FCC Probes Transfer Of Tama Stations
September 2, 2008 at 5:19 AM (PT)
The FCC is probing NEW YORK financier DANIEL ZWIRN and his $5 billion hedge fund, D.B. ZWIRN, concerning an alleged improper transfer of radio licenses, reports THE NEW YORK POST. The nine licenses were owned by TAMA BROADCASTING -- which ran a group of radio stations spread across GEORGIA and FLORIDA -- which is accusing ZWIRN of transferring ownership of the licenses from TAMA to ZWIRN without the approval of the FCC.
If the FCC finds ZWIRN improperly transferred control of the licenses, they could be revoked and ZWIRN would see its investment in TAMA fall precipitously.
Ownership of the licenses came into question after TAMA failed to make a payment on a $20 million loan from ZWIRN. The fund then forced TAMA into Chapter 11 earlier this year. TAMA's then-CEO, Dr. CHARLES CHERRY, complained to the FCC that ZWIRN had transferred ownership of the licenses to itself.
"We are taking this seriously," a spokesman for the FCC said, noting that the probe concerns violations of Sec 13 (D) of the Federal Communications Act of 1934 -- which says licenses cannot be transferred without approval of the FCC.
A spokesperson for ZWIRN denied CHERRY's claims.