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Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of DEBORAH SALAZAR Applicant in Auction No. 79 ) ) ) ) ) ) )
File No.: EB-12-IH-1483 Acct. No.: 201332080018 FRN: 0018897298
ORDER
Adopted: May 9, 2013 Released: May 14, 2013
By the Chief, Enforcement Bureau:
1. In this Order, we adopt a Consent Decree entered into between the
Enforcement Bureau (Bureau) of the Federal Communications Commission
and Deborah Salazar. The Consent Decree terminates the Bureau's
investigation into possible violations by Deborah Salazar of Section
1.2105(c) of the Commission's Rules, 47 C.F.R. S 1.2105(c), relating
to prohibited contacts and communications and the non-disclosure of
such contacts and communications in Commission auctions.
2. A copy of the Consent Decree, negotiated by the Bureau and Deborah
Salazar, is attached hereto and incorporated herein by reference.
3. After evaluating the facts before us and reviewing the terms of the
Consent Decree, 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 our investigation raises no substantial or material
questions of fact as to whether Deborah Salazar possesses the basic
qualifications, including those related to character, to hold or
obtain any Commission license or authorization.
5. Accordingly, IT IS ORDERED that, pursuant to Sections 4(i) and 503(b)
of the Communications Act of 1934, as amended,^ and Sections 0.111 and
0.311 of the 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 first class mail and certified mail, return receipt
requested, to: James L. Oyster, Esq., counsel for Deborah Salazar, 108
Oyster Lane, Castleton, VA 22716-28391.
FEDERAL COMMUNICATIONS COMMISSION
P. Michele Ellison
Chief, Enforcement Bureau
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of DEBORAH SALAZAR Applicant in Auction No. 79 ) ) ) ) ) )
File No. EB-12-IH-1483 Acct. No. 201332080018 FRN No. 0018897298
CONSENT DECREE
1. The Enforcement Bureau of the Federal Communications Commission and
Deborah Salazar, by their authorized representatives, hereby enter
into this Consent Decree for the purpose of terminating the
Enforcement Bureau's investigation into possible violations by Deborah
Salazar with Section 1.2105(c) of the Commission's Rules,^ relating to
prohibited contacts and communications and the non-disclosure of such
contacts and communications in Commission auctions.
I. DEFINITIONS
2. For 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 Bureau adopting this
Consent Decree without any modifications adverse to 1 Ugly
Enterprise, LLC.
c. "1 Ugly Enterprise" means 1 Ugly Enterprise, LLC, of which
Matthew Salazar is the sole principal, 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. "Communications Laws" means collectively, the Act, the Rules, and
the published and promulgated orders and decisions of the
Commission to which Deborah Salazar is subject.
g. "Deborah Salazar" means Deborah Salazar, an applicant in Auction
No. 79.
h. "Effective Date" means the date on which the Bureau releases the
Adopting Order.
i. "Investigation" means the Bureau's investigation of Deborah
Salazar's compliance with Section 1.2105(c) of the Commission's
rules, arising from her conduct in Auction No. 79.
j. "Jesus Salazar" means Deborah Salazar's spouse, Matthew Salazar's
father, and an authorized bidder for Deborah Salazar in Auction
No. 79.
k. "Matthew Salazar" means the sole principal of 1 Ugly Enterprise
and the son of Deborah Salazar and Jesus Salazar.
l. "Parties" means the Bureau and Deborah Salazar, each being a
"Party."
m. "Rules" means the Commission's regulations found in Title 47 of
the Code of Federal Regulations.
