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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554

   In the Matter of Bernard Veargis Miami, Florida ) ) ) ) ) ) File No.:
   EB-FIELDSCR-12-00002077 NAL/Acct. No.: 201332600003 FRN: 0022469464




                  NOTICE OF APPARENT LIABILITY FOR FORFEITURE

   Adopted: February 25, 2013 Released: February 25, 2013

   By the Resident Agent, Miami Office, South Central Region, Enforcement
   Bureau:

   I. INTRODUCTION

    1. In this Notice of Apparent Liability for Forfeiture (NAL), we find
       that Bernard Veargis apparently willfully and repeatedly violated
       Section 301 of the Communications Act of 1934, as amended (Act),^ by
       operating an unlicensed radio transmitter on the frequency 91.7 MHz in
       Miami, Florida. We conclude that Mr. Veargis is apparently liable for
       a forfeiture in the amount of fifteen thousand dollars ($15,000).

   II. BACKGROUND

    2. On March 14, 2012, as part of routine monitoring, agents from the
       Enforcement Bureau's Miami Office (Miami Office) used
       direction-finding techniques to locate the source of radio frequency
       transmissions on the frequency 91.7 MHz to an FM transmitting antenna
       mounted on a commercial building in Miami, Florida. The agents
       determined that the signals on 91.7 MHz exceeded the limits for
       operation under Part 15 of the Commission's rules (Rules)^ and,
       therefore, required a license. The Commission's records showed that no
       authorization was issued to anyone for operation of an FM broadcast
       station at or near this address. In addition, on May 1, 2012, in
       response to a complaint from the Federal Aviation Administration (FAA)
       of interference to aircraft using the Miami International Airport
       (MIA) departure frequency 119.45 MHz,^ agents from the Miami Office
       used direction-finding techniques to locate the source of radio
       frequency transmissions on the frequency 119.45 MHz. The agents
       determined that the source of the interference to FAA operations was
       the FM transmitting antenna used by the same aforementioned unlicensed
       FM broadcast station operating from a commercial building in Miami.

    3. Given the public safety concern associated with interference to FAA
       operations, the agents proceeded (on May 1, 2012) to inspect the
       unlicensed station located in the commercial building. The agents, who
       were accompanied by the building's property owner, observed an FM
       transmitter connected via coaxial cable to an FM transmitting antenna
       and laptop located inside the commercial building. The laptop's screen
       showed that it was connected to an Internet Protocol (IP) address
       "205.234.238.42:5450." The agents interviewed the property owner, who
       stated that "Bernard" installed the transmitting equipment. The owner
       also showed the agents a business card he received from "Bernard," but
       the card reflected the name "Chico" with a handwritten telephone
       number. The owner called the number, and then handed the telephone to
       one of the agents. In speaking to the agent, Mr. Veargis a/k/a "Chico"
       did not admit to being the operator of the station, but stated that he
       ran the Internet side of the radio station. During the call, Mr.
       Veargis gave the property owner permission to "destroy" the FM
       transmitter. The property owner turned off the FM transmitter, and the
       transmissions on the frequency 119.45 MHz terminated. The FAA reported
       that the interference to the MIA departure frequency ceased after the
       transmitter was turned off.

    4. An agent from the Miami Office found additional information on the
       Internet connecting Mr. Veargis to the unlicensed station. A webpage
       with an IP address of "205.234.238.42:5450"--the same IP address
       observed on the laptop that was discovered on the date of the
       inspection--displayed "Chico the Leo Grown Folks Radio Miami" and
       "www.chicotheleogrownfolksradio.com."^ The Florida Department of
       State's Division of Corporations (Division of Corporations) has public
       records that list Mr. Veargis as the owner of several businesses
       including, but not limited to, "Chico's Corner Inc.," "Chico's Good `N
       Plenty, Inc.," "Chico's Pay Station Inc.," "Grown Folks Night Out,
       LLC," "The Grown Folks Night Out, LLC," "Grown Folks Unlimited, LLC,"
       and "Kids Night Out, LLC." The telephone number that Mr. Veargis
       listed on the various documents he filed with the Division of
       Corporations for "Chico's Pay Station Inc.," "Grown Folks Night Out,
       LLC," "Grown Folks Unlimited, LLC," and "The Grown Folks Night Out,
       LLC" was the same number that the property owner used to call Mr.
       Veargis a/k/a "Chico" on May 1, 2012.^ The agent also found additional
       information advertising 91.7 FM and referencing the same telephone
       number for Mr. Veargis on Facebook pages for "Chico Leo Grownfolks"
       and "Chico The Leo Grown Folks Radio." ^ ^ On May 9, 2012, agents from
       the Miami Office observed a van, parked in front of Mr. Veargis'
       residence in Miami, advertising "Chico the Leo" and "Grown Folks" and,
       again, listing the same telephone number for Mr. Veargis.

