Family Bidding In FM Auction Leads To FCC Consent Decrees
May 14, 2013 at 7:30 PM (PT)
The FCC has entered a Consent Decree with 1 UGLY ENTERPRISE, LLC and principal MATTHEW SALAZAR over possibile violations of the rule against "prohibited contacts and communications in Commission auctions," specifically in FM Auction No. 79, and SALAZAR's mother has also entered a consent decree arising from the same situation.
SALAZAR and his parents DEBORAH and JESUS SALAZAR were bidders in the auction for a permit in PEACH SPRINGS, AZ, and 1 UGLY won the permit in LEAKEY, TX. When JESUS SALAZAR made the upfront payment of $2,500 for 1 UGLY for the LEAKEY permit, the Commission was prompted to investigate whether the SALAZARS were improperly communicating on bid strategies. Under the consent decree, 1 UGLY will turn in its construction permit for cancellation, and will forfeit the money paid to the Commission; MATTHEW SALAZAR is also agreeing to not participate in any future FCC auctions; and 1 UGLY will pay $5,000 in a "voluntary contribution" to the U.S. Treasury. DEBORAH SALAZAR has agreed to a $7,500 "voluntary contribution" to the U.S. Treasury as well.