II. BACKGROUND
3. Section 1.2105(c)(1) of the Rules, commonly referred to as the
Commission's "anti-collusion rule," prohibits auction applicants for
licenses in any of the same geographic license from "cooperating or
collaborating with respect to, discussing with each other, or
disclosing to each other in any manner the substance of their own, or
each other's, or any other competing applicants' bids or bidding
strategies, or discussing or negotiating settlement agreements" ^
beginning immediately after the short-form application filing deadline
until after the down payment deadline "unless such applicants are
members of a bidding consortium or other joint bidding arrangement
identified on the bidder's short-form application . . . ."^ In
addition, Section 1.2105(c)(6) of the Rules requires that "[a]ny
applicant that makes or receives a communication of bids or bidding
strategies prohibited under [Section 1.2105(c)(1) of the Rules] shall
report such communication in writing to the Commission immediately,
and in no case later than five business days after the communication
occurs."^
4. On February 27, 2009, the Commission's Wireless Telecommunications
Bureau and Media Bureau announced the auction of 122 FM broadcast
construction permits in Auction No. 79.^ For Auction No. 79, the
anti-collusion rule prohibitions were in effect from 6:00 p.m. ET on
June 25, 2009, the short-form application filing deadline, until
October 2, 2009, the down payment deadline.^ Bidding in Auction No. 79
began on September 1, 2009, and concluded on September 15, 2009.
5. 1 Ugly Enterprise is a limited liability company based in San Angelo,
Texas. Its sole owner is Matthew Salazar. Deborah Salazar is an
individual residing in Uvalde, Texas and is the mother of Matthew
Salazar. On June 25, 2009, Deborah Salazar and 1 Ugly Enterprise each
submitted a short-form application to participate in Auction No. 79.^
In her short-form application, Deborah Salazar identified herself as
an individual applicant and indicated that she intended to bid on FM
construction permits in three markets, including Peach Springs,
Arizona. 1 Ugly Enterprise also identified the construction permit for
the Peach Springs, Arizona, market as among the construction permits
on which it intended to bid. In her short-form application, Deborah
Salazar specified that she and her spouse, Jesus Salazar, father of
Matthew Salazar, would serve as authorized bidders. 1 Ugly Enterprise
identified Matthew Salazar as its authorized bidder. Neither Deborah
Salazar nor 1 Ugly Enterprise identified the existence of any joint
bidding consortium or agreement between them nor did they disclose
that Deborah Salazar and Jesus Salazar were Matthew Salazar's parents.
Because these two applicants did not disclose the existence of any
bidding agreement between them, the Commission's anti-collusion rule
prohibited them from communicating with each other about bids or
bidding strategies during the prescribed period.
6. Deborah Salazar failed to submit an upfront payment to participate in
Auction No. 79 and, therefore, did not engage in any bidding. 1 Ugly
Enterprise, on the other hand, did submit an upfront payment,
participated in the bidding, and ultimately was the winning bidder for
an FM construction permit in Leakey, Texas. 1 Ugly Enterprise properly
submitted its upfront payment along with a Remittance Advice Form (FCC
Form 159). A review of the FCC Form 159 revealed that Jesus Salazar,
the authorized bidder for Deborah Salazar, had signed the FCC Form 159
certifying that he was the responsible party for making 1 Ugly
Enterprise's upfront payment of $2,500. This prompted the Wireless
Telecommunications Bureau to refer the matter to the Enforcement
Bureau for investigation of a potential violation of Section 1.2105(c)
of the Commission's Rules.
7. On October 22, 2009, the Enforcement Bureau commenced its
Investigation by issuing letters of inquiry to Deborah Salazar, Jesus
Salazar and 1 Ugly Enterprise, LLC. The letters of inquiry sought
information about, among other things, their respective conduct in
Auction No. 79. In its response, 1 Ugly Enterprise stated that Matthew
Salazar had communicated with Jesus Salazar a short time prior to the
commencement of bidding regarding which construction permits 1 Ugly
Enterprise intended to bid on in Auction No. 79. The record also
revealed that Jesus Salazar had paid 1 Ugly Enterprise's upfront
payment from his own account to the Commission's auction payment
lockbox bank, the U.S. Bank in St. Louis, Missouri. The record also
revealed that Deborah Salazar had called Jesus Salazar's bank to
initiate the wire transfer for 1 Ugly Enterprise. Neither 1 Ugly
Enterprise nor Deborah Salazar notified the Commission about the
communication between the two or between 1 Ugly Enterprise and Jesus
Salazar.
