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Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
)
In the Matter of
)
Compass, Inc. d/b/a Compass Global, Inc. File No. EB-06-IH-0902
f/k/a Forva, Inc. )
Acct. No. 200732080006
Compliance with the Commission's )
FRN No. 0010611416
Rules and Regulations Governing Payphone )
Compensation
)
)
)
ORDER
Adopted: June 29, 2011 Released: June 29, 2011
By the Chief, Enforcement Bureau:
1. In this Order, we adopt the attached Consent Decree entered into
between the Enforcement Bureau (the "Bureau") and Compass, Inc., d/b/a
Compass Global, Inc. ("Compass Global"). The Consent Decree terminates
an investigation by the Bureau against Compass Global for possible
violations of the Commission's rules governing payphone compensation.
Specifically, the Consent Decree terminates the Bureau's investigation
concerning sections 64.1300, 64.1310(a), and 64.1320 of the
Commission's rules. The Consent Decree also terminates the Bureau's
investigation of Compass Global's compliance with a Bureau directive
issued pursuant to sections 4(i), 4(j), 218 and 403 of the
Communications Act of 1934, as amended (the "Act"), requiring it to
provide certain information and documents.
2. The Bureau and Compass Global have negotiated the terms of a Consent
Decree that resolves this matter. A copy of the Consent Decree is
attached hereto and incorporated by reference.
3. After reviewing the terms of the Consent Decree and evaluating the
facts before us, we find that the public interest would be served by
adopting the Consent Decree and terminating the investigation.
4. In the absence of material new evidence relating to this matter, we
conclude that the Bureau's investigation raises no substantial or
material questions of fact as to whether Compass Global possesses the
basic qualifications, including those related to character, to hold or
obtain a Commission license or authorization.
5. Accordingly, IT IS ORDERED that, pursuant to section 4(i) of the Act,
and sections 0.111 and 0.311 of the Commission's Rules, the Consent
Decree attached to this Order IS ADOPTED.
6. IT IS FURTHER ORDERED that the above-captioned investigation IS
TERMINATED.
7. IT IS FURTHER ORDERED that a copy of this Order and Consent Decree
shall be sent by Certified Mail - Return Receipt Requested to counsel
for Compass, Inc., d/b/a Compass Global, Inc., Jonathan S. Marashlian,
Esq., Helein & Marashlian, LLC, The CommLaw Group, 1420 Spring Hill
Road, Suite 205, McLean, Virginia 22102.
FEDERAL COMMUNICATIONS COMMISSION
P. Michele Ellison
Chief, Enforcement Bureau
Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
)
In the Matter of
)
Compass, Inc. d/b/a Compass Global, Inc. File No. EB-06-IH-0902
f/k/a Forva, Inc. )
Acct. No. 200732080006
Compliance with the Commission's )
FRN No. 0010611416
Rules and Regulations Governing Payphone )
Compensation
)
)
)
CONSENT DECREE
I. INTRODUCTION
1. The Enforcement Bureau of the Federal Communications Commission
("Bureau") and Compass, Inc., d/b/a Compass Global, Inc. ("Compass
Global" or the "Company"), by their authorized representatives, hereby
enter into this Consent Decree for the purpose of terminating the
Bureau's investigation into whether Compass Global violated sections
64.1300, 64.1310(a), and 64.1320 of the Commission's rules governing
payphone compensation in addition to a Bureau directive issued
pursuant to sections 4(i), 4(j), 218 and 403 of the Communications Act
of 1934, as amended (the "Act"), requiring Compass Global to provide
certain information and documents.
II. DEFINITIONS
2. For the purposes of this Consent Decree, the following definitions
shall apply:
a. "Act" means the Communications Act of 1934, as amended, 47 U.S.C.
S: 151 et seq.
b. "Adopting Order" means an Order of the Commission adopting the terms
of this Consent Decree without change, addition, deletion, or
modification.
c. "Compass Global" means Compass, Inc., d/b/a Compass Global, Inc., and
its predecessors-in-interest and successors-in-interest.
d. "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
e. "Commission" and "FCC" mean the Federal Communications Commission and
all of its bureaus and offices.
f. "Compliance Plan" means the plan described in this Consent Decree at
paragraph 12.
g. "Effective Date" means the date on which the Commission or the Bureau,
by delegated authority, releases the Adopting Order.
h. "Investigation" means the investigation commenced by the Bureau on
March 6, 2006, by the issuance of a letter of inquiry in File No.
