[Federal Register Volume 72, Number 147 (Wednesday, August 1, 2007)]
[Notices]
[Pages 42088-42090]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-14876]


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FEDERAL COMMUNICATIONS COMMISSION

[EB Docket No. 07-143; FCC 07-125]


Pendleton C. Waugh, Charles M. Austin, and Jay R. Bishop, 
Preferred Communication Systems, Inc., Preferred Acquisitions, Inc.--
Order To Show Cause and Notice of Opportunity for Hearing

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This document commences a hearing proceeding by directing 
Preferred Communication Systems, Inc., Preferred Acquisitions, Inc., 
and their principals, to show cause why the wireless licenses held by 
these entities should not be revoked, and by designating those licenses 
for an evidentiary hearing on issues relating to the qualifications of 
Preferred Communication Systems, Inc., Preferred Acquisitions, Inc., 
and their principals, to be and remain Commission licensees.

DATES: Petitions by persons desiring to participate as a party in the 
hearing, pursuant to 47 CFR 1.223, may be filed no later August 31, 
2007. See SUPPLEMENTARY INFORMATION section for dates that named 
parties should file appearances.

ADDRESSES: Office of the Secretary, Federal Communications Commission, 
445 12th Street, SW., Washington, DC 20554, and copies thereof shall be 
served on the Chief, Investigations and Hearings Division, Enforcement 
Bureau, Room 4-C330.

FOR FURTHER INFORMATION CONTACT: Gary A. Oshinsky and Anjali K. Singh, 
Investigations and Hearings Division, Enforcement Bureau at (202) 418-
1420; and Jennifer A. Lewis, Assistant Chief, Investigations and 
Hearings Division, Enforcement Bureau at (202) 418-1420.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order 
to Show Cause and Notice of Opportunity for Hearing, FCC 07-125, 
released July 20, 2007. The full text of the Order to Show Cause and 
Notice of Opportunity for Hearing (Order) is available for inspection 
and copying from 8 a.m. to 4:30 p.m. Monday through Thursday or from 8 
a.m. to 11:30 a.m. on Friday at the FCC Reference Information Center, 
Room CY-A257, 445 12th Street, SW., Washington, DC 20554. The complete 
text may be purchased from the Commission's copy contractor, Best Copy 
and Printing, Inc. (BCPI), Portals II, 445 12th Street, SW., Room CY-
B402, Washington, DC 20554, telephone 202-488-5300, facsimile 202-488-
5563, or you may contact BCPI at its Web site: http://www.BCPIWEB.com. 
When ordering documents from BCPI, please provide the appropriate FCC 
document number, FCC 07-125. The Order is also available on the 
Internet at the Commission's Web site through its Electronic Document 
Management System (EDOCS): http://hraunfoss.fcc.gov/edocs--public/
SilverStream/Pages/edocs.html. Alternative formats are available to 
persons with disabilities (Braille, large print, electronic files, 
audio format), send an e-mail to [email protected] or call the Consumer 
and Governmental Affairs Bureau at 202-418-0530 (voice), (202) 418-0432 
(tty).

Summary of the Order

    In the Order, the Commission commences a hearing proceeding to 
determine whether Pendleton C. Waugh (``Waugh''), Jay R. Bishop 
(``Bishop''), Charles M. Austin (``Austin''), and the entities they own 
and control, Preferred Communication Systems, Inc. (``PCSI''), and 
Preferred Acquisitions, Inc. (``PAI''), its wholly-owned subsidiary 
(collectively, ``Preferred''), licensee of certain wireless stations, 
are qualified to be and remain Commission licensees. Among other 
issues, the hearing proceeding will consider whether these parties: (1) 
Failed to disclose a real-party-in-interest and engaged in unauthorized 
transfers of control of

[[Page 42089]]

