[Federal Register Volume 87, Number 62 (Thursday, March 31, 2022)]
[Notices]
[Pages 18794-18796]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-06811]


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FEDERAL COMMUNICATIONS COMMISSION

[MB Docket No. 22-122; DA 22-285; FR ID 78964]


Arm & Rage, LLC, WJBE(AM), Powell, TN

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) commences a proceeding to determine whether the license of 
Arm & Rage, LLC (A&R) for WJBE(AM), Powell, Tennessee, Facility ID No. 
59693 should be revoked pursuant to sections 312(a) and (c) of the 
Communications Act of 1934, following the felony conviction of its sole

[[Page 18795]]

member, Joseph Armstrong (Armstrong) for filing a false federal income 
tax return. The hearing will also consider the effect, if any, of A&R's 
late reporting of the conviction and late-filing of other information 
required to be placed in its online public inspection file.

DATES: A&R, in person or by counsel, shall file with the Commission, by 
April 11, 2022, a written appearance stating that it will appear on the 
date fixed for hearing and present evidence on the issues specified 
therein. Persons desiring to participate as parties in the hearing 
shall file a petition for leave to intervene not later than May 2, 
2022.

ADDRESSES: Federal Communications Commission, 45 L Street NE, 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Albert Shuldiner, Media Bureau, (202) 
418-2721.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
Hearing Designation Order, Order to Show Cause, and Notice of 
Opportunity for Hearing, MB Docket No. 22-122, adopted and released on 
March 21, 2022. The full text of this document is available online at 
http://apps.fcc.gov/ecfs/. The full text of this document is also 
available in alternative formats (computer diskette, large print, audio 
record, and Braille). Persons with disabilities who need documents in 
these formats may contact the FCC by email: [email protected] or phone: 
202-418-0530 or TTY: 202-418-0432.

Synopsis

    1. In this Hearing Designation Order, Order to Show Cause, and 
Notice of Opportunity for Hearing, the Federal Communications 
Commission (Commission) commences a hearing proceeding before the 
Administrative Law Judge to determine whether the license of A&R for 
WJBE(AM), Powell, Tennessee should be revoked pursuant to sections 
312(a) and (c) of the Act 47 U.S.C. 312(a), (c), following the felony 
conviction of its sole member, Armstrong. The conviction raises the 
question under the Commission's Character Qualifications Policy 
Statement of whether Armstrong, and hence A&R, possesses the requisite 
character qualifications to remain a licensee of the Commission.
    2. On August 8, 2016, a jury convicted Armstrong of one felony 
count of fraud and false statements under 26 U.S.C. 7206(1) for filing 
a false federal income tax return. The record of the criminal trial 
reflects that the jury heard evidence that Armstrong, an elected 
representative in the Tennessee legislature, purchased cigarette tax 
stamps in 2007 and sold them at a profit of approximately $330,000 
following the legislature's increase in the state's cigarette tax, but 
did not include the profit on his federal 2008 individual income tax 
return. On January 25, 2017, Armstrong was sentenced to three years of 
probation, which included six months of house arrest, ordered to pay 
$99,943 in restitution to the federal government and a $40,000 fine, 
and required to perform 300 hours of community service.
    3. Pursuant to Sec.  1.65(c) of the Commission's rules, 47 CFR 
1.65(c), A&R was required to report the conviction as an adverse 
finding by April 1, 2017, i.e., the anniversary of license renewal 
filings for Tennessee. A&R submitted a document informing the 
Commission of the conviction (Adverse Finding Report) on April 14, 
2017, after the due date. A&R, on March 18, 2020, also attached the 
same Adverse Finding Report to a timely application for license 
renewal, File No. 0000108293 (Renewal Application), to explain its 
answer of ``No'' to the question as to whether A&R could certify that 
there had been no adverse findings bearing on the character 
qualifications of A&R and its principal. A&R also responded ``No'' to 
the Renewal Application's question of whether it had timely uploaded 
required documents to its online public inspection file. Specifically, 
A&R acknowledged that it had neither filed Biennial Ownership Reports 
as required by Sec.  73.3615 of the Commission's rules, 47 CFR 73.3615, 
nor timely uploaded issues/programs lists as required by Sec.  73.3526 
of the Commission's rules, 47 CFR 73.3526.
    4. Armstrong's felony conviction raises the question under the 
Commission's Character Qualifications Policy Statement of whether he, 
and thus A&R, has the character qualifications to remain a Commission 
licensee. The Commission and the courts have recognized that the FCC 
relies heavily on the honesty and probity of its licensees in a 
regulatory system that is largely self-policing. The felony of which 
Armstrong was convicted--fraud and false statements--is centered upon 
criminally dishonest conduct. Armstrong directed that dishonesty at a 
federal agency by making false statements on a federal tax form. His 
omission of material financial information (a large profit), resulted 
in substantial inaccuracy of information that he was federally required 
to report (total income on which tax liability is based). In light of 
Armstrong's past willingness to conceal information from another 
federal agency in violation of the law, we are unable to conclude on 
the record before us that Armstrong's criminal conviction is not 
disqualifying. In addition, A&R's late reporting of Armstrong's 
conviction to the Commission, along with its self-reported and 
purportedly inadvertent failure to file ownership reports and to upload 
issues/programs lists between 2018 and 2020, when considered along with 
the felony, heighten our concern as to whether we can rely upon A&R to 
provide complete and accurate information to the Commission. Because 
Armstrong's conviction, separately, and together with A&R's admitted 
rule violations, raises questions under the Commission's Character 
Qualifications Policy Statement, we designate for hearing appropriate 
issues to determine whether Armstrong, and by extension, A&R, possesses 
the requisite character qualifications to remain a Commission licensee 
and whether the Commission should revoke the license for WJBE(AM).
    5. The Commission will hold A&R's Renewal Application in abeyance 
pending the outcome of the hearing. If the underlying license is 
revoked, the Renewal Application will be dismissed as moot. If the 
license is not revoked, the Commission would need to determine whether 
the Renewal Application should be granted, denied, or granted subject 
to appropriate terms and conditions, as described in section 309(k)(2) 
of the Act, 47 U.S.C. 309(k)(2).
    6. All parties shall file a timely notice of appearance in 
accordance with the Rules. Any person or entity seeking status as a 
party in this proceeding must file a petition to intervene or petition 
for leave to intervene in accordance with Sec.  1.223 of the 
Commission's rules, 47 CFR 1.223.
    7. Accordingly, it is ordered that, pursuant to sections 312(a) and 
312(c) of the Communications Act of 1934, as amended, 47 U.S.C. 312(a), 
(c) and Sec.  1.91(a) of the Commission's rules, 47 CFR 1.91(a) and 
pursuant to authority delegated under Sec. Sec.  0.61 and 0.283 of the 
Commission's rules, 47 CFR 0.61, 0.283, Arm & Rage, LLC is hereby 
ordered to show cause why its authorization for WJBE(AM), Powell, 
Tennessee should not be revoked in a proceeding before the FCC 
Administrative Law Judge, at a time and place to be specified in a 
subsequent order, upon the following issues:
    (a) To determine the effects, if any, of Joseph Armstrong's felony 
conviction on his qualifications and thus the qualifications of Arm & 
Rage, LLC to be a Commission licensee;
    (b) To determine the effects, if any, of Arm & Rage, LLC's failure 
to report the

