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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                )                               
                                                                
                                )                               
                                                                
                                )                               
                                                                
                                )   File No. EB-03-TC-100       
     In the Matter of                                           
                                )   NAL/Acct. No. 200432170005  
     DYNASTY MORTGAGE, L.L.C.                                   
                                )   FRN: 0012612156             
                                                                
                                )                               
                                                                
                                )                               
                                                                
                                )                               


                              ORDER OF  FORFEITURE

   Adopted: April 24, 2007   Released:  May 14, 2007

   By the Commission:

   I. Introduction

    1. In this Order of Forfeiture, we assess a monetary forfeiture of
       $748,000 against Dynasty Mortgage, L.L.C. ("Dynasty") for willfully
       and repeatedly violating section 64.1200(c)(2) of the Commission's
       rules by making telephone calls for the purpose of delivering
       telephone solicitations to residential telephone consumers who
       registered their telephone numbers on the National Do-Not-Call
       Registry. This order imposes the maximum forfeiture amount of $11,000
       for each of 68 calls made by Dynasty to 50 residential telephone
       consumers in Arizona and California between March 2, 2004 and January
       20, 2005.

   II. Background

    2. The facts and circumstances surrounding this case are set forth in the
       Commission's Notice of Apparent Liability for Forfeiture in this
       matter and need not be reiterated at length. Dynasty offers mortgage
       financing services, and uses telephone solicitation as a means of
       advertising those services. Like other entities that employ telephone
       solicitations to promote commercially-available property, goods, or
       services, Dynasty is subject to do-not-call provisions contained in
       section 64.1200 of the Commission's rules. Section 64.1200
       incorporates two options for residential telephone consumers who wish
       to limit unwanted telephone solicitations: an opportunity to opt out
       of most telemarketing by signing on to the National Do-Not-Call
       Registry and an opportunity to direct particular entities to refrain
       from telemarketing by making a company-specific do-not-call request.
       Dynasty's calls that are subject to forfeiture herein relate
       exclusively to provisions governing the National Do-Not-Call Registry.

    3. Section 64.1200(c)(2) of the Commission's rules requires that "no
       person or entity shall initiate any telephone solicitation . . . to .
       . . a residential telephone subscriber who has registered his or her
       telephone number on the National Do-Not-Call Registry of persons who
       do not wish to receive telephone solicitations that is maintained by
       the federal government." Not every promotional call, however,
       constitutes a prohibited telephone solicitation under this rule. As
       established by the Telephone Consumer Protection Act, the term
       "telephone solicitation" does not include calls (1) to any person with
       that person's prior express invitation or permission; (2) to any
       person with whom the caller has an established business relationship;
       or (3) by or on behalf of a tax-exempt nonprofit organization.
       Accordingly, an advertising call that falls within one of these
       statutory exclusions does not violate section 64.1200(c)(2). In
       addition to the statutory exemptions, section 64.1200(c)(2)(iii) also
       permits delivery of telephone solicitations to National Do-Not-Call
       registrants in the limited situation in which the caller has a
       personal relationship with the called party. Moreover, religious and
       political messages are not considered to be "telephone solicitations"
       and are, therefore, exempt from the Commission's National Do-Not-Call
       rules.

    4. To protect against prohibited telemarketing calls, entities that
       advertise through telephone solicitations are required to pay fees to
       access the National Do-Not-Call Registry and must "scrub" their call
       lists of non-exempt residential telephone numbers contained in the
       Registry. Recognizing that parties who have made good faith efforts to
       comply with the national do-not-call rules may, nonetheless,
       occasionally make some calls in error to registered telephone lines,
       the Commission established standards for a safe harbor exemption from
       liability.

    5. To qualify for safe harbor protection, a seller must first demonstrate
       that, as part of its routine business practice, it has: (1)
       established and implemented written procedures to comply with the
       do-not-call rules; (2) trained its personnel, and any entity assisting
       in its compliance, in the procedures established pursuant to the
       do-not-call rules; (3) maintained and recorded a list of telephone
       numbers the seller may not contact; (4) used a process to prevent
       telemarketing to any telephone number on any list established pursuant
       to the do-not-call rules, employing a version of the National
       Do-Not-Call Registry obtained from the administrator of the Registry
       within a designated time frame, and has maintained records documenting
       this process; and (5) used a process to ensure that it does not sell,
       rent, lease, purchase, or use the Registry for any purpose except
       national do-not-call compliance, and that it has purchased access to
       the Registry from the Registry administrator without participating in
       any cost sharing arrangement with any other entity. Finally, the safe
       harbor only applies if the seller is able to show that the unlawful
       calls were the result of identifiable error and made in spite of
       adherence to the enumerated do-not-call procedures.

    6. The Telecommunications Consumers Division ("Division") of the
       Commission's Enforcement Bureau began investigating Dynasty in October
       2003 in conjunction with its review of consumer complaint data
       involving calls made to telephone numbers contained in the then-new
       National Do-Not-Call Registry. The Division found a significant volume
       of complaints involving Dynasty, and in October and November 2003,
       sent letters to Dynasty seeking information both about its
       telemarketing practices generally and about specific complaints from
       consumers who allegedly received calls from Dynasty despite their
       registration on the National Do-Not-Call Registry. After Dynasty
       failed to respond, the Division issued a citation against Dynasty on
       December 22, 2003. The citation warned Dynasty that future delivery of
       telephone solicitations to residential consumers registered on the
       National Do-Not-Call Registry could subject it to monetary forfeitures
       of up to $11,000 per call. In addition, the citation informed Dynasty
       that it could, within 30 days of the citation, either have a personal
       interview at a Commission field office or submit a written response to
       the citation.

    7. Dynasty representatives contacted the Division by telephone in early
       January 2004. Initially, a Dynasty representative claimed that Dynasty
       was exempt from federal do-not-call regulations. Later, after Dynasty
       apparently terminated that representative's employment, Dynasty
       acknowledged its obligation to comply with the Commission's
       do-not-call rules during telephone conversations with the Division.
       Finally, by letter dated February 20, 2004, Dynasty responded in
       writing to the citation, reiterating the information provided orally:
       that Dynasty's failure to honor its do-not-call obligations and to
       respond timely to the Division's citation was attributable to
       incorrect advice from its terminated contract-employee, and that
       do-not-call compliance was now a priority for Dynasty.

    8. Despite Dynasty's assurances, consumers whose residential telephone
       numbers are registered on the National Do-Not-Call Registry continued
       to complain about telephone solicitations made by Dynasty.
       Accordingly, on July 6, 2004, the Division sent to Dynasty a Letter of
       Inquiry ("LOI") seeking information about consumer complaints received
       after issuance of the citation, 45 of which were filed after Dynasty's
       February 20 letter. The LOI directed Dynasty to provide information
       regarding each complaint including, inter alia, whether and why it
       called the complainants. In addition, the LOI sought information
       regarding Dynasty's internal procedures to ensure compliance with the
       National Do-Not-Call Registry and its own company-specific do-not-call
       list.

    4. Dynasty responded to the LOI on July 28, 2004. Dynasty provided some
       information regarding its do-not-call efforts but did not fully answer
       the LOI. In particular, Dynasty did not address the complaints
       individually; instead it provided a broad general response regarding
       the purpose of its telephone solicitations. Dynasty did not deny
       making the calls in question but appeared to invoke the safe harbor
       defense, claiming to have routine business practices largely
       consistent with the safe harbor standards set forth in section
       64.1200(c)(2)(i). As consumers continued to complain about Dynasty's
       telemarketing calls, the Division pursued its investigation, reviewing
       Dynasty's submission and contacting complaining consumers to obtain
       more information about the calls they had received.

    5. On March 1, 2005, the Commission issued the Dynasty NAL to propose a
       forfeiture penalty against Dynasty for 70 telephone solicitations
       allegedly made to residential telephone subscribers who had placed
       their numbers on the National Do-Not-Call Registry. On the basis of
       information provided by call recipients and Dynasty itself, along with
       review of FTC National Registry documentation, the NAL concludes that
       (1) Dynasty's calls were telephone solicitations made in violation of
       the Commission's national do-not-call requirements; (2) Dynasty had
       failed to demonstrate that it qualified for the safe harbor from
       liability; and (3) the maximum forfeiture should be applied given
       Dynasty's failure to implement effective national do-not-call
       procedures and its handling of the calls. Supporting these findings
       are sworn declarations from each consumer that outline the receipt of
       Dynasty's call(s) and attest to the lack of any mitigating factors
       that might justify a telephone solicitation, such as a transaction
       with or inquiry to Dynasty or explicit permission for Dynasty to
       solicit.

    6. Responding to the NAL, Dynasty initially submitted a brief letter
       challenging the proposed forfeiture. Subsequently, it filed a
       voluminous submission to explain and document its assertion that it
       should not be held liable for the calls at issue. In short, Dynasty
       contends that it has implemented comprehensive procedures to prevent
       telephone solicitations to consumers on the National Do-Not-Call
       Registry, and that any calls reaching registered consumers were made
       unintentionally and constitute a miniscule percentage of its total
       telemarketing calls. Further, although Dynasty concedes that it placed
       21 of the calls subject to forfeiture herein, it disputes the
       remaining 47 calls for various reasons including that some calls could
       not or may not have been made and that some consumers actually were
       not on the Do-Not-Call Registry. Finally, Dynasty also argues that
       "imposing any forfeiture would ultimately bankrupt this company."

    7. With respect to Dynasty's claim of financial hardship, the Division
       urged Dynasty to provide a more thorough explanation of its financial
       status and to fully document and authenticate its financial claims. To
       date, Dynasty has not provided this information or responded to the
       Division's request.

   III. discussion

   13. At the outset, we have carefully reviewed records pertaining to each
       of the 70 telephone solicitations addressed in the Dynasty NAL. We
       have considered Dynasty's NAL Response and conclude that with respect
       to 68 of the calls, Dynasty has failed to present evidence to warrant
       rescinding or reducing the proposed forfeiture for these violations.
       Dynasty's arguments against forfeiture are rooted in three assertions:
       (1) that some of the calls subject to forfeiture either were not made
       or cannot be proven to have been made; (2) that Dynasty has
       comprehensive procedures to prevent telemarketing to consumers on the
       National Do-Not-Call Registry and that any calls made in spite of
       these procedures are excusable error, falling within the safe harbor
       from liability; and (3) that any forfeiture threatens Dynasty's
       financial solvency. We address these contentions below. Finally, we
       are rescinding the proposed forfeiture with respect to two calls
       because they were made one day before the recipient's Do-Not-Call
       registration became effective and, thus, do not constitute violations.