Commission licenses; (2) misrepresented material facts to the 
Commission; (3) lacked candor in their dealings with the Commission; 
(4) failed to disclose the involvement of convicted felons in ownership 
and control of the licenses; (5) failed to file required forms and 
information and respond fully to Enforcement Bureau letters of inquiry; 
and (6) discontinued operation of certain licenses without prior 
Commission approval. Based on whether violations of the Commission's 
rules are found, the hearing proceeding will also determine whether 
forfeitures are to be issued and/or whether the subject licenses must 
be revoked.
    PCSI is the licensee of the following Specialized Mobile Radio 
(``SMR''), site-by-site stations, which are subject to the hearing: 
WPDU206 (Santurce, PR); WPDU210 (Santurce, PR); WPDU218 (Santurce, PR); 
WPDU222 (Santurce, PR); WPDU263 (Santurce, PR); WPDU266 (Santurce, PR); 
WPDU271 (Santurce, PR); WPDU275 (Santurce, PR); WPDU279 (Santurce, PR); 
WPDU287 (Santurce, PR); WPEF461 (Santurce, PR); WPEU434 (Santurce, PR); 
WPEX345 (Santurce, PR); WPEY418 (Santurce, PR); WPEY419 (Santurce, PR); 
WPEY421 (Santurce, PR); WPEY422 (Santurce, PR); WPEY423 (Santurce, PR); 
WPEY424 (Santurce, PR); WPEY425 (Santurce, PR); WPEY427 (Santurce, PR); 
WPEY429 (Santurce, PR); WPEY430 (Santurce, PR); WPEY431 (Santurce, PR); 
WPEY432 (Santurce, PR); WPEY445 (Santurce, PR); WPEY446 (San Juan, PR); 
WPEY447 (Santurce, PR); WPEY448 (Santurce, PR); WPEY450 (Santurce, PR); 
WPEY451 (Santurce, PR); WPEZ750 (Santurce, PR); WPFA265 (San Juan, PR); 
WPFA266 (Santurce, PR); WPFA268 (Santurce, PR); WPFA269 (Santurce, PR); 
WPFA270 (Santurce, PR); WPFA273 (Santurce, PR); WPFA278 (Santurce, PR); 
WPFA280 (Santurce, PR); WPFD607 (Santurce, PR); WPFD808 (Santurce, PR); 
WPFD809 (Santurce, PR); WPFD810 (Santurce, PR); WPFD811 (Santurce, PR); 
WPFD812 (Santurce, PR); WPFE472 (Santurce, PR); WPFE934 (Cayey, PR); 
WPFG589 (no ULS address; coordinates 18-16-08.8 N, 066-04-00.5 W); 
WPFG599 (Caguas, PR); WPFM597 (Cayey, PR); WPFM600 (San Juan, PR); 
WPFN354 (Aguada, PR); WPFN600 (Anasco, PR); WPFN636 (Anasco, PR); 
WPFN725 (Anasco, PR); WPFQ293 (Charlotte Amalie, VI); WPFS846 (Saint 
Croix, VI); WPFS856 (Saint Croix, VI); WPFT334 (Saint Croix, VI); 
WPFT335 (Saint Croix, VI); WPFT335 (Aguada, PR); WPFT356 (Aguada, PR); 
WPFT357 (Saint Croix, VI); WPFT369 (Charlotte Amalie, VI); WPFT416 
(Charlotte Amalie, VI); WPFT417 (Saint Croix, VI); WPFT968 (Charlotte 
Amalie, VI); WPFV692 (Charlotte Amalie, VI); WPFV884 (Mayaguez, PR); 
WPFX997 (Mayaguez, PR); WPFZ805 (Mayaguez, PR); WPFZ806 (Mayaguez, PR); 
WPFZ807 (Mayaguez, PR); WPFZ808 (Mayaguez, PR); WPGD852 (Mayaguez, PR); 
and WPGD855 (Mayaguez, PR).
    Preferred Acquisitions, Inc., is the licensee of the following SMR 
Economic Area (``EA'') stations, which are subject to the hearing: 
WPRQ941 (BEA013--Washington-Baltimore, DC-MD-VA-WV-PA); WPRQ942 
(BEA015--Richmond-Petersburg, VA); WPRQ943 (BEA016--Staunton, VA-WV); 
WPRQ944 (BEA017--Roanoke, VA-NC-WV); WPRQ945 (BEA048--Charleston, WV-
KY-OH); WPRQ946 (BEA164--Sacramento-Yolo, CA); WPRQ947 (BEA165--
Redding, CA-OR); WPRQ948 (BEA174--Puerto Rico and the U.S. Virgin 
Islands); WPRQ949 (BEA016--Staunton, VA-WV); WPRQ950 (BEA017--Roanoke, 
VA-NC-WV); WPRQ951 (BEA048--Charleston, WV-KY-OH); WPRQ952 (BEA162--
Fresno, CA); WPRQ953 (BEA165--Redding, CA-OR); WPRQ954 (BEA174--Puerto 
Rico and the U.S. Virgin Islands); WPRQ955 (BEA016--Staunton, VA-WV); 
WPRQ956 (BEA017--Roanoke, VA-NC-WV); WPRQ957 (BEA048--Charleston, WV-
KY-OH); WPRQ958 (BEA162--Fresno, CA); WPRQ959 (BEA163--San Francisco-
Oakland-San Jose, CA); WPRQ960 (BEA164--Sacramento-Yolo, CA); WPRQ961 
(BEA165--Redding, CA-OR); WPRQ962 (BEA174--Puerto Rico and the U.S. 
Virgin Islands); WPRQ963 (BEA013--Washington-Baltimore, DC-MD-VA-WV-
PA); WPRQ964 (BEA015--Richmond-Petersburg, VA); WPRQ965 (BEA016--
Staunton, VA-WV); WPRQ966 (BEA017--Roanoke, VA-NC-WV); WPRQ967 
(BEA174--Puerto Rico and the U.S. Virgin Islands); WPRQ968 (BEA013--
Washington-Baltimore, DC-MD-VA-WV-PA); WPRQ969 (BEA015--Richmond-
Petersburg, VA); WPRQ970 (BEA016--Staunton, VA-WV); WPRQ971 (BEA017--
Roanoke, VA-NC-WV); WPRQ972 (BEA174--Puerto Rico and the U.S. Virgin 
Islands); WPRQ973 (BEA013--Washington-Baltimore, DC-MD-VA-WV-PA); 
WPRQ974 (BEA015--Richmond-Petersburg, VA); WPRQ975 (BEA016--Staunton, 
VA-WV); WPRQ976 (BEA017--Roanoke, VA-NC-WV); WPRQ977 (BEA162--Fresno, 
CA); and WPRQ978 (BEA164--Sacramento-Yolo, CA).
    The Commission received information that alleged, among other 
things, that PCSI had transferred control over its licenses to Waugh, a 
convicted felon, and that Waugh was in control of PCSI's and PAI's 
licenses. The Commission directed two letters of inquiry to PCSI. 
During the course of the investigation, the Commission discovered that 
PCSI, PAI, Austin, Waugh, and Bishop may have engaged in additional 
violations of the Commission's rules. For example, it appeared that 
PCSI may have also transferred ownership interests to Bishop, another 
convicted felon. Additionally, it appeared that PCSI and PAI may have 
misrepresented information concerning their ownership status and PAI's 
operational readiness. Further, it appeared that PCSI failed to respond 
fully to the Commission's second letter of inquiry and that PAI failed 
to update the Commission concerning material changes in its operational 
readiness. The Commission determined that Waugh's and Bishop's felony 
convictions and potential ownership interest in and control over PCSI 
and PAI raise a substantial and material question of fact as to the 
qualifications of PCSI, PAI, and their principals to be and to remain 
Commission licensees, and may warrant revocation of PCSI's and PAI's 
licenses. Thus, pursuant to sections 312(a) and 312(c) of the 
Communications Act of 1934, as amended, 47 U.S.C. 312(a) and (c) and 
section 1.91 of the Commission's rules, 47 CFR 1.91, the Order directs 
PCSI, PAI, Waugh, Austin, and Bishop to show cause why the PCSI's and 
PAI's licenses should not be revoked, based upon the following issues: 
(1) Whether Pendleton C. Waugh was an undisclosed real party in 
interest in filings before the Commission, in willful and/or repeated 
violation of section 1.2112 of the Commission's Rules, 47 CFR 1.2112; 
(2) whether Preferred Communication Systems, Inc. (``PCSI''), engaged 
in an unauthorized transfer of control, in willful and/or repeated 
violation of section 310(d) of the Communications Act of 1934, as 
amended (the ``Act''), 47 U.S.C. 310(d); (3) whether PCSI and/or 
Preferred Acquisitions Inc. (``PAI'') misrepresented material facts to, 
and/or lacked candor in its dealings, with the Commission, in willful 
and/or repeated violation of section 1.17 of the Commission's Rules, 47 
CFR 1.17; (4) the effect of Pendleton C. Waugh's and Jay R. Bishop's 
felony convictions on their qualifications and those of PCSI and PAI to 
be and remain Commission licensees; (5) whether PCSI and/or PAI failed 
to maintain the continuing accuracy of filings pending before the 
Commission in willful and/or repeated violation of section 1.65 of the

