******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In re ) ) GERARD A. TURRO ) MM Docket No. 97-122 ) For Renewal of License ) File Nos. BRFT-970129YC for FM Translator Stations ) BRFT-970129YD W276AQ(FM), Fort Lee, NJ, and ) W232AL(FM), Pomona, NY ) ) MONTICELLO MOUNTAINTOP ) BROADCASTING, INC. ) ) Order to Show Cause Why the ) Construction Permit for FM Radio) Station WJUX(FM), Monticello, NY,) Should Not Be Revoked ) Appearances Charles R. Naftalin, Esq., and Alan Y. Naftalin, Esq., on behalf of Gerard A.Turro; James P. Riley, Esq., Ann Bavender, Esq., and Andrew S. Kersting, Esq., on behalf of Monticello Mountaintop Broadcasting, Inc.; Richard A. Helmick, Esq., and Roy R. Russo, Esq., on behalf of Universal Broadcasting of New York, Inc.; Alan E. Aronowitz, Esq., and Suzan B. Friedman, Esq., on behalf of the Chief, Mass Media Bureau, Federal Communications Commission; James K. Edmundson, Esq., on behalf of witness Carol Montana; and Kathryn R. Schmeltzer, Esq., on behalf of witness Eugene H. Blabey. INITIAL DECISION OF ADMINISTRATIVE LAW JUDGE ARTHUR I. STEINBERG Adopted: August 9, 1999 Released: August 16, 1999 I. PRELIMINARY STATEMENT 1. By Hearing Designation Order, Order to Show Cause and Notice of Opportunity for Hearing, 12 FCC Rcd 6264 (released April 18, 1997) ("HDO"), the applications of Gerard A. Turro ("Turro") for renewal of licenses of radio stations W276AQ(FM), Fort Lee, New Jersey ("Fort Lee translator"), and W232AL(FM), Pomona, New York ("Pomona translator"), were designated for hearing. The following issues were specified against Turro: (1) To determine whether Gerard A. Turro's operation of translator stations W276AQ(FM), Fort Lee, New Jersey, and W232AL(FM), Pomona, New York, violated Sections 74.531(c) and 74.1231(b) of the Commission's Rules with respect to the operation of translator stations. (2) To determine whether Gerard A. Turro engaged in an unauthorized transfer of control, or otherwise exercised and/or continues to exercise de facto control over WJUX(FM), Monticello, New York, in violation of Section 310(d) of the Communications Act of 1934, as amended, and Section 73.3540(a) of the Commission's Rules. (3) To determine whether Gerard A. Turro misrepresented and/or lacked candor to the Commission concerning the operation of translator stations W276AQ(FM), Fort Lee, New Jersey, and W232AL(FM), Pomona, New York. (4) To determine whether, in light of the evidence adduced under the foregoing issues, the public interest will be served by the grant of the above-captioned renewal applications filed by Gerard A. Turro. (HDO at para. 21.) 2. The HDO also directed Monticello Mountaintop Broadcasting, Inc. ("MMBI") to show cause why the construction permit for radio station WJUX(FM), Monticello, New York, should not be revoked. The following issues were specified against MMBI: (5) To determine whether Monticello Mountaintop Broadcasting, Inc., has violated and/or continues to violate Sections 73.1120 and 73.1125(a) and (c) of the Commission's Rules with respect to the maintenance of a main studio for Station WJUX(FM), Monticello, New York. (6) To determine whether Monticello Mountaintop Broadcasting, Inc., engaged in an unauthorized transfer of control or otherwise abdicated control of Station WJUX(FM), Monticello, New York, to Gerard A. Turro or an affiliated entity in violation of Section 310(d) of the Communications Act of 1934, as amended, and Section 73.3540(a) of the Commission's Rules. (7) To determine whether Monticello Mountaintop Broadcasting, Inc., and/or its agents misrepresented and/or lacked candor to the Commission concerning the operation of Station WJUX(FM), Monticello, New York. (8) To determine whether, in light of the evidence adduced under the foregoing issues, Monticello Mountaintop Broadcasting, Inc., possesses the requisite qualifications to be or remain a Commission broadcast permittee. (HDO at para. 24.) 3. Pursuant to Sections 309(e) and 312(d) of the Communications Act of 1934, as amended ("Act"), the HDO assigned to the Mass Media Bureau ("Bureau" or "Bur.") the burden of proceeding with the introduction of evidence on all the issues. The ultimate burden of proof on Issues 1 through 4 was assigned to Turro, and the ultimate burden of proof on Issues 5 through 8 was assigned to the Bureau. (HDO at paras. 22 and 25.) In addition, the HDO stated that if the hearing record does not warrant an order denying Turro's license renewal applications or revoking MMBI's construction permit, it shall be determined, pursuant to Section 503(b) of the Act, whether an order of forfeiture in an amount not to exceed $250,000 should be issued against Turro and/or MMBI for each of the alleged violations which occurred or continued within the applicable statute of limitations. (Id. at paras. 31 and 32.) Further, the HDO made Universal Broadcasting of New York, Inc. ("Universal"), a party to this proceeding. (Id. at para. 29.) 4. Prehearing conferences were held on May 20, September 3, and October 8, 1997. The hearing commenced in Washington, D. C., on November 24, 1997, with the admission of the parties' respective direct case exhibits. Witnesses appeared for live testimony in Washington, D. C., on December 2, 3, 4, 5, 8, 9, 10, 11, and 12, 1997. The record was initially closed at the conclusion of the December 12, 1997, hearing session. (Tr. 2128-29; Order, FCC 97M-206, released December 16, 1997.) By Order, FCC 98M-1, released January 12, 1998, the record was reopened for the limited purpose of receiving additional exhibits into evidence. The record was then reclosed. (Id.) Proposed findings of fact and conclusions of law ("PFCs") were filed by all the parties on March 13, 1998. Reply findings were filed by all the parties on April 3, 1998. II. FINDINGS OF FACT 5. It must be noted at the outset that many of the facts contained in the Findings of Fact are relevant to more than one issue. An attempt has been made to place those facts in their most appropriate and logical context and to avoid, as much as possible, unnecessary repetition. As a result, facts which have been cited or summarized in the Conclusions of Law, infra, may have been drawn from portions of the Findings of Fact which related to different issues. A. Background 6. Turro and MMBI. Turro is the licensee of the Fort Lee and Pomona translators. (Turro Ex. 1, p. 1.) His application for a license for the Fort Lee translator was granted in March 1986, and he acquired the license for the Pomona translator in January 1995. (Bur. Ex. 21, pp. 381, 390 and Bur. Ex. 22, pp. 456, 460; Bur. Ex. 23, p. 471 and Bur. Ex. 24, p. 555; Tr. 1402.) The Fort Lee translator is licensed to operate on Channel 276 and the Pomona translator is licensed to operate on Channel 232. (Official notice taken.) Turro is also the former licensee of Intercity Microwave Relay Station WMG-499 ("WMG-499"), which operated on 951 MHz. (Bur. Ex. 9.) The license for WMG-499 was granted on September 23, 1993. (Id. at 155.) In his application for what became WMG-499, Turro stated that the Fort Lee translator (then) rebroadcast the signal of a noncommercial FM station in Franklin Lakes, New Jersey, and that WMG-499 would "be used to feed 30-second spot announcement originations concerning financial support and operational communications from the . . . studio [of the Franklin Lakes station] to the [Fort Lee translator] transmitter." (Id. at 151; Tr. 1805-06.) WMG-499 was in use until early July 1995. (Turro Ex. 1, p. 12; Tr. 1616, 1722.) 7. Turro is the sole shareholder of FM 103.1, Inc. ("FM 103.1"), doing business as Jukebox Radio. Jukebox Radio is a for-profit corporation which produces radio programming consisting predominantly of music of the 1940s and 1950s along with news, weather, and public service programming. Turro founded and developed the Jukebox Radio format. (Turro Ex. 1, p. 1.) Prior to January 1, 1995, Bergen County Community Broadcast Foundation ("BCCBF") did business as Jukebox Radio. (Tr. 1943.) The Jukebox Radio service is commercial, selling advertising generally in Bergen County, New Jersey, and Sullivan County, New York, to local, regional, and national advertisers. (Turro Ex. 1, p. 6; Tr. 2102-05.) 8. Turro is a life-long resident of Bergen County, New Jersey, and its vicinity. He testified that, for many years, it had been his "dream" to provide an FM radio service to Bergen County. For a period of approximately 24 years, Turro was the chief engineer or operator at 13 different radio stations operating in the New York City metropolitan area. Turro testified that he is skilled and experienced in the technical aspects of radio broadcasting, and predominantly in FM radio broadcasting. (Turro Ex. 1, p. 2.) 9. MMBI is the permittee of WJUX(FM), Monticello, New York ("WJUX") (MMBI Ex. 1, p. 1), which is licensed to operate on Channel 259 (Bur. Ex. 2, p. 40). Wesley R. Weis is the sole shareholder and President of MMBI. He has been engaged in various businesses in the broadcast radio industry for many years, including antenna site management, equipment sales, and tower and antenna erection, sales, and service. Prior to acquiring the construction permit ("CP") for WJUX, Weis had been a part owner of FM translator stations, including the Pomona translator, but had never been the owner or licensee of a broadcast radio station. (MMBI Ex. 1, p. 1; Bur. Ex. 23, p. 471 and Bur. Ex. 24, p. 555.) 10. Weis has known Turro for many years, perhaps as long as 20. They met during the course of work which Weis's businesses did for radio stations while Turro was employed in the radio industry. At one point Turro and Weis became partners in the ownership of the Pomona translator. (MMBI Ex. 1, p. 1; Turro Ex. 1, p. 4; Tr. 1336-37, 1730.) For a time, Turro and Weis used the same attorneys. (Tr. 1846.) In 1990 or 1991, Jukebox Radio became a tenant in a building in Dumont, New Jersey, which Weis had owned since December 1986 ("Dumont studio"). (Tr. 1396-97, 1435-36.) 11. The 1991 Declaratory Ruling. The Fort Lee translator began operations on March 13, 1986, and rebroadcast the signal of WPST(FM), Trenton, New Jersey. Approximately four months later, Turro sought a waiver of the Commission's rules in order to allow the origination of programming on the Fort Lee translator. This request was denied by the Bureau and the Commission denied review of that determination. Gerard A. Turro, 2 FCC Rcd 6674 (1987). The denial was upheld on appeal. Turro v. FCC, 859 F.2d 1498 (D.C. Cir. 1988). In 1989, Turro filed comments in response to the Commission's Notice of Inquiry in MM Docket No. 88-140 regarding the use of FM translator stations. Turro requested that the Commission amend its rules to permit the origination of local programming on translator stations serving counties with no present or future possibility of FM allocations. The Commission rejected Turro's proposal. FM Translator Stations, 5 FCC Rcd 7212, 7219-20 (1990) ("FM Translator I "), recon. denied and clarified, FM Translator Stations, 8 FCC Rcd 5093 (1993) ("FM Translator II "). (Tr. 2055-57, 1780-81; Bur. Ex. 21, pp. 381-82 and Bur. Ex. 22, p. 456; official notice taken.) 12. By letter dated January 30, 1991, to the then Chief of the Mass Media Bureau's Auxiliary Services Branch, Turro requested the issuance of "an informal declaratory ruling concerning the operation of commercial FM translators." (Bur. Ex. 1, p. 6.) Specifically, Turro asked whether it would be permissible for a licensee of a commercial FM translator station to purchase broadcast time on the FM station that originates the programming rebroadcast by the translator if [t]he following conditions would exist: 1. The translator would be operating outside of the originating station[']s primary contour. 2. The primary station would not re-imburse [sic] the translator licensee for air-time pursuant to the Commission's rules. At no time would the primary station be financially supporting the translator licensee. 3. Any airtime purchased on the primary station by the translator licensee would abide by the Commission's rules regarding purchase of brokered airtime. 4. Advertising may be sold for broadcast during such brokered airtime to support this programming. (Id.) Turro testified that when he wrote this letter he meant by the phrase "brokered airtime" the purchase of 100 percent of the time of the primary station. He acknowledged, however, that this was not stated in his letter. (Tr. 2039-40.) 13. By letter dated November 19, 1991 ("Bureau Letter" or "Letter"), the Chief of the Mass Media Bureau responded to Turro's request, and concluded that Turro's "proposal would [not] be prohibited by the Commission's rules or policies." (Bur. Ex. 1, p. 9.) In this Letter, the Bureau stated, in pertinent part: [T]he issue presented by Mr. Turro's request is whether the licensee of a translator station is permitted to enter into a time brokerage contractual arrangement with its primary station, provided that the primary station does not either reimburse the translator station licensee for the purchase of the brokered time or provide financial support for the translator station's operation. . . . . Under  74.1232(e), an FM translator station whose coverage contour extends beyond the protected contour of the primary station cannot receive any support, before or after construction, either directly or indirectly, from the primary station. This applies to all persons and entities having any interest or connection with the primary station. With regard to brokerage arrangements between licensees and brokers, such arrangements usually involve the broker as both program producer and commercial salesperson for a time block purchased from the licensee. Our rules only require licensees to keep brokerage contracts at the station and make them available for Commission inspection upon request (47 C.F.R.  73.3613(d) (1989)). In view of the specific circumstances presented by Mr. Turro's request, we conclude that his proposed operation would be consistent with the Commission's rules and policies as outlined above. However, this conclusion rests on the following requirements: the time brokerage contract must be kept at the primary station and made available for Commission inspection upon request per  73.3613(d); there must be a bona fide, arm[']s-length transaction between the primary station and the translator; the licensee of the translator station will have to pay the primary station a rate charge comparable to the amount charged other purchasers of brokered airtime, or an amount consistent with such charges in the local broadcast community; and at no time would the translator station receive financial support, directly or indirectly, from the primary station to cover any costs associated with the operation and maintenance of the translator station. (Id. at pp. 8-9.) 14. Universal's Complaint to the Commission. By letter dated February 15, 1995, from counsel for Universal to the Chief of the Complaints and Investigations Branch of the Bureau's Enforcement Division, Universal lodged a complaint against Turro and Weis. Universal alleged that Turro, in the operation of the Fort Lee and Pomona translators, and Weis, in the operation of WJUX, were violating the Commission's rules. (Bur. Ex. 2.) One of the allegations made by Universal was that Turro was providing Jukebox Radio programming to the Fort Lee translator by sending it directly from the Dumont studio to the translator over WMG-499 in violation of the Commission's rules. (Id. at 34.) Universal requested that the Commission keep its identity confidential. (Id. at 32.) 15. Universal's complaint included, and was supported by, an engineering report dated February 10, 1995, prepared by the consulting engineering firm of Cohen, Dippell and Everist, P.C. ("CDE"), which was based upon sworn statements of three CDE engineers. (Bur. Ex. 2, p. 49.) In that report, the CDE engineers stated that they had investigated Turro's operations on February 2, 1995 (id. at 53), and alleged that they had established that Jukebox Radio programming was being provided directly from the Dumont studio to the Fort Lee translator on a full time basis through the use of a studio-to-transmitter link ("STL") operating on 951 MHz in violation of Sections 74.531 and 74.1231(b) of the Commission's Rules. (Id. at 54, 56.) In addition, the engineers alleged that the Jukebox Radio programming was "fully oriented" to the area of Bergen County, New Jersey, giving the appearance that the Fort Lee translator was a full service FM station serving that county, in violation of Commission policy (id. at 54-55), and that the Pomona translator was simultaneously carrying the Jukebox Radio programming so that it, too, was in violation of the same Commission rules and policies as the Fort Lee translator (id. at 55). The CDE engineers further alleged that, based upon testing from the roof of a building in Fort Lee near the transmitter location of the translator, the off-the-air, directly received signal of the Monticello station "was unusable for retransmission on [the Fort Lee translator] due to low signal strength and severe 1st adjacent channel interference from [radio station] WBAI[, New York, New York]." (Id. at 58-59.) The CDE engineers also stated that the "high aural quality and absence of noise" on the Pomona translator "may indicate" that it, too, was not retransmitting the signal of the Monticello station but "may be" retransmitting the Fort Lee translator's signal or receiving a direct program feed. (Id. at 59-60.) 16. The FCC Inspections of April and May 1995. On March 8, 1995, the Bureau's Complaints and Investigations Branch requested the Compliance and Information Bureau to inspect the Monticello station and the Fort Lee and Pomona translators. (Bur. Ex. 3, pp. 80-81; Bur. Ex. 16, p. 250.) On April 13, 1995, FCC field engineer Serge Loginow, Jr., inspected the Monticello station. (Bur. Ex. 4; Turro Ex. 25, pp. 3-6.) On April 14, 1995, Loginow conducted tests of the Fort Lee and Pomona translators and inspected the Dumont studio. (Turro Ex. 25, pp. 6-7; Bur. Ex. 4.) On May 15, 1995, Loginow conducted further tests of Fort Lee translator. (Turro Ex. 25, pp. 7-8; Bur. Ex. 4.) In his May 23, 1995, Radio Station Inspection Report, which was forwarded to the Bureau, Loginow stated: WXTM Main Studio - Location WXTM main studio is located at the existing studio of radio station WVOS AM/FM . . . in Ferndale NY. However, there were no signs on the outside of the building to indicate to the public that it is the studio for WXTM (only a WVOS AM/FM sign). No telephone line is set aside for WXTM calls, nor is any line answered as WXTM. WXTM Main Studio - Staff The main studio is staffed by General Manager Eugene Blabey and Public Service Director Carol Montana. Eugene Blabey is also the owner of WVOS AM/FM. Carol Montana is also the Business Manager of WVOS AM/FM. She stated that she spends about 25% of her time for WXTM and 75% for WVOS. WXTM Main Studio - Programming The main studio for WXTM is a former production room of WVOS leased by Wesley Weis. Blabey states, however, that although it is capable of being used, it has never actually provided programming to the WXTM transmitter. Indeed, he indicated that in order to do so would require going to the transmitter site and effecting a change of cabling at the patch panel to connect the transmitter to the studio. Programming is 100 percent from Jukebox Radio in Dumont NJ, including music, advertising, news, and callsign [sic] identification. A telephone line is used [to] deliver the audio to the transmitter. WXTM Main Studio - Transmitter Control There is no remote equipment installed at the main studio to control the WXTM transmitter or to read transmitter operating parameters. The transmitter is controlled full time by personnel of Jukebox Radio in Dumont NJ by telephone line. WXTM - LMA There is no Local Marketing Agreement between WXTM and Jukebox Radio. Instead, WXTM entered into a network agreement with Jukebox Radio. A copy of the network agreement, signed by Gerald Turro and Wesley Weis was provided to the inspecting engineer. Jukebox Radio - STL WMG499 . . . The STL transmitter was active at the time of inspection, however, the translator at Fort Lee was determined to [be] receiving programming off the air from the translator at Pomona NY operating on 94.3 MHz. The Pomona NY translator was determined to be receiving programming from WXTM on 99.7 MHz. Although the quality of the audio at Pomona and Fort Lee was degraded due to splatter from WBAI (in New York NY on 99.5 MHz), Turro stated that the condition was due to the WXTM transmitter operating at reduced power due to a recent light[n]ing strike. The inspecting engineer had observed that the operating power at WXTM was reduced. Jukebox Radio - Control of WXTM Remote control equipment was observed at Jukebox Radio that was stated to be for the control of WXTM. Gerald Turro, by telephone, stated that he is Chief [O]perator for WXTM, however, he does not receive any salary for that position. . . . . Fort Lee NJ Translator - Second Monitoring The Fort Lee translator was monitored again on May 15, 1995. Audio quality was considered very high, with no detectable splatter from WBAI. While on the top floor of the apartment building housing the Fort Lee translator, the inspecting engineer transmitted a low level signal on the frequencies of 99.7 MHz, 94.3 MHz and 951.0 MHz while listening to the translator signal on 103.1 MHz. The translator output was blocked only with the transmission of a test signal on the frequency of the STL, 951.0 MHz. (Bur. Ex. 4, pp. 82-84; Bur. Ex. 16, pp. 250, 253-55.) Additional details relating to these and other Commission inspections will be discussed below. B. Issues 2 and 6: Unauthorized Transfer of Control Issues 17. Subsequent to receiving the Bureau Letter, Turro started looking for opportunities to form an arrangement such as that described in the Letter to bring FM programming to Bergen County, New Jersey. Sometime in 1994, Turro received a telephone call from Larry Fishman, who held a CP to build a new FM station to serve Monticello, New York. Fishman, who had never talked to Turro before, asked a number of questions about how to start up a new FM station. After Turro explained to Fishman what would be involved, Fishman stated that he no longer wanted to construct and operate the station, and asked Turro if he knew of someone who would buy the CP. In the summer of 1994, Turro mentioned the availability of the Monticello CP to Weis. (Turro Ex. 1, pp. 3-4; MMBI Ex. 1, p. 1; Tr. 1337, 1729-30, 1823, 2063, 2070-73.) Turro thought Weis wanted to own a radio station, having been in the business of building them. (Tr. 2063-64.) Turro also believed this opportunity would be advantageous to his long-standing "dream" of providing a commercial FM radio service to Bergen County. (Turro Ex. 1, p. 2; Tr. 2062-64.) 18. At a later meeting, Turro described the Bureau Letter to Weis and may have given Weis a copy of the Letter. (MMBI Ex. 1, p. 1; Tr. 1384-86, 1731, 1825.) Turro advised Weis about his (Turro's) understanding of what the Letter meant. (Tr. 1825.) Weis understood that the Bureau Letter authorized a translator station licensee to act as the time broker for an FM broadcast station and also rebroadcast the FM station on the translator. (MMBI Ex. 1, p. 1; Tr. 1385.) Turro proposed that Weis acquire the CP for the Monticello station, and that Turro supply Weis with the existing Jukebox Radio programming as well as commercial advertising for the station. (Tr. 1338-40.) Weis knew that Turro could not acquire the CP for the Monticello station, and understood it was because of Commission rules having to do with "the owner of the primary station and the owner of the translator." (Tr. 1337-38.) 19. Weis met with Fishman at the latter's office to discuss the sale of the Monticello CP. (Tr. 1340- 41.) Weis's best recollection was that there were three meetings with Fishman and that Turro was present at two of them. (Tr. 1341-42.) There was discussion of the purchase of the CP, the financial and security arrangements, the transfer of a lease or option, and the indemnification of Fishman for certain liabilities. (Tr. 1342.) The purchase price and terms of payment were negotiated. Weis testified that Turro was in the room when the payment terms were negotiated. Weis could not recall if Turro took part in those discussions, but Weis testified that Turro did not discuss with him what payment terms he (Turro) would have liked to see. (Tr. 1343-44.) Weis did not consult with communications counsel during his discussions with Fishman. (Tr. 1344.) Turro testified that he had "no significant involvement" in the agreement reached between Weis and Fishman. (Turro Ex. 1, p. 4.) 