EB-06-IH-0902, into Compass Global's compliance with sections 64.1300,
64.1310(a), and 64.1320 of the Commission's rules governing payphone
compensation, in addition to a Bureau directive issued pursuant to
sections 4(i), 4(j), 218 and 403 of the Act, requiring Compass Global
to provide certain information and documents.
i. "Parties" means Compass Global and the Bureau, each of which is a
"Party."
j. "Rules" means the Commission's regulations found in Title 47 of the
Code of Federal Regulations.
III. BACKGROUND
3. Pursuant to section 276 of the Act, the Commission adopted regulations
for payphone service providers ("PSPs") that are designed to promote
competition among PSPs and to encourage widespread deployment of
payphone services to the public. The Rules govern the manner in which
a PSP is compensated for a "subscriber toll-free call," and a
"coinless access code call." Generally, "Completing Carriers" under
these Rules are required to compensate PSPs for completed payphone
calls in one of two ways: (1) at a rate agreed upon by contract, known
as an Alternative Compensation Arrangement ("ACA"), or (2) at a
per-call rate of $.494. In the absence of an ACA, the Rules impose
certain requirements upon Completing Carriers to ensure that they
compensate PSPs for each and every completed payphone call. These
include requirements to establish a call tracking system; to audit the
system in accordance with certain standards; to file audit reports
with the Commission, PSPs, and Intermediate Carriers (those that
switch payphone calls to other facilities-based long distance
carriers); to make quarterly payments to PSPs; to provide PSPs a
quarterly sworn statement by the CFO; and to provide quarterly reports
to the PSPs. If a completing carrier and PSP negotiate a different
compensation arrangement and execute an ACA, the Commission's payphone
rules allow the carrier to avoid certain regulatory obligations,
including the tracking system, reporting and audit requirements. A PSP
may not unreasonably refuse to accept an ACA.
4. Compass Global agrees that it is a "Completing Carrier" subject to the
payphone compensation requirements discussed in paragraph 3, above.
5. On March 6, 2006 the Bureau sent Compass Global a Letter of Inquiry
("LOI") seeking certain documents and information related to the
Compass Global's compliance with the payphone rules. Compass Global
responded to the LOI on May 6, 2006. On December 27, 2006, the
Commission released a Notice of Apparent Liability for Forfeiture and
Order ("NAL"), finding that Compass Global was apparently liable for a
total forfeiture of $466,000 for apparently failing to meet its
statutory and regulatory obligations related to payphone compensation
and to respond on a timely basis to a directive of the Bureau to
provide certain information and documents, and support its response
with an appropriate affidavit or declaration.
6. Compass Global submitted a formal response to the NAL on February 8,
2007, and updated the response on April 28, 2008, and November 11,
2008. While the LOI response was not submitted by counsel, the NAL
Response was submitted by counsel and contained significantly more
detail about the Company's operations, other unique circumstances, and
its efforts to comply with the Commission's payphone compensation
rules, including the Company's assertion that certain payphone service
providers failed to accept Compass Global's proposed alternative
compensation agreements prior to the issuance of the NAL.
7. Since that time, the Bureau and Compass Global have engaged in
discussions aimed at resolving the issues associated with the
investigation. Compass Global also entered into a Tolling Agreement
with the Bureau in order to resolve the Investigation with a Consent
Decree. On February 4 and 8, 2011, Compass Global provided certified
financial information to the Bureau documenting its inability to pay a
large forfeiture.
IV. TERMS OF AGREEMENT
8. Adopting Order. The Parties agree that the provisions of this Consent
Decree shall be subject to final approval by the Bureau by
incorporation of such provisions by reference in the Adopting Order
without change, addition, modification, or deletion.
9. Jurisdiction. Compass Global agrees that the Bureau has jurisdiction
over it and the matters contained in this Consent Decree and has the
authority to enter into and adopt this Consent Decree.
