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                                             Federal Communications Commission                       DA 19-150 
                                                          Before the 
                                             Federal Communications Commission 
                                                    Washington, DC 20554 
                
                In the Matter of                                )       
                                                                )       
                Custom Teleconnect, Inc.                        )      File No.: EB-IHD-18-00027483 
                                                                )      NAL/Acct. No.: 201932080009 
                                                                )      FRN: 0005026257  
                 
                                  NOTICE OF APPARENT LIABILITY FOR FORFEITURE 
                
               Adopted:  March 27, 2019                                               Released:  March 27, 2019 
                
               By the Deputy Chief, Enforcement Bureau: 
                
               I.      INTRODUCTION 
                       1.     We propose a penalty of $3,000 against Custom Teleconnect, Inc. (CTI or Company)1 for 
               apparently failing to timely file an accurate annual report and certification as a provider of inmate calling 
               services (ICS), as required by section 64.6060 of the Commission’s rules (Rules).2
                                                                                           The reporting and 
               certification requirement is necessary to further the Commission’s statutory responsibilities regarding ICS 
               rates and practices and monitoring the ICS industry.  We therefore view the requirement to file a timely 
               and accurate annual report and certification as an important obligation for every ICS provider. 
               II.     BACKGROUND 
                       2.     Section 64.6060(a) of the Rules requires ICS providers to file with the Commission, by 
               April 1st of each calendar year, a report detailing its provision of interstate, intrastate, and international 
               ICS for the prior calendar year (Annual ICS Report).3
                                                                 The reporting and certification requirement helps 
               the Commission meet its statutory responsibilities regarding ICS rates and practices.4  The reporting and 
               certification requirement also enables the Commission to capture any trends or changes in calling patterns 
               in a changing ICS industry, facilitates any needed enforcement action, and permits the Commission to 
               monitor ICS providers’ compliance with the Rules and orders.5
                                                                          As observed by the United States Court 
               of Appeals for the District of Columbia Circuit, with regards to rates charged by ICS providers, the 
               “Commission has plenary authority to regulate interstate rates under [section] 201(b) [of the 
                                                                     
               1
                 Any entity that is a “Small Business Concern” as defined in the Small Business Act (Pub. L. 85-536, as amended) 
               may avail itself of rights set forth in that Act, including rights set forth in 15 U.S.C. § 657, “Oversight of Regulatory 
               Enforcement,” in addition to other rights set forth herein. 
               2
                 47 CFR § 64.6060. 
               3
                 Id. at § 64.6060(a).  In light of the court’s decision in Global Tel*Link v. FCC, ICS providers are not required to 
               answer questions that seek specific information regarding video visitation services.  See Global Tel*Link v. FCC, 
               866 F.3d 397, 415 (D.C. Cir. 2017) (vacating the video visitation services reporting requirement in section 
               64.6060(a)(4) of the Commission’s rules). 
               4 See Rates for Interstate Inmate Calling Services, Second Report and Order and Third Further Notice of Proposed 
               Rulemaking, 30 FCC Rcd 12763, 12891, para. 266 (2015) (2015 ICS Order); see also 47 U.S.C. § 403. 
               5 See 2015 ICS Order, 30 FCC Rcd at 12891, para. 266. 
                                                                                                                
                
                                                       Federal Communications Commission                                    DA 19-150 
                    
                    
                   Communications Act of 1934, as amended (Act)], including ‘practices … for and in connection with’ 
                   interstate calls.”6   
                            3.       CTI is a Nevada corporation that provides ICS in several states and the District of 
                              7
                   Columbia.   CTI “holds a section 214 authorization for the resale of domestic and international long 
                                                                                                                       8
                   distance services, granted on January 23, 1994 in file number ITC-214-19931126-00220.”   On August 
                   22, 2018, the Enforcement Bureau issued a Letter of Inquiry (LOI) to CTI to investigate whether the 
                   Company had violated section 64.6060 of the Rules by failing to timely file required data and a required 
                   certification.9  The Company submitted a response to the LOI on October 4, 2018.10  CTI stated that it did 
                   not file a complete Annual ICS Report by the April 1, 2018 deadline.11  CTI filed an incomplete report on 
                   March 28, 2018, and stated it would file an amended report with complete responses, after it responded to 
                   the LOI.12 
                   III.     DISCUSSION 
                            A.       CTI Apparently Violated Section 64.6060 of the Rules 
                            4.       We find that CTI apparently willfully violated section 64.6060 of the Rules by failing to 
                   timely file its Annual ICS Report by the April 1, 2018 deadline.13  All companies that provide ICS must 
                   submit a report to the Commission, by April 1st of each year, regarding interstate, intrastate, and 
                   international ICS for the prior calendar year.14  Section 64.6060(a) provides that “[t]he report shall be 
                   categorized both by facility type and size” and shall contain certain information.15  An officer or director 
                                                                         