20. Weis reached an agreement with Fishman to acquire the CP for $120,000. (MMBI Ex. 1, p. 2; Turro Ex. 1, p. 4; Tr. 1342.) MMBI agreed to pay Fishman $40,000 at the closing and give him a Secured Note for the $80,000 balance. (MMBI Ex. 1, p. 2; MMBI Ex. 5, p. 15; Tr. 1347-48, 1360.) The balance was to be made payable in 24 monthly installments of $3,618.18 each beginning on November 17, 1994. (MMBI Ex. 5, p. 15.) Weis decided to go ahead with the CP acquisition and the arrangement proposed by Turro because it appeared to be a good business opportunity that had been specifically approved in advance by the Chief of the FCC's Mass Media Bureau. (MMBI Ex. 1, p. 2; Tr. 1345-46.) Although at this point in time Weis had not yet prepared a business plan, he concluded that he "could make some money" because he had been "on the fringes of [the] broadcasting business . . . for 25 years, [and] it appeared to be a good enough deal." (Tr. 1345.) 21. Turro and Weis discussed an arrangement between Jukebox Radio and MMBI which would be consistent with the terms of the Bureau Letter. They agreed that Jukebox Radio would pay Weis's corporation, MMBI, monthly payments in return for which MMBI would provide air time on the Monticello station to be programmed by Jukebox Radio, and that the Monticello station's signal would be rebroadcast by the Fort Lee and Pomona translators. (Turro Ex. 1, p. 4.) 22. The Network Affiliation Agreement. On October 17, 1994, Turro, on behalf of BCCBF (which was then doing business as Jukebox Radio), and Weis, on behalf of MMBI, entered into a Network Affiliation Agreement. (Bur. Ex. 8, pp. 137-38; Tr. 1943.) The document was structured as a network affiliation agreement, rather than a time brokerage arrangement, based upon the advice of legal counsel. Turro had told counsel that he intended to provide Jukebox Radio programming to other stations. According to Turro, counsel had read his January 30, 1991, letter and the Bureau Letter prior to rendering this advice. (Tr. 1787-88, 2065.) 23. The Network Affiliation Agreement provided that: Network [i.e., Jukebox Radio] will provide MMBI with twenty-four hours of programming on a seven day basis, 365 days a year. Network will also provide all local station identifications . . . , public affairs programming, and Emergency Broadcast System ["EBS"] tests. Network agrees to indemnify MMBI and hold it harmless from any and all fines, surcharges, forfeitures, levies, and any other monetary damages imposed by the F.C.C. Network is responsible for delivery of usable audio programming to MMBI via satellite, phone lines or other suitable means. Network is responsible for all costs incurred for delivering Network audio. Network will abide by all applicable FCC rules concerning program content. Network will compensate MMBI for carrying all network programming on a twenty-four hour basis as follows: Year One $8,575.00 per month Year Two $8,975.00 per month Year Three the first six months $9,140.00 per month Year Three the second six months $5,400.00 per month Year Four $5,400.00 per month Year Five $4,675.00 per month Remaining 5 Years Year 5 plus 5% or the CPI, whichever is greater. . . . . The monthly compensation to MMBI will be reduced by $3,600.00 per month after the first thirty months of network affiliation. . . . . MMBI agrees to allow translator W276AQ [the Fort Lee translator] to rebroadcast 99.7 FM, Monticello[,] New York. (Bur. Ex. 8, pp. 137-38, underlining omitted.) 24. On October 17, 1994, in order to induce MMBI to enter into the Network Affiliation Agreement, Turro signed a Guaranty of Payment wherein he personally guaranteed all payments from the Network to MMBI for the full term of the Network Affiliation Agreement up to a limit of $400,000. (Bur. Ex. 8, p. 139.) Weis testified that the Guaranty was his idea and that he suggested it because of the possibility that Turro's operation could go out of business. (Tr. 1381-83, 1392.) Weis did not have the assistance of counsel in preparing the Guaranty but copied it from an existing item in his files. (Tr. 1381.) Weis testified that the amount of the Guaranty was related to a business plan he had prepared (Tr. 1383) sometime prior to the execution of the Network Affiliation Agreement (Tr. 1354-55). If MMBI did not receive its scheduled monthly payment and could not collect it from the Network, Weis stated that, pursuant to the Guaranty, MMBI could initiate a lawsuit against Turro to obtain the money. (Tr. 1447-48.) Turro testified that if the Network defaulted in its monthly payments or went bankrupt, he would be ultimately responsible for the payments. (Tr. 1842, 1846.) 25. MMBI was also paid $40,000 by BCCBF as an incentive for entering into the Network Affiliation Agreement. (Tr. 1347.) Weis testified that without the Network Affiliation Agreement he would not have built the station, "and the [Network Affiliation A]greement was based on that $40,000 up[-]front payment." (Tr. 1409-10.) As regards this $40,000 payment, Turro testified that he did not know how the figure was determined, but that Weis presented the figure and he accepted it. (Tr. 1828-29, 1837.) Turro also testified that Weis did not have to repay the $40,000. (Tr. 1831-32.) 26. The amount of the monthly payments to MMBI by the Network was determined by Weis on the basis of his business plan, which was designed to cover capital costs and operating expenses and produce a profit. (Tr. 1354-57, 1391.) Weis's general recollection was that the figure he used for his return on investment was 15 to 20 percent, and he stated that he could have gotten more but "[d]idn't have any reason to think about it." (Tr. 1356.) The compensation to MMBI was reduced by $3,600 per month after 30 months because the $80,000 balance due to Fishman on the purchase price of the CP would be paid off by that time, and a major part of the cost of equipment would also have been amortized by that point since Weis "was loading in a price up[-]front." (Tr. 1360-63.) Weis's business plan did not contemplate any profits or returns from the sale of commercial time, and such sales were not anticipated. (Tr. 1356.) In addition to 24-hour per day programming, station identifications, public affairs programming, and EBS tests, Weis understood that the Network would provide commercial time. (Tr. 1352-54.) 27. Turro testified that Weis presented him with the monthly payment figures and that he accepted those figures. (Tr. 1829-30.) Turro had no recollection of negotiating those figures with Weis (but also stated that he may have done so (Tr. 1830)), or of questioning Weis's numbers, and he never asked Weis how he derived his figures. (Tr. 2080.) Turro stated that he agreed to make the monthly payments in the amounts specified by Weis because "[i]t made business sense" to him and the Network to do so. (Tr. 2099-2100.) 28. Turro testified that, at some point, Weis sought an increase in the monthly payments for the Network Affiliation Agreement of about $100 a month. (Tr. 2100, 2116.) Weis also testified to having sought and obtained an increase to cover the additional capital investment for a standby generator and auxiliary transmitter. (Tr. 1366-68.) Turro stated that he agreed to the increase because Weis was going to install a generator at the WJUX transmitter site which would protect the Network equipment there. (Tr. 2100-01, 2116.) 29. MMBI received a check every month in accordance with the Network Affiliation Agreement. There had not been a month when MMBI's expenses exceeded the monthly payment, including amortization of equipment and other accounting expenses. (Tr. 1349-50, 1365-66, 1434-35.) 30. With respect to the indemnification provision of the Network Affiliation Agreement, Weis stated that if MMBI was fined by the FCC for something the Network did, Weis would advise Turro that the Network was responsible for indemnifying MMBI and, if Turro refused, MMBI would sue the Network first, and then sue Turro personally. (Tr. 1364, 1448-49.) On the other hand, if MMBI was assessed a forfeiture by the FCC for something MMBI did, such as a main studio rule violation, the Network would not reimburse MMBI. (Tr. 1364.) Similarly, Turro testified that the indemnification provision meant that if Jukebox Radio provided programming broadcast by WJUX which violated FCC regulations, the Network would be responsible to MMBI for any forfeiture. (Tr. 1840-41.) Turro stated the indemnification was limited to programming and neither Turro nor the Network would be responsible if MMBI was assessed a fine, for example, for operating the transmitter above its authorized power. (Tr. 1841-42.) 31. Both Turro (Tr. 2113) and Weis (MMBI Ex. 1, p. 2) believed that the Network Affiliation Agreement was consistent with the Bureau Letter. In addition, Turro thought that the Network Affiliation Agreement was a bona fide arm's-length transaction between the primary station and the translator. (Tr. 1789.) Weis acknowledged that he did not know the distinction between a time brokerage agreement and a network affiliation agreement. While Weis agreed that the Bureau Letter authorized a translator station to act as a time broker and did not discuss a network affiliation agreement, Weis believed that the Letter covered the arrangement he had with the Network whatever that arrangement was called. (Tr. 1387-90.) In this regard, Weis thought that a network affiliation agreement could represent or constitute a time brokerage agreement. (Tr. 1387, 1390.) Further, Weis did not notice that the Bureau Letter talked about a time brokerage agreement as opposed to a network affiliation agreement, and he never raised that distinction with Turro. (Tr. 1387.) To Weis, the "key word" was "agreement." (Id.; Tr. 1388-89.) Weis understood that BCCBF was a broadcast network. (Tr. 1349.) At the time MMBI became an affiliate of the Network, it was Weis's understanding that there would be other affiliates. (Tr. 1432-33.) 32. On July 17, 1995, Turro, on behalf of BCCBF, and Weis, on behalf of MMBI, signed an Amendment to Network Affiliation Agreement. The Amendment specified, inter alia, that MMBI retained responsibility for ascertaining the needs of its community and service area, that MMBI had the right to broadcast programming other than Network programming, that MMBI had the right to "delete or preempt in its sole discretion" any Network programming in order to broadcast MMBI programming responsive to the issues of concern to its community of license, and that MMBI "maintains the independent right to preempt or delete any Network programming which [it] believes to be unsatisfactory or unsuitable or contrary to the public interest, or to substitute programming which, in [its] opinion, is of greater local or national importance." The Amendment also specified that MMBI's acceptance and broadcast of Network programming was subject to MMBI's responsibility to comply with all FCC regulations including, among others, compliance with political programming and sponsorship identification rules, maintenance of the station's public and political files, and the compilation of quarterly issues/programs lists. (Bur. Ex. 8, pp. 140-41.) 33. The Amendment stated that it was "retroactive to the commencement of the [Network Affiliation] Agreement," and that it was "agreed to in Oct[.], 1994." (Bur. Ex. 8, pp. 140-41.) In this regard, both Turro and Weis testified that the Amendment was agreed to in November 1994, but they did not get around to signing it until July 17, 1995. (MMBI Ex. 1, p. 2; Tr. 1369-70, 1945-46, 2094.) Both Turro and Weis stated the Amendment was not related to an FCC inspection of the Monticello station which occurred in the spring of 1995. (Tr. 1370, 1945.) 34. The Network Affiliation Agreement was amended upon the advice of counsel, and the Amendment was prepared by counsel. (MMBI Ex. 1, p. 2; Tr. 1370-73, 1423, 2094.) Weis testified that the purpose of the amendment was to provide a better definition or clarification of the Network Affiliation Agreement to reflect what MMBI's obligations were to the Commission. (Tr. 1379-80, 1416.) Weis stated, however, that his activities with respect to operating WJUX did not change as a result of the Amendment. (Tr. 1418-19.) The only times that MMBI substituted or preempted Network programming were in the early summer of 1995 when taped music was originated from the WJUX main studio when the Network's program feed went out (Tr. 858, 972-74, 2041-42), and during the 1997 elections when political commercials were broadcast instead of Network programming (Tr. 1380; see also Tr. 857). 35. MMBI's Acquisition of the CP, and the Construction and Commencement of Operation of WJUX. On October 18, 1994, the assignment of the Monticello CP from Fishman to MMBI was consummated. (Bur. Ex. 23, p. 469 and Bur. Ex. 24, p. 555.) When MMBI acquired the permit on October 18, Weis paid Fishman $40,000 and gave him a Secured Note, on which MMBI was the sole maker and sole obligated party, for the remaining $80,000. (MMBI Ex. 1, p. 2; MMBI Ex. 5, p. 15; Tr. 1347-48, 1360.) The $40,000 that MMBI received as an inducement to sign the Network Affiliation Agreement was deposited into MMBI's checking account on October 17, 1994, and co-mingled with other funds already in the account. The $40,000 payment made to Fishman was drawn from MMBI's account. (Tr. 1347-48, 1426.) 36. MMBI assumed Fishman's tower lease with Mountain Broadcasting Corporation ("MBC") and agreed to indemnify Fishman against any claims arising from Fishman's guaranty under the tower lease. There was no other indemnitor. (MMBI Ex. 1, p. 2; MMBI Ex. 5, p. 20.) MMBI then entered into a tower lease with MBC, which Weis alone personally guaranteed. (MMBI Ex. 1, p. 2; MMBI Ex. 5, p. 2.) 37. MMBI also entered into a lease with MBC for studio and office space in Ferndale, New York, in a building which housed the studios and offices of WVOS(AM) and WVOS-FM, Liberty, New York (collectively "WVOS"), stations which were licensed to MBC. Weis alone personally guaranteed that lease. (MMBI Ex. 1, pp. 2-3; MMBI Ex. 5, pp. 12-14; Tr. 1431-32.) 38. Eugene Blabey, whom Weis engaged as WJUX's General Manager, was an owner of MBC and acted as General Manager of WVOS. (Tr. 909-11, 947-48; Bur. Ex. 13, p. 226; MMBI Ex. 8.) Blabey first met Weis about the time Weis acquired WJUX. Weis came to Blabey's office and said he was acquiring the CP from Fishman. Their first conversation revolved around whether or not Weis would assume the WJUX tower lease that Blabey had previously negotiated with Fishman. Blabey and Weis negotiated Weis's assumption of WJUX's tower lease and negotiated a separate studio lease. (Tr. 940-42.) Turro was usually present when Blabey and Weis met but Blabey and Weis met alone on some occasions. (Tr. 941-42, 990, 1001.) Turro was introduced to Blabey as Weis's Chief Engineer. (Tr. 941.) 39. During one of the earlier discussions with Weis, the possibility of Blabey acting as General Manager for WJUX arose, perhaps at Blabey's suggestion. (Tr. 942-43.) Blabey believed that being the General Manager of WJUX would work for him as he was already performing many functions of a General Manager for WVOS and it would not be overly burdensome to him. (Tr. 947.) In addition, Blabey stated that if he was going to be in "this close contact" with another station, he wanted to be involved "just for [his] own purposes." (Tr. 942-43.) 40. At a later meeting, Blabey was told that WJUX's programming would be coming from New Jersey, and that WJUX would be rebroadcast by a translator. Weis also told Blabey that he did not think the target audience of WJUX would impact on Blabey's audience. Blabey understood that Jukebox Radio Network would sell commercial time on WJUX, and that those commercial spots would be primarily directed to Bergen County, New Jersey. (Tr. 990-91.) Blabey also "suspected" that Bergen County would be the primary source of WJUX's advertising revenue. (Tr. 1018.) However, Blabey received no assurance that time sales would not be made in Sullivan County. (Tr. 991-92.) 41. On October 21, 1994, three days after Weis purchased the WJUX permit, the station went on the air. (MMBI Ex. 1, p. 2; Tr. 1392-93.) Weis said all of the equipment was on order or on standby and the station was built in two days. He said that construction of radio stations was his business. Weis stated he wanted the station to be completed so quickly because winter was coming and because the sooner the station was on the air, the sooner he would begin receiving money under the Network Affiliation Agreement. (Tr. 1393-94.) Turro, too, wanted to get the station on the air in a hurry because he wanted to begin selling commercial advertising. (Id.; Tr. 1736-37.) 42. Turro testified that when Weis decided to purchase WJUX, Turro was providing technical advice and a decision was made that Turro would be the Chief Operator and provide technical support. (Tr. 1792.) Turro was never paid for being Chief Operator and it took up very little of his time. (Turro Ex. 1, p. 7; Tr. 2013.) It was Turro's understanding that the Commission's rules allowed him to be Chief Operator as long as he did not get paid. Turro reasoned that if, under the rules, a primary station could provide "technical support" to a translator station, "the translator should be able to give the primary station support as long as you're not getting paid for it." (Tr. 1789-90, 2013.) In other words, if the chief engineer of the primary station could not be paid for maintaining the translator, no payment could be made if the translator was giving technical support to the primary station. Turro testified: "So if it can go one way without any money changing hands . . . it should be able to go the other way, and that's the logic." (Tr. 1790.) 43. Turro stated that he assisted Weis in a general sort of way in starting up the Monticello station but did not personally build WJUX's facilities. He testified that his primary role during the construction of WJUX was to install his Network audio equipment and test to see that everything worked. (Turro Ex. 1, p. 6; Tr. 1394, 1794-96, 2017.) Turro said that Weis and the people who worked for him were capable of constructing radio stations and he (Turro) "supervised" the construction. (Tr. 1793.) By "supervised," Turro stated that he meant that he "watched the guys" install the transmitter and antenna, and put the power to, and "commission," the transmitter. (Tr. 2105-06.) Turro personally inspected the WJUX main studio equipment and verified that everything was working. (Tr. 1794-95.) Turro said Weis was present throughout the construction process, directing a construction crew from Weis's company. (Tr. 2106.) Weis testified that, as Turro was the Chief Operator of WJUX, he took an interest in what Weis and Weis's crew were doing with the transmitter, electrical wiring, and remote control. (Tr. 1394.) 44. Weis stated that in October 1994, about two weeks before WJUX went on the air, there was a discussion about the need for him to divest his interest in the Pomona translator. (Tr. 1399-1400.) Weis understood, from his general knowledge, that as the owner of WJUX he could not own a translator station outside of WJUX's 1 mV/m contour on which WJUX was rebroadcast. (Tr. 1401.) On January 10, 1995, Weis transferred his ownership interest in the Pomona translator to Turro pursuant to FCC approval. (Bur. Ex. 23, p. 471 and Bur. Ex. 24, p. 555; Tr. 1402.) Shortly thereafter, the Pomona translator started to rebroadcast the signal of WJUX on 94.3 MHz. (Turro Ex. 1, p. 8.) 45. By letter dated November 30, 1994, one of Turro's consulting engineers, on behalf of Turro, "formally inform[ed]" the Bureau's Auxiliary Services Branch that the Fort Lee translator "now rebroadcasts primary station WXTM(FM), Monticello, New York." (Bur. Ex. 2, p. 46.) On April 14, 1995, the Monticello station changed its call letters from WXTM(FM) to WJUX(FM). (Bur. Ex. 23, p. 470 and Bur. Ex. 24, p. 555; Tr. 1403.) Weis stated he instructed his FCC attorneys to apply for the call sign change on his behalf, knowing in advance from Turro that Turro's station in Franklin Lakes, New Jersey, was turning in the call sign. (Tr. 1403-04.) Weis understood it to be important to Turro that the Monticello station get the call letters WJUX. (Tr. 1405.) 46. Finances. Weis testified that he, and he alone, had exercised financial control over WJUX and been responsible for the obligations of MMBI and WJUX. (MMBI Ex. 1, p. 6.) Turro, too, testified that he never had any financial control over or responsibility of any kind for either WJUX or MMBI. (Turro Ex. 1, p. 7.) According to Weis, Turro, and entities affiliated with Turro, had never guaranteed any debt incurred by MMBI or MMBI's performance of any contract or lease entered into by MMBI. (MMBI Ex. 1, p. 6.) MMBI made all payments due Fishman under the Secured Note for the remaining portion of the purchase price for WJUX's construction permit. (Id. at 2.) MMBI made the lease payments for its transmitter site and main studio. MMBI paid all of the compensation to persons it employed in the operation of WJUX. MMBI paid all bills for services, products, and utilities used in the operation of WJUX, with the exception of bills for telephone service from October 1994 to mid-1995, when those bills were sent by the local telephone company, NYNEX, to Jukebox Radio. MMBI paid all subsequent bills for WJUX telephone service. (Id. at 3.) Neither Turro, Jukebox Radio, BCCBF, nor FM 103.1 paid for any of the costs of constructing WJUX. (Turro Ex. 1, p. 6; Tr. 2081-82.) Turro did not pay and was not obligated to pay any of Weis's legal expenses for the acquisition of WJUX, the response to a Commission letter of inquiry, or with respect to the hearing in this proceeding. (Tr. 1958-59.) 47. Weis testified that he had the ultimate financial responsibility for WJUX. (Tr. 1449.) Weis wrote the checks to build the station, pay the staff, and pay the operating expenses. (Tr. 1358.) Weis signed personal guarantees when MMBI assumed Fishman's transmitter and tower site lease, and when MMBI leased its studio and office space from MBC. (MMBI Ex. 5, pp. 11, 14; Tr. 1431-32.) If Jukebox Radio missed a monthly payment to MMBI, MMBI was still required to pay WJUX's lease payments and other bills. If MMBI stopped receiving payments from the Network, MMBI could terminate the Network Affiliation Agreement and sue Turro. However, while MMBI was suing Turro, Weis would have to put his own money into MMBI so that the bills would be paid. (Tr. 1432, 1450-51, 1453.) If MMBI never recovered anything from Turro, MMBI's obligations would remain in place, Weis would have lost money, and MMBI would still have to meet its obligations. (Tr. 1451.) 48. Blabey did not have final monetary authority over MMBI or sign MMBI paychecks. (Tr. 937.) Blabey sent or faxed to Weis in New Jersey matters that needed Weis's attention. These generally involved financial matters. (Tr. 915.) Carol Montana, who was WJUX's Public Affairs Director and served as the general WJUX staff support person (MMBI Ex. 1, p. 6; Tr. 822, 856), did not handle finances for WJUX (Tr. 853). She brought bills to the attention of Blabey and Weis for payment and handled petty cash up to approximately $50. (Tr. 819-20, 853.) 49. Personnel. Weis stated that he exercised responsibility over the personnel of WJUX, including engaging Blabey as General Manager and, at Blabey's recommendation, Montana and George Spicka. The latter performed engineering services for WJUX on a part-time basis. Weis also directly engaged Alan Kirschner, the current WJUX Chief Operator. (MMBI Ex. 1, pp. 6-7.) Kirschner was a friend of Turro's, and had no employment relationship with Jukebox Radio. (Tr. 1968-69.) Blabey characterized his role in hiring and firing at WJUX as recommending employees for Weis to place on the payroll. (Tr. 936-37.) Blabey, however, played no role in the hiring of Kirschner. (Tr. 937.) 