Gary C. Doty has been Secretary and
Treasurer, a Director, and 50 percent voting shareholder of CRS.
Effective May 9, 2006, Gary C. Doty also became President of CRS.
6. On May 31, 1991, Timothy M. Doty was found guilty in the U.S. District
Court for the Southern District of Indiana, Terre Haute Division, of
violating 18 U.S.C. S 2512(1)(b), involving the manufacture and
possession of unauthorized satellite TV signal descrambling devices, a
felony. He was sentenced to three years probation and a $2,000 fine.
7. On November 15, 2001, Timothy M. Doty was found guilty in State of
Indiana Vigo Superior Court, Division 5, of felony possession of a
controlled substance. He was sentenced to 18 months in the Indiana
Department of Corrections, which sentence was suspended except for 30
days.
8. In late 2005, the Commission received information indicating that CRS
may not have properly disclosed information about felony convictions
of Timothy M. Doty in applications filed with the Commission.
Thereafter, the Bureau commenced an investigation into CRS' compliance
with the Commission's Rules and the Act.
9. The investigation revealed that, subsequent to the first of Timothy M.
Doty's felony convictions, CRS filed two license applications with the
Commission in which CRS answered "No" to the question inquiring
whether the applicant or any party directly or indirectly controlling
the applicant had ever been convicted of a felony in state or federal
court. In each of the referenced applications, CRS certified that all
of the statements therein were true, complete, correct, and made in
good faith.
10. In its Order to Show Cause, the Commission commenced a license
revocation hearing against CRS and Timothy M. Doty in EB Docket No.
06-168 on the following issues:
a. to determine the effect of Timothy M. Doty's felony convictions on his
qualifications to be and to remain a Commission licensee;
b. to determine the effect of Timothy M. Doty's felony convictions on the
qualifications of CRS to be and to remain a Commission licensee;
c. to determine whether CRS made misrepresentations and/or lacked candor
and/or violated Section 1.17 of the Commission's rules regarding the
felony convictions of Timothy M. Doty in any applications filed with
the Commission;
d. to determine whether CRS failed to timely amend Commission
applications to disclose Timothy M. Doty's felony convictions, in
violation of Section 1.65 of the Commission's rules;
e. to determine whether CRS made false certifications in any applications
filed with the Commission;
f. to determine, in light of the evidence adduced pursuant to the
foregoing issues, whether Timothy M. Doty is qualified to be and to
remain a Commission licensee;
g. to determine, in light of the evidence adduced pursuant to the
foregoing issues, whether CRS is qualified to be and to remain a
Commission licensee;
h. to determine, in light of the evidence adduced pursuant to the
foregoing issues, whether the above-captioned licenses of Timothy M.
Doty should be revoked;
i. to determine, in light of the evidence adduced pursuant to the
foregoing issues (a) through (h), whether the above-captioned licenses
of CRS should be revoked.
The Order to Show Cause also ordered, irrespective of the resolution of
the foregoing issues, that a determination be made whether to issue an
Order of Forfeiture against CRS for having failed to disclose the felony
convictions of Timothy M. Doty in one or more of its applications.
11. The Parties acknowledge that a settlement agreement would serve the
public interest by avoiding a protracted hearing proceeding that would
involve the expenditure of substantial public and private resources.
To conserve such resources, the Parties hereby enter into this
Settlement Agreement, subject to approval by the Presiding
Administrative Law Judge or the Chief Administrative Law Judge , in
consideration of the mutual commitments made herein.
II. AGREEMENT
12. The Parties agree and acknowledge that this Settlement Agreement shall
constitute a final settlement between them of the Proceeding and the
Order to Show Cause. In consideration for the mutual representations,
acknowledgements, and commitments made herein, the Parties agree as
follows:
13. The Parties agree that this Settlement Agreement is for settlement
purposes only and that signing does not constitute an admission by CRS,
Gary C. Doty or Timothy M. Doty of any violation of the Act or the
Commission's Rules arising from their actions or admissions as described
in the Order to Show Cause.
14. The Parties agree that the provisions of this Settlement Agreement
shall be subject to approval by the Presiding Administrative Law Judge or
the Chief Administrative Law Judge.
15. The Parties agree that this Settlement Agreement shall become
effective on the Effective Date.