   III. DISCUSSION

    5. Section 503(b) of the Act provides that any person who willfully or
       repeatedly fails to comply substantially with the terms and conditions
       of any license, or willfully or repeatedly fails to comply with any of
       the provisions of the Act or of any rule, regulation, or order issued
       by the Commission thereunder, shall be liable for a forfeiture
       penalty.^ Section 312(f)(1) of the Act defines "willful" as the
       "conscious and deliberate commission or omission of [any] act,
       irrespective of any intent to violate" the law.^ The legislative
       history to Section 312(f)(1) of the Act clarifies that this definition
       of willful applies to both Sections 312 and 503(b) of the Act,^ and
       the Commission has so interpreted the term in the Section 503(b)
       context.^  The Commission may also assess a forfeiture for violations
       that are merely repeated, and not willful.^  The term "repeated" means
       the commission or omission of such act more than once or for more than
       one day.^

   A. Unlicensed Broadcast Operations

    6. The evidence in this case is sufficient to establish that Mr. Veargis
       violated Section 301 of the Act. Section 301 of the Act states that no
       person shall use or operate any apparatus for the transmission of
       energy or communications or signals by radio within the United States,
       except under and in accordance with the Act and with a license granted
       under the provisions of the Act.^ On March 14 and May 1, 2012, agents
       from the Miami Office determined that an unlicensed radio station on
       the frequency 91.7 MHz was operating from a commercial building in
       Miami, Florida. Based on the evidence adduced, we are convinced that
       it was Mr. Veargis who was operating the unlicensed station. A review
       of the Commission's records revealed that no license or authorization
       was issued to Mr. Veargis or to anyone else to operate a radio station
       on 91.7 MHz at this location. On May 1, 2012, the owner of the
       property where the station was located stated that it was "Bernard"
       (i.e., Bernard Veargis) who installed the radio transmitting
       equipment. The property owner then placed the agent in contact with
       someone named "Chico" during the inspection of the station. "Chico,"
       who we have since determined was Mr. Veargis, acknowledged his
       connection to the station and demonstrated ownership and control over
       the FM transmitter by authorizing the property owner (during the call)
       to destroy the transmitter on his behalf.^ The transmitter, once
       disabled by the property owner, caused the interference to FAA
       operations to immediately cease, thereby confirming the source of the
       interference.

    7. There is also ample information in state public records and on the
       Internet connecting Mr. Veargis to the unlicensed station. The contact
       telephone number that Mr. Veargis listed on several documents filed
       with the Division of Corporations for the several businesses he owns
       (e.g., "Chico's Corner Inc.," "Chico's Pay Station Inc.," "Grown Folks
       Night Out, LLC," etc.) is the same number that the property owner used
       to contact the owner (a.k.a. "Chico") of the radio transmitting
       equipment on May 1, 2012.^ Further, the webpage showing the IP address
       observed on the laptop connected to the transmitter (on the date of
       the inspection) displayed the website,
       www.chicotheleogrownfolksradio.com. On this point, agents from the
       Miami Office later found many references on this and other websites to
       a radio station operating on 91.7 MHz under variations of the names
       "Chico" and "Grown Folks" and using Mr. Veargis' telephone number.
       Agents from the Miami office also observed a van advertising "Chico
       the Leo," "Grown Folks," and the telephone number for "Chico" parked
       in front of Mr. Veargis' home. Based on the totality of the evidence,
       we find that Mr. Veargis is the Disc Jockey "Chico Leo Grownfolks"
       referenced on the aforementioned websites; that Mr. Veargis is the
       person with whom the agents spoke on May 1, 2012 and who permitted the
       property owner to "destroy" the FM transmitter; and that it was Mr.
       Veargis who operated the unlicensed station. Because Mr. Veargis
       consciously operated the station, and did so on more than one day, the
       apparent violations of the Act were both willful and repeated. We
       therefore conclude, based on the evidence before us, that Mr. Veargis
       apparently willfully and repeatedly violated Section 301 of the Act by
       operating radio transmission equipment without the required Commission
       authorization.