50. As discussed earlier, Blabey met Weis about the time Weis acquired WJUX. (Tr. 940-41.) During one of Blabey's earlier discussions with Weis, the possibility of Blabey acting as General Manager for WJUX arose. Blabey may have suggested the possibility. (Tr. 942-43.) Blabey then had several meetings with Weis concerning taking on a General Manager role or any role at WJUX. (Tr. 946, 990.) Weis agreed to pay Blabey $100 per week to act as General Manager, and that amount has not changed. (Bur. Ex. 13, p. 226; Tr. 1395-96.) Blabey later entered into an agreement with Weis with respect to advertising sales for WJUX in addition to his General Manager duties. (MMBI Ex. 8; Tr. 1002.) 51. Blabey did not perform all of the same duties for WJUX that he performed for WVOS. Blabey explained that he was an owner of WVOS and had the ultimate financial authority for that station but not for WJUX. As an owner of WVOS, he handled license renewals, equal employment opportunity reports, and other paperwork for the FCC for WVOS. He did not do any of that for WJUX. Rather, Weis did all of that. (Tr. 929-30.) Blabey had no daily contact with Jukebox Radio, although there were occasions on which he was in touch with the Network. (Tr. 915.) Blabey thought he called Jukebox Radio in Dumont to report outages. (Tr. 978.) 52. Montana learned about the opportunity of a position at WJUX from Blabey. (Tr. 817.) Blabey introduced Montana to Weis sometime prior to October 1994 and she discussed the WJUX job with Weis at that time. (Tr. 818.) Montana considered herself to be an employee of WJUX. (Tr. 834.) In October 1994, when she was hired, Montana entered into a letter agreement with Weis regarding her employment, effective the first date of broadcasting. (Bur. Ex. 12; Tr. 836-38.) Her starting salary at WJUX was $100 per month. (Tr. 817-18; Bur. Ex. 12, p. 224.) At one point, Weis raised Montana's salary because Blabey recommended that he do so. (Tr. 1440-41.) 53. Blabey supervised Montana's work for WJUX and she consulted with him on WJUX matters. (Tr. 838, 950.) Montana stated that at WJUX she first reported to Blabey, who was the General Manager, and then ultimately to Weis, who was the owner. (Tr. 818, 893.) Montana met with Weis on WJUX business on an as-needed basis. (Tr. 818.) Blabey was the person who could give her directions regarding WJUX programming, and he directed her to send a "bulletin board" of public service announcements ("PSAs") to the Network. (Tr. 893-94.) It was Montana's understanding that Weis, as Blabey's immediate supervisor, could give Blabey directions. (Tr. 894.) Montana knew Turro and met him approximately the same time she met Weis. (Tr. 818.) During the first few months of operation of WJUX, Montana saw Turro at the station, but she could not recall how often. Turro spoke with her, but she did not recall any of the conversations. (Tr. 819.) 54. Programming. Weis testified that he exercised ultimate authority over the programming of WJUX. At the time he acquired the WJUX permit and agreed to enter into the Network Affiliation Agreement with Turro's company, Weis knew that Jukebox Radio would provide an entertainment service of popular musical standards, including music of the big band era, which would appeal to a large segment of the Sullivan County population. In addition, at the commencement of WJUX operations, Weis directed that the station carry public service and public affairs programming aimed at serving Monticello and Sullivan County. (MMBI Ex. 1, p. 7.) 55. To accomplish the broadcasting of public affairs and public service programming, Weis had discussions with Blabey which resulted in the public affairs programs produced by Blabey and aired on WVOS being rebroadcast over WJUX on different days and at different times than they were broadcast over WVOS. (MMBI Ex. 1, p. 7; Tr. 1438-39, 996.) In that way, those programs had the opportunity to be heard by a different audience in Sullivan County than originally heard them. (MMBI Ex. 1, p. 7.) Weis did not believe that Turro was a party to these discussions initially. (Tr. 1439.) Weis did not pay Blabey for these programs because Blabey never asked for payment. Weis also believed that Blabey was a community-minded individual who, through this arrangement, was getting the public affairs programming broadcast twice. (Tr. 1439-40.) Turro stated that when Weis and Blabey arranged to have public affairs programming provided for broadcast on WJUX, he made a decision for the Network to carry that programming on the Network. (Tr. 2098.) 56. The program "People Who Make a Difference" was a weekly program that highlighted the work and accomplishments of citizens in the Sullivan County area who had a positive influence on the community. (MMBI Ex. 3, p. 7.) The program was produced locally in WJUX's main studio (Tr. 971-72, 1009), and was broadcast by WJUX at least as early as February 2, 1995 (MMBI Ex. 3, p. 7). The program was broadcast on both WJUX and WVOS, and a version of the program appeared in a weekly Sullivan County newspaper. (Tr. 1009-10.) The producer recorded the shows "in bulk, . . . four or five [or more] at a time." (Tr. 1022, 1024.) Neither WVOS nor WJUX paid the producer for the programs. (Tr. 1024.) After the shows were recorded, WVOS later broadcast tapes of the program from its studio, and Blabey sent tapes of the programs to Jukebox Radio for broadcast on the Network. (Tr. 1022, 1433.) Blabey "suspect[ed]" that listeners who heard this program on WVOS thought it was a WVOS program, and that listeners who heard it on WJUX thought it was a WJUX program. (Tr. 1025.) 57. The program "Open Mike" was originally broadcast on WVOS and later rebroadcast on WJUX. This program provided a platform for community leaders to appear and be questioned about their areas of interest and to take telephone questions from listeners. (Tr. 955.) Blabey sent tapes of the program to the Network (Tr. 1433), and it was aired on WJUX on a tape-delayed basis (Tr. 956). WJUX did not pay WVOS for the programming, but Blabey negotiated with Weis a $10 per program "talent fee" for the host of the show, who was also WVOS's news director. (Tr. 956.) Blabey believed that WVOS received a benefit from the broadcast of this program on WJUX in that politicians were more likely to accept an invitation to appear on the program if it was going to be heard on two stations. (Tr. 956-57.) Blabey did not think "Open Mike" was on WJUX when that station first went on the air, and he did not recall how long thereafter it began to be broadcast on WJUX. (Tr. 995-96.) The first WJUX issues/programs list on which "Open Mike" appeared showed a date of broadcast of May 12, 1996. (MMBI Ex. 3, p. 17.) 58. Between October 1994 and October 1995, WJUX did not air programs directed at residents of Sullivan County which were not also broadcast (at different times) on WVOS. However, during this period of time there were PSAs that were broadcast on WJUX that were not also aired on WVOS. (Tr. 957-58.) 59. Weis also had discussions with Blabey which resulted in the broadcast over WJUX of PSAs which Weis believed were of interest to Monticello and Sullivan County. Montana was in charge of gathering material for PSAs, compiling a bulletin board of prospective PSAs, and forwarding it to Jukebox Radio for broadcast over WJUX. (MMBI Ex. 1, pp. 7-8; Tr. 823-26, 1440, 1442-43.) This was a part of her original job at WJUX. (Tr. 1442.) Jukebox Radio made the determination as to which PSAs to produce, produced them, and determined which items to air. Montana designated on the bulletin board, or called the Network regarding, PSAs that were particularly important and should be aired. The Network followed her suggestion on almost every occasion. (Tr. 827-28, 833-34, 885-86.) 60. Turro testified that when Montana sent to Jukebox Radio a list of PSAs, or when he received public affairs programming from WJUX that had been produced by Blabey, the Network had complete discretion to reject that programming. (Tr. 2036, 2095.) He also stated that if the Network were to exercise this discretion, WJUX would have the right to delete Network programming and put the PSAs and public affairs programming on the air directly at WJUX. (Tr. 2096-97; Bur. Ex. 8, p. 140.) 61. Blabey made the decisions on putting emergency announcements regarding Sullivan County on WJUX. (Tr. 979-80.) As an example, Blabey testified that during a snow storm in Sullivan County, he received a call from the Sullivan County Manager advising that all roads in the county were being closed. Blabey called Jukebox Radio, told them he had an emergency message to air on WJUX, prepared the message, and faxed it to the Dumont studio to be originated. (Tr. 980-82.) 62. Weis and Blabey talked about how they would handle WJUX's advertising. They thought there were possible "synergies" in jointly selling WJUX's and WVOS's different audience segments. (Tr. 921.) Blabey made joint proposals to sell commercial time on both WJUX and WVOS but was unsuccessful. (Tr. 920-22.) However, he did sell political time on both stations to the same candidates. (Tr. 920.) Blabey did not make sales presentations for WJUX exclusively. (Tr. 922.) Montana did not know of any advertising sold by WJUX for the Sullivan County area except for the political advertisements sold by Blabey. (Tr. 853-54.) Montana did not receive any inquiries from local advertisers about purchasing time directly on WJUX. (Tr. 867.) 63. WJUX had a local rate card for buying 30-second advertisements on WJUX. (Bur. Ex. 39; Tr. 922-24.) Blabey did not prepare the rate card and believed Weis did so. (Tr. 924-25.) From October 1994 through 1995, the WJUX local rate card "was used [but] was never used successfully." (Tr. 928-29.) After 1995, advertisements were sold to political candidates at the rates shown on the WJUX rate card. (Tr. 923-24.) On September 25, 1995, Blabey issued a statement advising that WJUX was "not accepting political orders until further notice." (Bur. Ex. 35, p. 699.) Weis made the decision not to accept political orders and related his decision to Blabey. (Tr. 927-28.) Blabey advised Weis that WJUX would have to accept advertising for a Federal election, but there was no such election at the time. Weis subsequently changed the policy of not selling political time. (Tr. 928.) 64. Although Blabey understood that the Network would air commercial spots which were primarily directed to Bergen County, he was never promised or assured that Jukebox Radio would not sell advertising time in Sullivan County. (Tr. 991-92, 1018.) Very early on, in approximately January 1995, Jukebox Radio hired Georgia Fleenor, a sales representative who had formerly worked for Blabey at WVOS, and placed her in Sullivan County as its own salesperson to sell advertising time there. (Tr. 992-93, 2102-03.) Fleenor did succeed in selling some advertising for the Network in Sullivan County. (Tr. 993, 2103.) Jukebox Radio subsequently replaced her with another salesperson, Stan Feinblatt, who currently has an office in Sullivan County and sells Network advertising time to Sullivan County advertisers. (Tr. 992, 2103.) 65. With the exception of local political spots sold in October or November 1997, all the commercial spots broadcast on WJUX were sold and originated by Jukebox Radio. (Tr. 928, 2046.) In this regard, the Network was not obligated to broadcast any advertisements which it did not sell. (Tr. 1952.) 66. Turro testified that, in the two years preceding the hearing, about 10 percent of the advertising buys on the Network had been from businesses located in Sullivan County, 45 percent came from Bergen County businesses, and about 45 percent came from regional or national businesses. (Tr. 2046-47, 2103-05.) In Turro's opinion, about 80 to 90 percent of the Network's commercial advertisements were "focused" toward the Bergen County/Rockland area. (Tr. 2048.) However, Turro believed that regional or national advertisers would be trying to sell their products in both Bergen County and Sullivan County. (Tr. 2105.) C. Issue 5: Main Studio Issue 67. WJUX's community of license, Monticello, and WVOS's community of license, Liberty, are located about 10 miles apart in Sullivan County, New York, and are the two principal villages in the county, with populations of 7,000 and 5,000 respectively. (Tr. 912.) Ferndale, where the WJUX and WVOS main studios are located, is immediately adjacent to Liberty. (Tr. 916.) The WJUX studio in Ferndale is within the WJUX predicted 70 dBu (3.16 mV/m) contour. (Bur. Ex. 11, p. 174.) Sullivan County has, for many years, been a second home community for people from the New York metropolitan area. (Tr. 912.) 68. The WJUX main studio is located in a building which also houses the WVOS main studio. WJUX is a tenant of MBC, the licensee of WVOS. There currently are, and were in 1995, separate quarters in the building for the WJUX and WVOS main studios. (Tr. 916-18.) The WJUX main studio was previously used as a spare production studio for WVOS. (Tr. 1022.) According to Blabey, he agreed to lease "non-exclusive use" of a "production studio" to MMBI. Blabey explained that, when the studio was not otherwise being utilized, WVOS could use it for its purposes. He stated: "There's plenty of time for that studio to serve multiple purposes." (Tr. 1023-24.) In 1995, WJUX's main studio was on the first floor, with WJUX's studio at one end of the hall and WVOS's studio at the other end. (Tr. 917-18.) MMBI later built an enhanced main studio for WJUX on the ground floor of the same building it had been occupying. (MMBI Ex. 1, p. 8; Tr. 917, 985.) 69. Weis testified that it was his belief that MMBI has not violated the FCC's rule requiring the maintenance of a main studio, with the possible exception, for a period of time, with regard to local telephone service. Weis stated that MMBI has always had a main studio properly located under the rules of the FCC, and that the studio was equipped to originate programming and deliver that programming to the WJUX transmitter site for broadcast. Weis also testified that the WJUX transmitter was capable of being remotely controlled from WJUX's main studio by telephone dial-up. (MMBI Ex. 1, p. 5.) 70. WJUX's Program Origination Capability. Weis testified that he was experienced in the design and operation of radio stations and knew from personal observation that, prior to and including April 13, 1995, the station was fully capable of originating programming from its main studio directly to its transmitter without the need for anyone to go to the transmitter site. Indeed, Weis stated that, without any significant change to WJUX's equipment having been made subsequent to April 13, 1995, musical programming was later originated from WJUX's main studio, when the program feed from the Dumont studio was severed, without anyone having to first visit the WJUX transmitter. (MMBI Ex. 1, p. 5.) 71. Herman Hurst was a consulting engineer for both MMBI and Turro. (Tr. 1862.) Hurst had represented Turro in this capacity since 1983 or 1984. (Tr. 1884.) Hurst had more than 35 years of experience in the field of broadcast and communications systems engineering (Turro Ex. 2, Att. A), having provided engineering services to well over 1,000 broadcast stations and having personally visited and viewed more than 100 broadcast stations (Tr. 1866). Hurst was the Manager, Broadcast Consulting Services, and the Principal Engineer for Carl T. Jones Corporation. (Turro Ex. 2, Att. A.) 72. Hurst first visited the WJUX main studio on July 6, 1995. Hurst testified that: The WJUX(FM) main studio is equipped with a Sparta 8-channel console, a reel-to-reel tape machine, cassette deck, cart machine, turntable, microphone and audio processing equipment. In addition, an EBS receiver and alert tone generator is also located at the WJUX(FM) studio. The WJUX(FM) main studio has programming capability, production capabilities and remote control capability to the main transmitter. (MMBI Ex. 2, p. 2.) Hurst had no reason to believe that the capabilities he observed on July 6, 1995, did not exist prior to the April 1995 FCC inspection. (Id. at 1.) In this regard, Turro testified that he personally inspected the main studio equipment and verified that it was all working at the time WJUX was constructed in October 1994 (Tr. 1794-95), and Montana testified that there were no physical changes to the WJUX main studio after the FCC inspection (Tr. 892). 73. As noted above, on April 13, 1995, Loginow, an FCC inspector, conducted an inspection of WJUX's main studio and transmitter. (Tr. 336-37.) Loginow testified that, at the main studio, Blabey and Montana readily identified themselves to him as holding positions with WJUX, Blabey as General Manager and Montana as Public Affairs Director. (Tr. 484.) Blabey stated that he was on the premises, but outside the building, when Loginow arrived. (Tr. 960-61.) Montana stated that she was also on the premises when Loginow arrived. (Tr. 848-49.) She remembered talking with him in her office, but did not recall what they talked about. (Tr. 849-50.) Loginow testified that his recollection of who was there when he arrived and the timing of the initial part of his visit was "rather hazy. . . . [and] not very clear at all." (Tr. 580.) 74. Loginow asked Blabey for information about WJUX and Blabey responded that there was not too much to show him because most of WJUX's affairs were handled at Jukebox Radio's Dumont studio. Blabey told Loginow that all program logs for the station were kept in Dumont. Blabey offered to show Loginow WJUX's public file but Loginow declined. Blabey gave Loginow a copy of the Network Affiliation Agreement. (Bur. Ex. 18, p. 330.) 75. During the inspection, Blabey told Loginow he wanted to call WJUX's Chief Operator, Turro. Blabey called Turro's office, was told that Turro was out of town, and that Turro's office would contact Turro. Sometime later, Turro called WJUX's main studio and Blabey put him on the telephone with Loginow. (Tr. 962-63.) Turro spoke with Loginow for about five minutes. (Tr. 1963-64, 1743.) Turro asked Loginow if he had any questions for him. (Tr. 1743.) Loginow asked if Turro was the Chief Operator of WJUX and Turro said he was. (Tr. 1743, 1964.) Loginow also asked Turro about remote control capability. (Tr. 1964.) At the time of the inspection, Weis and Turro were at the National Association of Broadcasters convention in Las Vegas. Turro found Weis there and told him there was an inspector at WJUX. (MMBI Ex. 1, p. 3; Tr. 1407-08.) 76. Loginow asked to see the WJUX main studio and Blabey took him there, showed him the equipment, and answered all his questions. (Tr. 961.) Blabey informed Loginow that the equipment at WJUX's main studio was capable of allowing WJUX to originate programming from that studio. (Tr. 1029.) Loginow stated that he was in the WJUX main studio "very briefly." (Tr. 475.) While there, he saw a control board of the type typically found in a broadcast studio from which programming could be originated, as well as a microphone and tape machines. (Bur. Ex. 18, p. 330; Tr. 475-76.) Loginow testified that he did not examine the wiring to see if the equipment was connected, and had no reason to think the microphone and tape machines were not connected to the control board. (Tr. 476.) Loginow did not test the program origination equipment to see whether it could create programming suitable for broadcasting. (Tr. 489-90.) 77. Blabey told Loginow how programming could be originated from WJUX's main studio and transmitted to WJUX's transmitter. (Tr. 1027.) According to Loginow, Blabey told him that to enable broadcasts to originate from the WJUX studio "would require going to the transmitter site and effecting a change of cabling at the patch panel to connect the transmitter to the studio." (Bur. Ex. 16, p. 254, emphasis added; Tr. 473-74.) The FM transmitter site was located 2.3 miles from the Ferndale studios (Tr. 1014), and was about a 15-minute drive (Tr. 476). Blabey, however, denied telling Loginow that a visit to the transmitter site was required in order to originate programming from the WJUX main studio; that had never been required. (Tr. 1012-14.) Blabey instead recalled that Loginow asked: "How can you put this studio on the air from here?" and he responded: "You have to throw a switch in the transmitter room." (Tr. 1027-28, emphasis added.) The transmitter room to which Blabey was referring was the WVOS(AM) transmitter room, which was located in the Ferndale building about 10 to 15 feet down the hall from the WJUX main studio. (Id.; Tr. 1013-14.) Blabey could not say whether he said to Loginow the "AM transmitter room" or just the "transmitter room." (Tr. 1028.) 78. Blabey stated that there had always been a switch or switch patch in the WVOS(AM) transmitter room where the WJUX main studio feed could be connected to the WJUX transmitter. (Tr. 1012-13, 1027.) This could be done by simply taking an audio cord from one circuit and "jack[ing] it into a hole" in order to transfer that circuit to another circuit. (Tr. 1014; see also Tr. 477.) Blabey did not demonstrate to Loginow how this was done, nor show Loginow the patch, because Loginow did not ask. (Tr. 1028-29.) Blabey stated that an individual in a studio building who was running a line from the building to a transmitter would place the patch at the studio, not at the transmitter. Blabey testified: "It would be silly to make it at the transmitter." (Tr. 1027.) Loginow found the need to make a change at a transmitter site 15 minutes away from a main studio in order to put the studio on the air "[h]ighly unusual." (Tr. 477.) 79. Montana, too, testified that, at the time of the inspection, programming could have been originated from WJUX's main studio without going outside the studio building. (Tr. 892.) She stated that, at that time, there was a switch located on a piece of equipment in the WVOS(AM) transmitter rack which was in the WJUX main studio building, 10 to 15 feet down the hall from WJUX's main studio, that enabled programming to be originated from WJUX's main studio. (Tr. 892, 895-96.) Montana testified that, to originate programming from the WJUX main studio, the switch had to be placed in the "up" position, and once the switch was thrown, the WJUX main studio would operate the same as any other radio station studio. (Tr. 897- 98.) 80. Blabey testified that there was no patch panel at the WJUX transmitter site. (Tr. 1014.) Loginow stated that, if there had been one, it would have been in the enclosed building housing the transmitters. (Tr. 478.) Loginow testified that he entered that building, made observations, and recalled observing remote control equipment there, but did not see a patch panel. (Tr. 478-79.) Although Blabey accompanied Loginow to the WJUX transmitter site, Loginow did not ask Blabey while there to show him the patch panel in which Loginow understood cabling had to be changed to put the WJUX studio on the air. (Tr. 474, 476-77.) 81. Weis testified that, for reasons of economy and efficiency, both WJUX's public affairs and public service announcements were fed to the WJUX transmitter from the Dumont studio. Weis stated that this achieved economy because MMBI did not have to engage another staff person to come to the MMBI studio to replay the public service programs on MMBI's tape equipment, and feed the programs and announcements from WJUX's main studio to its transmitter. According to Weis, it was always technically possible to do so and the programs would have sounded the same over the air. (MMBI Ex. 1, p. 8.) 82. The WJUX Staff. Weis testified that the WJUX main studio was adequately staffed by Blabey, WJUX's General Manager, and Montana, WJUX's Public Affairs Director. Both were based essentially full time in the Ferndale main studio building. Weis stated that, although Blabey and Montana had other employment with WVOS, which was also located in that building, they each had more than adequate time to perform their duties for WJUX. (MMBI Ex. 1, p. 6.) 