     A. Dynasty Has Not Rebutted Evidence of Unlawful Telemarketing Calls

   14. Based upon review of its telemarketing records, Dynasty claims that 45
       of the 68 calls subject to forfeiture here either were not made or
       cannot conclusively be confirmed to have been made. Specifically,
       Dynasty denies making nine calls and notes that it either does not
       have records, or its records are inconclusive with respect to 36 of
       the disputed calls. In summary, Dynasty (1) admits making 21 unlawful
       calls, (2) is unable to confirm or deny making 36 calls, (3) denies
       making nine calls, and (4) alleges that two calls went to telephone
       numbers that were not on the National Do-Not-Call Registry.

   15. We find Dynasty's claims unpersuasive. With respect to the 45 calls
       that Dynasty either denies or is unable to confirm, we note again that
       each of the 50 consumers who filed a complaint about receiving calls
       from Dynasty has signed, under penalty of perjury, a declaration that
       details the circumstances surrounding the call or calls that each
       claims to have received. The fact that Dynasty cannot independently
       confirm each of the 45 disputed calls at issue does not establish that
       the calls were not made. First, as Dynasty admits, 21 of these calls
       were made prior to full implantation of its automated calling system,
       and it retained no records that would indicate whether or not it
       placed the calls. Second, given that the record indicates that
       Dynasty's attention to its telemarketing obligations during the time
       period at issue was incomplete at best, we believe that the sworn
       statements provided by consumers are more reliable than Dynasty's
       records, even over those generated by Dynasty's automated
       telemarketing operations. In this regard, we also note that Dynasty's
       automated telemarketing system is not the only means by which
       Dynasty's telemarketing calls could be made. In fact, Dynasty itself
       raises questions about the reliability of its telemarketing workforce,
       specifically suggesting that personnel eager to meet or exceed sales
       goals may have made unauthorized calls not permitted under Dynasty's
       own national do-not-call policies.

   16. We also reject Dynasty's more specific claims regarding particular
       calls. Dynasty is incorrect in claiming that two consumers who
       reported receiving a total of six calls were not on the National
       Do-Not-Call Registry at the time they were called. The telephone
       numbers that Dynasty associates with the consumers at issue, however,
       are not the telephone numbers reported by the complainants. The
       residential numbers provided by the two consumers were indeed
       registered on the National Do-Not-Call Registry for the required time
       as of the date of the calls.

   17. We are also unpersuaded by Dynasty's assertion that three calls cannot
       have occurred because the originating telephone number obtained by the
       complainants through caller ID cannot be used to make outgoing
       telephone calls.  It is unclear whether Dynasty is asserting that it
       is actually physically impossible to make outgoing telephone calls
       from the number in question, which is the main telephone number for
       Dynasty's San Diego office, or that placing such calls violates
       company policy because it could tie up the office telephone system. We
       also note that telemarketers may lawfully transmit through caller ID
       any telephone number associated with the telemarketer or party on
       whose behalf a call is made, as long as the transmitted number allows
       the consumer to identify the caller. A telemarketer or seller such as
       Dynasty could, therefore, transmit the main office or customer service
       telephone number in lieu of the actual telephone numbers from which
       calls were placed. Again, given Dynasty's uncertain support for its
       assertion, we believe that the complainants' sworn declarations are
       the more reliable source.

   18. In short, Dynasty has failed to demonstrate that it did not make any
       of the 68 calls subject to forfeiture and detailed in complainants'
       sworn declarations. We turn next to whether these calls fall within
       the safe harbor from liability.

     A. Dynasty's Practices during the Period March 2004 - January 2005 Do
        Not Satisfy All  Safe Harbor Criteria

   19. The safe harbor from liability for unlawful telemarketing calls
       applies only when a seller meets each of five separate operational
       criteria and also demonstrates that any unlawful calls were made as a
       result of identifiable error. The Dynasty NAL discusses in detail
       various aspects of Dynasty's operations that preclude application of
       the safe harbor defense to the 68 calls at issue. In determining
       whether those calls fall within the safe harbor from liability, the
       NAL examined information supplied by Dynasty in response to the LOI;
       the complainants' declarations; and data maintained by the FTC in
       connection with the National Registry. We need not repeat the NAL's
       detailed analysis of how that information, available to the Commission
       as of March 2005, was inconsistent with safe harbor standards.
       Instead, we focus our discussion now on the new information provided
       by Dynasty in its NAL Response to determine whether that information
       alters our previous conclusions regarding Dynasty's failure to
       demonstrate applicability of the safe harbor defense.

   20. As set forth below, and reflected in Appendix A, we find that 51 of
       Dynasty's calls do not fall within the safe harbor because they were
       made during a period that Dynasty either had not accessed relevant
       portions of the National Do-Not-Call Registry at all or had not
       obtained updated versions of the Registry. The remaining 17 calls were
       made at times when Dynasty had obtained relevant portions of the
       Registry within required time frames. We find, nonetheless, that
       Dynasty has failed to demonstrate that the safe harbor applies to
       those 17 calls. The evidence before us does not show that Dynasty
       conducted the required scrubs of its call lists or fully implemented
       an accurate and effective written national do-not-call policy during
       any part of the forfeiture period. Because Dynasty failed to meet
       these safe harbor criteria, it is liable for the calls at issue.

      1. Accessing the National Do-Not-Call Database - Section
         64.1200(c)(2)(i)(D)

   21. Under section 64.1200(c)(2)(i)(D), the safe harbor defense reflects
       the linchpin of sellers' national do-not-call obligations: the
       requirement to refrain from calling residential telephone consumers
       who have placed their numbers on the National Do-Not-Call Registry.
       Accordingly, section 64.1200(c)(2)(i)(D) limits the safe harbor
       defense to an entity that can demonstrate, inter alia, that as part of
       its routine business practices, it "use[s] a process to prevent
       telephone solicitations to any telephone number on any list
       established pursuant to the do-not-call rules, employing a version of
       the national do-not-call registry obtained from the administrator of
       the registry . . . [within a specified timeframe], and maintains
       records documenting this process."

   22. This safe harbor provision thus contains three distinct elements: (1)
       the requirement to access the National Do-Not-Call Registry at
       appointed times to obtain numbers that may not be called; (2) the
       requirement to have a routine process for using that information to
       prevent delivery of unlawful telephone solicitations, i.e., scrubbing
       telemarketing lists; and (3) the requirement to maintain records that
       document such access to and use of the Registry.

   23. To facilitate access to the Registry, the FTC assigns a unique
       subscription account number ("SAN") to each entity that purchases the
       right to access the Registry. The FTC maintains a database, which is
       available to law enforcement entities such as this Commission, that
       records each time that a particular SAN is used to obtain the Registry
       and what portion (i.e., area codes) of the Registry is accessed. The
       FTC thus maintains records that document whether a seller has complied
       with requirements governing the means and timing of accessing the
       Registry.  For 62 of the calls at issue here, Dynasty was required to
       use a version of the Do-Not-Call Registry obtained no more than three
       months prior to the date it made any telemarketing call. Six calls
       made by Dynasty after January 1, 2005 are subject to a rule amendment
       that requires use of a version of the Registry obtained no more than
       31 days before any telemarketing call.

       a. Dynasty Has Failed to Access the National Do-Not-Call Registry at
          Appointed Times to Obtain Numbers That May Not Be Called

   24. As emphasized in the Dynasty NAL, Dynasty did not access the Registry
       at all between March 15, 2004 and January 6, 2005. During this almost
       ten month period, Dynasty missed three deadlines - June 8-15, 2004;
       September 8-15, 2004; and December 8-15, 2004 - to obtain relevant
       portions of the Registry in order to scrub its telemarketing lists
       within the three-month period then in effect. Dynasty made 45 calls
       that are subject to forfeiture herein during the lapsed period from
       June 8-15, 2004 until January 5, 2005. In addition, six of the calls
       at issue herein were made between March 2 and March 9, 2004 before
       Dynasty even accessed appropriate portions of the Registry for the
       first time. Dynasty made 51 calls, therefore, either using outdated
       Registry information or no information at all.

   25. Dynasty's 2004 telemarketing plan appears to have called for Dynasty
       to access the National Do-Not-Call Registry through third party lead
       generators that it hired to obtain relevant portions of the Registry
       on its behalf, using its SAN, and then providing scrubbed call lists.
       Dynasty does not allege that any of its lead generators either failed
       to obtain the Registry as ordered by Dynasty or to properly scrub call
       lists; instead Dynasty briefly addresses the lapse in accessing the
       Registry by referring to "stretching call lists usage." It appears,
       therefore, that Dynasty consciously used outdated call lists for over
       five months. Moreover, in March 2004 - more than a month after a
       Dynasty representative orally admitted to Division staff the company's
       obligation to comply with the Commission's national do-not-call
       requirements and more than two weeks after Dynasty's president
       committed, in writing, to prompt and rigorous compliance - Dynasty
       made calls without ever having accessed relevant portions of the
       Registry. For the 51 calls made using either outdated National
       Registry data or no data at all, Dynasty's safe harbor defense fails
       on these facts alone. While acceptable written do-not-call policies,
       training techniques, manner of recording company-specific do-not-call
       requests, and actual scrubbing of call lists may differ from seller to
       seller, the safe harbor affords no discretion or variation as to a
       seller's obligation to access the National Do-Not-Call Registry at the
       required time.

       a. Dynasty Has Failed to  Demonstrate That It Implemented a Routine
          Process to Use Information from the National Do-Not-Call Registry
          to Prevent Delivery of Unlawful Telephone Solicitations

   26. It is clear that Dynasty could not have properly scrubbed any call
       list during the period June 8-15, 2004 through January 5, 2005; its
       failure to access the National Do-Not-Call Registry during this period
       precludes any acceptable scrub. Further, even apart from this period,
       evidence suggests that Dynasty never completely scrubbed all its call
       lists.