[[Page 42090]]

Commission's Rules, 47 CFR 1.65; (6) whether PCSI failed to respond 
fully and completely to official requests for information from the 
Commission, in willful and/or repeated violation of section 308(b) of 
the Act, 47 U.S.C. 308(b); (7) whether, in fact, PCSI discontinued 
operation of its licenses for more than one year, pursuant to section 
90.157 of the Commission's Rules, 47 CFR 90.157; (8) in light of the 
evidence adduced pursuant to the foregoing issues, whether the 
captioned individuals and/or entities are qualified to be and remain 
Commission licensees; and (9) in light of the evidence adduced pursuant 
to the foregoing issue, whether the referenced authorizations should be 
revoked.
    The hearing will also consider whether, in light of the findings on 
the above issues, forfeitures shall be issued in an amount not to 
exceed $5,280,000.
    Copies of the Order to Show Cause and Notice of Opportunity for 
Hearing are being sent by certified mail, return receipt requested, to 
Austin, PCSI, PAI, their counsel of record, Charles J. Ryan, III, 
Waugh, and Bishop. To avail themselves of the opportunity to be heard, 
Preferred Communication Systems, Inc., Preferred Acquisitions, Inc., 
Pendleton C. Waugh, Charles M. Austin, and Jay R. Bishop, pursuant to 
section 1.91(c) and section 1.221 of the Commission's rules, 47 CFR 
1.91(c) and 47 CFR 1.221, in person or by their attorneys, must within 
30 days of the Commission's release of this Order, file in triplicate a 
written notice of appearance stating an intention to appear on the date 
fixed for the hearing and present evidence on the issues specified in 
this Order.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. E7-14876 Filed 7-31-07; 8:45 am]
BILLING CODE 6712-01-P