83. Blabey was an owner of MBC, the licensee of WVOS, and acted as the General Manager of those stations. (Tr. 909-10.) During normal business hours, there were anywhere from one to four employees at WVOS, including Montana. Blabey supervised these employees. (Tr. 949-50.) 84. Blabey was also WJUX's General Manager since WJUX commenced broadcasting. (Tr. 910-11, 948; Bur. Ex. 13, p. 226.) Blabey's letter agreement with MMBI stated that Blabey was "engage[d] . . . as an independent consultant on radio station management matters." (Bur. Ex. 13, p. 226.) Blabey testified that he was not an employee of WJUX, and that the agreement was structured as it was for tax reasons. (Tr. 910- 11.) The agreement also provided that Blabey would be available for consultations during normal business hours, Monday through Friday, as needed. (Bur. Ex. 13, p. 226; Tr. 948.) Blabey testified that he was already present at the main studio during those hours in connection with WVOS. (Tr. 948.) In deciding to become General Manager of WJUX, Blabey believed the position would not be overly burdensome because he was already performing many functions of a General Manager for WVOS. (Tr. 947.) 85. Blabey stated that since Weis did not live in Sullivan County and was not part of the Sullivan County community, he represented the community to Weis and vice versa. Blabey testified that he and Weis discussed the county's economy and county happenings. (Tr. 914.) Blabey stated that he was involved in the community on behalf of both WJUX and WVOS and people in the community associated him with both stations. (Tr. 932.) For example, he was a member of the Chamber of Commerce on behalf of both WVOS and WJUX, with WJUX having a separate membership. He received two copies of correspondence from the Chamber, one for MMBI and the other for WVOS and, when he went to Chamber meetings, he was there in two capacities. (Tr. 933.) Blabey did promotional announcements on both WVOS and WJUX for an air show the Chamber promoted each summer, and he volunteered his time at the air show. In doing so, Blabey stated he was representing both stations. (Tr. 933-34.) There were no community organizations of which he was a member in which he represented WJUX exclusively or WVOS exclusively. (Tr. 934.) 86. Blabey characterized his role in hiring and firing at WJUX as recruiting and suggesting employees for Weis to hire. (Tr. 914.) Blabey never recommended anyone to Weis that Weis did not put on the payroll. (Tr. 937.) With the exception of Kirschner, who replaced Turro as WJUX's Chief Operator, all of the employees that WJUX hired were recommended to Weis by Blabey. (Tr. 914, 937.) For example, Blabey suggested that Weis hire Spicka as WJUX's local engineer. (Tr. 937-38.) 87. On an average day, the actions that Blabey took on behalf of WJUX included answering the telephone, going through the mail, handling inquiries that he could handle himself, sending or faxing to Weis in New Jersey matters that needed Weis's attention (generally involving financial matters), arranging for programming, and making decisions. (Tr. 914-15.) Blabey was familiar with WJUX's issues/programs lists (Tr. 997), which were prepared by the Jukebox Radio staff (Tr. 1412). He prepared the Arbitron information requests for WJUX. (Tr. 1017.) The routine activities Blabey performed on behalf of WJUX did not take a lot of his time each day. (Tr. 915.) Blabey did not have any contact with Jukebox Radio on a daily basis. (Tr. 915.) 88. Blabey testified that he or others in the building were able to tell whether WJUX's service had been interrupted because they monitored that station "periodically" on the radios in their offices and because listeners called in. (Tr. 974.) When Blabey learned that WJUX was off the air, he attempted to get the station back on the air by calling an engineer, "cranking up the generator," or calling the power company. (Tr. 976- 77.) If both WJUX and WVOS were ever off the air at the same time, Blabey stated that he would put WVOS back on the air first. (Tr. 977-78.) 89. Weis and Blabey had an arrangement under which Blabey received a commission for sales made locally for commercials on WJUX. (MMBI Ex. 8; Tr. 920, 1001-03.) Blabey sold time under the agreement, which was still in effect. (Tr. 920, 1003.) During the first year of the agreement, however, Blabey made sales presentations, but did not succeed in making sales. (Tr. 1003.) 90. In February 1995, Blabey sought to engage a salesperson other than himself to sell time locally for WJUX. (MMBI Ex. 9; Tr. 1005.) Weis approved the hiring of Stan Silverstein to make local sales for WJUX, with compensation on the basis of commissions. (Tr. 1005.) Silverstein worked only for WJUX, and not for WVOS. (Tr. 1026.) Silverstein made sales presentations for WJUX for a short time, but did not sell any advertisements. (Tr. 1005, 1026.) Blabey believed that selling advertising on WJUX was difficult since the station was not among the top four stations in the community and, in a small market such as Monticello/Liberty, many businesses would only advertise on the top station or the top two stations in the market. (Tr. 920-22.) 91. Montana, WJUX's Public Affairs Director (Tr. 822), testified that she was employed full time by WVOS and part time by WJUX. (Tr. 816.) As WVOS's business manager, she handled the books, entered time orders, handled the billing, did the bookkeeping, prepared the broadcast log, prepared the payroll, gave out prizes, acted as receptionist (Tr. 816), sold advertisements, and participated in programming (Tr. 950). Blabey described her as a very competent individual who held the WVOS operation together. (Tr. 950.) 92. Montana was employed at WJUX since late October 1994. (Tr. 817.) She was originally engaged as an independent consultant but this was later changed, for tax purposes, to employee. (Bur. Ex. 12, p. 224; Tr. 838, 834.) At the time of her employment, Blabey told her she would work the same hours for WJUX that she worked for WVOS. Blabey told Montana he had a part-time position available to staff WJUX's office, answer the telephone, deal with the people who walked in, pick up and route the mail, and other similar things. (Tr. 817.) 93. Montana performed numerous tasks for WJUX each day. She went to the post office to pick up the mail for both WVOS and WJUX. When she returned to the studio building, she distributed the mail. If there was mail that needed attention from Weis or Blabey, she made sure that they saw it. She brought bills to the attention of Blabey and Weis for payment. She handled petty cash, dealt with walk-ins, answered the telephone, and took care of the callers' requests. (Tr. 820.) 94. Montana recalled receiving only two listener complaints about WJUX. The first concerned the inability of a listener to receive WJUX on his cable system. The second was from a listener who complained that WJUX was not playing enough Perry Como music. With respect to the latter, Montana called the Network and told them the nature of the complaint. The Network responded by adding to its schedule a weekly Perry Como show. (Tr. 884-85.) 95. Montana monitored WJUX broadcasts when going to and from work, but did not monitor that station during the work day because WVOS's programming was heard on the speakers in the studio building throughout the day. (Tr. 840-41.) On the rare occasion when there was a program interruption at WJUX, Montana would check what was going on, and call WJUX's engineer. (Tr. 839-41.) 96. As WJUX's Public Affairs Director, Montana represented WJUX in the community and made sure that PSAs of interest to the community were broadcast on WJUX. (Tr. 822.) Montana did not belong to any civic groups or charitable organizations for the specific purpose of representing WJUX. (Tr. 823.) However, she testified that she had lived in Sullivan County for almost 20 years, that people knew she worked for WJUX, and that they told her of relevant happenings for broadcast on both WJUX and WVOS. (Tr. 822-23, 825.) 97. Montana prepared the PSA bulletin boards for both WJUX and WVOS. (Tr. 824-26.) The bulletin boards for both stations were generally the same. Montana testified that she prepared the bulletin board for WVOS first and then used it for WJUX. On one or two occasions, however, she edited something out of the WVOS bulletin board before using it for WJUX. (Tr. 881-82.) Montana was the one who made the choices as to what would or would not be included on the bulletin board. (Tr. 824-26.) She did not consult with either Blabey or Weis in this regard. (Tr. 824.) Montana received, but had no role in preparing, the quarterly issues/programs lists for WJUX and put them in the WJUX public file. (Tr. 856-57, 889; MMBI Ex. 3, p. 1.) In this regard, WJUX's public file was maintained at the Monticello Public Library. There was also a copy of the file at WJUX's main studio. (MMBI Ex. 1, p. 10; Tr. 889.) 98. When WJUX began broadcasting, Turro was the Chief Operator of the station. (MMBI Ex. 1, p. 7; Tr. 847-48.) He was not compensated because both Turro and Weis believed that was precluded by the Commission's rules. (Tr. 1423-24, 1789-90, 2013; MMBI Ex. 1, p. 7; Turro Ex. 1, p. 7.) Turro served as the Chief Operator until he was replaced by Kirschner in mid-1995. (MMBI Ex. 1, p. 7; Tr. 937, 1424.) Subsequent to his replacement, Turro did not act in the capacity of Chief Operator or hold that title. (Turro Ex. 1, p. 7.) Kirschner was hired by Weis. (MMBI Ex. 1, pp. 6-7.) 99. Spicka, WJUX's local engineer (Tr. 937-38), was hired by WJUX in August 1995 to conduct weekly Emergency Action Notification System tests and meter readings (Tr. 839). Prior to his hiring, these tests were originated from the Dumont studio. (Tr. 857, 996-97.) Spicka was an employee on WJUX's payroll, not a consultant. (Tr. 938.) He did not also work for WVOS. (Tr. 939.) Spicka worked one to two hours per week, checked over the equipment and conducted the tests, and went out to the transmitter site when necessary. (Tr. 938.) He was also on call since he lived about two miles from the station, was semi-retired, and was available on a moment's notice. (Tr. 937-38.) Blabey called Spicka in to assist at the time of the FCC inspection. (Tr. 939.) In addition, when a fiber optic cable was cut and the Jukebox Radio program feed interrupted, an event which Montana believed occurred in the early summer of 1995, Spicka originated music from the WJUX main studio by playing a music tape for several hours. (Tr. 858, 972-74.) Montana stated that she heard about this program interruption from Turro, who telephoned her at her office. (Tr. 845, 860.) 100. Charles Martin was also an employee on WJUX's payroll. Martin lived about 10 miles from WJUX's main studio and could be called in if Spicka was out of town. Blabey arranged for Martin to cover the office functions for WJUX when he (Blabey) and Montana were testifying at the hearing in Washington, D. C. (Tr. 974-75.) 101. WJUX's Remote Control Capability. During his April 13, 1995, inspection of WJUX, Loginow made inquiries regarding WJUX's remote control capability. (Tr. 439-40, 459-60.) Before he inspected WJUX Loginow had read the complaint lodged by Universal against Turro and Weis, and understood that one of the allegations made was that WJUX was an unattended operation in the sense that the transmitter was not being controlled at the main studio in Ferndale. (Tr. 484-85, 542.) However, Loginow testified that he knew of no FCC rule stating that a broadcast station's transmitter may not be controlled from a point other than its main studio. (Tr. 485-86.) 102. Loginow asked Turro about remote control, and Turro responded that remote control and meter readings were handled at the Dumont studio. (Tr. 508-09, 541, 1964.) Turro also informed Loginow that there was "no remote control equipment" at the WJUX studio (Tr. 440, emphasis added), but that a dial-up remote control system was available at WJUX's main studio (Tr. 510-11, 541, 1964). Turro did not mention who knew how to operate the dial-up system. (Tr. 511.) Based on Turro's answers, Loginow presumed that the remote control equipment at Dumont was functioning. (Tr. 508-09.) Loginow chose not ask Turro any additional questions about the telephone dial-up remote control system. (Tr. 463-64, 545-46.) 103. Blabey testified that Loginow asked him if there was a "remote control unit" for WJUX at the main studio, and he answered, "No." (Tr. 962, emphasis added.) Similarly, Loginow testified that he asked Blabey whether there was any "remote control equipment" at WJUX's main studio. (Tr. 577, emphasis added; Bur. Ex. 18, pp. 330-31.) Blabey told Loginow that the WJUX transmitter could be remotely controlled from the Dumont studio. (Tr. 963.) Loginow did not make any inquiry of Blabey about telephone dial-up remote control. (Tr. 470-71, 547.) 104. Blabey testified that there was a telephone number posted at WJUX's main studio and that, by dialing the number and entering a code, the WJUX transmitter could be turned off. (Tr. 965.) Blabey stated that there were other codes which could be used to turn the transmitter on, take readings, or do other functions required by FCC regulations. (Tr. 965-66.) Blabey said he knew the codes and how to use them, and could do it from a telephone located anywhere. (Tr. 963, 965-66.) Blabey stated that at the time of the inspection there was a telephone in the WJUX main studio which had four lines on it, all of which were WVOS extensions, and that any of those lines could have been used from the main studio to dial the WJUX transmitter and control it. (Tr. 967-68.) 105. Montana testified that, at the time of the FCC inspection in April 1995, there was dial-up remote control capability for the WJUX transmitter from the WJUX main studio. At the time of the inspection, Montana knew how to use the remote control. She explained that all she had to do was pick up a telephone, dial a number, enter a code, and an automated voice responded. On two occasions Montana had instruction on how to use the dial-up remote control. (Tr. 852-53, 879-80.) Loginow did not make any inquiry of Montana about telephone dial-up remote control. (Tr. 547.) Both Weis (MMBI Ex. 1, p. 5) and Hurst (MMBI Ex. 2, pp. 1, 2) testified that WJUX had remote control capability to its transmitter from its main studio at the time Loginow inspected the station. 106. On the basis of his inspection and his meetings with Blabey and Montana, Loginow concluded that WJUX was "[a]ttended out of Dumont." (Tr. 485.) Loginow testified that, in his opinion, dial-up remote control was not adequate remote control for a station unless it met certain guidelines. (Tr. 514.) One of those guidelines was that the dial-up remote control must have a dedicated telephone line "available continuously, exclusively for that purpose only." (Tr. 450, 441, 514.) In this connection, the following colloquy took place: Q [by Mr. Riley]: Well, isn't a telephone, when it's equipped to a telephone dial up remote control, a station equipped with telephone dial up remote control, the telephone set itself becomes remote control equipment, does it not? A [by Mr. Loginow]: No, it doesn't, not until you're actually using it. Q: You mean that if I had a telephone sitting here and was speaking with my wife, that it would not be remote control equipment? A: That's correct. Q: If I then hang up on my wife and dial the telephone number for the remote control equipment at the radio station and enter the code word if needed, and then begin to use that telephone to turn it on and off or to access a power meter, that is remote control equipment, is that right? A: That's correct. (Tr. 440-41, emphasis added; see also Tr. 465-67.) Loginow acknowledged that he did not know for a fact that there was no telephone circuit dedicated to remotely controlling the WJUX transmitter; he knew only what Blabey and Turro told him. (Tr. 487.) 107. WJUX Main Studio Telephone. Beginning on November 2, 1994, WJUX established and maintained a local telephone number for the main studio. (Bur. Ex. 11, pp. 165, 190; Bur. Ex. 24, p. 555.) This number was listed by the local telephone company (MMBI Ex. 1, p. 9; Bur. Ex. 11, p. 193), NYNEX, and was toll-free for residents of Monticello (MMBI Ex. 1, p. 9; Bur. Ex. 24, p. 555). However, calls to that number were not answered at the WJUX main studio until July 1995. (Bur. Ex. 24, p. 555; Bur. Ex. 25, p. 562.) Rather, prior to July 1995, all calls to the WJUX number were forwarded to the Dumont studio and were answered there. (MMBI Ex. 1, p. 9; Bur. Ex. 25, p. 562.) Telephone billing records for the WJUX telephone number for the period from November 1994 to June 1995 showed that a number of calls were forwarded to Dumont, that long distance charges and charges for call forwarding service were made for individual calls, but that those charges were not billed to the callers. (MMBI Ex. 1, p. 9; Bur. Ex. 11, pp. 190, 197, 199, 201, 205, 208, 212, 214.) 108. Weis stated that, subsequent to the FCC inspection, a telephone jack for the WJUX number was relocated within the building housing the WJUX main studio, a telephone was acquired, and the practice of forwarding calls placed to the WJUX number was ended. (Bur. Ex. 25, p. 562.) Since some point in mid- 1995, Weis testified, all calls to the WJUX telephone number were answered at the WJUX main studio. (MMBI Ex. 1, p. 10.) 109. Weis testified that he did not recall knowing of the call-forwarding arrangement as of late July 1995. (MMBI Ex. 1, p. 9; Bur. Ex. 11.) Weis stated that he never tried to call the WJUX telephone number, so his calls were never forwarded to Dumont. If Weis needed to call and talk to Blabey or Montana, he called the WVOS number. This was a continuation of his habit in dealing with Blabey from the very beginning. Weis never tried to call the number listed in the directory for WJUX just to see what would happen. (Tr. 1441-42.) 110. Howard Warshaw, one of the owners of Universal, which lodged a complaint with the Commission against Turro and Weis (Bur. Ex. 2; Tr. 1043-44), testified that on January 30, 1995, he called directory assistance for area code 914 and was given the telephone number for WXTM. Upon dialing that number he eventually spoke with Turro, who gave him the location in Monticello, New York, of the station's public inspection file. (Bur. Ex. 2, p. 48; Tr. 1067.) 111. Similarly, in seeking to locate WXTM on April 13, 1995, Loginow called directory assistance in Ferndale and was given a telephone number for WXTM. When he called the number, it was answered in Dumont, New Jersey. During the course of this call, Loginow was treated courteously and was given directions to WXTM's main studio. (Tr. 481-82.) 112. According to Blabey, at the time of the inspection WJUX had a telephone line into the office building in which the WJUX and WVOS studios were located, but WJUX's telephone line was not connected to its main studio room. (Tr. 967-68.) Blabey testified that calls made to the WJUX telephone number were automatically forwarded to the Network in Dumont, New Jersey. (Tr. 968-69.) 113. Montana testified that at the time WJUX went on the air she was not aware of a telephone "at the WJUX premises" for individuals calling that station. (Tr. 821.) At that time Montana did not have a telephone in her office for WJUX's line. (Tr. 820.) She stated that a telephone for WJUX was installed on her desk in early July 1995. (Tr. 861-62.) Montana testified that "[t]he community" somehow found out that the WJUX studio was located at the WVOS studio and, if someone in the community wished to call WJUX, they called on the WVOS line. (Tr. 820-21.) The calls she received were generally calls complimenting the music on WJUX and asking for requests to be played. (Tr. 864-65.) Montana recalled that there was a listing for WXTM in the May 1995 local telephone directory, which was the first to be published after the station began operations. (Tr. 887-88.) 114. All of the bills for telephone service from November 1994 to mid-1995 were sent by NYNEX to Jukebox Radio, which paid those bills. (MMBI Ex. 1, p. 3; Bur. Ex. 11, pp. 189-214.) At the hearing, Weis "speculat[ed]" that this occurred because Turro placed the order for WJUX's telephone service. Weis explained that when the station was being built, it was recognized that WJUX needed a telephone in the studio. Turro was working in the Ferndale studio with his Network equipment while Weis was at the tower site in Liberty installing equipment. Weis believed that Turro "picked up the phone, called NYNEX, [and] ordered a telephone." (Tr. 1437.) Since WJUX had no account with NYNEX anywhere, Turro ordered the service on Jukebox Radio's account since he had the information at his fingertips. (Tr. 1437-38.) When it was subsequently discovered that Turro was paying Weis's telephone bill, Weis did the required paperwork, the billing was changed, and MMBI paid all subsequent bills for WJUX telephone service. (Tr. 1438; MMBI Ex. 1, p. 3.) Weis never reimbursed Turro or Jukebox Radio for the telephone bills they paid. (Tr. 1438.) D. Issue 1: Translator and Auxiliary Station Rules Issue (1) Background and Technical Operations 115. Network Connections to WJUX. Turro leased a 56 Kbps land line from the telephone company to carry the Jukebox Radio programming feed and remote control commands from the Dumont studio to WJUX. (Turro Ex. 1, p. 8; Tr. 1504.) The 56 Kbps land line had two channels, a wide channel for audio and a narrow channel for data. The narrow data channel was used for remote control of the WJUX transmitter. (Tr. 1504, 1545; Turro Ex. 33.) Turro subsequently established a second land line to WJUX as a backup in case the first line was interrupted. This was done because the Network had experienced service outages due to failures of the land line. (Turro Ex. 1, p. 8.) 116. With few exceptions, Jukebox Radio programming was originated in the Dumont studio. (Turro Ex. 1, p. 8.) That studio contained both program creation and audio production control rooms. (Turro Ex. 7, p. 2.) The programming was transmitted, live or taped, through the land lines to the WJUX main studio or to its transmitter. There, Network equipment processed the programming feed, and the programming was broadcast by WJUX on its authorized frequency of 99.7 MHz. (Turro Ex. 1, p. 8.) Turro personally installed the Network equipment which allowed this to be done. (Id. at 6.) According to Turro, the broadcast from WJUX could be received directly off the air, or "directly through space," by the Fort Lee and Pomona translators, processed, and retransmitted by both of them. (Id. at 8.) 117. The TC-8 Remote Control System. TC-8 Remote Control Systems allowed remote control and monitoring of broadcast transmission facilities from a studio or other remote location. The system consisted of two physically identical units, one located at the transmitter site and the other at the remote location. (Turro Ex. 28, p. 5.) The TC-8 Remote Control System allowed for telemetry, also called data (Tr. 1511), to pass between the units to provide information at a remote location in the form of eight different status lights and eight different channels, along with "raise" and "lower" switches, to control remotely such items as transmitters and antenna switches. (Turro Ex. 28, p. 5.) A five-digit dot-matrix array on each unit displayed the channel selected (first digit) and the analog values associated with that particular channel (last four digits). (Id. at 5-6, 15.) The link between the studio and transmitter TC-8 units may be by either wire or radio connection. The radio links were typically an STL subcarrier for the studio-to-transmitter path and an FM subcarrier for the return path from the transmitter to the studio. (Id. at 5.) 118. The eight status lights essentially provided the studio with on/off indications. (Tr. 1534-35, 1648-51.) The channels were used to control functions remotely from the studio or to read numerical status. The uses and functions of the channels were entirely independent of the status lights. (Tr. 1525-27, 1529, 1532-33, 1556-57, 1573, 1614.) 