10. Effective Date; Violations. The Parties agree that this Consent Decree
shall become effective on the Effective Date. Upon release, the
Adopting Order and this Consent Decree shall have the same force and
effect as any other order of the Bureau. Any violation of the Adopting
Order or of the terms of this Consent Decree shall constitute a
separate violation of a Bureau order, entitling the Bureau to
exercise any rights and remedies attendant to the enforcement of a
Commission order.
11. Termination of Investigation. In express reliance on the covenants and
representations in this Consent Decree and to avoid further
expenditure of public resources, the Bureau agrees to terminate its
Investigation. In consideration for the termination of said
Investigation, Compass Global agrees to the terms, conditions, and
procedures contained herein. The Bureau further agrees that, in the
absence of new material evidence, the Bureau will not use the facts
developed in the Investigation through the Effective Date, or the
existence of this Consent Decree, to institute, on its own motion, any
new proceeding, formal or informal, or take any action on its own
motion against Compass Global concerning the matters that were the
subject of the Investigation. The Bureau also agrees that, in the
absence of new material evidence, it will not use the facts developed
in this Investigation through the Effective Date, or the existence of
this Consent Decree, to institute on its own motion any proceeding,
formal or informal, or take any action on its own motion against
Compass Global with respect to Compass Global's basic qualifications,
including its character qualifications, to be a Commission licensee or
hold Commission authorizations.
12. Compliance Plan. Compass Global agrees that it will implement a
Compliance Plan related to compliance with the Act, the Rules, and the
Commission's Orders, with particular emphasis on compliance with the
Rules concerning payphone compensation. The Compliance Plan must
include, at a minimum, the following components:
a. Compliance Officer. Within 30 calendar days of the Effective Date,
Compass Global will designate a Compliance Officer who will administer
the Compliance Plan, supervise Compass Global's compliance with the
Act, Rules, and Commission Orders, and serve as the point of contact
on behalf of Compass Global for all FCC-related compliance matters.
b. Compliance Manual. Within 60 calendar days of the Effective Date, the
Compliance Officer will develop and distribute a Compliance Manual to
employees and others who perform duties at Compass Global that trigger
or may trigger compliance-related responsibilities. The Compliance
Manual will include an overview of the Commission's payphone
compensation requirements, including privately-negotiated alternative
compensation arrangements with PSPs or, in the alternative, (i) call
tracking system maintenance; (ii) audit-related requirements; (iii)
the requirement to provide PSPs with a quarterly sworn statement by
the CFO; and (iv) quarterly reporting requirements.
c. Compliance Training Program. Within 90 calendar days of the Effective
Date, all Compass Global employees and others who perform duties at
Compass Global that trigger or may trigger compliance-related
responsibilities must complete a Compliance Training Program focused
on those portions of the Act, Rules, and Commission Orders that relate
to payphone compensation. This Compliance Training Program will also
be presented to new employees who are engaged in such activities,
within the first 30 calendar days of employment, and to employees who
are reassigned to such duties within 30 calendar days of reassignment.
This Compliance Training Program will track the Compliance Manual,
focusing on proper implementation of the Compliance Manual and
tailored to specific user groups.
d. Review and Monitoring. Compass Global will review the Compliance
Manual and Compliance Training Program at least annually to ensure
that they are maintained in a proper manner and continue to address
the objectives set forth therein, and will update the Compliance
Manual and Compliance Training Program in accordance with any changes
to the relevant sections of the Act, Rules, and related Commission
orders.
e. Reporting Non-Compliance. Compass Global will report any
non-compliance with this Consent Decree or any payphone
compensation-related sections of the Act, Rules, or related Commission
orders to the Bureau within 15 days after the discovery of
non-compliance.
f. Compliance Reports. Compass Global will file Compliance Reports with
the Commission 90 days after the Effective Date, 12 months after the
Effective Date, and 24 months after the Effective Date. Each
Compliance Report must include a compliance certificate from the
Compliance Officer stating that he/she has personal knowledge that (i)
Compass Global has established operating procedures intended to ensure
compliance with the terms and conditions of this Consent Decree and
with sections 64.1300, 64.1310(a), and 64.1320 of the Rules concerning
payphone compensation, together with an accompanying statement
explaining the basis for the certification; (ii) Compass Global has
been utilizing those procedures since the previous Compliance Report
was submitted; and (iii) Compass Global is not aware of any instances
of non-compliance. The certification must comply with section 1.16 of
the Rules and be subscribed to as true under penalty of perjury in
substantially the form set forth therein. If the Compliance Officer
cannot provide the requisite certification, he/she must provide the
Commission with a detailed explanation of: (i) any instances of
non-compliance with this Consent Decree and the Rules, and (ii) the
steps that Compass Global has taken or will take to remedy each
instance of non-compliance and ensure future compliance, and the
schedule on which proposed remedial actions will be taken. All
Compliance Reports must be submitted to the Chief, Investigations &
Hearings Division, Enforcement Bureau, Federal Communications
Commission, 445 12th Street, S.W., Room 4-C320, Washington, D.C.