8. Following the Investigation, the Bureau and Deborah Salazar entered
into discussions aimed at resolving the Investigation. Between April
and November, 2012, Deborah Salazar provided financial information to
the Bureau documenting her claimed inability to pay a large forfeiture
or voluntary contribution.
III. TERMS OF AGREEMENT
9. 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.
10. Jurisdiction. Deborah Salazar agrees that the Bureau has jurisdiction
over her and the matters contained in this Consent Decree and that the
Bureau has authority to enter into and adopt this Consent Decree.
11. Effective Date; Violations. The Parties agree that this Consent Decree
shall become effective on the Effective Date as defined herein. As of
the Effective Date, the Adopting Order and this Consent Decree shall
have the same force and effect as any other order of the Commission.
Any violation of the Adopting Order or of the terms of this Consent
Decree shall constitute a separate violation of a Commission Order,
entitling the Commission to exercise any rights and remedies attendant
to the enforcement of a Commission order.
12. Termination of Investigation. Deborah Salazar represents that she does
not hold any FCC licenses or authorizations in her own capacity. 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 the Investigation. In consideration for the
termination of the Investigation, Deborah Salazar 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 Deborah Salazar 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 the 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 Deborah Salazar with respect to Deborah Salazar's basic
qualifications, including her character qualifications to be a
Commission licensee or to hold Commission licenses or authorizations.
13. Settlement Terms. For purposes of settling the matters set forth
herein, Deborah Salazar agrees that she:
a. will not participate in any future auctions conducted by the
Commission in her own capacity;
b. will not participate in any future auctions conducted by the
Commission on behalf of any other person or entity; and
c. will not hold a position or interest of any kind and to any
extent whatsoever (financial or otherwise) in an entity that
participates in any future auctions conducted by the Commission.
Nothing in this subparagraph shall prevent Deborah Salazar from
holding a position or interest in an entity that is publicly
traded on the New York Stock Exchange or the NASDAQ Stock Market.
14. Compliance Reports. Deborah Salazar shall file a Compliance Report
with the Commission ninety (90) calendar days after the Effective
Date, twelve (12) months after the Effective Date, twenty-four (24)
months after the Effective Date, and thirty-six (36) months after the
Effective Date. Deborah Salazar shall certify in her respective
Compliance Reports to her compliance with the terms and conditions
contained in this Consent Decree. If she is unable to provide the
requisite certification, she shall provide a full and complete
explanation of the reasons why she is not able to do so. All
Compliance Reports shall be submitted to the Chief, Investigations and
Hearings Division, Enforcement Bureau, Federal Communications
Commission, Room 4-C330, 445 12th Street, S.W., Washington, D.C.
20554, with copies submitted electronically to Theresa Z. Cavanaugh at
[1]Terry. Cavanaugh@fcc.gov and to Brian J. Carter at
[2]Brian.Carter@fcc.gov.
15. Voluntary Contribution. Deborah Salazar agrees that she will make a
voluntary contribution to the United States Treasury in the total
amount of $7,500.00. This amount was arrived at after careful
consideration of Deborah Salazar's claimed inability to pay a large
voluntary contribution and documentation submitted by Deborah Salazar
to the Bureau in support thereof. The total payment shall be made
within 30 days after the Effective Date of the Adopting Order. Deborah
Salazar shall also send electronic notification of payment to Theresa
Z. Cavanaugh at [3]Terry.Cavanaugh@fcc.gov and to Brian J. Carter at
[4]Brian.Carter@fcc.gov on the date said payment is made. The payment
must be made by check or similar instrument, wire transfer, or credit
card, and must include the NAL/Account number and FRN referenced
above. 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 regarding the form of
payment:^
o 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.
o 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.
o 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.
Questions regarding payment procedures should be addressed to the
Financial Operations Group Help Desk by phone at 1-877-480-3201, or by
e-mail at [5]ARINQUIRIES@fcc.gov.