   27. Either Dynasty or its third party lead generators accessed the
       National Do-Not-Call Registry on March 8-15, 2004 and January 6, 2005.
       Evidence does not establish, however, that Dynasty actually used the
       Registry data accessed at these times to implement "a process to
       prevent telephone solicitations to any telephone number" on the
       Registry as required by section 64.1200(c)(2)(1)(D). Despite its
       obligation to maintain records documenting its actions, Dynasty does
       not present evidence that either the company itself or its third party
       lead generators successfully scrubbed all of Dynasty's call lists.
       Dynasty provides invoices from five lead generators relating to its
       purchase of lead lists intermittently over the period December 2003
       through February 2005. These records do not demonstrate that Dynasty
       consistently purchased scrubbed call lists, much less that it took
       steps to ensure that it actually used only scrubbed call lists. Of the
       16 invoices provided by Dynasty, only one lists Dynasty's SAN that
       must be used to access the National Do-Not-Call Registry on Dynasty's
       behalf; 12 invoices, on the other hand, contain no entry in the space
       on the form marked "SAN." One invoice contains the entry "Scrubbed
       Against the National Do Not Call List." Some invoices specify area
       codes for which Dynasty purchased leads while others contain generic
       descriptions such as "homeowners." These scattered and vague records
       do not establish that Dynasty consistently purchased scrubbed call
       lists or that it took steps to ensure that every call list it used was
       properly scrubbed. The mere fact that on occasion Dynasty accessed the
       Registry itself or obtained scrubbed call lists does not mean that it
       actually used such lists properly.

   28. The lack of documentation in the record to prove that Dynasty actually
       purchased scrubbed call lists or produced them on its own is not the
       only factor that raises questions as to whether Dynasty properly used
       information from the National Do-Not-Call Registry after its March
       2004 and January 2005 access. Dynasty suggests that its failure to
       obtain updated versions of the National Do-Not-Call Registry may have
       resulted in calls to newly-registered consumers. The record, however,
       indicates that 23 of the 32 complainants that Dynasty called between
       June 8, 2004 and January 5, 2005 - the period during which it failed
       to obtain updated versions of the Registry - had, in fact, been
       registered on the version of the Registry obtained by Dynasty or by
       its lead generators in March 2004. In short, even though Dynasty
       failed to obtain updated Registry information, it could have prevented
       29 of the 45 unlawful telemarketing calls made during the lapsed
       period simply by using the March 2004 versions of the Registry, which
       it possessed at the time it made the calls.

   29. Finally, although Dynasty accessed the Registry for a second time on
       January 6, 2005, it did not access the Registry again until March 2,
       2005, one day after the Dynasty NAL was released and served upon
       Dynasty via fax. Dynasty thus failed to access the Registry in
       February 2005 as required. Although, the NAL does not include any
       calls made in February or March 2005 after Dynasty's January 6 access
       expired, Dynasty's continued failure to timely access the National
       Do-Not-Call Registry is yet further support for our finding that it
       failed to fully implement a process whereby it used the National
       Do-Not-Call Registry to prevent delivery of telephone solicitations to
       registered numbers.

       a. Dynasty Has Failed to  Demonstrate That It Has Maintained Records
          Documenting Access to and Use of the National Do-Not-Call Registry

   30. Section 64.1200(c)(2)(i)(D) conditions a safe harbor defense upon a
       seller's maintenance of records documenting access to and use of the
       National Do-Not-Call Registry. As provided in Dynasty's April 12 NAL
       Response, documentation for the period March 2, 2004 through January
       20, 2005 is incomplete and inconclusive. The only documentation
       submitted by Dynasty related to its access to the Registry or scrubs
       of its call lists are the 16 invoices described above, which fail to
       demonstrate that Dynasty properly or completely scrubbed its call
       lists during the forfeiture period. In fact, Dynasty does not provide
       any records that document its March 2004 and January 2005 access to
       the National Do-Not-Call Registry; were it not for the FTC records
       regarding these access dates, which Commission staff acquired, there
       would be no clear and conclusive documentation that Dynasty's SAN was
       ever used to obtain the Registry.

   2.  Written Procedures - Section 64.1200(c)(2)(i)(A)

   31. To qualify for the safe harbor exemption, a seller must demonstrate
       that as part of its routine business practice, "it has established and
       implemented written procedures to comply with the national do-not-call
       rules." In its NAL Response, Dynasty describes at length the
       procedures that it has adopted to prevent telemarketing calls to
       consumers on the National Do-Not-Call Registry and to others who have
       told Dynasty that they do not wish to receive its telephone
       solicitations. We emphasize, however, that Dynasty's current
       compliance plan and telemarketing operations are not at issue here.

   32. According to Dynasty, it immediately took steps to implement effective
       national do-not-call procedures when it realized in late January 2004
       that it must honor the National Do-Not-Call Registry, contrary to its
       contractor's advice. Dynasty states that it made significant and
       immediate changes to its telemarketing operations while it worked to
       develop an automated calling system, which it introduced on June 1,
       2004 to replace its paper-based system for maintaining both
       telemarketing "leads" and the company-specific do-not-call list. In
       its NAL Response, Dynasty provides detailed descriptions of both its
       automated and paper-based systems for complying with both national and
       company-specific do-not-call requirements along with its training
       materials and its formal do-not-call policy. These materials stand in
       stark contrast to the summary responses and scant documentation that
       Dynasty provided in July 2004 in response to the Division's LOI, and
       it is difficult to understand why Dynasty would not have provided the
       Division with complete descriptions and internal company records in
       response to the LOI, which explicitly directed their submission. Even
       assuming, however, that the detailed telemarketing handbook, training
       materials, and other written procedures set forth in Dynasty's April
       12 NAL Response existed during the forfeiture period, Dynasty does not
       meet the criteria established by section 64.1200(c)(2)(i)(A).

   33. A compliance plan, however well-conceived and expressed, is
       meaningless if it is not fully implemented. Dynasty clearly failed
       multiple times to implement a critical element. Dynasty's Telephone
       Solicitation Policy calls for the company to access the National
       Do-Not-Call Registry every eight to ten weeks until January 1, 2005
       when access was required every month. As detailed above and in the
       NAL, Dynasty missed three deadlines for accessing the Registry during
       the period June 15, 2004 to January 5, 2005. In addition, when Dynasty
       actually did access the National Do-Not-Call Registry (March 8-15,
       2004 and January 6, 2005), evidence does not establish that Dynasty
       effectively used the Registry in the manner described in its April 12
       NAL  Response narrative and accompanying internal documents. These
       failures to follow its own procedures to both access the National
       Do-Not-Call Registry at required intervals and use such information to
       prevent unlawful telephone solicitations not only fall short of the
       safe harbor standard to properly access and use the National
       Do-Not-Call Registry but also separately indicate that Dynasty did not
       effectively or fully implement its written procedures. On this basis,
       Dynasty does not meet the safe harbor standard contained in section
       64.1200(c)(2)(i)(A).

   34. The evidence in the record makes it difficult to avoid the conclusion
       that careful implementation of a national do-not-call compliance plan
       did not become a priority for Dynasty until after issuance of the
       Dynasty NAL. Dynasty provided detailed written materials concerning
       such a plan to the Commission only in response to the NAL, despite the
       fact that the staff specifically requested such records in the July
       2004 LOI. This conclusion is further supported by evidence
       establishing that Dynasty only began regularly accessing the National
       Do-Not-Call Registry within the required time interval after the
       Dynasty NAL. Such a record cannot support a finding that Dynasty
       properly implemented its written compliance plan during the forfeiture
       period.

   3.  Training of Personnel - Section 64.1200(c)(2)(i)(B)

   35. Section 64.1200(c)(2)(i)(B) of the safe harbor defense requires a
       seller to demonstrate that as part of its routine business practice,
       "it has trained its personnel, and any entity assisting in its
       compliance, in procedures established pursuant to the national
       do-not-call rules." In the Dynasty NAL, we  found that Dynasty's LOI
       response did not reasonably demonstrate the existence of an adequate
       training program to meet this safe harbor requirement. By contrast,
       the materials provided by Dynasty in its NAL Response detail a
       rigorous telemarketing training program that includes, as a primary
       component, Dynasty's obligations with respect to both national and
       company-specific do-not-call requirements. We have no information,
       however, to verify that such training was conducted during the time
       frame in question or in the manner described in Dynasty's most recent
       pleading. Further, claims made by Dynasty telemarketers to consumers
       who questioned or challenged Dynasty's calls raise questions as to
       whether Dynasty accurately and effectively educated its personnel.
       Nonetheless, because we have determined above that Dynasty has not met
       other safe harbor criteria, we need not rule here on the adequacy of
       its training program during the forfeiture period.

   4.  Purchasing the Registry - Section 64.1200(c)(2)(i)(E)

   36. The safe harbor requires a telephone solicitor to demonstrate that it
       "uses a process to ensure that it does not sell, rent, lease,
       purchase, or use the national do-not-call database, or any part
       thereof, for any purpose except compliance with [the do-not-call
       rules] and any such state or federal law to prevent telephone
       solicitations to telephone number registered on the national
       database." It must demonstrate that it "purchases access to the
       relevant do-not-call data from the administrator of the national
       database and does not participate in any arrangement to share the cost
       of accessing the national database, including any arrangement with
       telemarketers who may not divide the cost to access the national
       database among various client sellers." Dynasty's LOI response failed
       to provide any information or statement regarding this aspect of the
       safe harbor, and the NAL so noted this deficiency. In its April 122
       NAL  Response, however, Dynasty states that it (1) purchases the
       National Do-Not-Call Registry from the administrator; (2) uses the
       National Do-Not-Call Registry solely for compliance with do-not-call
       requirements; and (3) does not participate in any arrangement to share
       costs of accessing the National Do-Not-Call Registry. We have no
       reason to question Dynasty's assertions in this regard. Compliance
       with a single safe harbor requirement, however, does not remove
       liability for unlawful calls.

