WASHINGTON, D.C. — Two Fletcher Heald & Hildreth attorneys, along with a veteran Washington lawyer, are no longer serving as legal counsel to a St. Louis-area broadcaster facing a FCC license revocation hearing on allegations of misrepresentation and fraud.
Confirmation of their withdrawal of counsel filing with the Commission’s Administrative Law Judge came early Monday, along with a schedule for the license revocation hearing — something set to occur even as the licensee has filed to liquidate all of its assets.
In an Order, ALJ Jane Hinckley Halprin scheduled a pre-hearing conference at 10am on Thursday, Dec. 5, at FCC Headquarters. The on-the-record conference must be conducted in person, with motions to appear by speakerphone expressly denied.
It results in a must-attend session for Dennis J. Watkins, Trustee for the Entertainment Media Trust (EMT).
If anything, the pre-hearing should prove interesting, as Halprin “finds it puzzling” that even though she raised the issue of representation at a Nov. 14 teleconference, it was not made clear at the time that Davina Sashkin and Seth Williams of Fletcher Heald & Hildreth, in addition to Anthony Lepore, were no longer representing EMT.
Further, Halprin finds it “concerning” that their Request for Correction of the Record and Notification of Withdrawal provided no detail with respect to the circumstances of the termination of their representation of EMT, who they have represented since the outset of this hearing proceeding, as well as earlier in connection with related proceedings before the Media Bureau.”
Hence the whole reason for the pre-hearing gathering: no response was submitted to the Enforcement Bureau’s Motion to Compel in accord with the deadlines established in a
November 18 Order. As such, the Presiding Judge seeks assurance that EMT will abide by those discovery deadlines.
What’s the situation with the trio of attorneys? On Nov. 19, they filed a Request for Correction of the Record and Notification of Withdrawal of Counsel. Specifically, they asked that the Presiding Judge issue an erratum to correct the introductory information in the Nov. 18 Order which indicated that Sashkin and Lepore appeared “on behalf of applicant Entertainment Media Trust and Trustee in Bankruptcy Donald M. Samson” at the
aforementioned teleconference.
They claim the appeared only on behalf of Sampson and that they were not representing Watkins.
Perhaps outstanding bills were an issue.
On top of EMT’s list of unsecured claims is Fletcher Heald & Hildreth, owed $99,632.14.
Officially known as MB Docket No. 19-156 at the FCC, the Nov. 18 Order set the following schedule for the revocation hearing:
- Deadline for completion of discovery: May 21, 2020
- Last day to request summary decision: July 2, 2020
- Completion of exchange of exhibits and witness lists: September 1, 2020
- Deadline for filing written affirmative direct cases: September 1, 2020
- Deadline for notification of witnesses intended for cross-examination: September 8, 2020
- Deadline for filing objections to affirmative direct case exhibits and written testimony: September 15, 2020
- Deadline for filing replies to objections: September 22, 2020
- Commencement of hearing: October 19, 2020
With an actual hearing 11 months away, what happens to the radio stations, KZQZ-AM 1430; KFTK-AM in East St. Louis, Ill.; WQQW-AM in Highland, Ill.; and KQQZ-AM in Fairview Heights, Ill., is now cloudy.
In September, it became known that a Chapter 7 voluntary petition was filed Sept. 11 by EMT in U.S. Bankruptcy Court for the Southern District of Illinois. A wholesale asset sale was to be in the works.
The decision by EMT to declare Chapter 7 bankruptcy, in which a liquidation of all properties is undertaken, will resolve debt tied a handful of creditors, with liabilities of $121,495.77. EMT lists its asset worth as $2.02 million, court documents show.
But, can stations designated for a license revocation hearing be sold?
With a Hearing Designation Order affirmed with a license revocation schedule, the actions in Chapter 7 bankruptcy for Entertainment Media Trust (EMT) — and an individual convicted of felony offenses for obstruction of justice and bank fraud, a violation of the Communications Act and the Commission’s rules — could bring a new level of drama to the stations.
The name of the “authorized representative of the debtor” is listed as Dennis Watkins. This is the individual noted as EMT’s Trustee in all FCC documents tied to the company. But, a multi-year inquiry conducted by the Media Bureau determined that the stations were actually controlled by Robert S. Romanik — the individual involved in the bank fraud charges.
If found to have committed these serious violations, EMT’s licenses are subject to cancellation.
