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Before the
Federal Communications Commission
FCC 05M-12
Washington, D.C. 20554
In the Matter of ) EB Docket No. 02-149
)
PUBLIX NETWORK CORPORATION; ) File No. EB-01-TC-052
Customer Attendants, LLC; ) NAL/Acct. No. 200232170003
Revenue Controls Corporation; ) FRN: 0004-3412-51
SignTel, Inc.; and )
Focus Group, LLC )
)
Order to Show Cause and Notice )
of )
Opportunity for Hearing
CONSENT ORDER
Adopted: March 14, 2005
Released: March 15, 2005
This is a ruling on a Joint Request for Adoption of
Consent Decree and Termination of Proceeding, filed March 9,
2005, by the Enforcement Bureau (``Bureau'') and Publix
Network Corporation, Customer Attendants, LLC, Revenue
Controls Corporation, SignTel, Inc., and Focus Group, LLC,
(the ``Publix Companies'') in accordance with sections 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 the Order to
Show Cause and Notice of Opportunity for Hearing (``OSC''),
17 FCC Rcd 11487 (2002), released June 19, 2002. Issues
were specified to determine whether: (1) the Commission
should revoke the operating authority of the Publix
Companies; (2) the Publix Companies and the principal or
principals (including but not limited to Dr. Raanan
Liebermann) of the Publix Companies should be ordered to
cease and desist from any future provision of interstate
common carrier services without the prior consent of the
Commission; (3) the Publix Companies are entitled to any of
the TRS Fund monies that they requested or received from the
interstate TRS Fund; and (4) a forfeiture against any or all
of the Publix Companies is warranted and, if so, the amount
of the forfeiture.
On July 15, 2002, a federal grand jury returned an
indictment against
Dr. Liebermann and Publix Network Corporation. On September
30, 2004,
Dr. Liebermann and Publix Network Corporation entered into
Plea Agreements with the U.S. Attorney's Office for the
District of Connecticut (``U.S. Attorney's Office''). As
part of the Plea Agreements, Dr. Liebermann and Publix
Network Corporation pled guilty to a substitute information,
which charged them both with: (1) making a false statement
to the FCC through the Fund Administrator, which currently
is the National Exchange Carrier Association (``NECA'') in
violation of 18 U.S.C. § 1001; and (2) engaging in an
unlawful monetary transaction, in violation of 18 U.S.C. §
1957. (In return for their pleas to these offenses, the
U.S. Attorney's Office agreed to dismiss the original
indictment.)
Dr. Liebermann and Publix Network Corporation admitted
requesting and receiving reimbursement from the TRS Fund for
calls that included minutes where no meaningful
communication was occurring, because the participants were
``dotting'' - striking the ``period'' or ``dot'' key on
their text telephones on a regular basis in order to prevent
their telephones from being disconnected from a conference
call. Dr. Liebermann and Publix Network Corporation further
admitted that they knew that the claims they submitted and
caused to be submitted to NECA for reimbursement from the
TRS Fund were materially false, fictitious, or fraudulent,
because the reimbursement requests included claims for
minutes that they knew did not involve any meaningful
communications, but were instead artificially generated
through the practice of ``dotting.''
Public Interest
The Publix Companies, Dr. Raanan Liebermann, owner of
the Publix Companies, and the Bureau have entered into a
Consent Decree which resolves the issues set forth in the
OSC. Approval of the Consent Decree authorizes terminating
this proceeding.
Approval of the Consent Decree will further public
interest by having
Dr. Liebermann and the Publix Companies relinquish their
authorization to operate as common carriers, agreeing to
cease and desist from the provision of any interstate common
carrier services without the prior consent of the
Commission, and securing repayment of funds to the TRS
Fund,2 in exchange for the prompt disposition of this
proceeding's remaining issues. 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 the issues specified in the Order
to Show Cause and Notice of Opportunity for Hearing ARE
RESOLVED.
IT IS FURTHER ORDERED pursuant to § 1.94(e) of the
Commission's rules, that the Joint Request for Adoption of
Consent Decree and Termination of Proceeding IS GRANTED.3
FEDERAL COMMUNICATIONS COMMISSION.4
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 These funds include $7,963,875 (plus interest) [see
Consent Decree at ¶ 2(k) - ``Reimburse-ment Amount''] and
$2,381,440 that Dr. Liebermann and the Public Companies
have agreed to waive all rights to and that are currently
held by the TRS fund administrator (see Consent Decree at ¶
11.)
3 The Commission, however, may review the Consent Decree
on its own motion under § 1.302 of the Commission's rules.
See § 1.94(e). Therefore, the 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.
4 Courtesy copies of this Consent Order were sent to
counsel for the parties by facsimile or e-mail on the day
of issuance.