119. Since WJUX first went on the air in late October 1994, Jukebox Radio maintained two separate and independent TC-8 systems for the remote control of WJUX and the Fort Lee translator, one system for each of those stations. (Turro Ex. 1, p. 10; Tr. 1501.) These units were never replaced. (Tr. 1490.) The link between the Dumont studio TC-8 unit and WJUX was by a data path on the 56 Kbps land line which carried the Jukebox Radio program feed from the Dumont studio. (Turro Ex. 1, pp. 8, 10.) The link between the Dumont studio TC-8 unit and the Fort Lee translator initially was on a data path along WMG-499. (Id. at 11- 12.) Turro testified that he never maintained any remote control capability for the Pomona translator. (Id. at 10.) 120. Arrangement for Remote Control of WJUX. The 56 Kbps land line connecting the Dumont studio to WJUX had two purposes. The first was carriage of the programming on a wide audio channel from the Dumont studio for broadcast by WJUX. The second was carriage of telemetry on a narrow data channel between both ends of the TC-8 Remote Control System for control of the WJUX transmitter from the Dumont studio. (Tr. 1504; Turro Ex. 33; Turro Ex. 2, p. 4.) 121. Initially, Turro installed a small amber strobe light in the Dumont studio as part of the TC-8 remote control arrangement for the WJUX transmitter. Turro hand-wrote "Off Air" on the strobe light. (Tr. 1496-97; Turro Ex. 38.) Turro attempted to connect the light in such a way that if the land line connection between the Dumont studio and the WJUX transmitter failed, the light would flash and warn the Dumont studio staff of a problem. (Tr. 1504-05, 1548-49; Turro Ex. 33.) 122. Turro had never installed such an arrangement before (Tr. 1504), and he learned that the strobe light would flash in the event that there was trouble on the narrow data channel, even though the broader audio channel carrying the program feed would be functioning properly and the WJUX transmitter would also be functioning properly (Tr. 1497, 1505-06, 1604, 1605-07, 1608-10). Turro also came to learn that the operation of the data path itself was unreliable, which would cause the strobe light to flash sporadically, even though at all times the program feed from the Dumont studio to the WJUX transmitter, and the transmitter itself, were operating properly. (Tr. 1505-06, 1510, 1546.) Turro stated that the strobe light was disconnected in the spring or summer of 1995. (Tr. 1585.) 123. Turro also installed an "outboard safety button" which disabled the on/off and raise/lower functions of the TC-8 unit in the Dumont studio. Turro testified that in order to turn the WJUX transmitter on or off, the outboard safety button and a button on the TC-8 unit would have to be pressed simultaneously. He did this in order to prevent an accidental shut down of the WJUX transmitter if the "wrong buttons" on the TC-8 unit were pressed. (Tr. 1535, 1568-69.) 124. On July 6, 1995, the land line carrying programming from the Dumont studio to WJUX was cut, causing a loss of program delivery to the station. This resulted in "dead carrier" being heard on the air from WJUX and from the Fort Lee and Pomona translators. (Tr. 1580-83, 1586-88, 1598.) Turro testified that "dead carrier" sounded like "[n]othing. Not noise, just silence. . . . Very quiet." (Tr. 1586; see also Tr. 1745- 46.) On that day, Hurst, one of Turro's consulting engineers (Tr. 1862), and Turro were inspecting the translator facilities and WJUX. Thus, Hurst also personally observed that when the land line was cut, WJUX and the two translators all transmitted dead carrier. (Tr. 1588-94, 1869-70.) 125. Turro testified that a second land line cut subsequently occurred which again resulted in the transmission of dead carrier by WJUX and the Fort Lee and Pomona translators. (Tr. 1595.) When this happened, Spicka was called to WJUX and played music tapes from the WJUX main studio, restoring programming to WJUX and the Fort Lee and Pomona translators. (Tr. 1611, 858, 972-74.) According to Turro, the only time in the history of WJUX that the transmitter completely lost the ability to generate carrier was on April 14, 1995, when Loginow instructed that the transmitter be turned off and on as a part of his inspection of that station. (Tr. 1579; Bur. Ex. 17, pp. 264, 267.) 126. Arrangement for Remote Control of the Fort Lee Translator. The TC-8 Remote Control System between the Dumont studio and the Fort Lee translator utilized the same model TC-8 units as did the system for remote control of the WJUX transmitter. The Dumont-Fort Lee system, however, was completely separate from the Dumont-WJUX system, and the functions of the status lights and channels were different. (Tr. 1501, 1613-16.) Over time, installations at the Fort Lee translator included several different antennas to receive signals off the air from WJUX and from the Pomona translator, a main and auxiliary transmitter, a main and auxiliary transmitting antenna and, while it was in operation, receive facilities for WMG-499. The TC-8 system between the Dumont studio and the Fort Lee translator allowed Turro to switch remotely among those facilities, but did not permit remote adjustments to the power of the Fort Lee translator transmitter. (Turro Ex. 1, p. 10; Turro Ex. 2, p. 4.) In this connection, because of the way it was manufactured, the power of the WJUX transmitter could not be raised or lowered by remote control. Power adjustments had to be done on site. However, the WJUX transmitter could be turned on and off by remote control. (Id.; Tr. 1535, 1537, 1539-43, 1569, 1741.) 127. During the time when WMG-499 was in operation, Turro used it to transmit the remote control telemetry from the TC-8 unit at the Dumont studio to the TC-8 unit at the Fort Lee translator. (Turro Ex. 1, pp. 11-12; Turro Ex. 34.) The Fort Lee translator's FM subcarrier transmitted the telemetry from the Fort Lee translator to the Dumont studio. (Tr. 1707-08.) Turro also maintained an audio path carrying the Jukebox Radio programming on WMG-499 at all times. (Turro Ex. 1, p. 12; Turro Ex. 34.) The audio path terminated into a "dummy load" (Tr. 1619), which consisted of a 600 ohm resistor (Tr. 1667). Turro explained that, by keeping an external load on the output audio section of the microwave unit, energy was dissipated into the resistor, and damage to the facilities of the Fort Lee translator was prevented. (Tr. 1667-70.) 128. Turro testified that he kept WMG-499 in operation continuously to allow it to provide constant telemetry, and to prevent damage to its facilities because it was the kind of unit that could have been damaged by being turned on and off repeatedly. Turro further testified that, because the New York City area suffered from severe frequency congestion, he placed the Jukebox Radio feed on the WMG-499 audio path so that the WMG-499 signal could be monitored and identified easily by third parties wishing to know the source of the signal. (Turro Ex. 1, p. 12.) Turro testified that, for the entire time that WJUX broadcast Jukebox Radio programming, he never caused the WMG-499 audio path to provide programming to the Fort Lee translator transmitter unless there was an emergency. (Id. at 12, 27.) Turro stated that the Fort Lee translator transmitter was set to rebroadcast the signal of the Pomona translator or WJUX. (Id. at 12.) 129. Turro testified that the ability to provide audio programming directly from the Dumont studio to the Fort Lee translator allowed him to place emergency messages on the air. (Turro Ex. 1, pp. 10-11.) In this regard, Jukebox Radio had a cooperative understanding with the Bergen County Office of Emergency Management ("Office") by which Jukebox Radio would broadcast emergency messages to the public, as necessary, as the broadcast information outlet of the Office. (Id. at 11; Turro Ex. 3.) Turro's memory was unclear as to the number of emergency messages that might have been put on WMG-499 during the period from October 1994 to its deactivation, and he testified that it was possible that no emergency messages were put on during that period. (Tr. 1807-10, 2107-08.) Turro never maintained records of emergency messages. (Turro Ex. 1, p. 11.) 130. Sergeant Paul A. Einreinhofer of the Office (Turro Ex. 3, p. 1) testified that the Office had requested that Turro put "official information" on the air, and that the Office had supplied Turro with such information. However, the Office never requested Turro to interrupt regular programming to broadcast "emergency" information. (Tr. 1327-29.) Einreinhofer explained that the word "emergency" had different meanings depending on the context in which it was used and the individual using it. (Tr. 1329-31.) 131. Turro also testified that the ability to provide audio programming directly from the Dumont studio to the Fort Lee translator allowed him to insert 30-second announcements. (Turro Ex. 1, p. 10.) However, Turro acknowledged that after WJUX went on the air there was no purpose in sending 30-second announcements to the Fort Lee translator, and that none were, in fact, broadcast over that translator. (Tr. 1718.) 132. By letter to the Chief of the Commission's Microwave Branch, dated June 13, 1995, William J. Getz, one of Turro's consulting engineers (Bur. Ex. 8, p. 115), stated that WMG-499 provided remote control capability to switch from the Fort Lee main transmit antenna to its authorized auxiliary antenna, and that this was critical to the operation of that translator because of "frequent operational problems with the main transmit facility." (Id. at 123 n.1.) Getz also stated that WMG-499 was used to deliver 30-second messages and emergency warnings to the population of Bergen County, as authorized by Section 74.1231(g) of the Commission's Rules. Getz stated that WMG-499 was in use 24 hours per day for two reasons. First, he stated that the microwave equipment was not manufactured to operate on an intermittent basis, and that switching it on and off every hour for a 30-second transmission would eventually lead to equipment failure. Second, Getz stated that WMG-499 must be operational continuously to make it "readily identifiable." In this connection, Getz stated: "In the event WMG-499 causes interference, the offended party will have the ability to easily identify the transmission source. In a once-an-hour, 30-second message, it would be extremely difficult to identify the interfering source." (Id. at 123.) 133. Turro testified that, during the time that WMG-499 was in operation, he had two means of taking remote control of the Fort Lee translator audio transmission from the Dumont studio in the event of an emergency. The primary way was to use the telemetry which was carried on the data channel on WMG-499. The second way was a "fail[-]safe." In the event that the telemetry path on WMG-499 was interrupted, the remote control unit at the Fort Lee translator was programmed to home immediately onto the audio path on WMG-499 and rebroadcast that signal. (Turro Ex. 1, pp. 12-13; Tr. 1621-26, 1629-32, 1637-38.) Turro testified that he maintained this arrangement so that, if all else failed, he could still get emergency messages on the air by simply taking the data off of WMG-499. (Turro Ex. 1, p. 13; Tr. 1624-26.) However, if the microwave receiver at the Fort Lee translator lost the 951 MHz input completely, that is, if there was no 951 MHz signal coming in at all, the receiver was programmed to force the translator to receive the off-air signal from the Pomona translator or WJUX. (Turro Ex. 1, p. 13; Tr. 1628-29, 1631-32, 1633-34, 1676-78, 1681- 82, 1683.) 134. In addition to WMG-499, Turro maintained a low quality 8 kHz circuit which could have been used to carry spoken emergency messages. (Turro Ex. 1, p. 12; Tr. 1715, 1719.) This circuit was installed in 1993, prior to the licensing of WMG-499. The installation cost was approximately $2000 and the monthly service charge for the circuit was about $100 to $150. (Tr. 1714-15.) Turro testified that, after receiving the WMG-499 license, he kept the 8 kHz circuit in place because he had already invested $2000 in its installation and he was afraid that if he gave it up he would never get it back. (Tr. 1715-16.) According to Turro, the 8 kHz circuit was never used, and the audio quality of music programming sent over such a circuit would have been severely degraded. (Turro Ex. 1, p. 12; Tr. 1714, 1719; see also Tr. 1876.) 135. Turro did not believe that this 8 kHz circuit could have been used for telemetry (Tr. 1716-18), stating that, in the 25 years he had been either a chief engineer or chief operator of radio stations, he had never seen an 8 kHz circuit used for the transmission of data (Tr. 1723). However, Turro also testified with respect to such use: "[O]ne thing I have learned in life is never say anything is impossible. It's entirely possible. I have never ever seen it done." (Tr. 1717.) 136. Hurst testified that an 8 kHz telephone line would be sufficient for remote control telemetry purposes if analog equipment was being used. He did not know whether digital equipment could be controlled through an 8 kHz circuit. (Tr. 1875.) He also testified that, because of the limited band width, an 8 kHz circuit would not normally be used for transmitting both audio and telemetry. (Tr. 1883.) 137. When WMG-499 was deactivated in early July 1995 (Tr. 1616), Turro used a 9600 baud telephone circuit to carry the remote control telemetry between the Dumont studio and the Fort Lee translator. (Turro Ex. 1, p. 13; Turro Ex. 2, p. 5; Tr. 1722.) Turro testified that this 9600 baud circuit was entirely inadequate to carry the Jukebox Radio programming material. (Turro Ex. 1, p. 13; Tr. 1741-42.) Hurst, too, testified that a 9600 baud telephone line was not of sufficient bandwidth to provide acceptable quality audio, but could be used for the switching capability for which it was intended. (Turro Ex. 2, p. 5.) 138. The Fort Lee Translator. The Fort Lee translator is located on the 24th floor of the Mediterranean Towers apartment building in Fort Lee, New Jersey. The Mediterranean Towers is 26 stories tall, and Turro had access to the roof for the placement of antennas. (Turro Ex. 1, pp. 6, 25; Turro Ex. 2, p. 1.) 139. In late October 1994, Turro adjusted the receiving equipment at the Fort Lee translator to start receiving the signal of WJUX, which transmitted at 99.7 MHz. (Turro Ex. 1, p. 5.) Turro had previously performed tests and located an area of about four square feet on the roof of the Mediterranean Towers, which he called a "hot spot," from which he was able to receive the signal of WJUX directly off the air using nothing but a digital Sony car radio, Model XR2500, and a car antenna. (Turro Ex. 32, pp. 1-2.) This hot spot was a specific, discrete location on the roof with a "high field" where "good quality" reception of WJUX existed even though various propagation models would have predicted such reception as "marginal." (Turro Ex. 2, pp. 1-2; Turro Ex. 35, p. 2.) On August 2, 1995, Turro showed Loginow the hot spot, and Loginow heard WJUX off the air from that location. (Tr. 1760-61; see also Tr. 390-91.) 140. Hurst also testified to the existence of the hot spot which, he stated, was two to three square feet, where "good quality" reception of WJUX was possible without the use of filtering devices. (Turro Ex. 2, p. 2; Tr. 1877, 1887, 1888-89.) Beyond this two-to-three square foot area, Hurst observed that the reception of WJUX was degraded. (Tr. 1877.) From any other location on the roof, Hurst stated, filtering devices would have been necessary in order to receive a good quality signal from WJUX. (Tr. 1887-89.) 141. Hurst personally observed the hot spot in July 1995 and October 1997. He stated that it was in exactly the same location on both occasions, and that reception in the hot spot was "very good" both times he was there. (Turro Ex. 2, pp. 1-2 and Att. B, p. 3; Turro Ex. 35 p. 2; Tr. 1876-77.) Hurst saw nothing on the roof that would have explained the hot spot, including any reflector device. He also stated that he had previously seen hot spots like this that were continuous over a long period of time in a two-to-three square foot area. (Tr. 1877-78, 1890.) Hurst believed the probability of finding a similar hot spot on the top of a building where an individual already had a lease was "[l]ess than one percent." (Tr. 1891.) 142. Hurst defined "dummy load" as "a resistive load which is utilized normally to feed a transmitter for test purposes to be able to determine the performance of the transmitter as it[']s operating into a known precision load." (Tr. 1879.) In Hurst's opinion, the presence on the roof of the Mediterranean Towers of a microwave audio path dummy load could not have been a contributing factor to the existence of a hot spot. (Tr. 1908.) Similarly, it was Hurst's judgment that a telephone line, placed under the tar and gravel surface of the roof, terminating in a dummy load would not have resulted in the hot spot he detected and observed. (Tr. 1880.) Although Hurst never checked for the possibility that the hot spot might have been created by locally generating a signal into a dummy load (id.), he did not think that there was anything of that nature in operation (Tr. 1912). 143. John E. Hidle, another consulting engineer for Turro, observed the hot spot in October 1997, and personally heard WJUX off the air, free from interference from WBAI, by listening to a radio receiving from that spot. Hidle characterized the reception quality as "fairly good [but not] perfect[, with] a slight bit of what appeared to be adjacent channel interference, occasionally." (Tr. 1923-24; Turro Ex. 36, p. 2.) Hidle testified that he made an "extra effort . . . to discover a hidden method[ ] of signal delivery" to the Fort Lee and Pomona translators, but none was found. (Turro Ex. 7, p. 6.) In this regard, he stated: "Careful examination of the rack wiring [of the Pomona translator] revealed no unidentified wires or cables[, and a]ll wiring and interconnections [of the Fort Lee translator] were similarly accounted for. There were no sources of audio program input observed other than that provided by the off-air reception." (Id.) 144. In October 1994, Turro installed a Yagi-type receive antenna in the hot spot for reception of WJUX. He also installed a second such antenna a few feet away to receive first adjacent station WBAI. (Turro Ex. 32, p. 2.) He connected transmission lines from both antennas to a Microwave Filter Company, Inc., Model 2903-UHF "Phase Canceller" according to the manufacturer's instructions, and adjusted the Phase Canceller until interference from WBAI was eliminated. (Id.; Turro Ex. 40, p. 1; Tr. 1723-24; see also Tr. 1928-32.) This Phase Canceller was manufactured, sold, or shipped in October 1994. (Tr. 1910-11, 2111.) 145. Turro testified that this arrangement was used exclusively from late October 1994 to mid-January 1995, and at all times provided an adequate signal from WJUX for rebroadcast. Turro's testimony in this regard was based upon his monitoring of the Fort Lee translator on a daily basis during this period. However, to maintain good reception of WJUX, Turro had to go to the Fort Lee translator about three times to make minor adjustments to the Phase Canceller. (Turro Ex. 32, p. 2.) These adjustments were made by turning two knobs built into the device. (Tr. 2111-12.) Turro testified that during the time the Phase Canceller was in use, the quality of the WJUX signal received and rebroadcast was consistently good and variations in signal reception were minor. (Turro Ex. 32, pp. 2-3.) 146. In the spring of 1995, Turro replaced the Phase Canceller with a 40 dB notch filter. The notch filter performed virtually the same function as the Phase Canceller but did not require occasional adjustments. The notch filter did not cause any significant change in reception quality as compared to the Phase Canceller. (Turro Ex. 32, p. 3.) Hurst saw this 40 dB notch filter in place when he inspected the Fort Lee translator on July 6, 1995. (Turro 35, p. 2; Turro Ex. 32, pp. 3-4.) 147. In late July 1995, Turro replaced the 40 dB notch filter with a connected pair of 30 dB notch filters. Turro observed no difference in signal quality due to this change in filtering devices. This arrangement of filters was in place and was observed by Loginow on August 2, 1995, and has remained basically unchanged since then. (Turro Ex. 32, p. 4.) 148. Hurst testified that, although filtering would improve or increase the reliability of reception "slightly" as a result of any long-term fade which may occur in the signal, there would have been no material change in the ability of the Fort Lee translator to receive WJUX. (Tr. 1863, 1864-65.) Hurst explained: "You have to remember that you don't need a filter. You can stand on the roof and you can receive [the] Monticello [station] with the Sony radio[ ] and a simple dipole antenna without interference from the adjacent Channel WBAI." (Tr. 1864.) 149. The Fort Lee translator received programming from the Pomona translator by use of one of Turro's receiving antennas and one of his receivers tuned to 94.3 MHz, the frequency of the Pomona translator. The receive antenna for the Pomona translator was usually located on the roof of the Mediterranean Towers. However, during the spring of 1995, vandals had stolen or damaged Turro's roof-mounted equipment several times. Turro found a secure location in the basement of the Mediterranean Towers which received a strong signal from the Pomona translator, placed a receive antenna there to receive that translator, and connected it to the receiver by internal telephone wiring. This arrangement was in place on May 15, 1995. (Turro Ex. 1, p. 22.) (2) Inspections, Tests, and Observations 150. The April 14, 1995, Testing and Inspection. As discussed earlier, on April 13, 1995, Loginow conducted an inspection of WJUX's main studio and transmitter (Tr. 336-37), and spoke with Turro on the telephone (Bur. Ex. 18, p. 331). Loginow told Turro that he was going to the Dumont studio the next morning to test whether the Fort Lee and Pomona translators were receiving the WJUX over-the-air signal by switching the station's transmitter on and off and listening to the translators. Turro told Loginow that, because of a recent lightning strike, he preferred that it be turned on and off by an experienced engineer at the transmitter site rather than by remote control. Blabey informed Loginow that he would arrange for someone to be posted at the transmitter site and gave Loginow the telephone number at that site. (Bur. Ex. 18, pp. 331-32.) 151. On April 14, 1995, Loginow drove an FCC vehicle to a location on Route 9 in New Jersey where he could receive the signals of both the Pomona and the Fort Lee translators. Loginow used a cellular telephone to call the telephone number for the WJUX transmitter site that Blabey had given him. After identifying himself to the engineer at the transmitter, Loginow directed that individual to "kill it," meaning to turn the transmitter off. (Bur. Ex. 18, p. 332.) "Nearly instantaneously," the programming that Loginow had been hearing from the Pomona and Fort Lee translators was replaced by "white noise" on the translators' frequencies. (Id.; Tr. 344.) Loginow described white noise as "the sound that you hear when you tune between two FM stations," like a hissing sound. (Tr. 344-45.) Turro demonstrated what white noise sounded like and it was described as a "staticy crackle." (Tr. 1746-47.) Loginow testified that hearing white noise "was consistent with the [WJUX] transmitter being turned off . . . resulting in the loss of that over-the-air signal by the translators." (Bur. Ex. 18, p. 332.) Loginow then instructed the engineer at the transmitter site to turn the transmitter back on and Jukebox Radio programming returned to the Pomona and Fort Lee translators almost instantaneously. (Tr. 346.) 152. Loginow stated that, from this testing, he determined to "a high degree of assurity" that on April 14, 1995, the Fort Lee translator was receiving Jukebox Radio programming off the air from the Pomona translator. At the same time, Loginow was able to determine that the Pomona translator was receiving Jukebox Radio programming off the air from WJUX. (Tr. 345-46.) Loginow observed, however, that the audio quality of the Fort Lee and the Pomona translators was "degraded due to splatter from WBAI," which Turro attributed to the WJUX transmitter operating at reduced power due to a recent lightning strike. In this connection, Loginow had previously observed that the operating power of WJUX was reduced. (Tr. 385-86; Bur. Ex. 4, p. 84; Bur. Ex. 16, p. 255; see also Turro Ex. 1, p. 28.) Loginow stated that the two translators passed the test on April 14, 1995. (Tr. 345-46.) 