   5.  Error - Section 64.1200(c)(2)(i)

   37. The error aspect of the safe harbor defense exempts from liability
       telephone solicitations that are the result of specific identifiable
       errors that occurred during telemarketing conducted in compliance with
       each do-not-call safe harbor provision contained in section
       64.1200(c)(2)(i). Accordingly, failure to meet a single safe harbor
       standard renders error irrelevant. Moreover, as emphasized in the
       Dynasty NAL, the error defense does not apply simply because an entity
       meets all other safe harbor criteria. Instead, once an entity has
       demonstrated compliance with each safe harbor standard, it may then
       invoke an error claim by showing that unlawful telephone solicitation
       occurred as a result of a specific error. As explained above, we
       conclude that Dynasty has failed to demonstrate compliance with at
       least two safe harbor standards for the time frame at issue, and thus
       cannot claim the safe harbor defense even if it were able to
       demonstrate that particular calls are attributable to identifiable
       errors.

   38. Dynasty's NAL Response claims stringent procedures to ensure
       compliance with National Do-Not-Call rules and appears to suggest that
       any unlawful calls should be found to have been made in error. In this
       regard, Dynasty compares the total number of telemarketing calls that
       it has made during various periods between February 2004 and March
       2005 against the number of national do-not-complaints lodged against
       it during those time frames, yielding claimed complaint rates between
       .00014 and .00129 percent. According to Dynasty, these miniscule
       complaint levels attest to the efficacy of its do-not-call practices
       and demonstrate that any unlawful calls are the result of error.

   39. Further, although Dynasty does not indicate that it has discovered
       specific events or oversights that may have caused such alleged
       errors, it outlines possible breakdowns that could lead to unlawful
       calls being made outside its normal do-not-call procedures.

   40. Dynasty's arguments about complaint levels and possible glitches in
       national do-not-call compliance might be credible if it had fully
       implemented its compliance plan and accessed the National Do-Not-Call
       Registry as required, but it did not. In addition, some of the
       possible breakdowns to national do-not-call compliance that Dynasty
       posits are more indicative of an inherently flawed compliance program
       than error.

   41. Finally, Dynasty appears to misunderstand the interplay between error
       and intent. While intent is relevant in assessing whether an unlawful
       telephone solicitation made by an otherwise compliant telemarketer
       constitutes error,  a call is not made in error simply because a
       telemarketer did not intend to violate national do-not-call
       requirements or did not intend to call numbers on the National
       Do-Not-Call Registry. Whatever a seller's specific intent in making a
       particular telemarketing call, calling a number on the National
       Registry cannot be deemed unintentional when a seller has failed to
       implement basic threshold procedures to guard against making such
       calls. Further, it does not matter whether or not a seller's failure
       to implement is intentional when such failure is substantial,
       pervasive, and recurring. The safe harbor in our rules thus recognizes
       that a telemarketer's intent to avoid unlawful calls is best evidenced
       by detailed compliance procedures and adherence to basic requirements
       such as timely access to the Registry. In short, the error defense
       only applies to unlawful actions that occur despite comprehensive
       policies and procedures to prevent them. Dynasty clearly did not
       adhere to such procedures during the forfeiture period.

     A. Dynasty Has Failed to Show that the Proposed Forfeiture for 68 Calls
        Should Be Reduced or Canceled

   42. Section 503(b) of the Act authorizes the Commission to assess a
       forfeiture of up to $11,000 for each violation of the Act or of any
       rule, regulation, or order issued by the Commission under the Act, by
       a non-common carrier or other entity not specifically designated in
       section 503 of the Act. In exercising such authority, we are to take
       into account "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."

   43. The Dynasty NAL proposes the maximum forfeiture of $11,000 for each
       alleged violation of section 64.1200(c)(2) of the Commission's rules.
       Although the Dynasty  NAL is the Commission's first proposed
       forfeiture for violations of the national do-not-call rules, we
       determined that a national do-not-call violation implicates the same
       concern as a violation of the company-specific do-not-call rules and,
       accordingly, applied the $10,000 base amount that the Commission had
       previously proposed for company-specific do-not-call violations. In
       Dynasty's case, we adjusted the base amount upward to the $11,000
       maximum to reflect that (1) Dynasty's practices were "wholly
       inadequate" to promote compliance with national do-not-call rules; (2)
       Dynasty's violations continued despite being informed by the
       Commission's staff that it was relying upon a non-existent exemption
       to justify its calls; and (3) Dynasty continued to misinform consumers
       that it is exempt from national do-not-call rules even after
       admitting, in correspondence to the Commission, that it is subject to
       these rules.

   44. In the NAL Response, Dynasty seeks cancellation of the forfeiture
       claiming that it has implemented a rigorous and costly national
       do-not-call plan on short notice and that it did not willfully make
       telephone solicitations to consumers on the National Do-Not-Call
       Registry. Finally, Dynasty contends that imposition of any forfeiture
       threatens its financial solvency. For the reasons set forth below, we
       find that Dynasty has failed to present evidence justifying reduction
       or cancellation of the proposed forfeiture with respect to the 68
       calls at issue here.

    1. Dynasty's  Conduct

     1. Dynasty failed to meet critical elements of its obligations under the
        Commission's national do-not-call rules, most notably the threshold
        duties to timely access the National Do-Not-Call Registry and scrub
        its telemarketing lists to ensure that calls are not made to
        registered numbers. Dynasty's record thus belies its claim to have
        implemented an effective national do-not-call compliance plan during
        the forfeiture period. Dynasty chose to engage in telemarketing
        without ensuring compliance with the most basic do-not-call
        requirements mandated by section 64.1200(c)(2), resulting in multiple
        calls to consumers registered on the National Do-Not-Call Registry.
        Regardless of Dynasty's intentions, its violations are, therefore,
        both willful and repeated.

   46. Dynasty's NAL Response provides detailed information about the steps
       it has taken to comply with national do-not-call rules. Whatever
       Dynasty's current procedures may be, however, we must consider here
       the state of Dynasty's compliance at the time it made the calls
       currently at issue. Even if Dynasty ultimately brought its
       telemarketing activities into full and consistent compliance with
       national do-not-call rules, that fact alone would not militate against
       forfeiture. Consumers should be able to expect that sellers who choose
       to use telemarketing to advertise their property, goods, or services
       will comply with do-not-call requirements without the necessity of
       costly and time-consuming enforcement actions.

   47. As emphasized in the NAL, our initial goal in this case was to seek
       Dynasty's compliance with the law; not to seek a forfeiture. First, as
       required by the Act, we issued a citation to Dynasty, warning it
       specifically about its non-compliance and requesting that it take
       corrective action immediately. Next, after the citation was issued, we
       took into consideration its assertion regarding the basis for its
       initial noncompliance and its claim of immediate remedial actions, and
       we then monitored complaints filed against Dynasty rather than
       beginning a forfeiture action immediately. We commenced our forfeiture
       action only after complaint levels indicated that Dynasty was still
       making unlawful telephone solicitations and Dynasty's response to our
       LOI revealed the insufficiency of Dynasty's national do-not-call
       compliance program. Nonetheless, we did not impose a forfeiture for
       any calls made by Dynasty before its February 20, 2004 letter to the
       Division, which formally acknowledged its do-not-call obligations and
       pledged effective enforcement. Dynasty has not met even minimal
       compliance standards. Its conduct, therefore, does not merit reduction
       or cancellation of the proposed forfeiture for the 68 unlawful calls.

    2. Financial Hardship

   48. Dynasty details its financial challenges and submits numerous
       financial documents to support its claim that any forfeiture would
       threaten its financial solvency, jeopardizing the continued operation
       of both the Arizona and California entities. As explained in the
       Dynasty NAL, 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 submitted. Despite these clear requirements,
       Dynasty does not include a succinct statement of its financial status
       beyond a summary assertion regarding its liabilities. More critically,
       Dynasty fails to provide the documentation necessary to justify
       reducing or canceling the forfeiture based on financial hardship.
       Dynasty has not provided any federal tax returns to support its
       hardship claim. Further, although Dynasty has submitted over 30 pages
       of financial records pertaining to its Arizona and California
       companies, crucial information is missing. Dynasty provides various
       bank account records, profit and loss statements, and balance sheets
       along with copies of sworn statements from its president and chief
       operating officer attesting to the accuracy of unidentified financial
       records. We cannot be certain, however, as to which records the sworn
       statements pertain because these statements actually predate some of
       Dynasty's financial documentation. In addition, the documentation does
       not include 2004 financial data for Dynasty's California operations
       despite indication to the contrary in the NAL Response. This omission
       prevents our consideration of a key factor necessary to assess
       Dynasty's financial status and hardship claim: its total gross
       revenues. Commission staff urged Dynasty to provide a more complete
       and clear financial showing, including copies of its federal tax
       returns, yet Dynasty has not to date responded. Dynasty's incomplete
       showing fails to reliably and objectively document the company's
       financial status and, thus, does not justify reducing or canceling the
       forfeiture.

   IV.  Conclusion and Ordering Clauses

   49. After reviewing the information and documentation filed by Dynasty in
       its NAL  Response, we find that Dynasty has failed to identify facts
       or circumstances to persuade us that there is a reasonable basis for
       modifying the forfeiture proposed in the Dynasty NAL with respect to
       the 68 telephone solicitations listed in Appendix A. As discussed
       above, Dynasty has failed to show any mitigating circumstances or
       demonstrate financial hardship sufficient to warrant a reduction of
       the forfeiture penalty. We are, however, canceling the proposed
       forfeiture with respect two calls that were made one day before
       effectuation of the call recipient's national do-not-call
       registration.

   50. Accordingly, IT IS ORDERED, pursuant to section 503(b) of the
       Communications Act of 1934, as amended, 47 U.S.C. S 503(b), and
       section 1.80 (f)(4) of the Commission's rules, 47 C.F.R. S 1.80(f)(4),
       that Dynasty Mortgage, L.L.C. SHALL FORFEIT to the United States
       Government the sum of $748,000 for willfully and repeatedly violating
       of section 64.1200(c)(2) of the Commission's rules, as described in
       the paragraphs above and detailed in Appendix A. We find that
       Dynasty's Arizona and California companies are jointly and severally
       liable for this forfeiture because of their common ownership and
       operations, and the fact that they have acted in concert to deliver
       telephone solicitations.

