The licenses for an AM radio station with an FM translator serving Oregon’s state capital were transferred between family members — twice — without FCC authorization.
That’s yielded a proposed fine.
Such inter-family transfers are a no-no, and that’s resulted in the issuance by FCC Media Bureau Audio Division Chief Al Shuldiner of a Notice of Apparent Liability for Forfeiture in the amount of $16,000 to KCCS LLC — the company behind Talk KSLM-AM and K282BY in Salem, Ore.
The Commission became aware of the rule violation after the station owner filed applications seeking approval of a transaction that would shift the properties from Cindy Wyant Smith to Jacqueline Smith.
Here’s the problem: Media Bureau staff discovered that KCCS LLC was transferred two times prior to the filing of the paperwork reflecting this request change in control.
Ms. Wyant Smith acquired KCCS LLC in August 2011. On May 1, 2014 — more than a decade ago — she struck a deal with Ms. Smith in a unique arrangement valued at $250,000, to be paid through “sweat equity.” Providing bookkeeping and administrative services, a fee of $250,000 was placed on the time and duties equivalent to that payment.
It took Jacqueline Smith from September 2016 through February 2021 to earn the funds needed to acquire KCCS LLC in full. At that time, the Oregon Secretary of State was delivered paperwork indicating Jacqueline Smith was now sole Member/Manager. But, the FCC did not receive any notification of such until October 2021. Each party acknowledged their “mistake” and said that an application for FCC approval of the transfer of control of KCCS LLC would be filed within ten business days of the execution of an amended agreement filed at that time. However, a filing did not transpire for four months.
Then came the license renewal applications. These included a declaration that Ms. Wyatt Smith was the sole interest holder and that Jacqueline Smith was a non-voting, non-equity LLC member.
There’s more: Starting in 2022, Jacqueline Smith and her sisters Amanda Smith, Katie Wilson and Cynthia Ramirez claimed to be the co-owners of KSLM-AM. Local media reports and the station’s own social media reported this as fact.
This, in the eyes of the Commission, translates to an unauthorized transfer of control.
And, in this case, there were two such violations, resulting in the fine value assigned by Shuldiner.
It is up to KCCS LLC to seek a reduction or cancellation of the proposed forfeiture.
