[Federal Register Volume 72, Number 187 (Thursday, September 27, 2007)]
[Notices]
[Pages 54911-54913]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-19020]


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FEDERAL COMMUNICATIONS COMMISSION

[EB Docket No. 07-197; FCC 07-165]


Kurtis J. Kintzel, Keanan Kintzel, and All Entities by Which They 
Do Business Before the Federal Communications Commission--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 by directing Buzz Telecom 
Corporation, Business Options, Inc., U.S. Bell Corporation, Link 
Technologies, AVATAR, and/or their principals Kurtis J. Kintzel and/or 
Keanan Kintzel to show cause in an adjudicatory proceeding before an 
administrative law judge why their operating authority should not be 
revoked, and whether they should be required to refrain from providing 
any interstate common carrier services in the future without first 
obtaining prior Commission consent as a result of their apparent 
repeated and/or willful violations of the Commission's rules and 
provisions of the Communications Act of 1934, as amended (the ``Act''), 
relating to the provision of interstate common carrier services. The 
hearing will be held at a time and place to be specified in a 
subsequent order.

DATES: Petitions by persons desiring to participate as a party in the 
hearing, pursuant to 47 CFR 1.223, may be filed no later than October 
29, 2007. See Summary of the Order section below for dates that named 
parties should file appearances.

ADDRESSES: Please file documents with the 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-

[[Page 54912]]

C330. Each document that is filed in this proceeding must display on 
the front page the document number of this hearing, ``EB Docket No. 07-
197.''

FOR FURTHER INFORMATION CONTACT: Michele Levy Berlove, Investigations 
and Hearings Division, Enforcement Bureau, (202) 418-1420.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order 
to Show Cause and Notice of Opportunity for Hearing, FCC-165, released 
on September 10, 2007 (the ``Order''). The full text of the 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 document number, FCC 07-165. The 
Order also is available on the internet at the Commission's Web site 
through its Electronic Document Management System (EDOCS). The 
Commission's internet address for EDOCS is: 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) or 202-418-0432 (TTY).