20554.
g. Termination. The requirements relating to the Compliance Plan shall
expire 36 months after the Effective Date.
13. Section 208 Complaints: Subsequent Investigations. Nothing in this
Consent Decree shall prevent the Commission or its delegated authority
from adjudicating complaints filed pursuant to section 208 of the Act
against the Company or its affiliates for alleged violations of the
Act, or for any other type of alleged misconduct, regardless of when
such misconduct took place. The Commission's adjudication of any such
complaint will be based solely on the record developed in that
proceeding. Except as expressly provided in this Consent Decree, this
Consent Decree shall not prevent the Commission from investigating new
evidence of noncompliance by the Company of the Act, the rules, or the
Order.
14. Voluntary Contribution. Compass Global agrees that it will make a
voluntary contribution to the United States Treasury in the total
amount of $20,000.00, payable in equal monthly installments over six
months. The first payment must be made within 10 business days of the
Effective Date. The payments must be made by check or similar
instrument, payable to the Order of the Federal Communications
Commission. The payments must include the Account Number and FRN
referenced in the caption to the Adopting Order. Payments by check or
money Order may be mailed to Federal Communications Commission, P.O.
Box 979088, St. Louis, MO 63197-9000. Payments by overnight mail may
be sent to U.S. Bank - Government Lockbox #979088, SL-MO-C2-GL, 1005
Convention Plaza, St. Louis, MO 63101. Payments by wire transfer may
be made to ABA Number 021030004, receiving bank Federal Reserve Bank
of New York, and account number 27000001. For payments by credit
card, an FCC Form 159 (Remittance Advice) must be submitted. When
completing the FCC Form 159, enter the NAL/Account number in block
number 23A (call sign/other ID), and enter the letters "FORF" in block
number 24A (payment type code). Compass Global will also send
electronic notification to Theresa Z. Cavanaugh at
Terry.Cavanaugh@fcc.gov and to Mindy Littell at Mindy.Littell@fcc.gov
on the dates said payments are made.
15. Waivers. Compass Global waives any and all rights it may have to seek
administrative or judicial reconsideration, review, appeal or stay, or
to otherwise challenge or contest the validity of this Consent Decree
and the Adopting Order, provided the Bureau issues an Order adopting
the Consent Decree without change, addition, modification, or
deletion. Compass Global will retain the right to challenge Commission
interpretation of the Consent Decree or any terms contained herein. If
either Party (or the United States on behalf of the Commission) brings
a judicial action to enforce the terms of the Adopting Order, neither
Compass Global nor the Commission will contest the validity of the
Consent Decree or the Adopting Order, and Compass Global will waive
any statutory right to a trial de novo. Compass Global hereby agrees
to waive any claims it may otherwise have under the Equal Access to
Justice Act, 5 U.S.C. S: 504 and 47 C.F.R. S: 1.1501 et seq., relating
to the matters addressed in this Consent Decree.
16. Invalidity. In the event that this Consent Decree in its entirety is
rendered invalid by any court of competent jurisdiction, it shall
become null and void and may not be used in any manner in any legal
proceeding.
17. Subsequent Rule or Order. The Parties agree that if any provision of
the Consent Decree conflicts with any subsequent rule or order adopted
by the Commission (except an order specifically intended to revise the
terms of this Consent Decree to which Compass Global does not
expressly consent) that provision will be superseded by such
Commission rule or order.
18. Successors and Assigns. Compass Global agrees that the provisions of
this Consent Decree will be binding on its successors, assigns, and
transferees.
19. Final Settlement. The Parties agree and acknowledge that this Consent
Decree shall constitute full and final settlement between the Parties.
