EMT Case Signals FCC Cracking Down on Misrepresentation
The ongoing license hearing for radio broadcaster Entertainment Media Trust -- with Sinclair Broadcast’s hearing designation order (see 2001270054) and the action against prison phone provider Securus (see 1904020076) --- could indicate an FCC crackdown on issues related to misrepresentation or a lack of candor, attorneys told us. The case at hand is expected to be dismissed over EMT’s failure to participate if the company doesn’t make a Monday deadline to demonstrate why that shouldn’t happen (see 2001240052).
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
"I’m flabbergasted, to be honest,” said FCC Administrative Law Judge Jane Halprin, per a transcript of a Dec. 5 hearing in the case. “EMT is obviously not taking this proceeding seriously, and it could result in their license not being renewed and their stations going off the air.”
“Licensees need to be cognizant of all the representations they’re making,” said Fletcher Heald broadcast attorney Davina Sashkin, who represented EMT and then bankruptcy trustee Donald Samson in the case. EMT was designated for hearing by the Enforcement Bureau. EB's investigation showed Bob Romanik, a convicted felon, created the trust, provided the funds to buy the stations, negotiated on behalf of the stations, and identified himself as a station owner on federal forms. He wasn’t listed as a party on the station’s FCC applications, and he assigned EMT’s interest in the stations to his girlfriend, EB has said.
With license renewals approaching, the information broadcasters give the FCC is likely to be scrutinized, Sashkin said. The FCC has always frowned upon misrepresentation by licensees, Sashkin said, but the agency seems to be actively pursuing perceived infractions more vigorously than in the past. Large companies have a battalion of lawyers to deal with ALJ hearings, but smaller companies such as EMT are spread more thin, she said. The lawyer called EMT “low-hanging fruit.” The FCC declined last week to comment on its policy.
Womble Bond broadcast attorney John Garziglia in June saw the hearing designation order for EMT as a sign of greater FCC attention toward misrepresentation. Wednesday, he pointed out there haven't been further HDOs. That means there's not enough information to be sure, he said.
The agency “doesn’t want me running or owning stations; they’re gonna make it as hard as they can,” said self-billed “Grim Reaper of Radio” Romanik, on his show on Jan. 24. The FCC maintains Romanik, not trustee Watkins, is the true controller of EMT’s stations. Romanik has said repeatedly on his show that the agency is pursuing him because of his content, which involves frequent use of racial epithets and the “n-word." “I’m gonna stand up for what I believe in,” said Romanik on the same episode, saying he isn't a racist. “I don’t hate anybody,” he said. The Jan. 24 episode ended with Romanik rapping as the “Grim Rapper of Radio,” a racial epithet-filled song with lyrics about locking up “sleazy” and “greasy” African Americans and denying them reparations. Romanik didn’t comment. Neither did petitioner Mark Kern, county board chairman of St. Clair, Illinois, and a former mayor of Belleville, near Romanik’s stations.
Since being designated for hearing, the case has stalled as EMT sought to declare bankruptcy, shifted its stations to a bankruptcy trustee, withdrew from bankruptcy, repeatedly sought extensions for document requests, and skipped the December hearing (see 1912110064). “Frankly, I feel like the processes are being a bit manipulated here,” Halprin had said, describing herself as “dumbfounded” about the missed appearance. “If I wanted to get technical about this, I could issue a default judgment right now.”
There's a question whether Watkins, the licensee of EMT’s stations, can represent the trust in court. Watkins filed a December notice of appearance describing himself as appearing for the trust pro se, meaning without counsel. Watkins is an attorney, but a Facebook page advertising his legal services describes his practice as general, concentrating on family law, landlord/tenant, and collections. FCC rules don’t allow individuals to appear pro se on behalf of corporate entities, Halprin has said. The ALJ called Watkins’ filings “erroneous or inadequate in a number of respects.” The phone number he provided to the court is disconnected, and a recent ALJ order notes confusion about his business address and said his last filing was unsigned and not served to all parties. Watkins declined to comment.
EB raised a concern in November about a possible conflict of interest for EMT’s lawyers in the case, Sashkin and Anthony Lepore. Broadcast attorneys said that’s unlikely to lead anywhere. The bureau flagged that Sashkin and Lepore represented both EMT and the bankruptcy trustee in control of its stations, but EMT withdrew as their client at around the same time. Sashkin claimed the situation isn’t unusual. Lawyers can often represent multiple parties in the same case if the clients sign a waiver, attorneys said.
“The time has come to question whether additional government time and resources should be devoted to this matter if the party seeking renewal of its licenses doesn’t deem it sufficiently important to vigorously advance its case,” said Halprin in her most recent order. If she rules on the case, EMT would need to appeal her ruling to the full FCC before heading to the courts, the agency told us.