Summary of the Order

    In the Order, the Federal Communications Commission commences a 
hearing proceeding before an administrative law judge to determine, 
among other things, whether (i) The authority granted to Kurtis J. 
Kintzel, Keanan Kintzel, and any and all entities in which they are 
principals and/or do business, to operate as common carriers should be 
revoked and, (ii) Kurtis J. Kintzel, Keanan Kintzel, and any and all 
entities in which they are or may be principals and/or by which they 
do, or may do business, should be required to refrain from providing 
any interstate common carrier services in the future without first 
obtaining prior Commission consent. Entities providing interstate 
common carrier services owned and controlled by Kurtis J. and Keanan 
Kintzel apparently willfully and repeatedly violated multiple terms of 
a Consent Decree to which they were signatories and apparently 
willfully and repeatedly violated multiple Commission rules and 
provisions of the Act relating to the provision of interstate common 
carrier services. Such apparent violations, and a lengthy history of 
noncompliance before the Commission, raise material and substantial 
questions regarding the basic qualifications of the Kintzel brothers to 
engage in the provision of interstate common carrier services now and 
in the future.
    Information has come to the Commission's attention that Business 
Options, Inc. (``BOI'') violated certain provisions of the Consent 
Decree in EB Docket No. 03-85 (``Consent Decree''). BOI entered into 
that Consent Decree prior to final disposition of an evidentiary 
hearing wherein it was to be determined, among other things, whether 
BOI had intentionally provided incorrect or misleading information to 
the Commission; whether BOI had engaged in unlawful ``slamming'' 
activities by changing consumers' long distance providers without 
authorization in violation of section 258 of the Act, 47 U.S.C. 258, 
and 64.1120(a)(1) of the Commission's rules, 47 CFR 64.1120(a)(1); 
whether BOI failed to file registration statements required under 
64.1195 of the Commission's rules, 47 CFR 64.1195; whether BOI 
discontinued service to the public in violation of section 214 of the 
Act, 47 U.S.C. 214, and 63.71 of the Commission's rules, 47 CFR 63.71; 
whether BOI had properly filed Telecommunications Reporting Worksheets; 
and whether BOI made all required contributions to the Universal 
Service Fund (``USF'') and Telecommunications Relay Services Fund 
(``TRS''), respectively. The terms of the Consent Decree specifically 
applied to all entities owned, directed, or controlled by the Kintzel 
brothers, and was intended to ensure their future compliance with 
sections 214, 254, and 258 of the Act, 47 U.S.C. 214, 254, 258, and 
related Commission rules. The Consent Decree contemplated a voluntary 
contribution to the United States Treasury in the total amount of 
$510,000 to be paid in 48 scheduled monthly installments; payment of 
all outstanding universal service and TRS debts; and timely payment of 
all future universal service and TRS assessments. In addition, the 
Kintzel brothers agreed to henceforth obtain all appropriate and 
necessary authorizations prior to discontinuing service in any state 
and to implement procedures regarding marketing of services to new 
customers and verification procedures related to these marketing 
efforts. The Consent Decree also required the filing of regular reports 
with the Commission relating to compliance with various Commission 
rules and Consent Decree requirements.
    In the fall of 2006, the Enforcement Bureau received information 
indicating that the Kintzel brothers had discontinued making the 
required regularly scheduled monthly installment payments toward 
satisfaction of their voluntary contribution under the 2004 Consent 
Decree. The information also suggested that an entity controlled by the 
Kintzel brothers, and subject to the terms of the Consent Decree, Buzz 
Telecom Corporation (``Buzz''), had unlawfully discontinued service to 
the public, and failed to pay required universal service and TRS 
assessments. During the last quarter of 2006, the Commission also 
received a number of consumer complaints alleging that Buzz, like BOI, 
had engaged in prohibited slamming and/or cramming activities. The 
Enforcement Bureau, on December 20, 2006, initiated an investigation 
of, and directed a Letter of Inquiry (``LOI'') to, Buzz and BOI 
requiring the production of various documents and responses to 
interrogatories concerning these allegations.
    In the response to the LOI provided by Kurtis Kintzel on behalf of 
Buzz and BOI (the ``LOI Response''), Kintzel admitted that the 
voluntary contribution of $510,000 had not been completely satisfied, 
and that $192,600 was past due and that they had discontinued service 
to all customers in each state where they had been providing services 
despite having failed to request and obtain Commission authorization to 
do so. In the LOI Response, Kintzel misrepresented to the Enforcement 
Bureau that the entities that he and his brother controlled were up to 
date and in compliance with their universal service and TRS 
contribution obligations. The LOI Response also failed to provide any 
information about the multiple slamming and cramming complaints the 
Commission had received from consumers. Despite a follow-up 
communication to Kintzel requesting the same information, Kintzel again 
failed to provide the requested information. In addition, despite the 
Enforcement Bureau's request, Kintzel failed to produce information 
about slamming and cramming complaints that Buzz had received directly 
from consumers. The Commission continues to receive complaints alleging 
that Buzz executed a change to a subscriber's telephone

[[Page 54913]]