                   6
                    Global Tel*Link, 866 F.3d at 415 (quoting 47 U.S.C. § 201(b)).  Section 201 of the Act authorizes the Commission 
                   to regulate “every common carrier engaged in interstate [ ] communication.”  47 U.S.C. § 201(a).   
                   7 The Company states it is authorized to do business and in good standing in Alabama, Arizona, Arkansas, 
                   California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, 
                   Indiana, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Mississippi, 
                   Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, 
                   North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, 
                   Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.  See Letter from Connie 
                   Wightman, Consultant, Inteserra Consulting Group, Inc., Consultants for Custom Teleconnect, Inc. to David Janas, 
                   Special Counsel, Investigations and Hearings Division, FCC Enforcement Bureau, at 1-2 (Oct. 4, 2018) (on file in 
                   EB-IHD-18-00027483) (LOI Response). 
                   8 Id. at 2. 
                   9 See Letter from Jeffrey J. Gee, Chief, Investigations and Hearings Division, FCC Enforcement Bureau, to William 
                   Perna, General Manager, Custom Teleconnect, Inc. (Aug. 22, 2018) (addressing Company’s compliance with 47 
                   CFR § 64.6060) (on file in EB-IHD-18-00027483) (LOI). 
                   10
                     See LOI Response, supra note 7. 
                   11 See id. at 3-4. 
                   12 See id. CTI transmitted a completed report to Commission staff on October 15, 2018.  See E-mail from Deidre 
                   Thanski, Compliance Reporting Associate Specialist, Inteserra Consulting Group, Consultants to Custom 
                   Teleconnect, Inc., to Gregory Capobianco, Attorney Advisor, Pricing Policy Division, Wireline Competition Bureau 
                   (Oct. 15, 2018, 14:23 EDT) (CTI 10/15/18 Email) (on file in EB-IHD-18-00027483).   
                   13 See 47 CFR § 64.6060.   
                   14 See id. at § 64.6060(a).   
                   15
                     See id.  Every provider of ICS has an affirmative obligation to know and comply with all applicable federal 
                   regulatory requirements.  See 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, 17099, para. 22 (1997) (1997 
                   Forfeiture Guidelines), recons. denied, Memorandum Opinion and Order, 15 FCC Rcd 303 (1999).   
                                                                                                                                         
                                                                             2 
                                                         Federal Communications Commission                                      DA 19-150 
                    
                    
                   of the reporting ICS provider must certify that the reported information and data are accurate and 
                   complete to the best of his or her knowledge, information, and belief.16  The Commission has found that 
                   the reporting and certification requirements are necessary in order to have greater transparency and 
                   heightened accountability on the part of ICS providers.17 
                             5.       Based on the evidence, we conclude that CTI apparently violated section 64.6060 of the 
                   Rules by failing to timely file a complete Annual ICS Report by April 1, 2018.  The Company filed an 
                   incomplete Annual ICS Report on March 28, 2018, and after CTI received notice that it was being 
                   investigated for the compliance failure, the Company submitted a completed report to Commission staff 
                   on October 15, 2018.18        
                             B.       Proposed Forfeiture 
                             6.       Section 503(b) of the Act authorizes the Commission to impose a forfeiture against any 
                   entity that “willfully or repeatedly fail[s] to comply with any of the provisions of [the Act] or of any rule, 
                   regulation, or order issued by the Commission.”19  As part of the process in determining any forfeiture, 
                   section 503(b) requires the Commission to consider 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.”20
                                                                                     As required by the Act, the Commission will 
                   apply these statutory factors to determine a forfeiture based on the Commission’s evaluation of each 
                   individual case on its own merits.21
                                                              The Act and the Rules cap potential liability through the statutory 
                                                                                  22
                   maximum forfeiture for any single act or failure to act.   In addition, the Commission has enacted Rules 
                   to establish base penalties for certain violations and identified criteria to consider when determining the 
                   appropriate penalty in any given case.23   
                             7.       The Commission may also adopt upward or downward adjustments when appropriate, 
                   including repeated violations.24  Under these Rules, we may adjust a forfeiture upward for violations that 
                   are egregious, intentional, or repeated, or that cause substantial harm or generate substantial economic  
                                                          