16. Waivers. Deborah Salazar waives any and all rights she 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
Adopting Order as defined herein. Deborah Salazar shall retain the
right to challenge Commission interpretation of the Consent Decree or
any terms contained herein. If any Party (or the United States on
behalf of the Commission), brings a judicial action to enforce the
terms of the Adopting Order, neither Deborah Salazar nor the
Commission shall contest the validity of the Consent Decree or of the
Adopting Order, and Deborah Salazar shall waive any statutory right to
a trial de novo. Deborah Salazar hereby agrees to waive any claims she
may otherwise have under the Equal Access to Justice Act^ relating to
the matters addressed in this Consent Decree.
17. 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.
18. 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 the Consent Decree to which Deborah Salazar does not expressly consent)
that provision will be superseded by such Rule or Commission order.
19. Final Settlement. The Parties agree and acknowledge that this Consent
Decree shall constitute a final settlement between the Parties with
respect to the Investigation. The Parties further agree that this Consent
Decree does not constitute either an adjudication on the merits or a
factual or legal finding or determination regarding any compliance or
noncompliance with the Communications Laws.
20. Modifications. This Consent Decree cannot be modified without the
advance written consent of all 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. The individual signing this Consent Decree
on behalf of Deborah Salazar represents and warrants that she is
authorized to execute this Consent Decree. The FCC signatory represents
that she is signing this Consent Decree in her official capacity and that
she is authorized to execute this Consent Decree.
23. Counterparts. This Consent Decree may be signed in any number of
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, Chief Deborah Salazar Enforcement Bureau
Federal Communications Commission
Date: ___________________________________ Date:
_____________________________
^ 47 U.S.C. SS 154(i), 503(b).
^ 47 C.F.R. SS 0.111, 0.311.
^ 47 C.F.R. S 1.2105(c).
^ 47 C.F.R. S 1.2105(c)(1).
^ Id. S 1.2105(c)(6).
^ Auction of FM Broadcast Construction Permits Scheduled for September 1,
2009; Comment Sought on Competitive Bidding Procedures For Auction 79,
Public Notice, 24 FCC Rcd 2589 (2009).
^ Auction of FM Broadcast Construction Permits Scheduled for September 1,
2009; Notice and Filing Requirements, Minimum Opening Bids, Upfront
Payments and Other Procedures for Auction 79, Public Notice, 24 FCC Rcd
4448 (2009).
^ See FCC Form 175 of Deborah Salazar, Application to Participate in an
FCC Auction, submitted on June 25, 2009 at 2:52 p.m. ET; FCC Form 175 of 1
Ugly Enterprise, LLC, Application to Participate in an FCC Auction,
submitted on June 25, 2009 at 2:53 p.m. ET. 1 Ugly Enterprise and Deborah
Salazar were classified as eligible to participate in the auction. See
Auction of FM Broadcast Construction Permits: 77 Bidders Qualified to
Participate in Auction 79, Public Notice, 24 FCC Rcd 10782 (2009).
^ An FCC Form 159 and detailed instructions for completing the form may be
obtained at http://www.fcc.gov/Forms/Form159/159.pdf.
^ Questions regarding payment procedures, it should contact the Financial
Operations Group Help Desk by phone at 1-877-480-3201, or by e-mail at
[6]ARINQUIRIES@fcc.gov.
^ Equal Access to Justice Act, Pub L. No. 96-481, 94 Stat. 2325 (1980)
(codified at 5 U.S.C. S 504); see also 47 C.F.R. SS 1.1501-1.1530.
Federal Communications Commission DA 13-683
1
2
Federal Communications Commission DA 13-683
6
References
Visible links
1. mailto:Cavanaugh@fcc.gov
2. mailto:Brian.Carter@fcc.gov
3. mailto:Terry.Cavanaugh@fcc.gov
4. mailto:Brian.Carter@fcc.gov
5. mailto:ARINQUIRIES@fcc.gov
6. mailto:ARINQUIRIES@fcc.gov