153. After this testing, Loginow went to the Dumont studio, where he asked to see the remote control equipment for WJUX. Loginow was shown the equipment, but he did not inspect or test it. The duration of Loginow's visit to the Dumont studio was about ten minutes or less. (Bur. Ex. 18, p. 333; Tr. 346-48.) 154. On October 17, 1997, Hurst, Hidle, and Kirschner tested the ability of the Pomona translator to receive WJUX when it operated at reduced power. Hurst testified that, based upon this actual testing, it was determined that the Pomona translator remained able to receive WJUX with the WJUX transmitter operating at levels below 100 watts before the signal could no longer be received. (Turro Ex. 2, pp. 4-5.) WJUX was authorized to operate with an Effective Radiated Power ("ERP") of 6.0 kW. (Bur. Ex. 2, p. 41; Bur. Ex. 5, p. 89; Bur. Ex. 11, p. 174; Turro Ex. 2, Att. B, p. 4.) 155. The May 15, 1995, Testing. On May 15, 1995, without any prior warning to WJUX or Jukebox Radio personnel, Loginow conducted some testing from the roof level of the Mediterranean Towers building. (Bur. Ex. 18, p. 333; Bur. Ex. 4, p. 84; Bur. Ex. 16, p. 255; Tr. 353.) This was the first time that Loginow visited and tested the Fort Lee translator. He did not, at this time, view or inspect any of the translator's facilities. (Tr. 363.) Loginow characterized the audio quality he heard on the Fort Lee translator on that day as "very high, with no detectable splatter from WBAI." (Bur. Ex. 4, p. 84; Bur. Ex. 16, p. 255.) 156. Using a portable signal generator (Tr. 349) set at the frequencies of WJUX (99.7 MHz), the Pomona translator (94.3 MHz), and WMG-499 (951 MHz), Loginow was attempting to determine whether the Fort Lee translator was rebroadcasting the signal of WJUX, the Pomona translator, or WMG-499. (Bur. Ex. 18, p. 333.) Specifically, Loginow wanted to see if the receive equipment of the Fort Lee translator would pick up the signal he was generating, which was an unmodulated, or "dead," carrier, and then retransmit it on its frequency of 103.1 MHz. (Tr. 355, 358.) The tests involved generating a "low level signal" on a frequency that "would override another weaker or more distant signal on the same frequency." (Bur. Ex. 18, p. 333.) Loginow testified that the maximum output of the signal generator was less than half a watt. A three-foot whip antenna which was capable of being hand held was attached to the signal generator. (Tr. 352, 358.) 157. Loginow first generated a signal on 99.7 MHz, determined that the generated signal "was not overriding any other signal on that frequency," and concluded that there was no signal from WJUX being rebroadcast by the Fort Lee translator. Loginow next generated a signal on 94.3 MHz, determined that the generated signal "was not overriding any other signal on that frequency," and concluded that there was no signal from the Pomona translator being rebroadcast by the Fort Lee translator. (Bur. Ex. 18, pp. 333-34.) 158. According to Loginow, if his dead carrier had been "getting into" the receiver of the Fort Lee translator, it would have "disrupted," or gradually silenced, the WJUX or Pomona translator off-air signals if the Fort Lee translator had been receiving those signals. (Bur. Ex. 18, p. 334; Tr. 355-59.) To determine this, Loginow monitored the Fort Lee translator by listening to its output through headphones connected to a "standard Sony radio." Had the Fort Lee translator been receiving the signal of WJUX or the Pomona translator, Loginow stated, the signal he was hearing on the headphones would have gradually become silent. He testified: "[I]t would sound like the station [was] getting weaker and weaker, fading out[,]" and there would be a hissing noise "until eventually . . . you would get just silence." (Tr. 355-57.) The fact that neither the signal of WJUX nor the Pomona translator was disrupted in this manner indicated to Loginow that the Fort Lee translator was not receiving those off-air signals. (Bur. Ex. 18, p. 334.) 159. Loginow then generated a signal on 951 MHz and determined that the generated signal "was overriding another signal on that frequency." (Bur. Ex. 18, p. 334; Tr. 376.) Loginow stated that he interrupted or blanketed this signal twice for a maximum of five seconds each. Approximately five seconds intervened between the two interruptions. He also stated that, at the beginning part of the five seconds, the signal being emitted from the signal generator would not have reached sufficient strength to overwhelm the microwave's signal. (Tr. 379, 564, 568-69.) Loginow concluded from this that the Fort Lee translator "was receiving and rebroadcasting its radio frequency signal from . . . WMG-499." (Bur. Ex. 18, p. 334.) 160. Loginow performed these tests from the inside of the stair enclosure at the roof level of the Mediterranean Towers, which was at least 25 stories above the ground. (Tr. 353-54.) He stated that, ideally, he would have wanted to perform the testing out on the roof (Tr. 360), but found that the door leading to that area was locked (Tr. 354). The stair enclosure was surrounded by cinder block walls and had a metal staircase below it. (Tr. 359.) Loginow stated that these surroundings would have "attenuated [or lessened] the signal somewhat toward the receiving end." (Tr. 359.) He also stated that he rotated the antenna of the signal generator around in various positions in the stairwell to get "maximum indications." (Tr. 358.) 161. Loginow testified that "nearly all translator installations have the[ir] receive antenna[s] and the[ir] transmitting antenna[s] located on the roof . . . or on a tower." (Tr 361.) In this instance, Loginow understood that the receive antennas for WJUX, for the Pomona translator, and for WMG-499 were all located on the roof (Tr. 365) because the roof was the only "technically logical place" for such antennas (Tr. 364). He stated that "[a]ny other place would [have been] severely deficient." (Id.) Loginow therefore went up to the roof level to do the testing; he wanted to be near those antennas. (Tr. 365-66.) However, Loginow could not actually observe what was on the roof because he was in a locked stair enclosure and did not have with him an accurate map of the antenna locations. (Tr. 366.) 162. Loginow testified that the distance between the signal generator and the antenna he wanted to affect was important to the testing process, "[d]epending on the sensitivity of the receiver." (Tr. 360.) He stated that he went up to the roof level to do his testing because the closer he could get to the antennas being tested the more accurate the tests would be. (Tr. 360.) Loginow stated that, given the low level signal generated by a signal generator, distance would, at some point, make the signal unable to affect a receiver. (Tr. 360-61.) Loginow also testified that obstructions between the signal generator and the system being tested could affect the validity of the tests. He agreed that the signal generator would not work as well from the inside of a big safe as it would work out in the open. (Tr. 361.) 163. Loginow testified that he had never performed a complete inspection of all of the floors and rooms of the Mediterranean Towers. (Tr. 379.) He also stated that he had no personal knowledge as to what materials, equipment, or other things may have been in the building that theoretically could have interrupted or shielded from an antenna situated in the basement the signals being transmitted by the signal generator. (Tr. 380.) 164. Loginow testified that an antenna in the basement would not have been able to receive the Pomona translator signal to a degree sufficient to rebroadcast it. (Tr. 369.) However, Loginow had never tested the sensitivity of any antenna which may have been located in the basement of the Mediterranean Towers, and he never tested whether a signal generator on the roof level of that building would have been able to overwhelm an antenna located in the basement. (Tr. 370.) 165. It was Loginow's opinion that the less than half-watt signal he generated from the inside of the stair enclosure at the roof level of the Mediterranean Towers would have been able to overwhelm a signal being received by an antenna located in the basement of the building. He based his opinion on a phenomenon he termed "ducting[, which is t]he capability to transmit through a building." (Tr. 369.) Loginow explained ducting as "where a radio signal enters into a cavity and it travels . . . very efficiently through the cavity to the other end where the cavity opens up." (Tr. 574.) As examples, Loginow cited air conditioning ducts and elevator shafts. (Tr. 574-75.) However, Loginow testified that he did not examine the elevator shafts or air conditioning system at the Mediterranean Towers, and he believed that the stairwell from which the tests were conducted was "probably too irregular" to exhibit ducting. (Tr. 575.) Loginow also testified that, "[a]ccording to [his] experience, if a receiving system was sensitive enough to be located in the basement, below ground level, and receiving a one watt signal [from the Pomona translator] 22 miles away, it would receive the signal generator [from] 26 floors up." (Tr. 370.) However, as noted earlier, this was never tested by Loginow. (Id.) The Commission's records show that the Pomona translator was authorized to operate with a transmitter power output of 2.5 watts. (License for an FM Broadcast Translator/Booster Station, File No. BLFT-900112TC, dated June 5, 1990, official notice taken.) 166. As discussed above, Turro testified that during the spring of 1995, including on May 15, he used an antenna located in the basement of the Mediterranean Towers to receive the signal of the Pomona translator. (Turro Ex. 1, p. 22.) Turro stated that, when Loginow performed his frequency generator tests on May 15, the Fort Lee translator was in fact receiving its programming off the air from the signal of the Pomona translator through the antenna located in the basement. It was Turro's opinion that the output of the frequency generator used by Loginow was "much too weak to reach that Pomona receive antenna through more than 23 stories of concrete, steal [sic], pipes, ducts, etc. of the Mediterranean Towers." (Id. at 22-23.) Turro further opined that Loginow "must have assumed that he was near the active receive antenna for the Pomona translator, but because he was very far from it, and because his frequency generator was greatly shielded from that antenna, it did not pick up the dead carrier he generated with his portable unit." (Id. at 23.) 167. Hurst testified that during a visit he and Hidle made to the basement of the Mediterranean Towers on October 17, 1997 (Tr. 1892, 1924), they attempted to interfere with the reception of the Pomona translator with the receive antenna located on the roof of the building. Hurst stated that from the basement location where the Pomona translator receive antenna had been situated, a signal generator was used to generate a 5 watt signal on the frequency of the Pomona translator. According to Hurst, this 5 watt signal was not able to cause interference to the receipt of the Pomona translator with its antenna located on the roof of the building. In Hurst's opinion, someone located on or near the roof of that building would not have been able to cause interference with the reception of the Pomona translator with a 0.5 watt signal when the receiving antenna was located in the basement. (Turro Ex. 35, pp. 3-4.) 168. Hurst testified that he observed in the basement location an abandoned antenna, "covered in dust," which Turro told him was the antenna that had been used for reception of the Pomona translator. (Tr. 1894, 1898-99.) Hurst also testified to the signal from the Pomona translator which could be received on an inexpensive portable receiver in the basement of the Mediterranean Towers where Turro had located his antenna. Hurst characterized this reception as "unusual [and] possibly phenomenal." (Turro Ex. 35, p. 3, parenthesis omitted.) He further testified that he "personally was surprised to see a location in the basement . . . with such a high receive signal." (Tr. 1897.) Hidle characterized the signal received on a portable FM receiver in the basement as "acceptable audio." (Turro Ex. 7, p. 4.) 169. Turro testified that Loginow's conclusion, that the May 15 testing proved that WMG-499 was providing programming directly to the Fort Lee translator, was incorrect. (Turro Ex. 1, p. 22.) Turro stated in this regard: Apparently, Mr. Loginow was near the Fort Lee translator receive antenna for microwave station WMG-499, which was mounted on the roof [of the Mediterranean Towers]. I believe that when Mr. Loginow transmitted his dead carrier on 951 MHz, the transmit frequency for WMG-499, he interrupted all signals on the path, including the telemetry. As I stated earlier, my failsafe [sic] was if telemetry was interrupted, then the Fort Lee translator was programmed to home immediately to the microwave audio channel to receive emergency messages. Mr. Loginow's dead carrier must have disrupted the telemetry, caused the receiver to home onto the microwave audio channel, and then it transmitted the dead carrier. In other words, Mr. Loginow caused the results he reported by overriding or jamming the telemetry channel on the microwave. (Id. at 23.) 170. Turro further testified: A [by Mr. Turro]: Okay. So if someone were to come along and say, "Hey, listen, I'm going to jam this microwave unit," what's the first thing they are going to strip away? What's the weakest component of this system? It's the data path. It takes a half-lane [of] highway. So if someone comes along and starts jamming this, the first thing they are going to do is strip away the data, and the first thing the translator in Fort Lee is going to do is fall back on its own audio, the microwave. Q [by Mr. C. Naftalin]: And why is the data path, as you say, the weakest part? A: Well, because you've got eight lanes of audio, so it's a little more robust, and you've got a half lane of data, so it's not as robust. So if someone started jamming the thing and started turning the power up real slowly, the first thing it would interrupt would be the data. Q: Meaning because it's a much narrower path? A: Yes, and it's fragile and it's on the edge of the microwave. It's on the last highway way out. (Tr. 1623-24; see also Tr. 1694.) Turro also testified that, when Loginow stopped transmitting a signal on 951 MHz, the data path would have returned. (Tr. 1699, 1721.) 171. Turro testified that he had a clear memory of the May 15, 1995, jamming incident because it was unusual. He was in the Dumont studio at the time, listening to the Fort Lee translator on 103.1 MHz. He distinctly heard the programming audio "erratically break up" for about three to four seconds and then fall to dead carrier. Turro hurried upstairs to check the remote control unit, intending to switch to the receiver tuned to WJUX. By the time he got there, however, the Fort Lee translator was transmitting the Jukebox Radio programming again. Turro immediately noticed that status light number 6 on the TC-8 unit was lit, indicating that the translator was rebroadcasting the audio path from WMG-499. Turro switched the Fort Lee translator reception back to the Pomona translator, and status light number 5 came back on, indicating reception of the Pomona translator's signal. (Turro Ex. 1, pp. 23-24; Tr. 1639-40, 1696-99.) Turro testified that the May 15, 1995, incident was the first and only time since October 1994 that the audio on WMG-499 was broadcast over the air on the Fort Lee translator in a non-emergency situation. (Tr. 1632-33, 1639, 1699; Turro Ex. 1, pp. 12, 27; see also Tr. 1637-38.) Turro also stated that the translator would have indefinitely broadcast the audio path from WMG-499 had he not been there to switch the reception back to the Pomona translator. He added, however: "Fortunately, that never happened." (Tr. 1699-1700.) 172. Turro testified that he was angry about the May 15, 1995, incident because he assumed that someone from a competing radio station had been interfering with his operations and ended up jamming the microwave path. Turro called Hurst and described the jamming incident. Turro stated that Hurst told him that it was unlikely that the competing station had caused the jamming, and that it probably had been the FCC conducting tests. (Turro Ex. 1, p. 24; Tr. 1640-41.) 173. Hurst confirmed that, on May 16, 1995, Turro had called him and explained that someone had "jammed" the microwave the prior afternoon "in a manner that caused the control circuit to fault to the fail-safe program feed to the translator from the microwave[']s primary audio channel." (Turro Ex. 2, pp. 5-6.) Hurst also confirmed that it was his opinion, expressed to Turro, that it was FCC personnel who had caused the jamming, failing to understand how the equipment was configured. (Id. at 6.) 174. Loginow generally believed that Turro's explanation of the effects of the May 15, 1995, testing was without merit, inconsistent with good engineering practice, highly problematic, and not logical. (Tr. 559.) By good engineering practice, Loginow stated that he meant his own experience as an FCC field engineer, and that he was not referring to published manuals or the FCC's rules. (Tr. 559-60.) Loginow also testified that the way Turro described the use of WMG-499 was "very close to being [technically] impossible." (Tr. 560.) However, Loginow admitted that each element of the fail-safe arrangement described by Turro was, in fact, technically possible. Specifically, Loginow testified that an individual microwave path could be subdivided into more than one channel, an audio and a data channel (Tr. 560-61, 562); that the receiver and the remote control unit at the Fort Lee translator could be programmable (Tr. 561-62); and that those units could be programmed to home in on the microwave audio path in the event that the data path was interrupted (although, according to Loginow, this would have been illogical and "terribly poor practice") (Tr. 562-63). 175. Hurst's July 6, 1995, Observation. On June 21, 1995, the Chief of the Bureau's Complaints and Investigations Branch sent a letter of inquiry to Turro. (Bur. Ex. 7.) Turro was asked, inter alia, whether programming originating from the Dumont studio had been transmitted by WMG-499 to the Fort Lee translator, and whether Turro had implemented the use of telephone lines to deliver programming to the Fort Lee translator. (Id. at 111.) Turro responded by letter dated July 27, 1995 (filed on July 30, 1995), and signed by Turro. (Bur. Ex. 8.) Appended to Turro's letter was a July 25, 1995, engineering statement signed by Hurst. (Id. at 126.) As part of his preparation of this statement, Hurst went to New Jersey and New York on July 6, 1995, and viewed all of the facilities in question. (Tr. 1869, 1884-85.) 176. In his statement, Hurst asserted that WJUX provided a reliable, high fidelity, over-the-air signal to both the Fort Lee and Pomona translator locations (Bur. Ex. 8, p. 129), that such signal was adequate to supply the good quality signal rebroadcast over the Fort Lee translator (id. at 128), and that the Fort Lee translator had the ability to receive "directly through space" either the WJUX or Pomona translator broadcast signal, depending on signal quality (id., emphasis omitted). In this regard, Hurst reported that, on July 6, 1995, he listened to the over-the-air reception of the WJUX signal at both the Fort Lee and Pomona translator locations, and could "attest to the good quality of the WJUX(FM) signal" at both locations. (Id. at 128.) Hurst noted that WJUX was a monophonic broadcast facility, and remarked that "[i]t is well documented that a monophonic broadcast system will serve a much wider area than a conventional stereo broadcast facility because receiver characteristics allow for much better reception of low level mono signals." (Id. at 129-30, footnote omitted.) Hurst also related that, at the time of his visit, WMG-499 was silent, and that it was his "understanding that no alternate means of program delivery [was] used." (Id. at 128.) 177. In his testimony in this proceeding, Hurst stated that on July 6, 1995, while he, Turro, and another individual were driving from the Pomona translator to Monticello, the WJUX programming to which they were listening on the car radio ceased. The carrier was still on the air, however, and could be detected on the car radio. They went to the WJUX transmitter site and found that no audio was being received at that location. Turro spoke with someone, and it was determined that the telephone line carrying programming from the Dumont studio had been cut or was no longer able to provide programming to the WJUX transmitter. For the remainder of the day, at least until Hurst arrived at Newark Airport at about 6:30 p.m., there was no audio on WJUX or the Pomona or Fort Lee translators. (Tr. 1869-70; see also Tr. 1587-94.) 178. The July 31, 1995, Observation. By letter dated June 6, 1995, the Chief of the Commission's Microwave Branch directed Turro to show cause why his license for WMG-499 should not be revoked or cancelled (Bur. Ex. 8, pp. 120-21; Turro Ex. 1, p. 24), and Turro deactivated that facility in early July 1995 (Tr. 1616). On July 31, 1995, at the request of the Wireless Telecommunications Bureau, Loginow returned to Dumont with a multi-band communications receiver, monitored 951 MHz (the frequency of WMG-499), and determined that it was not in operation. (Bur. Ex. 16, p. 259; Bur. Ex. 18, p. 334; Tr. 380-81.) Loginow then returned to his office and reduced his observations to an e-mail, dated August 1, 1995, which was directed to both Wireless Telecommunications Bureau and Mass Media Bureau personnel. (Bur. Ex. 18, p. 334; Bur. Ex. 16, p. 259.) 179. In his e-mail, Loginow stated that the audio quality of the Fort Lee translator indicated that the input signal was not being received off the air from the Pomona translator but from some other "alternate means, presumably via telephone lines." (Bur. Ex. 16, p. 259.) Loginow's presumption was based upon the high audio quality he heard that day in comparison to the lesser audio quality he remembered hearing in April 1995. (Tr. 381-83.) However, Loginow performed no testing on July 31, 1995 (Tr. 384), did not inspect or observe the Fort Lee or Pomona translators on that date (Tr. 381), and did not look for some other mechanism of program delivery (Tr. 382). Loginow also thought that the high audio quality he observed on July 31, 1995, was consistent with the audio quality he observed on May 15, 1995. (Tr. 383.) 180. Loginow admitted that in April 1995 he observed that the power of the WJUX transmitter had been reduced as a result of a lightning strike. (Tr. 385-86; Bur. Ex. 4, p. 84; Bur. Ex. 16, p. 255 see also Turro Ex. 1, p. 28.) He also admitted that a signal being received by the Fort Lee translator would be stronger, and the audio quality would be better, if it was being transmitted at full power by the WJUX transmitter than it would be if that transmitter was operating at reduced power. (Tr. 386; see also Tr. 555-57.) Loginow further admitted that the fact that he heard a better signal on May 15 and July 31, 1995, might have been attributable to the fact that something had been fixed and the WJUX transmitter was operating at full power. (Tr. 386-87.) Hurst, too, testified that a reduction in the power of the Monticello transmitter could have caused some degradation of the audio quality heard from the Fort Lee translator. (Tr. 1861.) 181. The August 2, 1995, Testing and Inspection. On August 2, 1995, Loginow called Turro and informed him that he wanted to inspect the Fort Lee and Pomona translators. (Bur. Ex. 18, p. 334.) Loginow had given no advance notice to Turro of this inspection. Loginow met Turro at the Fort Lee translator shortly after calling him. (Tr. 387.) Turro cooperated fully during this inspection and Loginow inspected as he saw fit. (Tr. 387.) 