                                                                         
                   16 See 47 CFR § 64.6060(b). 
                   17 See 2015 ICS Order, 30 FCC Rcd at 12892, para. 271. 
                   18 See LOI Response, supra note 7, at 4; CTI 10/15/18 Email, supra note 12. 
                   19 47 U.S.C. § 503(b). 
                   20 See id. 
                   21 See id. 
                   22 47 U.S.C. § 503(b); 47 CFR § 1.80(b).  Section 503(b) of the Act authorizes us to assess a forfeiture against CTI 
                   of up to $201,340 for each violation, or each day of a continuing violation, up to a statutory maximum of $2,013,399 
                   for a single act or failure to act.  See 47 U.S.C. § 503(b); 47 CFR § 1.80(b).  These amounts reflect inflation 
                   adjustments to the forfeitures specified in section 503(b) ($100,000 per violation or per day of a continuing violation 
                   and $1,000,000 per any single act or failure to act).  The Federal Civil Penalties Inflation Adjustment Act of 1990, 
                   Pub. L. No. 101-410, 104 Stat. 890, as amended by the DCIA, Pub. L. No. 104-134, Sec. 31001, 110 Stat. 1321, 
                   requires the Commission to adjust its forfeiture penalties periodically for inflation.  See 28 U.S.C. § 2461 note 
                   (4).  The Commission most recently adjusted its penalties to account for inflation on December 19, 2018.  See 
                   Amendment of Section 1.80(b) of the Commission’s Rules, Adjustment of Civil Monetary Penalties to Reflect 
                   Inflation, Order, DA 18-1272 (EB 2018). 
                   23 47 CFR § 1.80(b)(8), Note to paragraph (b)(8).  
                   24 See 1997 Forfeiture Guidelines, 12 FCC Rcd at 17110, para. 53 (citing 47 U.S.C. § 503(b)).   
                                                                               3 
                                                         Federal Communications Commission                                      DA 19-150 
                    
                    
                   gain for the violator.25  We may adjust a forfeiture downward under the Rules for minor violations, good 
                   faith or voluntary disclosure, a history of overall compliance, or an inability to pay.26
                                                                                                                      The Rules 
                   specifically “are intended as a guide for frequently recurring violations” and not “a complete or 
                                                     27
                   exhaustive list of violations.”    
                             8.       The Commission has established a base forfeiture of $3,000 for the failure to file required 
                   forms or information.28  Concerning the nature, circumstances, extent and gravity of the violation, the 
                   annual ICS filing and certification requirements further the Commission’s statutory responsibilities 
                   regarding ICS rates and practices and monitoring the ICS industry.  These are important objectives for the 
                   Commission.  In this case, CTI apparently committed one violation of the annual filing and certification 
                   rule.  On balance, the upward and downward adjustment factors set forth in the Act and the Rules do not 
                   warrant an adjustment to the $3,000 base forfeiture in this case.  Consistent with the Forfeiture Policy 
                   Statement, section 1.80 of the Rules, and the statutory factors, we propose a total forfeiture of $3,000, for 
                   which CTI is apparently liable.   
                   IV.       CONCLUSION 
                             9.       We have determined that CTI apparently willfully violated section 64.6060 of the Rules.  
                   As such, CTI is apparently liable for a forfeiture of $3,000.   
                   V.        ORDERING CLAUSES 
                             10.      Accordingly, IT IS ORDERED that, pursuant to section 503(b) of the Act29 and sections 
                   1.80 of the Rules,30 Custom Teleconnect, Inc. is hereby NOTIFIED of its APPARENT LIABILITY 
                   FOR A FORFEITURE in the amount of Three Thousand Dollars ($3,000) for a willful violation of 
                   section 64.6060 of the Rules.31
                                                       
