FCC Pressured to Reopen Sale of Stations by Former Senator
Media Access Project urged the FCC to reconsider a Media Bureau decision that approved the transfer of licenses of 4 radio stations by a former state senator convicted of committing perjury -- a type of transaction the Commission has never before permitted.
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In an ex parte filing late Fri., Media Access Project Pres. Andrew Schwartzman said he had asked FCC Chmn. Powell to reopen the case and bring it before the full Commission. The staff decision said the Commission had never before approved a license transfer where the licensee has been convicted of perjury, Schwartzman said. The Bureau’s delegation of authority doesn’t allow the staff to act on matters that present novel questions of law or policy that can’t be resolved under existing precedents or guidelines, he said. Richard Zaragoza, who represented both the seller and buyer at the FCC level, called Media Access Project’s actions “totally unfounded.” Zaragoza said late Fri. he planned to file a response by today (Mon.).
At issue is an unpublished Jan. 18 staff decision letting former long-time Sen. Gene Stipe (D-Okla.) sell Little Dixie Radio and Bottom Line Bcstg. stations to the successor to his Senate seat, Richard Lerblance. Stipe ,78, whose net worth is $26 million, was convicted last year of perjury, conspiracy and federal elections fraud for falsely reported campaign contributions. He was sentenced to 5 years’ probation, 6 months’ house arrest and fines and forced to surrender his law license.
Under the longstanding Jefferson Radio policy, licensees found to lack the character to serve as licensees aren’t allowed to sell their stations. The Commission in its character policy rules examines misconduct occurring within the past 10 years. The FCC reviews the willfulness and frequency of the misconduct. While the Commission places greater emphasis on broadcast-related misconduct, it says the policy applies to all misconduct that shows the licensee to be untruthful to any govt. body. One of the entities through which Stipe’s illegal campaign contributions were laundered is identified as a media company, Schwartzman said. If that media company is one of Stipe’s radio stations, the misconduct was broadcast-related. “This alone requires vacating the staff action,” Schwartzman said.
Nonetheless, the Bureau said Stipe’s conduct didn’t involve any of his employees and the stations have an unblemished record. The Bureau characterized Stipe’s actions as an “isolated instance” of misconduct. The Bureau also considered Stipe’s age and health in granting the transfer. “Although this factor by itself would not be persuasive, permitting Mr. Stipe to sell all of his broadcast stations will avoid a potentially serious deterioration of service to the public,” the Bureau said. Stipe also controls 4 of the 5 stations in McAlester, Okla., so revocation proceedings in these circumstances could adversely affect broadcast service to these communities, the Bureau said. Allowing Stipe to “withdraw completely from all Commission-regulated activities will further the public interest,” the Bureau said.