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Before the
FCC 04M-08
FEDERAL COMMUNICATIONS COMMISSION
Washington, D.C. 20554
In the Matter of ) EB Docket No. 03-85
)
BUSINESS OPTIONS, INC. ) File No. EB-02-TC-151
)
Order to Show Cause and Notice ) NAL/Acct. No. 200332170002
of ) FRN: 0007179054
Opportunity for Hearing )
CONSENT ORDER
Issued: February 18, 2004 Released: February 20,
2004
This is a ruling on Joint Request for Adoption of
Consent Decree and Termination of Proceeding, filed on
February 17, 2004, by the Enforcement Bureau (``Bureau'') and
Business Options, Inc. (``BOI'') in accordance with §§ 1.93
and 1.94 of the Commission's rules [47 C.F.R. §§ 1.93,
1.94].1
This proceeding was set for hearing by Order to Show
Cause and Notice of Opportunity for Hearing, 18 F.C.C. Rcd
6881, released April 7, 2003 (``OSC''). Issues were
specified to determine whether BOI had made
misrepresentations or engaged in lack of candor (Issue a); to
determine whether BOI had changed consumers' preferred
carrier without their authorization in willful or repeated
violation of § 258 of the Communications Act of 1934, as
amended (the ``Act'') and §§ 64.1100-1190 of the Commission's
rules
(Issue b); to determine whether BOI had failed to file FCC
Form 499-A in willful or repeated violation of § 64.1195 of
the Commission's rules (Issue c); to determine whether BOI
had discontinued service without Commission authorization in
willful or repeated violation of § 214 of the Act and §§
63.71 and 63.505 of the Commission's rules (Issue d); to
determine whether BOI's authorization pursuant to § 214 of
the Act to operate as a common carrier should be revoked
(Issue e); and to determine whether the BOI and/or its
principals should be ordered to cease and desist from the
provision of any interstate common carrier services without
the prior consent of the Commission (Issue f). See OSC, 18
F.C.C. Rcd at 6894 (¶ 36).
If it were shown that BOI willfully or repeatedly
violated the provisions of the Act or the Commission's rules
noted above, then it would further be determined whether a
forfeiture, in the maximum amount of $80,000 for each
unauthorized conversion of listed complainants' long distance
service, $3,000 for the failure to file a sworn statement,
and $120,000 for the unauthorized discontinuance of service,
should be imposed. See OSC,
18 F.C.C. Rcd at 6894-95 (¶ 39).
By Memorandum Opinion and Order, FCC 03M-33, released
August 20, 2003 (``MO&O''), additional issues were specified
to determine whether BOI and its related entities, Buzz
Telecom Corp. (``Buzz''), U.S. Bell and/or Link Technologies
(collectively, ``U.S. Bell'') failed to make required
universal service contributions in violation of
§ 254(d) of the Act and § 54.706 of the Commission's rules
(Issue g); to determine
whether BOI, Buzz and/or U.S. Bell had failed to make
required contributions to the Telecommunications Relay
Services Fund in violation of § 64.604(c)(5)(iii)(A) of the
Commission's rules (Issue h); and to determine whether BOI,
Buzz and/or U.S. Bell
failed to file Telecommunications Reporting Worksheets
(``Worksheets'') in violation of
§§ 54.711, 54.713 and 64.604(c)(iii)(B) of the Commission's
rules (Issue i). In addition,
if it were shown that BOI, Buzz and/or U.S. Bell willfully or
repeatedly violated the provisions of the Act or the
Commission's rules noted above, then it would further be
determined whether a forfeiture, in the amount of $115,533.52
for the failures to make required universal service
contributions, $10,000 for each failure to timely file
Worksheets, and $10,000 for each failure to make required
contributions to the TRS Fund (Issue j) should be imposed.
Memorandum Opinion and Order, FCC 03M-33 at 4 (¶ 10),
clarified, Memorandum Opinion and Order, FCC 03M-57, released
December 23, 2003, and clarification Order, FCC 04M-04,
released January 30, 2004.
By Memorandum Opinion and Order, FCC 03M-54, released
December 9, 2003, Issues b, c and d were resolved by summary
decision against BOI. By Memorandum Opinion and Order, FCC
03M-58, released December 24, 2003, Issues g, h, and i were
resolved against BOI, Buzz and U.S. Bell. See 47 C.F.R. §
1.94 (f) (consent decree provisions shall not effect
procedures for resolving issues by summary decision after
hearing designation. There were no findings of
misrepresentation or lack of candor, or of any case
dispositive issue in connection with either of these summary
decisions.
