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Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of
Associated Telecommunications Management
Services, LLC
BLC Acquisition Group, LLC
Bellerud Acquisition Group, LLC
Ganoco Acquisition Group, LLC
Lifeconnex Acquisition Group, LLC
Triarch Acquisition Group, LLC
SCTxLink Acquisition Group, LLC
DialTone & More Acquisition Group, LLC
Ren-Tel Acquisition Group, LLC
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File No.: EB-IHD-14-00014841
NAL/Acct. No.: 201132080030
FRN No. 0019354513
FRN No. 0019421031
FRN No. 0019389527
FRN No. 0019389485
FRN No. 0019387182
FRN No. 0019389451
FRN No. 0019419746
FRN No. 0019418581
FRN No. 0019418474
FORFEITURE ORDER
Adopted: December 1, 2014 Released: December 1, 2014
By the Chief, Enforcement Bureau:
INTRODUCTIOn
We impose a total penalty of $64,000 against eight subsidiaries of Associated Telecommunications Management Services, LLC (ATMS) for their unauthorized acquisition of eight domestic telecommunications services providers, in violation of Section 214(a) of the Communications Act of 1934 (Act) and Sections 63.03 and 63.04 of the Commission's rules (Rules). The Act mandates that a telecommunications service provider obtain Commission approval prior to a substantial change in its corporate control. This requirement allows the Commission to evaluate the acquiring company's basic qualifications to determine whether the transaction is in the public interest and whether the acquiring company is prepared to meet its obligations as a Commission licensee.
BACKGROUND
On July 15, 2011, the Bureau released a Notice of Apparent Liability for Forfeiture in this matter. In the NAL, the Bureau determined that the ATMS subsidiaries had apparently failed to obtain Commission approval prior to consummating eight substantial transfers of control of authorizations to operate lines for common carrier communications. The NAL proposed forfeitures totaling $64,000 against ATMS for apparent willful or repeated violations of Section 214 of the Act and Sections 63.03 and 63.04 of the Rules. During the relevant time period, ATMS was a holding company that Thomas Biddix, Kevin Brian Cox, and Leonard I. Solt owned and operated.
On August 15, 2011, ATMS filed a response to the NAL seeking a reduction in the forfeiture amount based on the fact that it self-disclosed and attempted to correct four of the unauthorized transfers prior to receiving the Bureau's letter of inquiry LOI.
Discussion
The Bureau proposed a forfeiture in this case in accordance with Section 503(b) of the Communications Act of 1934, as amended (Act), Section 1.80 of the Rules, and the Commission's Forfeiture Policy Statement. When we assess forfeitures, Section 503(b)(2)(E) requires that we 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." As discussed below, we have fully considered ATMS's response to the NAL, but we find it unpersuasive. We therefore affirm the $64,000 total forfeiture proposed in the NAL.
ATMS does not contest our allegation that it willfully failed to obtain Commission approval prior to consummating eight substantial transfers of control of authorizations to operate lines for common carrier communications. Thus, we find that ATMS willfully violated Section 214(a) of the Act and Sections 63.03 and 63.04 of the Rules.
The Commission's Forfeiture Policy Statement specifies that the Commission shall impose a forfeiture based upon consideration of the factors enumerated in what is now Section 503(b)(2)(E) of the Act. Taking all of these factors into consideration, we find that each of ATMS subsidiaries is liable for an $8,000 forfeiture, for a total penalty of $64,000. As explained in the NAL, this total results from applying the base forfeiture amount of $8,000 to each subsidiary's separate unauthorized substantial transfer of control.
ATMS seeks a reduction from the proposed forfeiture based on the fact that it self-disclosed and attempted to correct four of the unauthorized transfers prior to receiving the Bureau's LOI. Such partial disclosure and compliance efforts are insufficient to warrant a reduction in the proposed forfeitures. Although the Commission has in certain circumstances reduced proposed forfeitures "based on . . . good faith corrective efforts . . . taken prior to Commission notification" of the violations," a "lack of diligence" in addressing all aspects of the violations precludes any such reduction here. ATMS did not disclose or attempt to correct four of the eight violations until after it had received the LOI, despite the fact that the eight transactions at issue occurred within the same time frame. Under these circumstances, a reduction of the proposed forfeiture is not warranted. Weighing the relevant statutory factors and our own forfeiture guidelines, we conclude, based upon the evidence before us, that the proposed forfeiture of $64,000 properly reflects the seriousness, duration, and scope of the violations of ATMS and its subsidiaries.
CONCLUSION
Based on the record before us and in light of the applicable statutory factors, we hereby affirm our conclusion in the NAL that ATMS and its subsidiaries willfully violated Section 214(a) of the Act and Sections 63.03 and 63.04 of the Rules by failing to obtain Commission approval prior to consummating eight substantial transfers of control of authorizations to operate lines for common carrier communications. We decline to cancel or reduce the forfeiture amounts, which properly reflect the seriousness, duration, and scope of ATMS's violations. We therefore conclude that ATMS is liable for forfeitures totaling $64,000.
Ordering Clauses
Accordingly, IT IS ORDERED that, pursuant to Section 503(b) of the Communications Act of 1934, as amended, Sections 0.111, 0.311, and 1.80 of the Commission's rules, BLC Acquisition Group, LLC, IS LIABLE FOR A MONETARY FORFEITURE in the amount of eight thousand dollars ($8,000) for willfully or repeatedly violating Section 214(a) of the Communications Act of 1934, as amended, and Sections 63.03 and 63.04 of the Commission's rules.