   51. Payment of the forfeiture shall be made in the manner provided for in
       section 1.80 of the Commission's rules within 30 days of the release
       of this Order. If the forfeiture is not paid within the period
       specified, the case may be referred to the Department of Justice for
       collection pursuant to Section 504(a) of the Act. Payment of the
       forfeiture must be made by check or similar instrument, payable to the
       order of the Federal Communications Commission. The payment must
       include the NAL/Acct. No. and FRN No. referenced above. 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 911-6106. Requests for full payment under an installment plan
       should be sent to: Chief, Revenue and Receivables Operations Group,
       445 12^th Street, S.W., Washington, D.C., 20554.

   52. IT IS FURTHER ORDERED that a copy of this Order shall be sent by first
       class mail and certified mail return receipt to Dynasty Mortgage,
       L.L.C. at: (1) 2633 E. Indian School Rd., Suite 370, Phoenix, Arizona
       85016; (2) 5701 W. Talavi Blvd., Suite 110, Glendale, Arizona 85306;
       and (3) 4660 E. LaJolla Village Dr., Suite 400, San Diego, California
       92122.

   FEDERAL COMMUNICATIONS COMMISSION

   Marlene H. Dortch

   Secretary

                                   Appendix A

                            DYNASTY MORTGAGE, L.L.C.

             NATIONAL DO-NOT-CALL VIOLATIONS SUBJECT TO FORFEITURE


                                   Call                                                                                                                                                                                                                                                      
                               Recipient's                                                                                                                                                                                                                                                   
                                                     Dynasty's Telephone Solicitation                                                                                                                                                                                                        
                                  D-N-C-                                                                                                                                                                                                                                                     
      Telephone       Call     Registration                                                     Caller ID                                                                                                                                                                                    

      Recipient     Area Code                                                      Date of                   Timely                                                                                                                                                                          
                                             Registration Effectuation Date of    Dynasty's                 Access to Expired Access  No Access to                                                                                                                                           
                                                 Date         Date       Call     Access to                   D-N-C      to D-N-C                                                                                                                                                            
                                                                                                            Registry     Registry    D-N-C Registry                                                                                                                                          
                                                                                D-N-C Registry                                                                                                                                                                                               

  1 Adams, Robert   858 (CA)                   8/13/03      10/1/03     8/3/04      3/8/04                      X                                                                                                                                                                            

  2 Atkinson,       619 (CA)                   6/28/03      10/1/03    8/31/04     3/13/04                      X                                                                                                                                                                            
    Nigel                                                                                                                                                                                                                                                                                    

  3 Berens,         602 (AZ)                   8/18/04      11/18/04   12/27/04    3/15/04                      X                     602-218-9221                                                                                                                                           
    Barbara                                                                                                                                                                                                                                                                                  

  4 Bonomo, Robert  858 (CA)                   7/23/03      10/1/03     8/3/04      3/8/04                      X                                                                                                                                                                            

  5 Carlson, Jay    623 (AZ)                   6/28/03      10/1/03     3/9/04     3/15/04                                  X         602-445-9276                                                                                                                                           
    E.                                                                                                                                                                                                                                                                                       

                                                                                                                                        Dynasty                                                                                                                                              
  6 Chute, William  619 (CA)                   6/28/03      10/1/03    8/14/04     3/13/04                      X                       Mortgage                                                                                                                                             
    P.                                                                                                                                                                                                                                                                                       
                                                                                                                                      602-218-9221                                                                                                                                           

  7 Demchak, Barry  858 (CA)                   7/26/03      10/1/03    3/26/04      3/8/04          X                                 858/362-8695                                                                                                                                           

  8 Denisac, Frank  858 (CA)                   6/28/03      10/1/03     3/2/04      3/8/04                                  X         858-362-8695                                                                                                                                           

  9                                                                    7/13/04                                  X                     602-218-9221                                                                                                                                           
                                                                                                                                                                                                                                                                                             
 10 Epps, John      858 (CA)                   6/28/03      10/1/03     8/2/04      3/8/04                      X                     602-218-9221                                                                                                                                           
                                                                                                                                                                                                                                                                                             
 11                                                                    8/11/04                                  X                     602-218-9221                                                                                                                                           

 12 Ferguson,       760 (CA)                   6/27/03      10/1/03    8/14/04     3/13/04                      X                     602-218-9221                                                                                                                                           
    Bruce                                                                                                                                                                                                                                                                                    

 13 Fernando, E.    619 (CA)                   7/26/03      10/1/03    4/13/04     3/13/04          X                                                                                                                                                                                        
    Joe A. IV                                                                                                                                                                                                                                                                                

 14 Finnegan,       619 (CA)                   7/26/03      10/1/03    4/12/04     3/13/04          X                                                                                                                                                                                        
    Philip (Jay)                                                                                                                                                                                                                                                                             

                                                 Call Recipient's                                                                                                                                                                                                                            
                                                                                     Dynasty's Telephone Solicitation                                                                                                                                                                        
                                                D-N-C- Registration                                                                                                                                                                                                                          

     Solicitation  Recipient's                                                                                           Date of       Displayed                                                                                                                                             
      Recipient     Area Code                                                    Registration  Effectuation  Date of    Dynasty's                                                     Expired Access  No Access to                                                                           
                                                                                     Date          Date       Call      Access to                    Timely Access to D-N-C Registry     to D-N-C                                                                                            
                                                                                                                                                                                         Registry    D-N-C Registry                                                                          
                                                                                                                      D-N-C Registry                                                                                                                                                         

 15 Frank, Kevin    619 (CA)                                                       1/22/04       4/22/04    11/30/04     3/13/04                                    X                                 888-508-5592                                                                           

 16 Gittus,         623 (AZ)                                                        7/6/03       10/1/03     6/7/04      3/15/04           X                                                          602-445-9277                                                                           
    Michael                                                                                                                                                                                                                                                                                  

 17 Grimes, Larry                                                                                            5/10/04                       X                                                          858-362-8468                                                                           
    A.              619 (CA)                                                       6/28/03       10/1/03                 3/13/04                                                                                                                                                             
 18                                                                                                          5/11/04                       X                                                          858-362-8598                                                                           

 19 Hansen,         619 (CA)                                                       6/29/03       10/1/03     8/7/04      3/13/04                                    X                                 602-218-9221                                                                           
    Patricia                                                                                                                                                                                                                                                                                 

 20 Holland,        858 (CA)                                                        8/6/03       10/1/03     3/5/04       3/8/04                                                            X                                                                                                
    Christopher J.                                                                                                                                                                                                                                                                           

 21 Holmes, Mark    858 (CA)                                                       9/22/03       12/22/03   11/22/04      3/8/04                                    X                                 888-508-5592                                                                           

 22 Jaycox,         480 (AZ)                                                       10/13/03      1/13/04     8/2/04      3/15/04                                    X                                                                                                                        
    Antoinette                                                                                                                                                                                                                                                                               

 23 Johnson, Todd   602 (AZ)                                                       4/14/04       7/14/04    10/26/04     3/15/04                                    X                                                                                                                        

 24 Kertesz, Joe    480 (AZ)                                                       4/25/04       7/25/04     8/16/04     3/15/04                                    X                                 602-218-9221                                                                           

 25                                                                                                          1/6/05                        X                                                          602-218-9221                                                                           
                                                                                                                                                                                                                                                                                             
 26 Koepke, Kevin   480 (AZ)                                                        8/2/04       11/2/04     1/19/05     1/06/05           X                                                          602-218-9221                                                                           
                                                                                                                                                                                                                                                                                             
 27                                                                                                          1/20/05                       X                                                          602-218-9221                                                                           

                                                                                                                                                                                                        Dynasty                                                                              
 28 Langevin,       858 (CA)                                                       7/26/03       10/1/03     9/27/04      3/8/04                                    X                                   Mortgage                                                                             
    Edwin                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                      888-508-5592                                                                           

 29 Lauterbach,                                                                                             12/13/04                                                X                                 602-218-9221                                                                           
    Lynette         480 (AZ)                                                       8/16/04       11/16/04                3/15/04                                                                                                                                                             
 30                                                                                                         12/13/04                                                X                                 602-218-9221                                                                           

 31 Lewis, Jeffrey  619 (CA)                                                       6/30/03       10/1/03     7/10/04     3/13/04                                    X                                                                                                                        

 32                                                                                                         11/30/04                                                X                                 602-218-9221                                                                           
                                                                                                                                                                                                                                                                                             
 33 Logan,                                                                                                   12/1/04                                                X                                 602-218-9221                                                                           
    Michelle        623 (AZ)                                                       5/15/04       8/15/04                 3/15/04                                                                                                                                                             
 34                                                                                                          12/6/04                                                X                                 602-218-9221                                                                           
                                                                                                                                                                                                                                                                                             
 35                                                                                                         12/18/04                                                X                                 602-218-9221                                                                           

                                                                                     Call Recipient's                                                                                                                                                                                        
                                                                                                               Dynasty's Telephone Solicitation                                                                                                                                              
                                                                                    D-N-C- Registration                                                                                                                                                                                      

     Solicitation  Recipient's                                                                                                                             Caller ID Displayed                          Date of       Timely    Expired                                                      
      Recipient     Area Code                                                                                          Registration   Effectuation                                                     Dynasty's     Access to Access to  No Access to                                       
                                                                                                                           Date           Date                                         Date of Call    Access to       D-N-C     D-N-C                                                       
                                                                                                                                                                                                                     Registry  Registry  D-N-C Registry                                      
                                                                                                                                                                                                     D-N-C Registry                                                                          

    Logan,                                                                                                                                                                                                                                                                                   
 35 Michelle        623 (AZ)                                                                                             5/15/04        8/15/04                  12/19/04                3/15/04                         X                602-218-9221                                       
    (cont.)                                                                                                                                                                                                                                                                                  

 37                                                                                                                                                               7/8/04                                                 X                602-218-9221                                       
                                                                                                                                                                                                                                                                                             
 38 Madden,                                                                                                                                                      7/19/04                                                 X                602-218-9221                                       
    William         619 (CA)                                                                                             7/26/03        10/1/03                                          3/13/04                                                                                             
 39                                                                                                                                                              8/11/04                                                 X                602-218-9221                                       
                                                                                                                                                                                                                                                                                             
 40                                                                                                                                                              8/18/04                                                 X                602-218-9221                                       

 41 Marler, James   619 (CA)                                                                                             6/29/03        10/1/03                  7/19/04                 3/13/04                         X                                                                   