Public Interest
BOI, its affiliates (Buzz and U.S. Bell) and their
management company, Avatar Enterprises, Inc. (collectively,
the ``Companies''),2 and the Bureau have entered into a
Consent Decree which would resolve all of the issues.
Approval of the Consent Decree authorizes terminating this
proceeding.
Approval of the Consent Decree will further the public
interest by securing repayment of BOI's universal service
debt, adequately sanctioning BOI for the violations cited in
the summary decisions, and instituting a compliance plan that
will ensure that BOI remains current with its universal
service and TRS obligations and that will ensure compliance
with the Commission's slamming and reporting requirements, in
exchange for the prompt disposition of this proceeding's
remaining issues. In addition, the Consent Decree requires
BOI to make a voluntary payment (not a fine or a forfeiture)
in the amount of $510,000 to the United States Treasury over
four years.3
The Consent Decree will secure future compliance with
the law by the Companies and their principals in exchange for
the prompt disposition of this proceeding. See
§ 1.93(b) of the Commission's rules. Accordingly, based upon
a review and evaluation
of the Consent Decree, it is concluded that the requirements
of §§ 1.93 and 1.94 of the Commission's rules are satisfied,
and that the public interest would be served by approval.
The Consent Decree is to be filed with the Secretary and
placed on the public record by the effective date of this
Consent Order.
Rulings
IT IS ORDERED pursuant to § 1.94(d) of the Commission's
rules, that the Consent Decree IS APPROVED.
IT IS FURTHER ORDERED pursuant to § 1.94(d) of the
Commission's rules, that the record of this proceeding IS
CLOSED.
IT IS FURTHER ORDERED pursuant to § 1.94(b)(7) of the
Commission's rules, that all of the issues specified in the
Order to Show Cause and Notice of Opportunity for Hearing ARE
RESOLVED.
IT IS FURTHER ORDERED that pursuant to § 1.94(e) of the
Commission's rules, the Joint Request for Adoption of Consent
Decree and Termination of Proceeding IS GRANTED.4
FEDERAL COMMUNICATIONS COMMISSION5
Richard L.
Sippel
Chief Administrative Law Judge
_________________________
1 The parties submitted a draft Consent Order to the
Presiding Judge for consideration in accordance with §
1.94(b)(7). The Consent Order provides for termination of
the proceeding after the period prescribed for a Commission
review sua sponte has expired. See § 1.94(e) of the
Commission's rules. There has been no change, addition, or
modification of the Consent Decree.
2 BOI, Buzz and U.S. Bell, Inc. and, its successor, Link
Technologies, are owned and controlled by Kurtis Kintzel and
his brother, Keanan Kintzel. In addition, both BOI and Buzz
are ``managed'' by another entity, Avatar Enterprises, Inc.,
which is also owned and controlled by Kurtis and Keanan
Kintzel.
3 The amount of the voluntary payment was determined as
follows: $115,000 (essentially, the maximum figure cited in
the most recent clarification of the issue, see Order, FCC
04M-04, released January 30, 2004) for BOI's repeated
failures to make universal service contributions in a timely
manner; $3,000 (the maximum provided in the OSC) for BOI's
willful failure to timely file its Registration Statement;
$12,000 (below the maximum allowed by the OSC but not
inconsistent with precedent, see, e.g., Broadstreet
Communications, Inc., Notice of Apparent Liability for
Forfeiture, 17 FCC Rcd 7938 (Enf. Bur. 2002)) for the
unauthorized discontinuation of service in Vermont; $40,000
(below the maximum allowed by the OSC but not inconsistent
with precedent (see, e.g., 47 C.F.R. § 1.80, note to section
(b)(4), Section 1) for each of nine unauthorized changes of
long distance telephone service for a total of $360,000;
$10,000 (the maximum allowed by MO&O, FCC 03M-33) for BOI's
willful failure to timely make its TRS contribution; and
$10,000 (less than what MO&O, FCC 03M-33 allowed but
consistent with 47 C.F.R. § 1.80, note to section (b)(4),
Section 1) for BOI's repeated failures to timely file
Worksheets.
4 However, the Commission may review the Consent Decree on
its own motion under § 1.302 of the Commission's rules. See
§ 1.94(e). Therefore, this Consent Order and the Consent
Decree
will become effective and this proceeding is terminated 50
days after its public release if the Commission does not
review the Consent Order and/or the Consent Decree on its own
motion.
47 C.F.R. § 1.302.
5 Courtesy copies of this Consent Order were sent to counsel
for the parties by fax or e-mail on the day of issuance.