    B. Proposed Forfeiture Amount

    8. Pursuant to the Commission's Forfeiture Policy Statement and Section
       1.80 of the Commission's Rules, the base forfeiture amount for
       operation without an instrument of authorization is $10,000.^ In
       assessing the monetary forfeiture amount, we must also take into
       account the statutory factors set forth in Section 503(b)(2)(E) of the
       Act, which include the nature, circumstances, extent, and gravity of
       the violations, and with respect to the violator, the degree of
       culpability, any history of prior offenses, ability to pay, and other
       such matters as justice may require.^ In doing so, we find that the
       violations here warrant a proposed forfeiture above the base amount.
       As the record reflects, Mr. Veargis' unlicensed operations on 91.7 MHz
       produced a spurious signal on the frequency 119.45 MHz, which caused
       harmful interference to aircraft departing from Miami International
       Airport. Given the safety hazard to the operation of aircraft at the
       Miami International Airport, we find that an upward adjustment of
       $5,000 in the forfeiture is warranted.^ Applying the Forfeiture Policy
       Statement, Section 1.80 of the Rules, and the statutory factors to the
       instant case, we conclude that Mr. Veargis is apparently liable for a
       forfeiture in the amount of $15,000.

   IV. ORDERING CLAUSES

    9. Accordingly, IT IS ORDERED that, pursuant to Section 503(b) of the
       Communications Act of 1934, as amended, and Sections 0.111, 0.204,
       0.311, 0.314, and 1.80 of the Commission's rules, Bernard Veargis is
       hereby NOTIFIED of this APPARENT LIABILITY FOR A FORFEITURE in the
       amount of fifteen thousand dollars ($15,000) for violations of Section
       301 of the Act.^

   10. IT IS FURTHER ORDERED that, pursuant to Section 1.80 of the
       Commission's rules, within thirty (30) calendar days of the release
       date of this Notice of Apparent Liability for Forfeiture, Bernard
       Veargis SHALL PAY the full amount of the proposed forfeiture or SHALL
       FILE a written statement seeking reduction or cancellation of the
       proposed forfeiture.

   11. Payment of the forfeiture must be made by check or similar instrument,
       wire transfer, or credit card, and must include the NAL/Account number
       and FRN referenced above. Bernard Veargis will also send electronic
       notification on the date said payment is made to SCR-Response@fcc.gov.
       Regardless of the form of payment, a completed FCC Form 159
       (Remittance Advice) must be submitted.^ When completing the FCC Form
       159, enter the Account Number in block number 23A (call sign/other ID)
       and enter the letters "FORF" in block number 24A (payment type
       code).  Below are additional instructions you should follow based on
       the form of payment you select:

     * Payment by check or money order must be made payable to the order of
       the Federal Communications Commission.  Such payments (along with the
       completed Form 159) must be mailed to Federal Communications
       Commission, P.O. Box 979088, St. Louis, MO 63197-9000, or sent
       via overnight mail to U.S. Bank - Government Lockbox #979088,
       SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO 63101.

     * Payment by wire transfer must be made to ABA Number 021030004,
       receiving bank TREAS/NYC, and Account Number 27000001.  To complete
       the wire transfer and ensure appropriate crediting of the wired funds,
       a completed Form 159 must be faxed to U.S. Bank at (314) 418-4232 on
       the same business day the wire transfer is initiated.