 42 McKenzie,       858 (CA)                                                                                              7/1/03        10/1/03                  12/7/04                  3/8/04                         X                                                                   
    James                                                                                                                                                                                                                                                                                    

 43 McKenzie,       619 (CA)                                                                                              7/1/03        10/1/03                   7/8/04                 3/13/04                         X                                                                   
    Thomas                                                                                                                                                                                                                                                                                   

 44 Mitchell,       619 (CA)                                                                                             7/18/03        10/1/03                   4/6/04                 3/13/04           X                                                                                 
    Kelly                                                                                                                                                                                                                                                                                    

 45 Neuberg, Karen  480 (AZ)                                                                                             7/10/04        10/10/04                 12/20/04                3/15/04                         X                602-445-0070                                       

                                                                                                                                                                                                                                            Dynasty                                          
 46 Novitz, Stuart  858 (CA)                                                                                             6/27/03        10/1/03                  7/20/04                  3/8/04                         X                  Mortgage                                         
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                          602-218-9221                                       

 47 Oleska, Myron   619 (CA)                                                                                             7/13/03        10/1/03                  8/18/04                 3/13/04                         X                                                                   

 48 Pickwell,       858 (CA)                                                                                             6/30/03        10/1/03                   3/2/04                  3/8/04                                   X                                                         
    Sheila                                                                                                                                                                                                                                                                                   

                                                                                                                                                                                                                                            Dynasty                                          
 49 Ramsey, Marian  480 (AZ)                                                                                              7/1/03        10/1/03                   5/8/04                 3/15/04           X                                Mortgage                                         
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                          602-445-9256                                       

 50 Recker, Irene   858 (CA)                                                                                             6/29/03        10/1/03                  7/12/04                  3/8/04                         X                                                                   

 51                                                                                                                                                     Sometime between 10/27/04                                        X                                                                   
    Rice, Marilyn   858 (CA)                                                                                             6/29/03        10/1/03                 and11/8/04                3/8/04                                          602-218-9221                                       
 52                                                                                                                                                                                                                      X                                                                   
                                                                                                                                                                 11/8/04                                                                                                                     

                                                                                                                            Call Recipient's                                                                                                                                                 
                                                                                                                                                                    Dynasty's Telephone Solicitation                                                                                         
                                                                                                                           D-N-C- Registration                                                                                                                                               
      Telephone       Call                                                                                            -----------------------------  --------------------------------------------------------------  Caller ID ------------------------  ----------------------------------- 
     Solicitation  Recipient's                                                                                                                                                                                       Displayed              Date of       Timely    Expired                  
      Recipient     Area Code                                                                                                                                                          Registration   Effectuation              Date of    Dynasty's     Access to Access to  No Access to   
                                                                                                                                                                                           Date           Date                   Call      Access to       D-N-C     D-N-C                   
                                                                                                                                                                                                                                                         Registry  Registry  D-N-C Registry  
                                                                                                                                                                                                                                         D-N-C Registry                                      

 53 Rippetoe,       858 (CA)                                                                                                                                                             6/27/03        10/1/03       8/9/04    3/8/04                       X                               
    Patrick                                                                                                                                                                                                                                                                                  

 54 Rumsey, Eric    619 (CA)                                                                                                                                                             6/27/03        10/1/03       4/10/04   3/13/04        X                                             

 55                                                                                                                                                                                                                  12/30/04                                                                
                                                                                                                                                                                                                                                                                             
 56                                                                                                                                                                                                                   1/4/05                   X             X                602-218-9221   
    Scotti, Diane   623 (AZ)                                                                                                                                                             9/25/04        12/25/04                3/15/04                                                      
 57                                                                                                                                                                                                                   1/6/05                   X             X                602-218-9221   
                                                                                                                                                                                                                                                                                             
 58                                                                                                                                                                                                                   1/13/05                                                                

 59 Stewart, Hal    480 (AZ)                                                                                                                                                             9/23/04        12/23/04     12/29/04   3/15/04                      X                602-445-0070   

 60 Taub, Charles   858 (CA)                                                                                                                                                             7/10/03        10/1/03       3/9/04    3/8/04         X                                             

 61 Torkington,     619 (CA)                                                                                                                                                             8/29/03        10/1/03       5/13/04   3/13/04        X                              858-362-8585   
    Adrian                                                                                                                                                                                                                                                                                   

 62 Van Hoven,                                                                                                                                                                                                        3/8/04                                           X      602-445-9276   
    Lynn            480 (AZ)                                                                                                                                                             6/28/03        10/1/03                 3/15/04                                                      
 63                                                                                                                                                                                                                   3/8/04                                           X      602-445-9276   

 64 Vizcarra,       760 (CA)                                                                                                                                                             7/26/03        10/1/03       7/13/04   3/13/04                      X                602-218-9221   
    Victor                                                                                                                                                                                                                                                                                   

 65 Walker, Claire  619 (CA)                                                                                                                                                              4/9/04         7/9/04       9/23/04   3/13/04                      X                888-508-5592   

                                                                                                                                                                                                                                                                                Dynasty      
 66 Wassel,         858 (CA)                                                                                                                                                             7/26/03        10/1/03       6/1/04    3/8/04         X                                Mortgage     
    Theodore A.                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                              858-362-8585   

 67 Worthington,    858 (CA)                                                                                                                                                             6/28/03        10/1/03       8/25/04   3/8/04                       X                               
    Mary                                                                                                                                                                                                                                                                                     

 68 Zanelli,        858 (CA)                                                                                                                                                             7/26/03        10/1/03       8/6/04    3/8/04                       X                               
    Elizabeth                                                                                                                                                                                                                                                                                
 -----------------------------                                                                                                                                                        -----------------------------  ----------------------------------  ----------------------------------  
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             


   According to Dynasty, "Dynasty Mortgage" refers to two separate companies
   owned by Curtis L. White who serves both as President and Chief Executive
   Officer. See Dynasty Response to Apparent Liability for Forfeiture, dated
   April 12, 2005. The entities, both named Dynasty Mortgage L.L.C., were
   organized separately in Arizona and California in 2000 and 2002,
   respectively, although Dynasty's own website and internal documents have
   represented the companies as a single entity. Because of their common
   ownership and operations, and the fact that the Arizona and California
   companies have acted in concert to deliver telephone solicitations, we
   find both Dynasty entities jointly and severally liable for the forfeiture
   imposed herein. We have obtained information indicating that Dynasty may
   have ceased operations. See Better Business Bureau of Central and Northern
   Arizona, Reliability Report, Jan. 16, 2007 ("According to information in
   the Bureau files, it appears that the company is no longer in business.
   The numbers the Bureau had for this company are disconnected, and
   directory assistance does not have a listing for this company. The
   Bureau's mail to this company has been returned as undeliverable."). In
   addition, Dynasty's California telephone number is not in service, and the
   website that served both Dynasty's Arizona and California businesses is no
   longer operating. Further, the Arizona Department of Financial
   Institutions reports that on April 27, 2006, Dynasty's license as a
   mortgage broker was revoked. See Arizona Department of Financial
   Institutions, Summary of Actions Report at 42 (April 2006),
   http://azdfi.gov/Forms/SAR_2006_04.pdf. Records of the Arizona Corporation
   Commission show that in April 2006, an individual named Curtis White
   accepted appointment as the statutory agent for Preferred Mortgage
   Services, Inc., a company incorporated in the state of California in 1991
   and seeking to do business in Arizona. See Preferred Financial Group, Inc.
   d/b/a Preferred Mortgage Services, Inc., Application for Authority to
   Transact Business in Arizona (Apr. 19, 2006). At the time of the
   telemarketing violations addressed herein, Dynasty operated out of two
   offices in Arizona and one in California: (1) 2633 E. Indian School Rd.,
   Suite 370, Phoenix, Arizona 85016; (2) 5701 W. Talavi Blvd., Suite 110,
   Glendale, Arizona 85306; and (3) 4660 E. LaJolla Village Dr., Suite 400,
   San Diego, California 92122.

   Dynasty Mortgage, L.L.C., Notice of Apparent Liability for Forfeiture, 20
   FCC Rcd 4901 (2005) ("Dynasty NAL" or "NAL"). The Dynasty NAL was issued
   pursuant to section 503 of the Communications Act of 1934, as amended,
   which gives the Commission authority to assess a forfeiture against any
   person who has "willfully or repeatedly failed to comply with any of the
   provision of this Act or of any rule, regulation, or order issued by the
   Commission under this Act. . . ." 47 U.S.C. S 503(b)(1). Section 503
   provides that the Commission must assess such penalties through the use of
   a written notice of apparent liability or notice of opportunity for
   hearing. Id. at S 503(b)(3), (4).

   47 C.F.R. S 64.1200(c)(2), (d).

   Id. The Commission's do-not-call rules closely correspond to those of the
   Federal Trade Commission ("FTC"), which shares federal enforcement
   responsibilities with this Commission and also maintains and manages the
   National Do-Not-Call Registry. As provided in the Commission's 2003 order
   that incorporated the Registry in section 64.1200, we have focused our
   enforcement efforts in this area on entities that fall outside the FTC's
   jurisdiction: communications common carriers, airlines, insurance
   companies, banks, credit unions, savings and loans, and intrastate calls
   by any entity. See Rules and Regulations Implementing the Telephone
   Consumer Protection Act of 1991, Report and Order, 18 FCC Rcd 14014,
   14138-39 (2003) ("2003 TCPA Order").

   47 C.F.R. S 64.1200(c)(2).

   Section 64.1200(c)(2)(ii) of our rules requires that prior express
   invitation or permission to call a residential telephone consumer who has
   signed on to the National Do-Not-Call Registry "must be evidenced by a
   signed, written agreement between the consumer and seller which states
   that the consumer agrees to be contacted by this seller and includes the
   telephone number to which the calls may be placed." 47 C.F.R. S
   64.1200(c)(2)(ii).

   For do-not-call purposes, the term "established business relationship"
   means "a prior or existing relationship formed by a voluntary two-way
   communication between a person or entity and a residential subscriber with
   or without an exchange of consideration, on the basis of the subscriber's
   purchase or transaction with the entity within the eighteen (18) months
   immediately preceding the date of the telephone call or on the basis of
   the subscriber's inquiry or application regarding products or services
   offered by the entity within the three months immediately preceding the
   date of the call, which relationship has not been previously terminated by
   either party." 47 C.F.R. S 64.1200(f)(3).