16. The Parties agree that they shall, within 14 business days of the
execution by all signatories to this Settlement Agreement, jointly file a
written request to the Presiding Administrative Law Judge seeking approval
of this Settlement Agreement and termination of the proceeding in EB
Docket No. 06-168. The Settlement Agreement shall be filed under separate
cover with a joint motion requesting that the Settlement Agreement be kept
under seal until the Effective Date.
17. The Bureau agrees that, in the absence of material new evidence, it
will not, on its own motion, initiate or recommend to the Commission, any
new proceeding, formal or informal, against CRS, Timothy M. Doty or Gary
C. Doty for alleged violations relating to the matters which formed the
basis for the Order to Show Cause. Nothing in this Settlement Agreement
shall prevent the Bureau from instituting or recommending to the
Commission, investigations or enforcement proceedings against CRS, Timothy
M. Doty or Gary C. Doty in the event of any alleged future misconduct or
for violation of this Settlement Agreement or for violation of the Act or
the Commission's Rules, consistent with the provisions of this Settlement
Agreement. In addition, nothing in this Settlement Agreement shall prevent
the Bureau from considering any information which formed the basis for the
Order to Show Cause in determining appropriate sanctions for any future
misconduct on the part of CRS, Timothy M. Doty or Gary C. Doty.
18. CRS represents that the FCC licenses identified in paragraph 2(g),
above, constitute all the FCC licenses and instruments of authorization
held by it or in which it has an interest of any kind.
19. Timothy M. Doty represents that the FCC licenses identified in
paragraph 2(g) and (p), above, constitute all the FCC licenses and
instruments of authorization held by him or in which he has an interest of
any kind.
20. Gary C. Doty represents that he holds no FCC licenses in his
individual capacity, and the licenses identified in paragraph 2(g), above,
constitute all the licenses and instruments of authorization in which he
has an interest of any kind.
21. Timothy M. Doty agrees that, upon the Effective Date, the FCC licenses
identified in paragraph 2(p), above, shall be deemed to have been
surrendered by him to the Commission for unconditional and immediate
cancellation, and further that such licenses at such time shall be deemed
to be cancelled.
22. CRS agrees that it shall, within 2 business days of the Effective
Date, file a written request to the Commission for an STA to continue
operating pursuant to the terms and conditions of the licenses referenced
in paragraph 2(g), above, for a period not to exceed 90 days, during which
time CRS further agrees that it shall use all reasonable means to assist
its customers in transitioning, relocating, and otherwise moving to other
communications service providers without interruption or disruption of or
to their service. CRS further agrees that upon grant of such STA, the FCC
licenses identified in paragraph 2(g), above, shall be deemed to have been
surrendered by CRS to the Commission for unconditional and immediate
cancellation, and further that such licenses at such time shall be deemed
to be cancelled.
23. CRS acknowledges that no extensions of the STA referenced herein shall
be granted and no requests for such shall be entertained.
24. Timothy M. Doty agrees that, for a period of 5 years from the
Effective Date, he shall refrain from applying to the Commission in his
individual capacity for any FCC license or instrument of authorization.
Timothy M. Doty further agrees that, henceforth from the Effective Date,
he shall refrain from serving as an Attributable Principal in any entity
that applies for any FCC license or instrument of authorization and, with
the exception of CRS and the STA authority contemplated in paragraph 22,
above, serving as an Attributable Principal in any entity that holds an
FCC license or instrument of authorization. Timothy M. Doty further agrees
that, after a period of 5 years from the Effective Date, he may apply to
the Commission, if at all, in his individual capacity and only for an FCC
license or instrument of authorization in the Amateur Radio Service.
25. Gary C. Doty agrees that, for a period of 5 years from the Effective
Date, he shall refrain from: (a) applying to the Commission in his
individual capacity for any FCC license or instrument of authorization;
(b) serving as an Attributable Principal in any entity that applies for
any FCC license or instrument of authorization; and, with the exception of
CRS and the STA authority contemplated in paragraph 22 above, (c) serving
as an Attributable Principal in any entity that holds an FCC license or
instrument of authorization.
26. Timothy M. Doty and Gary C. Doty each agrees, that if, after a period
of 5 years from the Effective Date, he applies to the Commission for any
FCC license or instrument of authorization in his individual capacity, or,
in the case of Gary C. Doty, as a principal in an applicant, the applicant
shall, in the interest of full disclosure, provide information about the
Order to Show Cause and the disposition of the proceeding in EB Docket No.
