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Federal Communications Commission
Washington, D.C. 20554
In the Matter of )
) File No. EB-03-DT-120
Paladen Communications, Inc. )
a/k/a CB Shop ) NAL/Acct. No.
North Jackson, Ohio ) FRN: 0010 6809 40
NOTICE OF APPARENT LIABILITY FOR FORFEITURE
Released: May 27, 2004
By the District Director, Detroit Office, Northeast Region,
1. In this Notice of Apparent Liability for Forfeiture
("NAL"), we find that Paladen Communications, Inc. a/k/a CB Shop
(``Paladen''), has apparently violated Section 302(b) of the
Communications Act of 1934, as amended1 (``the Act''), and
Sections 2.815(b) and 2.815(c) of the Commission's Rules
(``Rules'')2 by offering for sale Citizens Band (``CB'') external
radio frequency power amplifiers (``linears''). We conclude that
Paladen is apparently liable for a forfeiture in the amount of
seven thousand dollars ($7,000).
2. On July 24, 2003, agents from the Detroit Office
visited Paladen at 12274 Mahoning Avenue, Suite 14, North
Jackson, Ohio. During this visit, the agents observed a Palomar
Deluxe Modulator DX-55V CB linear on sale for $250. The agents
informed Arthur Dundorf and Preston Dundorf of Paladen, that CB
linears could not be legally sold. As a result of their
findings, the Detroit Office issued them a Citation on October
31, 2003. The Citation informed Paladen of the violations and
penalties that could be imposed for selling linears. The Detroit
Office received a reply from Paladen, signed by Preston L.
Dundorf, proprietor. He wrote that they were unaware that they
were violating marketing rules and that they would not violate
the rules in the future.
3. On January 9, 2004, the Detroit Office received a
complaint that Paladen was continuing to violate the Commission's
marketing rules by selling CB linear amplifiers. As a result of
this new report, an agent traveled to North Jackson, Ohio to
determine if Paladen was continuing to sell CB linears. On
February 24, 2004, a sales person for Paladen offered to sell the
agent a Palomar 100 watt linear amplifier for $124.00.
4. Section 302 of the Act authorizes the Commission to
regulate equipment capable of emitting radio frequency energy
that may cause interference to radio communications. The Act
further states that ``[n]o person shall manufacture, import,
sell, offer for sale, or ship devices or home electronic
equipment and systems, or use devices, which fail to comply with
regulations promulgated pursuant to this section. Section
2.815(b) of the Rules states that ``...no person shall
manufacture, sell or lease, offer for sale or lease (including
advertising for sale or lease), or import, ship, or distribute
for the purpose of selling or leasing or offering for sale or
lease, any external radio frequency power amplifier or amplifier
kit capable of operation on any frequency or frequencies between
24 and 35 MHZ.''3 Section 2.815(c) of the rules states ``No
person shall manufacture, sell or lease (including advertising
for sale or lease) or import, ship or distribute for the purpose
of selling or leasing or offering for sale or lease, any external
radio frequency power amplifier or amplifier kit capable of
operation on any frequency or frequencies below 144 MHz unless
the amplifier has received a grant of type acceptance...''
Paladen was repeatedly warned, verbally and in writing, about the
penalties for selling CB linear amplifiers, yet, they continued
to sell them in violation of Section 302 of the Act4 and Sections
2.815(b) and 2.815(c) of the Rules.
5. Based on the evidence before us, we find that Paladen
willfully5 and repeatedly6 violated Section 302 of the Act and
Sections 2.815(b) and 2.815(c) of the Rules by offering for sale
CB linear amplifiers on February 24, 2004. The Commission's
Forfeiture Policy Statement and Amendment of Section 1.80 of the
Rules to Incorporate the Forfeiture Guidelines, 12 FCC Rcd 17087,
17113 (1997), recon. denied, 15 FCC Rcd 303(1999) (``Forfeiture
Policy Statement'')7, sets the base forfeiture amount for
importation or marketing of unauthorized equipment at seven
thousand dollars ($7,000). In assessing the monetary forfeiture
amount, we must take into account the statutory factors set forth
in Section 503(b)(2)(D) of the Act.8 These factors include 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 other such matters
as justice may require. Applying the Forfeiture Policy
Statement, statutory factors and the inflation adjustments to the
base amount of Paladen's violation of $7,000 for marketing
unauthorized equipment, we find no compelling evidence to support
any adjustments to the base forfeiture amount. Thus, we believe
that a forfeiture amount of seven thousand dollars ($7,000) is
IV. ORDERING CLAUSES
6. Accordingly, IT IS ORDERED THAT, pursuant to Section
503(b)9 of the Act and Sections 0.111, 0.311 and 1.80 of the
Rules10, Paladen Communications a/k/a CB Shop, is hereby
NOTIFIED of this APPARENT LIABILITY FOR A FORFEITURE in the
amount of seven thousand dollars ($7,000) for willful and
repeated violation of Section 302(b) of the Act and Sections
2.815(b) and 2,815(c) of the Rules.