   47 U.S.C S 227(a)(3); 47 C.F.R. S 64.1200(f)(9).

   The term "personal relationship" means "any family member, friend, or
   acquaintance of the telemarketer making the call." 47 C.F.R. S
   64.1200(f)(11).

   2003 TCPA Order, 18 FCC Rcd at 14040. A call containing such speech,
   however, may not be exempt if it merely "serve[s] as a pretext to an
   otherwise prohibited advertisement." Id. at 14040 n. 141.

   "Scrubbing" refers to comparing a company's call list to the National
   Do-Not-Call Registry and eliminating from the call list all non-exempt
   numbers contained in the National Registry that are not covered by an
   exemption. 2003 TCPA Order, 18 FCC Rcd at 14023 n. 37.

   47 C.F.R. S 64.1200(c)(2)(i); 2003 TCPA Order, 18 FCC Rcd at 14040.

   Since January 1, 2005, telemarketers are required to use a version of the
   Registry that is no more than 31 days old. In other words, telephone
   solicitors are, in effect, required to scrub their call lists against the
   National Do-Not-Call Registry no more than 31 days before making any call.
   Consequently, unlawful calls may be prosecuted no sooner than 31 days
   after a consumer has signed on to the National Do-Not-Call Registry. See
   Rules and Regulations Implementing the Telephone Consumer Protection Act
   of 1991, Order, 19 FCC Rcd 19215 (2004) (amending section
   64.1200(c)(2)(i)(D)). Prior to January 1, 2005, and during the time period
   relevant to most of the calls at issue here, telemarketers were permitted
   to use a version of the Registry that was no more than three months old.
   See para. 23, infra.

   47 C.F.R. S 64.1200(c)(2)(i).

   Division staff reviewed do-not-call complaints received by both this
   Commission and the FTC.

   Letters from Kurt A. Schroeder, Deputy Chief, Telecommunications Consumers
   Division, to Dynasty Mortgage, dated Oct. 6, 2003 and Nov. 18, 2003.

   If, as here, an alleged violator does not hold a Commission license,
   permit, certificate, or authorization, the Commission may not initiate a
   forfeiture proceeding without first issuing a warning citation. 47 U.S.C.
   S 503(b)(5). If the citation recipient continues the unlawful behavior
   after receiving the citation, the Commission may propose monetary
   penalties, but only for those violations that occur after issuance of the
   citation.

   Citation from Kurt A. Schroeder, Deputy Chief, Telecommunications
   Consumers Division, to Dynasty Mortgage, dated Dec. 22, 2003.

   Commission staff disputed this claim and urged the Dynasty representative
   to respond to the citation in writing to fully explain the basis for its
   position. Dynasty NAL, 20 FCC Rcd at 4905.

   See id. (reporting January 30, 2004 and February 19, 2004 telephone
   conversations).

   Letter from Curtis L. White, President, Dynasty Mortgage, to Kurt A.
   Schroeder, Deputy Chief, Telecommunications Consumers Division, dated Feb.
   20, 2004.

   As explained below, we are canceling the proposed forfeiture for two calls
   that were made prior to effectuation of the call recipient's do-not-call
   registration. See para. 13, infra.

   Each complainant has signed a declaration, under penalty of perjury,
   asserting that (1) receipt of a telephone call or calls from Dynasty
   Mortgage on the complainant's residential telephone line despite
   registration of that number on the National Do-Not-Call Registry; (2)
   absence of prior express permission or invitation for the call(s); and (3)
   absence of a transaction with Dynasty or any of its affiliated companies
   within the 18 months immediately preceding the call(s), or an inquiry or
   application to any of these entities within the three months immediately
   preceding the call(s). In addition, three complainants who recorded the
   name of the individual calling on behalf of Dynasty attest that they do
   not, to the best of their knowledge, have a personal relationship with the
   caller. Finally, 29  complainants also attest to receipt of caller ID
   information, which either explicitly identified Dynasty or displayed a
   telephone number traceable to Dynasty in the case of 44 calls.

   Letter from Curtis L. White, President, Dynasty Mortgage, to Kurt
   Schroeder, Deputy Chief, Telecommunications Consumers Division, dated Mar.
   31, 2005 ("March 31 NAL Response"); Response to Apparent Liability for
   Forfeiture, dated Apr. 14, 2005 ("April 14 NAL Response") (collectively
   "NAL Response").

   This figure does not include the two calls for which we are canceling the
   proposed forfeiture. See n. 22, supra, and para. 13, infra.

   March 31 NAL Response.

   Letter from Kurt Schroeder, Deputy Chief, Telecommunications Consumers
   Division, to Curtis L. White, President, Dynasty Mortgage, dated Dec. 22,
   2005.

   The two calls at issue were received by Hal Stewart on December 22, 2004.
   Mr. Stewart's residential telephone number was registered on the National
   Do-Not-Call Registry on September 23, 2004 and that registration became
   effective on December 23, 2004. The December 22^nd calls, therefore, are
   not violations. Mr. Stewart received another call from Dynasty on December
   29, 2004, which is a violation and subject to forfeiture herein. See
   Appendix A, infra.

   Dynasty concedes making 21 calls but claims without elaboration that 10 of
   those calls were never actually completed ("21 prohibited calls . . . are
   confirmed to have been dialed of these 10 only were connected"). April 12
   NAL Response at 20.

   Dynasty notes that its review is complicated by the fact that its original
   paper-based telemarketing system did not generate records that can be
   reviewed now to determine whether particular calls were made.

   Dynasty makes this claim with respect to 38 of the 70 calls specified in
   the Dynasty NAL. As indicated above, however, we are rescinding the
   proposed forfeiture for two of these calls. See para. 13, supra. Dynasty's
   position with respect to these calls is not entirely clear: Dynasty both
   states that the identified complainants "are assumed to have been called"
   and that the calls to those individuals "can not be confirmed nor denied."
   April 12 NAL  Response at 18, 20.

   See n. 23, supra.

   Dynasty's position with respect to these calls is not entirely clear:
   Dynasty both states that the identified complainants "are assumed to have
   been called" and that the calls to those individuals "can not be confirmed
   nor denied." April 12 NAL  Response at 18, 20.

   See paras. 19-34, infra.

   Dynasty reports that its automated records are "inconclusive" with respect
   to 17 calls that complainants claim to have received after Dynasty's new
   automated telemarketing system was introduced in June 2004. April 12 NAL
   Response at 20.

   Id. at 20, 23.

   Dynasty admits two of the calls but maintains that its automated records
   do not show that the remaining four calls were made. April 12 NAL
   Response at 19.

   The residential telephone numbers provided in the consumers' sworn
   declarations are different from those that Dynasty attributes to its
   calls. In one case, Dynasty indicates that it called a consumer, Michelle
   Logan, at a California telephone number that was supposedly not on the
   National Do-Not-Call Registry at the time of the call. The NAL, however,
   applies to calls made to an individual named Michelle Logan at an Arizona
   telephone number. Ms. Logan reports receiving a total of five calls within
   less than one month. In the other case, involving a call received by
   Antoinette Jaycox, two online telephone directories confirm that the
   telephone number provided in Ms. Jaycox 's declaration is listed under the
   name "Antoinette Jaycox" while the number that Dynasty claims to have used
   to call Ms. Jaycox is listed under another name. Dynasty's errors in this
   regard may stem from the fact that it apparently reviewed its
   telemarketing records by call recipients' name, and did not request from
   the Division the consumer declarations, each of which lists the telephone
   number at which the consumer received Dynasty's call(s). For privacy
   reasons, the declarations are not routinely-available Commission records
   like the NAL itself. The Division, however, makes such materials available
   to NAL recipients upon request.

   As shown in Appendix A, we have confirmed that each residential telephone
   number provided by the 50 complainants in this case was timely and
   properly registered on the National Do-Not-Call Registry at the time the
   68 calls subject to forfeiture were made.

   Appendix A of the NAL incorrectly noted that one consumer, Joe Fernando,
   had provided caller ID information. Instead, as indicated in Mr.
   Fernando's declaration, the listed telephone number was provided orally by
   Dynasty's telemarketer.

   "This phone line is not used for outbound calls; doing so would occupy the
   main incoming line preventing incoming calls. The phone system at 4660 E.
   La Jolla Village Dr. Ste. 400 San Diego, CA 92122 does not allow outbound
   calls using the phone line 858-362-8585." Dynasty April 12 NAL Response at
   20.

   47 U.S.C. S 64.1601(e); 2003 TCPA Order, 18 FCC Rcd at 14122.

   The Dynasty NAL does not address Dynasty's compliance with the safe harbor
   requirement to record company-specific do-not-call requests, 47 C.F.R. S
   64.1200(c)(2)(i)(C). Likewise, we do not address this safe harbor aspect
   here although we note that we have not received complaints that Dynasty
   has failed to honor company-specific do-not-call requests within the
   required 31-day period.

   See n. 13, supra.

   47 C.F.R. S 64.1200(c)(2)(i)(D)

   In addition, the FTC's Internet do-not-call complaint system automatically
   checks the complainant's telephone number to determine whether and when
   that number was added to the National Do-Not-Call Registry. The system
   then compares the registration date against the date of the alleged
   telemarketing call, and only accepts complaints in which the complainant's
   telephone number was timely registered at the time of the alleged call. In
   this case, our staff has independently confirmed that each complainant's
   telephone number was registered on the National Do-Not-Call Registry for
   the required three months or 31 days before the alleged call was made. As
   indicated above, we have discovered that two calls for which we proposed a
   forfeiture penalty were made one day prior to effectuation of the call
   recipient's do-not-call registration. See para 13, supra. This complainant
   also received a call from Dynasty after effectuation of his do-not-call
   registration, which was accepted by the FTC's automated complaint system.

   See n. 13, supra.