182. Loginow's inspection included a visit to the roof of the Mediterranean Towers, where he observed many antennas. (Tr. 390; Turro Ex. 1, p. 25.) Turro testified that he explained to Loginow that the roof- mounted antennas had been vandalized repeatedly and that he "had used other receive antennas located elsewhere in the building." Turro stated that he offered to show Loginow those antennas but Loginow told him that he was only interested in seeing the antennas in use that day. (Turro Ex. 1, p. 25; Tr. 1972-73, 1974-75, 1976-77.) Turro did not specifically refer to any receive equipment for the Pomona translator which was located in the basement. (Tr. 503, 1972.) 183. Turro had a spare Sony car radio with a battery and headphones, and he took Loginow to the hot spot on the roof. Turro held the car antenna and, according to Turro, Loginow heard WJUX "loud and clear without any type of filtering devices at all." (Tr. 1760-61, 1976-77; see also Tr. 390-91.) Turro told Loginow: "This is how I picked it [WJUX] up from October till [sic] January . . . I can't explain it, but here it is." (Tr. 1761, internal quotation marks omitted; Tr. 1976-77.) 184. The receivers and electronics for the Fort Lee transmitter were located two floors below the roof. (Tr. 391.) Loginow inspected the Fort Lee translator equipment and observed a high quality Sony car radio tuned to the Pomona translator's frequency. The audio of this car radio was being fed into the transmitter. (Bur. Ex. 18, pp. 334-35.) He also observed that filters were in place but did not know when they were installed. (Bur. Ex. 16, p. 260; Tr. 400.) This was the first and only time that Loginow got a good look at the Fort Lee translator transmitter, receivers, electronics, and power source. (Tr. 389, 399-400.) 185. While in the equipment room, Turro demonstrated that the Fort Lee translator was receiving the signal of the Pomona translator off the air. (Bur. Ex. 16, p. 260.) Turro did this by turning the volume control down on the receiver that was receiving the Pomona translator. Loginow was listening to the Fort Lee translator through headphones connected to a Sony Walkman. As Turro reduced the volume, Loginow observed that the programming to which he was listening simultaneously dropped out, or became totally silent. (Tr. 392-94.) During this inspection, Loginow observed no means of program delivery to the Fort Lee translator other than reception off the air. (Tr. 389, 390.) Loginow stated that the Fort Lee translator passed the test on August 2, 1995. (Tr. 389-90, 392.) 186. After concluding his inspection of the Fort Lee translator, Loginow and Turro drove to the Pomona translator in Turro's car. (Bur. Ex. 18, p. 335; Bur. Ex. 16, p. 260; Tr. 394-95.) Loginow inspected the Pomona translator to the extent that he saw fit, and Turro cooperated fully with Loginow's inspection. (Tr. 395.) This was the only time that Loginow had a chance to go over the electronics and facilities of the Pomona translator. (Tr. 399-400.) 187. Loginow saw a Sony car radio tuned to the frequency of WJUX at the Pomona translator. (Bur. Ex. 18, p. 335; Tr. 1761-62.) Loginow also observed the use of high quality filters at that translator but did not know when they were installed. (Bur. Ex. 18, p. 335; Bur. Ex. 16, p. 260; Tr. 400.) Loginow tested the Pomona translator in a manner similar to his testing of the Fort Lee translator. Specifically, he had Turro turn down the volume of the receiver that was receiving WJUX. Loginow was listening to the Pomona translator through headphones connected to his Walkman. As Turro reduced the volume, Loginow heard the volume of the programming to which he was listening go down. As Turro raised the volume, Loginow heard the volume on his Walkman go back up. (Tr. 395-96.) During this inspection, Loginow observed no means of program delivery to the Pomona translator other than off-the-air reception. (Tr. 395.) Loginow stated that the Pomona translator passed the test on August 2, 1995. (Tr. 397.) 188. Loginow reported the results of his August 2, 1995, inspection to personnel of the Wireless Telecommunications Bureau and Mass Media Bureau in an e-mail dated August 4, 1995. (Bur. Ex. 18, p. 335; Bur. Ex. 16, p. 260.) Loginow characterized the audio quality of the Fort Lee translator as "very high [and] particularly free of sideband splatter from adjacent FM stations." (Bur. Ex. 16, p. 260; Tr. 388.) Loginow further stated that, while at the Fort Lee translator, Turro demonstrated the ability to receive "moderately good audio" directly from WJUX. (Bur. Ex. 16, p. 260; Tr. 390-91.) Loginow remarked that "[i]t appears that Turro is now able to provide a consistent high quality audio signal off air from the Pomona NY translator at the Fort Lee NJ location." (Bur. Ex. 16, p. 260.) 189. The June 4, 1997, Testing. On June 4, 1997, subsequent to the designation of this case for hearing, Loginow monitored and tested the Fort Lee and Pomona translators at the request of Mass Media Bureau personnel. (Bur. Ex. 18, p. 335; Tr. 397-98.) On this occasion, unlike the tests conducted on May 15, 1995, Loginow actually went out on the roof of the Mediterranean Towers while monitoring and testing the Fort Lee translator. The monitoring and testing of the Pomona translator was done from the street adjacent to the property where the equipment was located. Loginow did not physically inspect either translator facility at this time. (Bur. Ex. 18, p. 335; Tr. 398-99.) 190. Using a signal generator set to the frequency of the translator being tested, and monitoring the output, Loginow determined that the Pomona translator was receiving the signal of WJUX, and the Fort Lee translator was receiving the signal of the Pomona translator. (Bur. Ex. 18, p. 335; Tr. 399.) The signal generator and antenna used by Loginow on June 4, 1997, were similar to the ones he had used for the May 15, 1995, testing. (Tr. 398.) The Fort Lee translator passed the test on June 4, 1997. (Tr. 399.) Loginow telephonically reported the results of this testing to Mass Media Bureau personnel on either June 4 or 5, 1997. (Bur. Ex. 18, pp. 335-36; Tr. 399.) (3) Rejected Testimony 191. The Testimony of Luna and Gaghan. Relying on the testimony of Vincent D. Luna and William Gaghan, former Jukebox Radio employees who were working for Universal at the time of their appearance (Bur. Ex. 14, p. 229; Bur. Ex. 15, p. 240), the Bureau and Universal request that findings of fact be made to the effect that the Fort Lee translator rebroadcast Jukebox Radio programming received directly from WMG- 499 "most of the time" or "routinely." (Bur. PFCs at para. 34; Universal PFCs at para. 49; see also Bur. PFCs at para. 122.) Also based upon the testimony of these two witnesses, the Bureau further requests that findings of fact be made regarding an incident which allegedly occurred during the course of Loginow's April 1995 inspection. (Bur. PFCs at paras. 105-06.) The requested findings will not be made. Put simply, the testimony of Luna and Gaghan was not credible. Cross-examination of Luna and Gaghan established major contradictions, inconsistencies, inaccuracies, and misunderstandings throughout their testimony. In addition, the testimony of Luna and Gaghan was squarely contradicted on all significant points by the credible testimony of other witnesses. Further, neither Luna nor Gaghan had engineering training or experience, personal knowledge of the precise configuration of the equipment at the Dumont studio, WJUX, or the Fort Lee translator, or detailed personal knowledge of the intricacies of the operation of the TC-8 Remote Control Systems located at those sites. 192. Luna and Gaghan claimed that the Fort Lee translator "routinely" or "usually" rebroadcast the programming received directly from WMG-499. (Bur. Ex. 14, pp. 229-30, 232, 238; Bur. Ex. 15, pp. 240, 248.) They also alleged that the Fort Lee translator received programming for rebroadcast through telephone lines. (Bur. Ex. 14, pp. 230-32, 238; Bur. Ex. 15, pp. 240-41, 244, 248.) Their assertions will not be credited inasmuch as they were grounded on erroneous assumptions. First, Luna and Gaghan relied upon their observations of the status lights on a TC-8 unit and/or the strobe light at the Dumont studio. (Bur. Ex. 14, pp. 230-32, 239; Bur. Ex. 15, pp. 240-41, 248.) However, the record establishes that neither Luna nor Gaghan had any personal knowledge of, and largely misunderstood, the way in which the TC-8 Remote Control System, the status lights, and the strobe light were configured and actually operated. Second, the variation in audio quality to which they referred (Bur. Ex. 14, pp. 230-32; Bur. Ex. 15, p. 241) provides no definitive support for their claims. Suffice it to say, there was a plausible and rational alternative explanation for the variations. (Turro Ex. 1, p. 9; Tr. 1739-40.) Third, their belief that WJUX was completely off the air because some listeners in Sullivan County reported they could not hear the station (Bur. Ex. 14, p. 232; Bur. Ex. 15, pp. 242- 43, 248-49), was incorrect. As explained by Turro (Turro Ex. 1, pp. 21, 28-29), and confirmed by Hurst (Turro Ex. 2, pp. 4-5), the Pomona translator could receive and rebroadcast a signal from WJUX with the WJUX transmitter operating at greatly reduced power. Consequently, it was possible for the Pomona translator to receive WJUX, and for the Fort Lee translator to receive and rebroadcast the Pomona translator, even though the WJUX off-air signal was too weak to have been received at some locations in Sullivan County. (Turro Ex. 1, pp. 21, 28-29.) 193. Turning to the incident in question, Luna and Gaghan contended that Turro ordered that they take certain actions in order to deceive Loginow into thinking that the WJUX transmitter could be shut down by remote control from the Dumont studio. (Bur. Ex. 14, p. 238; Bur. Ex. 15, pp. 243, 249.) The record reflects that no such deception could have occurred as they described it, even assuming, arguendo, that the incident occurred. Contrary to the claims of Luna and Gaghan (Bur. Ex. 14, p. 234; Bur. Ex. 15, p. 244), the actions allegedly taken at Turro's direction, i.e., turning down (or off) the WJUX audio at the Dumont studio (Bur. Ex. 14, pp. 234, 238-39; Bur. Ex. 15, pp. 244, 249), would not have made it appear that the WJUX transmitter had been shut down. Specifically, had the audio been turned down (or off), Loginow would have heard "dead carrier." (Turro Ex. 1, pp. 15, 17; Tr. 1745-47.) Loginow testified, however, that he heard "white noise," and that this was consistent with the WJUX transmitter actually being turned off. (Bur. Ex. 18, p. 332; Tr. 344.) Given his experience, it is reasonable to believe that Loginow would have seen through such a deception. Similarly, having been the chief engineer or operator of radio stations for more than 20 years, Turro would have known that Loginow could not have been fooled by these alleged actions. (Turro Ex. 1, p. 15.) Moreover, Loginow testified that he did not even inspect or test the remote control equipment for WJUX which was located in the Dumont studio. (Bur. Ex. 18, p. 333; Tr. 347-48.) Therefore, whatever it was that Luna and Gaghan may have thought they were doing, they were not participating in a deception of Loginow at Turro's direction. 194. The Testimony of La Follette. Based upon the testimony of Wilson A. La Follette, one of the CDE engineers who prepared the February 10, 1995, engineering report attached to Universal's complaint (Bur. Ex. 2, p. 51), Universal requests that findings of fact be made that the signal of WMG-499 was being directly input to the Fort Lee translator, and that the measured off-air signal of WJUX was unsuitable for rebroadcast due to low signal level and severe first adjacent channel interference. (Universal PFCs at para. 19.) The requested findings will not be made. First, La Follette's opinion concerning the use being made of WMG-499 was based on nothing more than groundless assumptions. Specifically, La Follette testified that he assumed that the Fort Lee translator must have been broadcasting the programming being delivered by WMG-499 because WMG-499 had programming on it and he "could not ascertain any other purpose for carrying that programming other than to directly feed that translator station." (Tr. 698, 706-07.) However, La Follette did not test to determine whether his assumption was correct, and he acknowledged that the audio feed from WMG- 499 could have been going into a dummy load. (Tr. 698-99.) 195. Next, no reliance may be placed on La Follette's measurements of, and opinion relating to, the off-air signal of WJUX. Such measurements were not taken from the roof of the Mediterranean Towers, the actual point of reception of WJUX by the Fort Lee translator. The record establishes that the location of any such measurements was absolutely critical. For example, Hurst testified that "good quality" reception of WJUX existed without the use of filtering devices from the area of the hot spot whereas, from any other location on the roof of the Mediterranean Towers, filtering devices would have been necessary. (Turro Ex. 2, p. 2; Tr. 1877, 1887-89.) La Follette's measurements were taken approximately 0.6 kilometers (or 0.37 miles) southeast of the Mediterranean Towers. (Bur. Ex. 6, p. 103.) It was not shown that measurements taken from that point would have been comparable to those taken on the roof of the Mediterranean Towers, particularly given the existence of the hot spot. In addition, La Follette did not take into consideration or test the adjacent channel rejection characteristics of the Sony Model XR2500 receiver used by Turro to receive the WJUX off-air signal, or the Phase Canceller utilized by Turro at the relevant time. (Tr. 660-61, 665-66.) Such tests were performed by Hidle, and the results thereof completely rebutted La Follette's conclusions. (Turro Ex. 7, pp. 6-7; Turro Ex. 36.) 196. The Testimony of Cohen. Relying on the testimony of Jules Cohen, P.E., a consulting electrical engineer retained by Universal (Bur. Ex. 5), Universal requests that findings of fact be made that the WJUX signal received off the air at the Fort Lee translator was of marginal quality; that it was not suitable for rebroadcast; that it was subject to diurnal and seasonal variability, adjacent channel interference, and fading; that no combination of sophisticated filtering and antenna discrimination could completely eliminate the first adjacent channel interference; that it was not credible that the WJUX signal at the Fort Lee translator consistently could be of sufficient strength to permit reception of a signal suitable for rebroadcast; that the probability of finding a hot spot such as that described in this case was extremely low and highly unlikely absent some special conditions not present here; and that if such a hot spot was found it would be temporary and highly variable. (Universal PFCs at paras. 20-21, 24.) The requested findings will not be made. Cohen's testimony was based almost entirely on a "theoretical study" of the strength of the WJUX signal at the Fort Lee translator. (Tr. 590.) In addition, significant assumptions upon which his study was based were shown on cross-examination to have been invalid. Further, Cohen never visited WJUX or the Fort Lee translator, and never examined any of the equipment in use at those locations. (Tr. 594, 604.) Therefore, Cohen had no personal knowledge of the phenomena about which he was testifying. On the other hand, the testimony of Turro, Hurst, and Hidle was based upon personal observations made over time, as well as actual testing and measurements. Under these circumstances, the testimony of Turro, Hurst, and Hidle has been credited over that of Cohen. E. Issues 3 and 7: Misrepresentation/Lack of Candor Issues 197. Many of the facts which appear to have formed the basis for the specification of the misrepresentation/lack of candor issues have been presented above and need not be repeated at this juncture. The following are additional findings of fact. 198. Letter of Inquiry to Turro. On June 21, 1995, the Chief of the Bureau's Complaints and Investigations Branch sent a letter of inquiry to Turro ("LOI to Turro"). (Bur. Ex. 7.) Turro was asked, inter alia: whether he had "provided any programming" for the Fort Lee and/or Pomona translators from the Dumont studio (Question 3); whether programming "originated" at the Dumont studio had been transmitted to the Fort Lee and/or Pomona translators by WMG-499 (Question 4); whether Turro "implemented the use of telephone lines . . . to deliver programming" to the Fort Lee translator, the Pomona translator, or WJUX (Question 5); and whether Turro had entered into "a management agreement, a time brokerage agreement, or any other agreement concerning ownership, programming, staffing, sales, or operation" of WJUX (Question 6). Turro was also asked to "describe in detail any involvement" he or his employees had "in the following aspects of the construction or operation" of WJUX: "paid the cost of constructing or outfitting the studio or transmitting facilities" of WJUX (Question 7a); "guaranteed repayment of funds borrowed by [MMBI] for the purchase of equipment or construction of the Station" (Question 7b); "paid WJUX's operating expenses" (Question 7e); "paid rent for WJUX's studio(s)" (Question 7g); "paid rent for WJUX's antenna tower site or usage" (Question 7h); and "controlled what is or is not broadcast on WJUX" (Question 7j). (Id. at 111-12.) 199. Turro responded by letter dated July 27, 1995 (filed on July 30, 1995), and signed by Turro. (Bur. Ex. 8.) Therein, he stated that programming which he produced at the Dumont studio was provided to and broadcast by WJUX, and rebroadcast by the Pomona and Fort Lee translators. (Id. at 114.) Specifically, Turro explained that the programming "consisted of music, news, weather, sports, public affairs programming, commercials, public service announcements, etc.," and that it was delivered "twenty-four hours per day, seven days per week," by means of telephone line to WJUX (id. at 116); that it was broadcast by WJUX "pursuant to a network affiliation agreement" (a copy of which was attached to the response) (id. at 114, 137-41); that the Network Affiliation Agreement met the requirements set forth in the Bureau Letter (id. at 118); that the WJUX broadcasts were currently received off the air by an antenna located at the Pomona translator facility (id. at 114); that the Pomona translator rebroadcast that programming (id.); that the Pomona translator rebroadcasts were, in turn, received off the air by an antenna located at the Fort Lee translator facility (id.); and that the Fort Lee translator rebroadcast that programming (id.). He also stated that none of the programming created at the Dumont studio was delivered by telephone line to either the Fort Lee or Pomona translator. (Id. at 116.) Turro further stated that prior to approximately January 10, 1995, the WJUX signal was received directly off the air at the Fort Lee translator rather than through the Pomona translator. (Id. at 115 n.1.) 200. In addition, Turro stated that he was aware of the complaint lodged against him by Universal, and he disputed the allegation of Universal's engineers that the signal of WJUX as received at a location near the Fort Lee translator was inadequate to provide the high quality signal which he rebroadcast. In this connection, Turro stated that "an acceptable signal generaly [sic] can be received off-air at the Ft. Lee translator site. However, since a better signal can generally be received off-air at the Pomona translator, that is where the WJUX(FM) signal is received for rebroadcast." Turro attached the engineering statement of Hurst in support of his assertions. (Bur. Ex. 8, pp. 115, 126-31.) 201. Turro stated that WMG-499 "was used to provide telemetry to [the Fort Lee translator] until recently," and that he took WMG-499 off the air pursuant to a letter from the Commission. (Bur. Ex. 8, pp. 114-15.) Turro admitted that WJUX programming had been transmitted by WMG-499, and explained that he "was using the WJUX(FM) signal to modulate the WMG-499 carrier[ ] only [and that he] was not retransmitting the WMG-499 signal." (Id. at 115, 116.) He further stated that: The WMG-499 signal was not being used as a source of WJUX(FM) programming. It was used to insert 30-second messages pursuant to Section 74.1231(g) of the Rules and for remote control purposes to switch from the Ft. Lee main transmit antenna to its authorized auxiliary antenna. It was also available to relay emergency warnings to the translator for broadcast to the . . . residents of Bergen County who currently have no local FM service. Removing WMG-499 from service had no impact on the ability of the translators [to] continue to rebroadcast the signal of WJUX(FM), picked up off-air, as before. (Id. at 115-16.) Turro stated that the 30-second messages and emergency announcements were prepared for broadcast at the Dumont studio. (Id. at 116.) 202. Turro also attached to his response, and quoted from, a June 13, 1995, letter to the Commission from William J. Getz, one of his consulting engineers. In Getz's letter, which was written when WMG-499 was still on the air, it was noted that WMG-499 was "in use 24 hours per day . . . [but] only the 30-second messages and any emergency transmissions are broadcast over" the Fort Lee translator. (Bur. Ex. 8, pp. 115, 123.) Getz explained that WMG-499 functioned in this manner because the microwave equipment was not manufactured to operate on an intermittent basis, switching the equipment on and off would lead to equipment failure, and "the link must be operational 24 hours a day" in an effort to make the 951 MHz transmission "readily identifiable." (Id.) Getz further stated that WMG-499 was also used for remote control purposes, and that this was "critical" to the operation of the Fort Lee translator "because of frequent operational problems with the main transmit facility." (Id. at 123 n.1.) 203. Turro denied having any present or future ownership interest in MMBI (Bur. Ex. 8, p. 116), denied paying for the cost of constructing or outfitting the studio or transmitting facilities of WJUX, denied guaranteeing repayment of funds borrowed by MMBI for the purchase of equipment or construction of the station, denied paying WJUX's operating expenses "with the exception of its telephone bills," denied paying rent for WJUX's studios, antenna tower site "or usage," and denied controlling what was or was not broadcast on WJUX (id. at 117). Turro stated, however, that he did assist Weis, without charge, in installing some of his equipment at WJUX, including the transmitter; that he provided $40,000 to Weis as an "inducement" to enter into the Network Affiliation Agreement; and that he acted, without charge, as the Chief Operator for WJUX until May 1, 1995. (Id.) Turro attached to his response a copy of the Guaranty of Payment. (Id. at 139.) Turro did not recall the circumstances under which WJUX's telephone bills came to him, but stated that "[s]teps are now being made to have the telephone bills sent to [MMBI] for payment." In connection with WJUX's programming, Turro stated that MMBI "has complete discretion in the exercise of its licensee responsibilities, including the right in its sole discretion to delete or preempt network programming and to broadcast other programming which it deems appropriate." (Id. at 117.) 