IT IS FURTHER ORDERED that, pursuant to Section 503(b) of the Communications Act of 1934, as amended, Sections 0.111, 0.311, and 1.80 of the Commission's rules, Bellerud Acquisition Group, LLC, IS LIABLE FOR A MONETARY FORFEITURE in the amount of eight thousand dollars ($8,000) for willfully or repeatedly violating Section 214(a) of the Communications Act of 1934, as amended, and Sections 63.03 and 63.04 of the Commission's rules.
IT IS FURTHER ORDERED that, pursuant to Section 503(b) of the Communications Act of 1934, as amended, Sections 0.111, 0.311, and 1.80 of the Commission's rules, DialTone & More Acquisition Group, LLC, IS LIABLE FOR A MONETARY FORFEITURE in the amount of eight thousand dollars ($8,000) for willfully or repeatedly violating Section 214(a) of the Communications Act of 1934, as amended, and Sections 63.03 and 63.04 of the Commission's rules.
IT IS FURTHER ORDERED that, pursuant to Section 503(b) of the Communications Act of 1934, as amended, Sections 0.111, 0.311, and 1.80 of the Commission's rules, Ganoco Acquisition Group, LLC, IS LIABLE FOR A MONETARY FORFEITURE in the amount of eight thousand dollars ($8,000) for willfully or repeatedly violating Section 214(a) of the Communications Act of 1934, as amended, and Sections 63.03 and 63.04 of the Commission's rules.
IT IS FURTHER ORDERED that, pursuant to Section 503(b) of the Communications Act of 1934, as amended, Sections 0.111, 0.311, and 1.80 of the Commission's rules, Lifeconnex Acquisition Group, LLC, IS LIABLE FOR A MONETARY FORFEITURE in the amount of eight thousand dollars ($8,000) for willfully or repeatedly violating Section 214(a) of the Communications Act of 1934, as amended, and Sections 63.03 and 63.04 of the Commission's rules.
IT IS FURTHER ORDERED that, pursuant to Section 503(b) of the Communications Act of 1934, as amended, Sections 0.111, 0.311, and 1.80 of the Commission's rules, Ren-Tel Acquisition Group, LLC, IS LIABLE FOR A MONETARY FORFEITURE in the amount of eight thousand dollars ($8,000) for willfully or repeatedly violating Section 214(a) of the Communications Act of 1934, as amended, and Sections 63.03 and 63.04 of the Commission's rules.
IT IS FURTHER ORDERED that, pursuant to Section 503(b) of the Communications Act of 1934, as amended, Sections 0.111, 0.311, and 1.80 of the Commission's rules, SCTxLink Acquisition Group, LLC, IS LIABLE FOR A MONETARY FORFEITURE in the amount of eight thousand dollars ($8,000) for willfully or repeatedly violating Section 214(a) of the Communications Act of 1934, as amended, and Sections 63.03 and 63.04 of the Commission's rules.
IT IS FURTHER ORDERED that, pursuant to Section 503(b) of the Communications Act of 1934, as amended, Sections 0.111, 0.311, and 1.80 of the Commission's rules, Triarch Acquisition Group, LLC, IS LIABLE FOR A MONETARY FORFEITURE in the amount of eight thousand dollars ($8,000) for willfully or repeatedly violating Section 214(a) of the Communications Act of 1934, as amended, and Sections 63.03 and 63.04 of the Commission's rules.
Payment of the forfeitures shall be made in the manner provided for in Section 1.80 of the Commission's rules no later than December 19, 2014. If the forfeitures are not paid within the period specified, the case may be referred to the U.S. Department of Justice for enforcement of the forfeiture pursuant to Section 504(a) of the Communications Act of 1934, as amended. ATMS and the ATMS Subsidiaries shall send electronic notification of the payments to William A. Kehoe at William.Kehoe@fcc.gov, and Robert B. Krinsky at Robert.Krinsky@fcc.gov on the date said payment is made.
The payments must be made by check or similar instrument, wire transfer, or credit card, and must include the NAL/Account Numbers and FRNs referenced above. ATMS and the ATMS Subsidiaries shall send electronic notification of the payments to William A. Kehoe at William.Kehoe@fcc.gov, and Robert B. Krinsky at Robert.Krinsky@fcc.gov on the date said payment is made. 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 Indigo Wireless, Inc. should follow based on the form of payment it selects:
* 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.
Any request for making full payment over time 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, DC 20554. If ATMS or the ATMS Subsidiaries have questions regarding payment procedures, it should contact the Financial Operations Group Help Desk by phone, 1-877-480-3201, or by e-mail, ARINQUIRIES@fcc.gov.
IT IS FURTHER ORDERED that a copy of this Forfeiture Order shall be sent by first class mail and certified mail, return receipt requested, to Thomas Biddix, Associated Telecommunications Management Services, LLC, 6905 N. Wickham Road, Suite 403, Melbourne, FL 32940 and to Kepler Funk, Funk, Szachacz & Diamond, LLC, 3962 West Eau Galle Boulevard, Suite B, Melbourne, FL 32934.
FEDERAL COMMUNICATIONS COMMISSION
Travis LeBlanc
Chief
Enforcement Bureau