   Dynasty NAL, 20 FCC Rcd at 4912. As indicated in the NAL, our staff
   obtained FTC do-not-call records that show that Dynasty's SAN was used to
   access portions of the National Registry twice during the forfeiture
   period: first, over the course of one week in March 2004, and second, on
   January 6, 2005. Between March 8 and March 15, 2004, Dynasty accessed
   portions of the Do-Not-Call Registry for three Arizona and three
   California area codes. On January 6, 2005, Dynasty accessed these same
   portions of the Registry and, in addition, portions for two new Arizona
   area codes, one new California area code, and one Nevada area code.

   April 12 NAL  Response at 16-17, Exhibit A (5-16). Dynasty notes that
   beginning on January 6, 2005, it also "began accessing the National
   Registry directly and appending the change list to its company specific
   internal do not call list." April 12 NAL Response at 17.

   April 12 NAL  Response at 27.

   See para. 7, supra.

   Dynasty states that it began an interim "lead database" system of managing
   its do-not-call obligations in February 2004. April 12 NAL  Response at 3.
   Yet it did not access the National Do-Not-Call Registry until March 8-15,
   2004.

   See para. 30, infra.

   April 12 NAL  Response at Exhibit C.

   The FTC's National Registry documentation does not indicate that Dynasty's
   SAN was used to access the Registry around the time specified in the
   invoice, January 2004.

   Again, however, FTC records do not show that Dynasty's SAN was used to
   access the Registry around the time of this invoice, November 2004.

   Dynasty April 12 NAL  Response at 22.

   A December 2004 amendment to Dynasty's June 2004 Telephone Solicitation
   Policy explicitly recognizes that, beginning January 1, 2005, Dynasty must
   access the Registry no less than every 31 days rather than every three
   months. Dynasty April 12 NAL  Response at Exhibit A (Amendment).

   See para. 27, supra.

   47 C.F.R. S 64.1200(c)(2)(i)(A).

   April 12 NAL  Response at 2-8.

   Id.

   We note that accessing the Registry every 8-10 weeks goes beyond the
   requirements in effect for most of the forfeiture period: that call lists
   had to be scrubbed against a version of the National Do-Not-Call Registry
   no more than three months old. See n. 13, supra.

   April 12 NAL  Response, Exhibit A.

   Between March 2, 2005 and September 27, 2005 Dynasty accessed the Registry
   on ten different dates. During this time, Dynasty twice briefly exceeded
   the 31-day maximum; the interval between access was 33 days between April
   and May and 36 days between August and September.

   Although Dynasty's current conduct is not subject to forfeiture herein,
   FTC records show that Dynasty's last access to the Registry occurred on
   September 27, 2005.

   47 C.F.R. S 64.1200(c)(2)(i)(B).

   Despite Dynasty's February 20, 2004 written assurance that it would
   abandon its previous claim that it was exempt from national do-not-call
   rules, two complainants report telephone solicitations they received in
   June and July 2004 during which they were told - once by an individual
   identified as a Dynasty supervisor - that Dynasty was exempt from national
   do-not-call requirements. Declaration of Theodore A. Wassel (during June
   1, 2004 call, Dynasty manager stated Dynasty is exempt from the National
   Do-Not-Call Registry); declaration of Stuart Novitz (during July 20, 2004
   call, Dynasty claimed to be a "federally exempt company for telemarketing
   purposes"). We expect that effective training of Dynasty's telemarketers
   would preclude such claims, especially by supervisory personnel.

   47 C.F.R. S 64.1200(c)(2)(i)(E).

   Id.

   April 12 NAL  Response at 16.

   20 FCC Rcd at 4909.

   See para. 5, supra.

   April 12 NAL  Response at 12-14.

   Dynasty briefly acknowledges its lapse in accessing the National
   Do-Not-Call Registry. See April 12 NAL Response at 21, 27. Dynasty appears
   to believe that it unlawfully failed to access the Registry in March,
   August, and December 2004. Id. at 21. However, as indicated above,
   Dynasty's three missed deadlines to access the Registry occurred in June,
   September, and December 2004. See para. 24, supra.

   April 12 NAL Response at 21-23 (describing various possible technical and
   human errors).

   April 12 NAL Response at 23 ("A telemarketer will often deviate from
   established scripts or training in an attempt to entice a sale. . . .
   Telemarketers have been found to have created and utilized their own call
   lists not in accordance with Dynasty's established procedures for
   obtaining current call lists.") Id. at 21 ("If data in call lists or do
   not call lists are not formatted correctly information can pass through. A
   phone number in a call list formatted as (123) 456-7890 will not be
   scrubbed if the same number is in the do not call list as 1234567890.").

   The NAL notes that "an error claim should be supported by evidence showing
   that otherwise unlawful telephone solicitations were made unintentionally
   and detailing any procedural breakdowns that led to such calls, as well as
   the steps that the seller has taken to minimize future errors." See
   Dynasty NAL, 20 FCC Rcd at 4909.

   Section 503(b)(2)(C) provides for forfeitures up to $10,000 for each
   violation in cases not covered by subparagraphs (A) or (B), which address
   forfeitures for violations by licensees and common carriers, among others.
   See 47 U.S.C. S 503(b). Pursuant to the Debt Collection Improvement Act of
   1996, P.L. 104-134, 110 Stat. 1321-358, the statutory maximum amount for a
   forfeiture penalty shall be adjusted for inflation at least once every
   four years. Accordingly, the $10,000 forfeiture ceiling has been adjusted
   to $11,000. 47 C.F.R. S 1.80(b)(5). Amendment of Section 1.80 of the
   Commission's Rules and Adjustment of Forfeiture Maxima to Reflect
   Inflation, 15 FCC Rcd 18221 (2000); Amendment of Section 1.80 of the
   Commission's Rules and Adjustment of Forfeiture Maxima to Reflect
   Inflation, 19 FCC Rcd 10945 (2004).

   47 U.S.C. S 503(b)(2)(D); 47 C.F.R. S 1.80(b)(4).

   Dynasty NAL, 20 FCC Rcd at 4913 (citing AT&T Corporation, Notice of
   Apparent Liability for Forfeiture, 18 FCC Rcd 23398 (2003)).

   Id. at 4914.

   As a related matter, Dynasty contends that it did not misinform consumers,
   arguing that reported conversations between Dynasty telemarketers and
   complainants are of questionable accuracy or isolated and ambiguous. April
   12 NAL Response at 25 We note that each of these complainants signed a
   sworn declaration attesting to statements made by Dynasty telemarketers,
   including supervisory personnel. Moreover, our forfeiture, including the
   upward adjustment, is rooted in the totality of Dynasty's noncompliant
   conduct, not simply its reported conversations with call recipients.
   Dynasty NAL, 20 FCC Rcd at 4014.

   See paras.

   When Dynasty discovered in January 2004 that its telemarketing operations
   were unlawful, it could have chosen to suspend telemarketing operations
   briefly until it was able to ensure compliance. As discussed below, we
   have not imposed a forfeiture penalty for any of Dynasty's unlawful
   telephone solicitations delivered before March 2, 2004. See Appendix A,
   para. 47, infra.

   "Willful" in this context means that the violator knew that he was doing
   the act in question, in this case, initiating a telephone solicitation.
   See Southern California Broadcasting Co., 6 FCC Rcd 4387, 4388 (1991)
   ("Southern California"). A violator need not know that his action or
   inaction constitutes a violation; ignorance of the law is not a defense or
   mitigating circumstance. Id. (citing Vernon Broadcasting, Inc., 60 RR 2d
   1275, 1277 (1986); Fay Neel Eggleston, 19 FCC 2d 829 (1969)). The
   Commission may also assess a forfeiture for violations that are merely
   repeated, and not willful. See, e.g., Callais Cablevision, Inc., 16 FCC
   Rcd 1359 (2001) ("Callais Cablevision") (issuing a notice of apparent
   liability for forfeiture for, inter alia, a cable television operator's
   repeated signal leakage). The term "repeated" means that the act was
   committed or omitted more than once, or lasts more than one day. Callais
   Cablevision, 16 FCC Rcd at 1362; Southern California, 6 FCC Rcd at 4388.

   See para. 32, supra.

   As noted above, Dynasty again has neglected to access the National
   Do-Not-Call Registry within the required time frame. See n. 65, supra.
   Assuming that Dynasty is continuing its telemarketing activities, the most
   recent lapse - failure to access the Registry since September 27, 2005 -
   is another indication that Dynasty's do-not-call compliance remains
   haphazard.

   Seawest Yacht Brokers, 9 FCC Rcd 6099 (1994) ("Corrective action taken to
   come into compliance with Commission rules or policy is expected, and does
   not nullify or mitigate any prior forfeitures or violations."').

   Dynasty NAL, 20 FCC Rcd at 4914.

   Dynasty lists various factors that it claims threaten the companies'
   financial viability ranging from losses from embezzlement and failed
   business ventures, to expenditures associated with its national
   do-not-call compliance program, to increased competition and cyclical
   downswings, to negative publicity associated with our warning citation and
   NAL. See NAL Response at 27-28. We note here that national do-not-call
   compliance costs do not appropriately factor into a financial hardship
   analysis; entities that cannot afford full do-not-call compliance should
   not be engaged in telemarketing.

   20 FCC Rcd at 4914, n. 58.

   See para. 12, supra.

   47 U.S.C S 504(a).

   See 47 U.S.C S 1.1914.

   Shows Dynasty's most recent access to the National Do-Not-Call Registry
   prior to the date of its telephone solicitation. When Dynasty failed to
   access the Registry before making a telephone solicitation, the date
   provided is the access date closest to the date of the telephone
   solicitation.

   Shows Dynasty's most recent access to the National Do-Not-Call Registry
   prior to the date of its telephone solicitation. When Dynasty failed to
   access the Registry before making a telephone solicitation, the date
   provided is the access date closest to the date of the telephone
   solicitation.

   Shows Dynasty's most recent access to the National Do-Not-Call Registry
   prior to the date of its telephone solicitation. When Dynasty failed to
   access the Registry before making a telephone solicitation, the date
   provided is the access date closest to the date of the telephone
   solicitation.

   Shows Dynasty's most recent access to the National Do-Not-Call Registry
   prior to the date of its telephone solicitation. When Dynasty failed to
   access the Registry before making a telephone solicitation, the date
   provided is the access date closest to the date of the telephone
   solicitation.

   (Continued from previous page)

   (continued....)

                  Federal Communications Commission FCC 07-67

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                  Federal Communications Commission FCC 07-67