                             11.      IT IS FURTHER ORDERED that, pursuant to section 1.80 of the Rules,32 within thirty 
                   (30) calendar days of the release date of this Notice of Apparent Liability for Forfeiture, Custom 
                   Teleconnect, Inc. SHALL PAY the full amount of the proposed forfeiture or SHALL FILE a written 
                   statement seeking reduction or cancellation of the proposed forfeiture consistent with paragraphs 14-15 
                   below. 
                             12.      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.  Custom 
                   Teleconnect, Inc. shall send electronic notification of payment to Jeffrey Gee at Jeffrey.Gee@fcc.gov, 
                   Kalun Lee at Kalun.Lee@fcc.gov, Rizwan Chowdhry at Rizwan.Chowdhry@fcc.gov, and David Janas at 
                   David.Janas@fcc.gov on the date said payment is made.  Regardless of the form of payment, a completed 
                                                                         
                   25 47 CFR § 1.80(b)(8), Note to paragraph (b)(8).  See also 1997 Forfeiture Guidelines, 12 FCC Rcd at 17098–99, 
                   para. 22 (1997) (noting that “[a]lthough we have adopted the base forfeiture amounts as guidelines to provide a 
                   measure of predictability to the forfeiture process, we retain our discretion to depart from the guidelines and issue 
                   forfeitures on a case-by-case basis, under our general forfeiture authority contained in Section 503 of the Act”).    
                   26 47 CFR § 1.80(b)(8), Note to paragraph (b)(8). 
                   27 1997 Forfeiture Guidelines, 12 FCC Rcd at 17109-10, para. 53. 
                   28 See 47 CFR § 1.80.   
                   29 47 U.S.C. § 503(b). 
                   30 47 CFR § 1.80. 
                   31 47 CFR § 64.6060. 
                   32 47 CFR § 1.80. 
                                                                                                                                              
                                                                               4 
                                                        Federal Communications Commission                                    DA 19-150 
                    
                    
                                                                                  33
                   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 that should be followed based on the 
                   form of payment selected:             
                            •    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. 
                            13.      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, SW, Room 1-A625, Washington, DC 20554.34  Questions regarding payment procedures should be 
                   directed to the Financial Operations Group Help Desk, by phone at (877) 480-3201, or by e-mail at 
                   ARINQUIRIES@fcc.gov. 
                            14.      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.35  The written statement must be mailed to the Office of the 
                   Secretary, Federal Communications Commission, 445 12th Street, SW, Washington, DC 20554, ATTN:  
                   Enforcement Bureau – Investigations & Hearings Division, and must include the NAL/Account Number 
                   referenced in the caption.  The statement must also be e-mailed to Jeffrey Gee at Jeffrey.Gee@fcc.gov, 
                   Kalun Lee at Kalun.Lee@fcc.gov, Rizwan Chowdhry at Rizwan.Chowdhry@fcc.gov, and David Janas at 
                   David.Janas@fcc.gov.   
                            15.      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; 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. 
                                                         
                                                                         
                   33 An FCC Form 159 and detailed instructions for completing the form may be obtained at 
                   http://www.fcc.gov/Forms/Form159/159.pdf. 
                   34 See 47 CFR § 1.1914. 
                   35 47 CFR §§ 1.16, 1.80(f)(3). 
                                                                              5 
                                                     Federal Communications Commission                                 DA 19-150 
                   
                   
                           16.     IT IS FURTHER ORDERED that a copy of this Notice of Apparent Liability for 
                  Forfeiture shall be sent by first class mail and certified mail, return receipt requested, to Ms. Connie 
                  Wightman, Consultant, Inteserra Consulting Group, Inc., Consultants to Custom Teleconnect, Inc., 151 
                  Southhall Lane, Suite 450, Maitland, Florida 32751.   
                                                                      FEDERAL COMMUNICATIONS COMMISSION 
                   
                   
                   
                                                                      Keith Morgan 
                                                                      Deputy Chief 
                                                                      Enforcement Bureau  
                                                                          6