[[Page 18796]]

conviction by the April 1, 2017 due date, to upload required 
information to an online public inspection file, and to file timely 
ownership reports on its qualifications to be a Commission licensee; 
and
    (c) To determine whether, pursuant to section 312 of the 
Communications Act of 1934, as amended, 47 U.S.C. 312, the license of 
Arm & Rage, LLC for WJBE(AM), Powell, Tennessee should be revoked.
    8. It is further ordered that, pursuant to section 312(c) of the 
Communications Act of 1934, as amended, 47 U.S.C. 312(c), and Sec.  
1.91(c) of the Commission's rules, 47 CFR 1.91(c), in order to avail 
itself of the opportunity to be heard and the right to present evidence 
at a hearing in these proceedings, Arm & Rage, LLC and/or Joseph 
Armstrong, in person or by an attorney, shall file on or before April 
11, 2022 a written appearance stating its intention to appear at the 
hearing and present evidence on the issues specified above.
    9. It is further ordered, pursuant to Sec.  1.92(a) and (c) of the 
Commission's rules, that if Arm & Rage, LLC and/or Joseph Armstrong 
fails to file a written appearance within the time specified above, or 
has not filed prior to the expiration of that time a petition to 
dismiss without prejudice, or a petition to accept, for good cause 
shown, such written appearance beyond expiration of said 20 days, the 
right to a hearing shall be deemed waived. Where a hearing is waived, 
the Administrative Law Judge shall issue an order terminating the 
hearing proceeding and certifying the case to the Commission.
    10. It is further ordered that the Chief, Enforcement Bureau, is 
made a party to this proceeding without the need to file a written 
appearance.
    11. It is further ordered that, in accordance with section 312(d) 
of the Communications Act of 1934, as amended, 47 U.S.C. 312(d), and 
Sec.  1.91(d) of the Commission's rules, 47 CFR 1.91(d), the burden of 
proceeding with the introduction of evidence and the burden of proof 
shall be upon the Commission's Enforcement Bureau.
    12. It is further ordered that a copy of each document filed in 
this proceeding subsequent to the date of adoption of this Hearing 
Designation Order, Order to Show Cause, and Notice of Opportunity for 
Hearing shall be served on the counsel of record appearing on behalf of 
the Chief, Enforcement Bureau. Electronic service on the Enforcement 
Bureau shall be made using the following email address: 
[email protected].
    13. It is further ordered that copies of this Hearing Designation 
Order, Order to Show Cause, and Notice of Opportunity for Hearing shall 
be sent via Certified Mail, Return Receipt Requested, and by regular 
first-class mail to Arm & Rage, LLC and Joseph Armstrong, 2340 Martin 
Luther King Ave., Knoxville, TN 37914 and James L. Winston, Esq., 
Rubin, Winston, Diercks, Harris & Cooke, LLP, P.O. Box 20036, Suite 
700, Washington, DC 20036.
    14. It is further ordered that the Secretary of the Commission 
shall cause to have this Hearing Designation Order, Order to Show 
Cause, and Notice of Opportunity for Hearing or a summary thereof 
published in the Federal Register.

Federal Communications Commission.
Thomas Horan
Chief of Staff, Media Bureau.
[FR Doc. 2022-06811 Filed 3-30-22; 8:45 am]
BILLING CODE 6712-01-P