The Parties further agree that this Consent Decree does not constitute
and shall not be construed as (1) an adjudication on the merits; (2)
a factual or legal finding or determination; or (3) an admission by
Compass Global regarding any compliance or noncompliance with the
requirements of the Act or the Rules and/or the Commission's orders.
The Parties further agree that this Consent Decree does not constitute
and shall not be construed as a finding that it would be in the public
interest, or contrary to the public interest, to grant, deny, dismiss,
or otherwise take final action on any pending auction application
filed by Compass Global.
20. Modifications. This Consent Decree cannot be modified without the
written consent of both Parties.
21. Paragraph Headings. The headings of the paragraphs in this Consent
Decree are inserted for convenience only and are not intended to
affect the meaning or interpretation of this Consent Decree.
22. Authorized Representative. Each party represents and warrants to the
other that it has full power and authority to enter into this Consent
Decree.
23. Counterparts. This Consent Decree may be signed in counterparts
(including by facsimile), each of which, when executed and delivered,
shall be an original, and all of which counterparts together shall
constitute one and the same fully executed instrument.
By: __________________________________ By: ____________________________
P. Michele Ellison Dean Cary
Chief, Enforcement Bureau President and CEO
Federal Communications Commission Compass, Inc., d/b/a Compass Global,
Inc.
Date: _________________________________ Date: ___________________________
47 C.F.R. S:S: 64.1300, 64.1310(a), 64.1320.
47 U.S.C. S:S: 154(i), 154(j), 218, 403. The Telecommunications Act of
1996 amended the Communications Act of 1934. See Telecommunications Act of
1996, Pub. L. No. 104-104, 110 Stat. 56 (1996).
47 U.S.C. S: 154(i).
47 C.F.R. S:S: 0.111, 0.311.
47 C.F.R. S:S: 64.1300, 64.1310(a), 64.1320.
47 U.S.C. S:S: 154(i), 154(j), 218, 403.
47 C.F.R. S:S: 64.1300, 64.1310(a), 64.1320.
47 U.S.C. S:S: 154(i), 154(j), 218, 403.
47 U.S.C. S: 276; 47 C.F.R. S:S: 64.1300 et seq.
A "completing carrier" is "a long distance carrier or switch-based long
distance reseller that completes a coinless access code or subscriber
toll-free payphone call or a local exchange carrier that completes a
local, coinless access code or subscriber toll-free payphone call." 47
C.F.R. S: 64.1300(a).
47 C.F.R. S: 64.1300(b).
47 C.F.R. S: 64.1300(b).
47 C.F.R. S: 64.1300(d).
47 C.F.R. S:S: 64.1310(a)(1), 64.1320(c)(1). Section 64.1320(c) sets forth
nine specific requirements with which the call tracking system must
comply, and for which an independent third-party auditor must verify
compliance. The call tracking system was required to be established by
July 1, 2004.
See 47 C.F.R. S:S: 64.1310(a), 64.1320(a).
47 CFR S: 64.1320(a).
Letter from Hilary S. DeNigro, Deputy Chief, Investigations and Hearings
Division, Enforcement Bureau, FCC, to Dean Cary, President, Compass
Global, Inc., dated March 6, 2006 ("LOI" or "March 6 LOI").
See Letter from Dean Cary, President/CEO Compass Global, to Raelynn
Tibayan Remy, Attorney, Investigations and Hearings Division, Enforcement
Bureau, FCC, dated May 6, 2006.
Compass, Inc., Notice of Apparent Liability for Forfeiture, 21 FCC Rcd
15132 (Enf. Bur. 2006) ("Compass NAL" or "NAL").
Compass Global Response to Notice of Apparent Liability for Forfeiture and
Required Reports to Commission, filed Feb. 8, 2007; Letters from Jonathan
S. Marashlian, Counsel for Compass Global, to Marlene H. Dortch, FCC,
dated April 28, 2008, and November 11, 2008 ("NAL Response").
Letter to Counsel from Dean Cary, President/CEO Compass Global, submitted
by Jonathan S. Marashlian, Counsel for Compass Global, dated Feb. 8, 2011.
Federal Communications Commission DA 11-1134
9
Federal Communications Commission DA 11-1134