     * Payment by credit card must be made by providing the required credit
       card information on FCC Form 159 and signing and dating the Form 159
       to authorize the credit card payment. The completed Form 159 must then
       be mailed to Federal Communications Commission, P.O. Box 979088, St.
       Louis, MO 63197-9000, or sent via overnight mail to U.S. Bank -
       Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St.
       Louis, MO 63101.

   12. Any request for full payment under an installment plan should be sent
       to:  Chief Financial Officer--Financial Operations, Federal
       Communications Commission, 445 12th Street, S.W., Room 1-A625,
       Washington, D.C.  20554.^  If you have questions regarding payment
       procedures, please contact the Financial Operations Group Help Desk by
       phone, 1-877-480-3201, or by e-mail, ARINQUIRIES@fcc.gov.

   13. The written statement seeking reduction or cancellation of the
       proposed forfeiture, if any, must include a detailed factual statement
       supported by appropriate documentation and affidavits pursuant to
       Sections 1.16 and 1.80(f)(3) of the Rules.^ Mail the written statement
       to Federal Communications Commission, Enforcement Bureau, South
       Central Region, Miami Office, P.O. Box 520617, Miami, FL 33152-0617,
       and include the NAL/Acct. No. referenced in the caption. Bernard
       Veargis also shall e-mail the written response to
       SCR-Response@fcc.gov.

   14. 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.

   15. IT IS FURTHER ORDERED that a copy of this Notice of Apparent Liability
       for Forfeiture shall be sent by both Certified Mail, Return Receipt
       Requested, and First Class Mail to Bernard Veargis at his address of
       record.

   FEDERAL COMMUNICATIONS COMMISSION

   Stephanie Dabkowski

   Resident Agent

   Miami Office

   South Central Region

   Enforcement Bureau

   ^ 47 U.S.C. S 301.

   ^ Part 15 of the Rules sets out the conditions and technical requirements
   under which certain radio transmission devices may be used without a
   license. In relevant part, Section 15.239 of the Rules provides that
   non-licensed broadcasting in the 88-108 MHz band is permitted only if the
   field strength of the transmission does not exceed 250 mV/m at three
   meters. 47 C.F.R. S 15.239.

   ^ The frequency 119.45 MHz lies within the 108-121.94 MHz band and is
   listed as a restricted band in Section 15.205(a) of the Commission's
   rules. 47 C.F.R. S 15.205(a).

   ^ See [1]http://205.234.238.42:5450/ (cached on Google on May 11, 2012)
   (last visited May 23, 2012).

   ^ Florida Department of State, Division of Corporations Homepage,
   [2]www.sunbiz.org (last visited May 22, 2012).

   ^ On May 2, 2012, an agent from the Miami Office searched Facebook and
   found information on pages for "Chico Leo Grownfolks" and "Chico The Leo
   Grown Folks Radio." A post made on April 28, 2012, on the page for "Chico
   Leo Grownfolks" stated: "TUNE IN TO 91.7 I'M LIVE.....LISTEN." A website,
   www.chicotheleogrownfolksradio.com, was also listed on the page for "Chico
   Leo Grownfolks." A photograph of an advertisement on both Facebook pages
   also stated: "RESERVATIONS CALL [XXX-XXX-XXXX] OR GO TO
   WWW.CHICOTHELEOGROWNFOLKSRADIO.COM." (phone number omitted). A post made
   on April 28 on the page for "Chico The Leo Grown Folks Radio" also stated:
   "About to go live in a few. Miami lock it in on 91.7 . . . ."

   ^ 47 U.S.C. S 503(b).

   ^ 47 U.S.C. S 312(f)(1).

   ^ H.R. Rep. No. 97-765, 97^th Cong. 2d Sess. 51 (1982) ("This provision
   [inserted in Section 312] defines the terms `willful' and `repeated' for
   purposes of section 312, and for any other relevant section of the act
   (e.g., Section 503) . . . . As defined[,] . . . `willful' means that the
   licensee knew that he was doing the act in question, regardless of whether
   there was an intent to violate the law. `Repeated' means more than once,
   or where the act is continuous, for more than one day. Whether an act is
   considered to be `continuous' would depend upon the circumstances in each
   case. The definitions are intended primarily to clarify the language in
   Sections 312 and 503, and are consistent with the Commission's application
   of those terms . . . .").