7. IT IS FURTHER ORDERED THAT, pursuant to Section 1.80 of
the Rules, within thirty (30) days of the release date of this
NOTICE OF APPARENT LIABILITY, Paladen, SHALL PAY the full amount
of the proposed forfeiture or SHALL FILE a written statement
seeking reduction or cancellation of the proposed forfeiture.
8. Payment of the forfeiture may be made by mailing a
check or similar instrument, payable to the order of the Federal
Communications Commission, to the Forfeiture Collection Section,
Finance Branch, Federal Communications Commission, P.O. Box
73482, Chicago, Illinois 60673-7482. The payment should note the
NAL/Acct. No. 200432360003, FRN: 0010 6809 40.
9. The response, if any, must be mailed to Federal
Communications Commission, Detroit Office, 24897 Hathaway Street,
Farmington Hills, MI 48335-1552, and MUST INCLUDE THE NAL/Acct.
10. The Commission will not consider reducing or canceling
a forfeiture in response to a claim of inability to pay unless
the petitioner submits: (1) federal tax returns for the most
recent three-year period; (2) financial statements prepared
according to generally accepted accounting practices (``GAAP'');
or (3) some other reliable and objective documentation that
accurately reflects the petitioner's current financial status.
Any claim of inability to pay must specifically identify the
basis for the claim by reference to the financial documentation
11. Requests for payment of the full amount of this Notice
of Apparent Liability under an installment plan should be sent
to: Chief, Revenue and Receivables Operations Group, 445 12th
Street, S.W., Washington, D.C. 20554.11
12. Under the Small Business Paperwork Relief Act of 2002,
Pub L. No. 107-198, 116 Stat. 729 (June 28, 2002), the FCC is
engaged in a two-year tracking process regarding the size of
entities involved in forfeitures. If you qualify as a small
entity and if you wish to be treated as a small entity for
tracking purposes, please so certify to us within thirty (30)
days of this NAL, either in your response to the NAL or in a
separate filing to be sent to the Federal Communications
Commission, Enforcement Bureau, Spectrum Enforcement Division,
445 12th Street, S.W., Washington, D.C. 20554. Your
certification should indicate whether you, including your parent
entity and its subsidiaries, meet one of the definitions set
forth in the list provided by the FCC's Office of Communications
Business Opportunities (OCBO) set forth in Attachment A of this
Notice of Apparent Liability. This information will be used for
tracking purposes only. Your response or failure to respond to
this question will have no effect on your rights and
responsibilities pursuant to Section 503(b) of the Communications
Act. If you have questions regarding any of the information
contained in Attachment A, please contact OCBO at (202) 418-0990.
13. IT IS FURTHER ORDERED THAT this NOTICE OF APPARENT
LIABILITY shall be sent by Certified Mail, Return Receipt
Requested, to Paladen Communications a/k/a CB Shop, 12274
Mahoning Avenue, Suite 14, North Jackson, Ohio 44451.
FEDERAL COMMUNICATIONS COMMISSION
James A. Bridgewater
Attachment A - FCC List of Small Entities, October 2002.
1 47 U.S.C. § 302(b).
47 C.F.R. §§ 2.815(b), and 2.815(c).
3 Note: For purposes of this part, the amplifier will be deemed
incapable of operation between 24 and 35 MHz if: (1) The
amplifier has no more than 6 decibels of gain between 24 and 26
MHz and between 28 and 35 MHz. (This gain is determined by the
ratio of the input driving signal (mean power measurement) to the
mean RF output power of the amplifier.): and (2) The amplifier
exhibits no amplification (0 decibels of gain) between 26 and 28
4 Citation issued to Paliden Communications d/b/a The CB Shop,
October 31, 2003.
5 Section 312(f)(1) of the Act, 47 U.S.C. § 312(f)(1), which
applies to violations for which forfeitures are assessed under
Section 503(b) of the Act, provides that ``[t]he term `willful',
when used with reference to the commission or omission of any
act, means the conscious and deliberate commission or omission of
such act, irrespective of any intent to violate any provision of
this Act ....'' See California Broadcasting, Co., 6 FCC Rcd 4387
6 Section 312(f), which also applies to Section 503(b), of the
Act, provides that: ``[t]he term ``repeated'', when used with
reference to the commission or omission of any act, means the
commission or omission of such act more than once or, if such
commission or omission is continuous, for more than one day.''
747 C.F.R. § 1.80.
8 47 U.S.C. § 503(b)(2)(D).
9 47 U.S.C. § 503(b).
10 47 C.F.R. §§ 0.111, and 0.311.
11 See 47 C.F.R. § 1.1914.