Report No. DC 95-126 ACTION IN DOCKET CASE October 10, 1995 COMMISSION ORDERS THREE INDIANA AND FOUR MISSOURI RADIO STATIONS TO SHOW CAUSE WHY THEIR LICENSES/ PERMITS SHOULD NOT BE REVOKED; SCHEDULES REVOCATION HEARING (MM DOCKET NO. 95-154) The Commission has directed Contemporary Media, Inc. (CMI), Contemporary Broadcasting, Inc. (CBI), and Lake Broadcasting, Inc. (LBI) to show cause why the licenses and/or construction permits for the following radio stations should not be revoked, and LBI's pending application for a new FM station at Bourbon, MO, should not be denied at a scheduled revocation hearing. The stations are: WBOW(AM), WBFX(AM), and WZZQ(FM), Terre Haute, IN, licensed to CMI; KFMZ(FM), Columbia, MO, and KAAM-FM, Huntsville, MO, licensed or authorized to CBI; KBMX(FM), Eldon, MO, and KFXE(FM), Cuba, MO, licensed or authorized to LBI. Michael Rice is the 100 percent owner of CMI and CBI and the 67.5 percent shareholder of LBI. Rice is also the President, Treasurer and Director of all three licensee corporations. On August 31, 1994, Rice was convicted of 12 felony counts of sodomy, sexual abuse, and sexual assault of five children ranging in age from 12 to 16, over the period from 1985 to his initial arrest in 1990. Based on its Policy Regarding Character Qualifications in Broadcast Licensing, the Commission has initiated revocation proceedings on the following issues: 1) To determine the effect of Michael Rice's convictions on the basic qualifications of CMI, CBI, and LBI; 2) To determine whether the licensees misrepresented to the Commission that, subsequent to his arrest, Michael Rice has been excluded from the management and operation of the radio stations; 3) To determine whether Michael Rice has engaged in the unauthorized transfer of control of CMI, CBI, and LBI; and, -more- -2- 4) To determine, in light of the evidence adduced, whether CMI, CBI, and/or LBI, possess the requisite qualifications to be or remain licensees of their respective radio stations. If it is determined that the hearing record does not warrant an Order revoking the licenses of CMI, CBI, and LBI for their respective stations, the Commission will determine whether a forfeiture in an amount up to $250,000 should not be issued. Action by the Commission September 29, 1995, by Order To Show Cause and Notice of Apparent Liability (FCC 95-410). Chairman Hundt, Commissioners Quello, Barrett, Ness, and Chong. -FCC- News Media contact: Patricia A. Chew at (202) 418-0500. Mass Media Bureau contact: Richard Waysdorf at (202) 418- 2679.