06-168 in response to any question which inquires whether the applicant or
any party thereto has ever had an FCC authorization revoked or been
involved in a license revocation proceeding before the FCC. Timothy M.
Doty and Gary C. Doty each acknowledges that the Commission shall process
each such application and evaluate the applicant's basic and other
qualifications to be a Commission licensee in the ordinary course. The
Bureau agrees, in the absence of any intervening felony convictions or
Commission-related misconduct by Timothy M. Doty and/or Gary C. Doty, to
recommend to the Commission that it not designate for hearing any of the
issues in, or consider the conduct which gave rise to, the Order to Show
Cause in evaluating such qualifications.
27. CRS, Gary C. Doty, and Timothy M. Doty, individually and collectively,
agree to make, within 5 business days of the Effective Date, a voluntary
contribution to the United States Treasury in the total amount of $10,000.
The payment must be made by check or similar instrument, payable to the
order of the Federal Communications Commission. The payment must include
NAL/Acct.No. 200632080166 and CRS' FRN No. 0003936358. Payment by check or
money order may be mailed to Federal Communications Commission, P.O. Box
358340, Pittsburgh, PA 15251-8340. Payment by overnight mail may be sent
to Mellon Bank /LB 358340, 500 Ross Street, Room 1540670, Pittsburgh, PA
15251. Payment by wire transfer may be made to ABA Number 043000261,
receiving bank Mellon Bank, and account number 9116229.
28. CRS, Timothy M. Doty, Gary C. Doty, and the Bureau each agrees to
waive any and all rights they may have, collectively and individually, to
seek administrative or judicial reconsideration, review, appeal or stay,
or to otherwise challenge or contest the validity of this Settlement
Agreement and the Approving Order. If the Bureau, the Commission, or the
United States acting on its behalf, brings a judicial action to enforce
the terms of the Approving Order or this Settlement Agreement or both,
neither CRS, Timothy M. Doty nor Gary C. Doty, collectively or
individually, will contest the validity of this Settlement Agreement or
the Approving Order. CRS, Timothy M. Doty and Gary C. Doty do not waive
any statutory right to a trial de novo to determine whether they violated
this Settlement Agreement.
29. The decision of CRS, Timothy M. Doty, Gary C. Doty, and the Bureau to
enter into this Settlement Agreement is expressly contingent upon the
approval of the agreement and the issuance of the Approval Order by the
Presiding Administrative Law Judge or the Chief Administrative Law Judge.
The Parties agree that CRS, Timothy M. Doty, Gary C. Doty, or the Bureau
may withdraw from this Settlement Agreement if any revision, change,
addition, or modification is made to its terms.
30. In the event that this Settlement Agreement is rendered invalid in any
court of competent jurisdiction, it shall become null and void and may not
be used in any manner in any legal proceeding.
31. CRS, Timothy M. Doty and Gary C. Doty agree to waive any claims they
may otherwise have, collectively and individually, under the Equal Access
to Justice Act, 5 U.S.C. S 504 and 47 C.F.R. S 1.1501 et seq., relating to
the matters addressed in this Settlement Agreement.
32. Each Party represents and warrants to the other that it has full power
and authority to enter into this Settlement Agreement.
33. CRS, Timothy M. Doty and Gary C. Doty, individually and collectively,
agree to comply with each individual term and condition of this Settlement
Agreement. Each specific term and condition is a separate term and
condition of the Settlement Agreement, as approved. To the extent that
CRS, Timothy M. Doty or Gary C. Doty fails to satisfy any term or
condition, in the absence of Commission alteration of the term or
condition, CRS, Timothy M. Doty or Gary C. Doty will be in breach of the
provisions of the Settlement Agreement, and may be subject to enforcement
action, and such breach shall be considered by the Commission in any
future application or other proceeding before the Commission.
34. This Settlement Agreement may be executed in counterparts.
FEDERAL COMMUNICATIONS COMMISSION
ENFORCEMENT BUREAU
By: _______________________________ Date: __________________
Kris Anne Monteith, Chief
COMMERCIAL RADIO SERVICE, INC.
By: ________________________________ Date: _________________
Gary C. Doty
GARY C. DOTY
By: ________________________________ Date: __________________
Gary C. Doty
TIMOTHY M. DOTY
By: ________________________________ Date: __________________
Timothy M. Doty
9
6
Federal Communications Commission DA 04-3259