exchange or telephone toll service without authorization in apparent 
violation of section 248 of the Act, 47 U.S.C. 248, and 64.1120 of the 
Commission's rules, 47 CFR 64.1120.
    Thus, pursuant to sections 4(i) and 214 of the Act, 47 U.S.C. 
154(i), 214, the Order directs directing Buzz, BOI, U.S. Bell 
Corporation (``US Bell''), Link Technologies (``Link''), AVATAR, and/or 
their principals Kurtis J. Kintzel and/or Keanan Kintzel to show cause 
in an adjudicatory proceeding before an administrative law judge why 
(i) The operating authority bestowed on them pursuant to section 214 of 
the Act, 47 U.S.C. 214, should not be revoked and, (ii) Kurtis J. 
Kintzel, Keanan Kintzel, and any and all entities in which they are or 
may be principals and/or by which they do, or may do business, should 
be required to refrain from providing any interstate common carrier 
services in the future without first obtaining prior Commission 
consent, as a result of their repeated violation of the Commission's 
rules and provisions of the Act, upon the following issues:
    (a) Whether Buzz, BOI, U.S. Bell, Link, AVATAR, and/or their 
principals Kurtis J. Kintzel and/or Keanan Kintzel willfully and/or 
repeatedly violated Paragraph 14(d) of the Consent Decree by 
discontinuing service in one or more states without first notifying 
either the Commission or the appropriate state regulatory authority;
    (b) Whether Buzz, BOI, U.S. Bell, Link, AVATAR, and/or their 
principals Kurtis J. Kintzel and/or Keanan Kintzel willfully and/or 
repeatedly violated Paragraph 14(f) of the Consent Decree by failing to 
make required universal service contributions by the date indicated on 
invoices from the Universal Service Adminstrative Company (``USAC'');
    (c) Whether Buzz, BOI, U.S. Bell, Link, AVATAR, and/or their 
principals Kurtis J. Kintzel and/or Keanan Kintzel willfully and/or 
repeatedly violated Paragraph 14(g) of the Consent Decree by failing to 
make required TRS contributions by the date indicated on invoices 
received from the National Exchange Carriers Association (``NECA'');
    (d) Whether Buzz, BOI, U.S. Bell, Link, AVATAR, and/or their 
principals Kurtis J. Kintzel and/or Keanan Kintzel willfully and/or 
repeatedly violated Paragraph 15 of the Consent Decree by failing to 
make required voluntary contributions to the Commission in a timely 
manner;
    (e) Whether Buzz, BOI, U.S. Bell, Link, AVATAR, and/or their 
principals Kurtis J. Kintzel and/or Keanan Kintzel willfully and/or 
repeatedly violated Sec.  63.71 of the Commission's rules, 47 CFR 
63.71, by discontinuing service in one or more states without first 
notifying either the Commission or the appropriate state regulatory 
authority;
    (f) Whether Buzz, BOI, U.S. Bell, Link, AVATAR, and/or their 
principals Kurtis J. Kintzel and/or Keanan Kintzel willfully and/or 
repeatedly violated Sec.  54.706 of the Commission's rules, 47 CFR 
54.706, by failing to make required universal service contributions by 
the date indicated on invoices from USAC;
    (g) Whether Buzz, BOI, U.S. Bell, Link, AVATAR, and/or their 
principals Kurtis J. Kintzel and/or Keanan Kintzel willfully and/or 
repeatedly violated Sec.  64.604(c)(5)(iii)(A) of the Commission's 
rules, 47 CFR 64.604(c)(5)(iii)(A), by failing to make required TRS 
contributions by the date indicated on invoices received from NECA;
    (h) Whether Buzz, BOI, U.S. Bell, Link, AVATAR, and/or their 
principals Kurtis J. Kintzel and/or Keanan Kintzel willfully and/or 
repeatedly violated sections 218 and/or 403 of the Act, 47 U.S.C. 218, 
403, by failing to respond fully, completely, and in a timely manner to 
one or more Commission inquiries;
    (i) Whether Buzz, BOI, U.S. Bell, Link, AVATAR, and/or their 
principals Kurtis J. Kintzel and/or Keanan Kintzel willfully and/or 
repeatedly violated section 258 of the Act, 47 U.S.C. 258, and 64.1120 
of the Commission's rules, 47 CFR 64.1120, by changing a subscriber's 
provider of telephone exchange or telephone toll service without 
authorization and/or without following the verification procedure's 
outlined in Sec.  64.1120 of the Commission's rules;
    (j) In light of the evidence adduced pursuant to the foregoing 
issues, whether the authority conferred by section 214 of the Act, 47 
U.S.C. 214, upon Buzz, BOI, U.S. Bell, Link Technologies, AVATAR, and/
or their principals Kurtis J. Kintzel and/or Keanan Kintzel to provide 
interstate common carrier services should be revoked;
    (k) In light of the evidence adduced pursuant to the foregoing 
issues, whether Buzz, BOI, U.S. Bell, Link, AVATAR, and/or their 
principals Kurtis J. Kintzel and/or Keanan Kintzel should be ordered to 
henceforth cease, desist and otherwise refrain from providing 
interstate common carrier services of any kind without prior written 
application to and consent from the Commission.

The hearing will be held at a time and place to be specified in a 
subsequent order. Copies of the Order are being sent to Buzz Telecom 
Corporation, Business Options, Inc., U.S. Bell Corporation, Link 
Technologies, AVATAR, Kurtis J. Kintzel and Keanan Kintzel via 
Certified Mail, Return Receipt Requested, and by e-mail.

    To avail themselves of the opportunity to be heard, Buzz Telecom 
Corporation, Business Options, Inc., U.S. Bell Corporation, Link 
Technologies, AVATAR, and/or their principals Kurtis J. Kintzel and/or 
Keanan Kintzel, in person or by their attorney, are directed by the 
Order, pursuant to 47 CFR 1.91(c), to file with the Commission, by 
October 1, 2007, a written appearance stating that they will appear on 
the date fixed for hearing and present evidence on the issues specified 
herein.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. E7-19020 Filed 9-26-07; 8:45 am]
BILLING CODE 6712-01-P