   ^ See, e.g., Application for Review of Southern California Broadcasting
   Co., Memorandum Opinion and Order, 6 FCC Rcd 4387, 4388 (1991), recons.
   denied, 7 FCC Rcd 3454 (1992).

   ^ See, e.g., Callais Cablevision, Inc., Notice of Apparent Liability for
   Monetary Forfeiture, 16 FCC Rcd 1359, 1362, para. 10 (2001) (Callais
   Cablevision, Inc.) (proposing a forfeiture for, inter alia, a cable
   television operator's repeated signal leakage).

   ^ Section 312(f)(2) of the Act, 47 U.S.C. S 312(f)(2), which also applies
   to violations for which forfeitures are assessed under Section 503(b) of
   the Act, provides that "[t]he term 'repeated', when used with reference to
   the commission or omission of any act, means the commission or omission of
   such act more than once or, if such commission or omission is continuous,
   for more than one day." See Callais Cablevision, Inc., 16 FCC Rcd  at
   1362.

   ^ 47 U.S.C. S 301.

   ^ Even if Mr. Veargis denies broadcasting over the air and operating the
   unlicensed station, the record supports finding that he otherwise had
   control over the general conduct or management of the station for purposes
   of finding a Section 301 violation. See 47 U.S.C. S 301. In this regard,
   the word "operate" in Section 301 has been interpreted to mean both the
   technical operation of the station, as well as "the general conduct or
   management of a station as a whole, as distinct from the specific
   technical work involved in the actual transmission of signals." See
   Campbell v. United States, 167 F.2d 451, 453 (5th Cir. 1948) (comparing
   the use of the words "operate" and "operation" in Sections 301, 307, and
   318 of the Act, and concluding that the word "operate" as used in Section
   301 of the Act means both the technical operation of the station as well
   as the general conduct or management of the station). Accord Damian
   Anthony Ojouku Allen, Notice of Apparent Liability for Forfeiture, 27 FCC
   Rcd 7956 (Enf. Bur. 2012) (concluding that Mr. Allen operated an
   unlicensed station because he exercised control over the general conduct
   or management of the station), aff'd, Forfeiture Order, 27 FCC Rcd 14001
   (Enf. Bur. 2012).

   ^ See supra note 5. See also Transmittal Letters for "Grown Folks Night
   Out, LLC" and "The Grown Folks Night Out, LLC" filed with the Florida
   Department of State's Division of Corporations, August 15, 2005;
   Transmittal Letter for "Grown Folks Unlimited, LLC" filed with the Florida
   Department of State's Division of Corporations, September 5, 2005; and
   Articles of Incorporation for Chico's Pay Station Inc. filed with the
   Florida Department of State's Division of Corporations, August 6, 2010.

   ^ The Commission's Forfeiture Policy Statement and Amendment of Section
   1.80 of the Rules to Incorporate the Forfeiture Guidelines, Report and
   Order, 12 FCC Rcd 17087 (1997) (Forfeiture Policy Statement), recons.
   denied, 15 FCC Rcd 303 (1999); 47 C.F.R. S 1.80.

   ^ 47 U.S.C. S 503(b)(2)(E).

   ^ See, e.g., Robens Cheriza, Forfeiture Order, 27 FCC Rcd 3198 (Enf. Bur.
   2012), aff'g, Notice of Apparent Liability for Forfeiture, 27 FCC Rcd 493
   (Enf. Bur. 2012) (upwardly adjusting proposed forfeiture because of
   interference caused to FAA operations).

   ^ 47 U.S.C. SS 301, 503(b); 47 C.F.R. SS 0.111, 0.204, 0.311, 0.314, 1.80.

   ^ An FCC Form 159 and detailed instructions for completing the form may be
   obtained at http://www.fcc.gov/Forms/Form159/159.pdf.

   ^ See 47 C.F.R. S 1.1914.

   ^ 47 C.F.R. SS 1.16, 1.80(f)(3).

   Federal Communications Commission DA 13-278

                                       6

   Federal Communications Commission DA 13-278

References

   Visible links
   1. http://205.234.238.42:5450/
   2. http://www.sunbiz.org/