204. Letter of Inquiry to MMBI. On June 21, 1995, the Chief of the Bureau's Complaints and Investigations Branch sent a letter of inquiry to MMBI ("LOI to MMBI"). MMBI was asked, inter alia: whether there had been "a change in ownership or control" of WJUX since MMBI became the "licensee" of the station (Question 1); whether Turro had "ever been the licensee" of WJUX "or otherwise held an ownership interest" in MMBI (Question 2); who provided "any funds used to purchase equipment for and/or construct" WJUX (Question 3); whether anyone "not previously . . . reported to the Commission as having an ownership interest" in MMBI loaned funds to MMBI, or guaranteed the repayment of funds used by MMBI, to purchase equipment or construct WJUX (Question 4); who controlled, had access to, prepared, and kept WJUX's financial records (Questions 5a and b); who paid WJUX's operating expenses (Question 5c); who "interviewed, hired, or fired" WJUX personnel (Question 5g); whether WJUX had a main studio, the address(es) thereof, when it "was established in each location," and whether it had ever been relocated (Questions 7a, b, d, and 8); what functions were performed at the main studio (Question 9a); whether the main studio had "program origination capability (including any linkage from the studio to the transmitter)" (Question 9b); the identity and responsibilities of "personnel assigned to the main studio" (Question 9c); which of those personnel were "present at the main studio during regular business hours" (Question 9d); whether, and during what dates and hours, the main studio had "been open to the public" (Question 10); whether WJUX maintained an "auxiliary studio" (Question 12); whether the station maintained a local or toll-free telephone number for the residents of Monticello (Question 14); whether MMBI had "entered into a management agreement, a time brokerage agreement, or any other agreement concerning ownership, staffing, programming, sales, or operation" of WJUX (Question 15); the "nature" of WJUX's programming (Question 16a); and the identification of the individual(s) who "established and changed" WJUX's programming policies (Question 16b). (Bur. Ex. 10.) 205. MMBI responded by letter dated July 27, 1995 (filed on July 28, 1995), and signed by Weis. (Bur. Ex. 11.) Therein, Weis stated that he had been the sole stockholder of MMBI since the CP for WJUX was acquired, that Turro had never been the licensee or permittee of WJUX, or otherwise held an ownership interest in that station, and that Turro had no right to acquire such interest. Weis stated that he provided all of the funds used to purchase equipment and to construct WJUX, and that he already had on hand much of the necessary equipment. Weis stated that the only money he borrowed to purchase equipment and to construct the station was $15,000, that he borrowed this money from his mother, and that no one guaranteed the repayment of those funds. Weis stated that Turro paid him $40,000 as an "inducement" to enter into the Network Affiliation Agreement, that this was not a loan, that he (Weis) did not have to repay those funds, and that he "applied" those funds toward his obligations to Fishman. (Id. at 161-62.) 206. Weis stated that, apart from his accountant, he was the sole individual who controlled, had access to, prepared, and kept the financial records of WJUX. Weis noted, however, that Blabey and Montana had "access to certain financial materials [i.e., bills from various vendors] which they receive at the station and forward" to him. Weis stated that he paid WJUX's operating expenses with the exception of telephone bills which were sent to and paid by Turro. Weis added: "This was due to an oversight, which is now being corrected." Weis stated that he interviewed, hired, and fired station personnel, and that Blabey had "from time to time interviewed potential employees and made recommendations" to him as to their hiring. (Bur. Ex. 11, p. 162.) 207. Weis stated that, "at all times since WJUX(FM) went on the air," the station had a main studio located within the station's principal community contour. He stated that it was open to the public during normal business hours. He gave its address, noted that it was located at the WVOS main studio, and stated that it had never been relocated. Weis stated that the WJUX public inspection file was maintained at the main studio, that mail was received there and forwarded to him, that the program "Sullivan County People Who Make a Difference" was recorded there, and that a remote control point for the WJUX transmitter was located there. Weis stated that Blabey and Montana had their offices at the main studio and were present there during normal business hours. He described their duties, responsibilities, and "other employment." Weis stated that the WJUX main studio had program origination capability, and referred to an attached engineering statement of Hurst which contained a description of the facilities. Weis noted that "[l]inkage between the main studio and transmitter is via phone line, [and stated that t]he transmitter can be activated and deactivated from the remote control point at the main studio." Weis stated that WJUX had no auxiliary studio. (Bur. Ex. 11, pp. 163-64.) 208. Weis stated that he entered into a Network Affiliation Agreement with BCCBF which was subsequently amended. Copies of the Agreement and Amendment were attached to the response. Weis described the "jukebox radio" format and stated that he was "solely responsible for WJUX(FM)'s programming policies, and for the decision to enter into the Network Affiliation Agreement pursuant to which programming is delivered to WJUX(FM)." (Bur. Ex. 11, pp. 165, 216-20.) 209. Weis stated that: "The WJUX(FM) main studio telephone number is (914) 292[-]0751, which is a toll free number for residents of Monticello. The telephone number was established on or about November 2, 1994." (Bur. Ex. 11, p. 165.) He also stated that "[t]he WJUX(FM) telephone is answered" at the main studio. (Id. at 163.) Attached to the response were copies of the WJUX telephone bills for the period from November 2, 1994, through June 12, 1995. (Id. at 189-213.) 210. In his direct written case, Weis admitted that the above response contained information about WJUX's local telephone service which might have created an "erroneous" understanding. Specifically, Weis stated that, although the local telephone number he provided was in fact the number listed by NYNEX, and the statement that it was a toll free number for local residents was accurate, he failed to disclose that calls to that number had been uniformly forwarded to the Dumont studio. (MMBI Ex. 1, pp. 8-9.) 211. Weis explained that he did not recall that he knew of the call-forwarding arrangement at the time he answered the LOI to MMBI. (MMBI Ex. 1, p. 9.) Weis stated that he never tried to call the WJUX telephone number, so his calls were never forwarded to Dumont. (Tr. 1441.) In addition, all of the telephone bills had been sent by NYNEX to Jukebox Radio, and Weis did not recall how much detailed review he gave those bills before sending copies to the Commission. Weis did not believe, at the time of his response, that his answer was inaccurate. (MMBI Ex. 1, p. 9.) 212. In preparing responses to the Bureau's prehearing discovery requests, Weis concluded that the response in question was inaccurate. He stated that he set out to provide more accurate information. (MMBI Ex. 1, pp. 9-10.) On June 20, 1997, MMBI filed its response to the Mass Media Bureau's First Request for Admissions of Fact and Genuineness of Documents. (Bur. Ex. 24, p. 551.) Bureau requests 28 and 64, and MMBI's responses thereto, were as follows: [Request] 28. [Admit that w]hen WXTM(FM) began broadcast operations, the station maintained a toll-free telephone line at the main studio for residents of Monticello. [Response] 28. Beginning November 2, 1994, WXTM maintained a toll-free telephone number for residents of Monticello. However, MMBI now believes that number was not answered, or answered exclusively, at the WXTM main studio. * * * [Request] 64. [Admit that a]fter the FCC inspection, a dedicated phone line for WJUX(FM) was installed at the station's main studio in Liberty [sic], N.Y. [Response] 64. Deny. Subsequent to the FCC inspection a call forwarding feature was deleted from the WJUX phone line. (Bur. Ex. 23, pp. 470, 474 and Bur. Ex. 24, pp. 555, 557, underlining added.) 213. On June 30, 1997, in a declaration signed by Weis, MMBI amended its responses to Bureau requests 28 and 64 as follows: First, the response to Bureau Request No. 28 stated that MMBI now believes that number [a toll-free telephone number] was not answered, or answered exclusively, at the WXTM [now WJUX] main studio. I have now concluded that it is very likely that the telephone number was not, until July, 1995, answered there, and therefore I delete the phrase "or answered exclusively" from MMBI's response to Bureau Request No. 28. Second, the response to Bureau Request No. 64 needs to be expanded. The expanded response is as follows: Deny. Subsequent to the FCC inspection, it appears that a phone jack for this number was relocated within the building housing the WJUX main studio, a telephone (either a replacement for an existing instrument or a first telephone instrument for the number) was acquired and the practice of forwarding calls placed to the number was ended. (Bur. Ex. 25, p. 562, brackets in original.) III. CONCLUSIONS OF LAW 214. This proceeding was designated for hearing to determine whether Gerard A. Turro's operation of FM translator stations in Fort Lee, New Jersey, and Pomona, New York, violated Sections 74.1231(b) and 74.531(c) of the Commission's Rules relating to FM translator and auxiliary stations (Issue 1); to determine whether there was an unauthorized transfer, abdication, or assumption of control of radio station WJUX(FM), Monticello, New York (Issues 2 and 6); to determine whether Monticello Mountaintop Broadcasting, Inc., the permittee of WJUX, violated the Commission's main studio rule (Issue 5); to determine whether Turro and/or MMBI made misrepresentations to, or lacked candor with, the Commission (Issues 3 and 7); and, ultimately, to determine whether the public interest will be served by a grant of Turro's applications for renewal of the licenses of his translator stations (Issue 4), and whether MMBI possesses the requisite qualifications to be or remain a Commission permittee (Issue 8). The findings of fact establish, and it is concluded, that Turro's operation of the Fort Lee and Pomona translators was in full compliance with Section 74.1231(b) of the Rules; that Turro's operation of WMG-499, beginning in late October 1994, was in violation of Section 74.531(c) of the Rules; that there was no unauthorized transfer, abdication, or assumption of control of WJUX; that MMBI violated one aspect of the main studio rule for a short period of time; that in all other respects MMBI was in full compliance with the main studio rule; and that neither Turro nor MMBI intentionally misrepresented facts to, or lacked candor with, the Commission. Accordingly, it is ultimately concluded that the public interest will be served by a grant of Turro's renewal applications, and that MMBI has the requisite qualifications to be and remain a Commission permittee. A. Issues 2 and 6: Unauthorized Transfer of Control Issues 215. Issue 2 was designated to determine whether Turro engaged in an unauthorized transfer of control or otherwise exercised control over WJUX in violation of Section 310(d) of the Act and Section 73.3540(a) of the Commission's Rules. Issue 6 was designated to determine whether MMBI engaged in an unauthorized transfer of control or otherwise abdicated control over WJUX in violation of the same provisions of the Act and the rules. These issues were specified because the Commission "ha[d] information suggesting that MMBI . . . abdicated control of its station to Turro." (HDO at para. 16.) Specifically, the Commission stated that it appeared that Turro exercised de facto control of WJUX because he directed WJUX programming and advertising time, controlled its technical facilities, and provided the funds used to operate the station. The Commission also stated that it appeared that MMBI was unable to control its programming and equipment. (Id.) For the reasons which follow, Issues 2 and 6 are resolved in favor of Turro and MMBI. 216. Section 310(d) of the Act prohibits the transfer of control of a station permit or license, or any rights thereunder, without prior Commission consent. While there is no exact formula by which control of a broadcast station can be determined, in ascertaining whether or not an unauthorized transfer of control has occurred, the Commission has traditionally looked beyond the legal title to whether a "new" entity or individual has obtained the right to determine the basic operating policies of the station. See WHDH, Inc., 17 FCC 2d 856 (1969), aff'd sub nom. Greater Boston Television Corp. v. FCC, 444 F.2d 841 (D.C. Cir. 1970), cert. denied, 403 U.S. 923 (1971). The Commission's inquiry into the locus of control of a station's operation focuses on three factors: finances, programming, and personnel. Stereo Broadcasters, Inc., 87 FCC 2d 87 (1981), recon. denied, 50 R.R. 2d 1346 (1982). 217. The Commission has consistently held that a licensee's participation in a time brokerage, network affiliation, or local marketing agreement ("LMA") does not, in and of itself, constitute an unauthorized transfer of control or a violation of the Act or of any Commission rule or policy. See, e.g., Siete Grande Television, Inc., 11 FCC Rcd 21154, 21156 (MMB 1996) ("Broadcast Agreement"); WGPR, Inc., 10 FCC Rcd 8140, 8141 (1995) (LMA); Roy R. Russo, Esquire, 5 FCC Rcd 7586 (MMB 1990) (reciprocal time brokerage agreements); Joseph A. Belisle, Esquire, 5 FCC Rcd 7585 (MMB 1990) ("network affiliation agreement"). However, as with any allegation of unauthorized transfer of control, without regard to whether a time brokerage agreement, network affiliation agreement, or LMA existed, the Commission has looked to whether a licensee continued to have ultimate control over the station, including its financing, programming, and personnel. See, e.g., Siete Grande, 11 FCC Rcd at 21156. In this connection, licensees are permitted under Section 310(d) of the Act to delegate day-to-day operations relating to those three areas, so long as they have the right to revoke such delegation and to exercise full responsibility over the operations of the station. Southwest Texas Public Broadcasting Council, 85 FCC 2d 713, 715-16 (1981); The Alabama Educational Television Commission, 33 FCC 2d 495, 508 (1972). In making a determination, the Commission has also examined not only who executed the finance, programming, and personnel responsibilities, but who established the policies governing those areas. WGPR, 10 FCC Rcd at 8142. Each of these matters will be considered below. 218. Finances. The findings of fact establish, and it is concluded, that Weis, not Turro or any entity owned by Turro, was in sole control of the finances of MMBI and WJUX. Thus, Weis negotiated with Fishman for the sale of the CP for what later became WJUX, and Weis negotiated the terms of the payments to Fishman. Weis, on behalf of MMBI, was the sole obligated party on the Secured Note given to Fishman for the purchase of the CP. Although Turro was present at some of the meetings between Weis and Fishman, there was no evidence that Turro was involved in any substantive way in the negotiations relating to the sale of the CP or the terms of payment, and Turro was not financially obligated to Fishman in any manner whatsoever. 219. Weis, on behalf of MMBI, reached an agreement with Turro and entered into the Network Affiliation Agreement. Weis determined the amount of the monthly payments the Network was to make to MMBI on the basis of a business plan he had prepared. The monthly payments were designed by Weis to cover capital costs and operating expenses and produce a profit. In addition, at Weis's behest, Turro signed a Guaranty of Payment wherein he personally guaranteed Network payments to MMBI up to a limit of $400,000. The Network also paid MMBI $40,000 as an inducement for entering into the Network Affiliation Agreement. This, too, was done at the insistence of Weis. 220. Weis, on behalf of MMBI, negotiated with Blabey and entered into an assumption of Fishman's tower lease with MBC and a lease of studio and office space for WJUX. Weis personally guaranteed the tower lease as well as the lease for studio and office space. Weis, on behalf of MMBI, negotiated with Blabey and entered into a consulting agreement whereby Blabey would be the General Manager of WJUX in return for compensation from MMBI. Similarly, Weis entered into an agreement with Montana whereby she would be the Public Affairs Director of the station in return for compensation from MMBI. Weis also negotiated with Blabey and reached an agreement with respect to compensation for sales by Blabey of advertising time on WJUX. Turro was not financially or contractually obligated to Blabey, MBC, or Montana in any manner whatsoever for these leases and agreements. Nor did Turro guarantee any lease payments or the payment of compensation to MMBI personnel. 221. Weis provided all of the equipment (except for Jukebox Radio Network equipment) which was used to build WJUX, and a crew from one of Weis's companies, under Weis's direction, constructed the station's facilities. Weis also paid all of the costs of such construction (except for the Network equipment). While Turro installed the Network audio equipment, performed tests, and may have assisted Weis's crew in some manner, he was not paid by Weis or MMBI for his services. Moreover, even assuming that Turro had been paid, that fact would not manifest a transfer of control of the finances of MMBI to Turro. Choctaw Broadcasting Corporation, 12 FCC Rcd 8534, 8540 (1997) (where an employee of the new entity, who was also the Chief Operator of the licensee, was involved in and paid by the licensee for his services in connection with the construction of the station, no transfer of financial control was found). In addition, the provision and installation of Network equipment by Turro, and his testing of MMBI's equipment, was not indicative of an assumption of financial control by Turro. Id. at 8542 (where the new entity purchased all of the station's equipment and constructed the station, but did not make financial policy or conduct financial operations, no transfer of control occurred); cf. WGPR, 10 FCC Rcd at 8144-45 (equipment and improvements expenditures by the time broker were not indicative of an assumption of financial control). 222. Weis alone was responsible for the financial obligations of MMBI and WJUX. Consequently, Weis, on behalf of MMBI, made all of the payments to Fishman under the Secured Note; made all of the payments to MBC for the tower lease and the studio and office lease; paid the compensation of all MMBI personnel; paid all of the bills for services, products, and utilities, with the exception of telephone bills from October 1994 to mid-1995 which were sent to Jukebox Radio by NYNEX; paid all of the subsequent telephone bills; paid all of the legal expenses relating to the acquisition of WJUX, the response to the LOI to MMBI, and the instant hearing proceeding; and raised Montana's salary on the recommendation of Blabey. Weis, on behalf of MMBI, wrote the checks relating to the construction of the station, the payment of MMBI personnel, and the payment of the operating expenses of WJUX. Neither Blabey nor Montana was authorized to sign MMBI checks, and Montana only had the authority over petty cash in amounts up to about $50. Both Blabey and Montana referred financial matters to Weis. None of these payments was made by Turro, except for the telephone bills for the period noted above, and there was no evidence that Turro had check-writing authority on any MMBI account. With respect to Jukebox Radio's payment of MMBI's telephone bills, the record reflects that this was caused by an oversight or mix-up which was corrected when it was discovered, and does not constitute grounds for finding an unauthorized transfer of financial control to Turro. Cf. Siete Grande, 11 FCC Rcd at 21160 (where there was "some confusion" regarding the payment of the licensee's telephone bills and the licensee reimbursed the time broker for calls on its line, no transfer of financial control was found). 223. The Bureau and Universal contend that since Turro provided MMBI with all of its operating funds through Jukebox Radio's monthly payments, and since MMBI was "totally dependent" on these payments to operate WJUX, Turro controlled the finances of MMBI and WJUX. This argument is without merit. The Commission (as well as the Bureau itself) has repeatedly held that such financial terms are "characteristic of time brokerage arrangements" and do not raise questions as to whether an undue amount of control had been exercised by the time broker or abdicated by the licensee. Russo, 5 FCC Rcd at 7587; Choctaw, 12 FCC Rcd at 8541; WGPR, 10 FCC Rcd at 8145. This was true even where the time brokerage payments constituted "the sole source of funding" of the licensee's broadcast operations for the term of the brokerage arrangement, and where the contractual payments were "calculated to incorporate the station's fixed and operating costs plus a built-in profit." WGPR, 10 FCC Rcd at 8145; Choctaw, 12 FCC Rcd at 8541. 224. Moreover, as demonstrated above, Weis had the sole responsibility for MMBI's finances and MMBI maintained its own bank accounts. If Jukebox Radio failed to make a monthly payment, MMBI and Weis would remain obligated to pay the station's bills, and creditors would have no right to obtain such payments from Turro. Although MMBI could sue Turro in an effort to recover the monthly payments, MMBI would still have to continue to pay WJUX's operating expenses. Similarly, if MMBI expended more each month in operating WJUX than it received under the Network Affiliation Agreement, Weis, not Turro, would be responsible for making up the deficit. 225. The Bureau also claims that the Network's payment of $40,000 to MMBI as an inducement for Weis to enter into the Network Affiliation Agreement and Turro's personal guarantee of Network payments up to a limit of $400,000, provide further evidence of MMBI's financial reliance on Turro and show that Turro was in financial control of WJUX. This assertion must be rejected. Rather than showing control by Turro, these facts further demonstrate that Weis controlled MMBI's finances. The record establishes that the ideas for an inducement payment and a personal guarantee came from Weis and were designed to protect MMBI's interests, not Turro's. Indeed, had Turro been in control of the situation, as alleged, it is unlikely that he would have elected to pay MMBI an additional $40,000 over and above the monthly payments, or agreed to a $400,000 personal guarantee which could have put his personal assets in jeopardy. In a similar vein, Weis requested, and Turro agreed to, an increase in the monthly payments of about $100 per month in order to cover additional capital expenditures by MMBI. Once again, Turro would hardly have chosen to pay this increased amount had he been in control of the finances of the station. Moreover, the Commission has held that no transfer of control of a station's finances occurred where a time broker expended millions of dollars for improvements to the station's facilities. WGPR, 10 FCC Rcd at 8145-46. To paraphrase the Commission's rationale in that case, such expenditures, rather than evidencing an intent to control the financial aspects of the station, demonstrated the licensee's ability "to exercise its authority . . . and to protect its interests." Id. at 8146. The same may be said of the Network's $40,000 payment and Turro's personal guarantee. 226. The Bureau relies on Salem Broadcasting, Inc., 6 FCC Rcd 4172 (MMB 1991), to support its conclusion that financial control was transferred to Turro. The instant case, however, is easily distinguishable from Salem. In Salem, the licensee was indebted to the time broker, leased station equipment from the time broker, and used the time broker's transmitter rather than its own. In addition, the time broker negotiated a tower lease and had an option to purchase the station. 6 FCC Rcd at 4172-73. Here, MMBI was not indebted to Turro, did not lease equipment from Turro, and used its own transmitter and auxiliary transmitter for WJUX. Further, Weis, on behalf of MMBI, negotiated the tower lease, and Turro did not have an option to buy WJUX. 227. Programming. The findings of fact establish, and it is concluded, that Weis, not Turro or any entity owned by Turro, was in ultimate supervisory control of the programming of WJUX. The Network Affiliation Agreement provided that Jukebox Radio would supply programming to MMBI on a 24-hour per day, 7-day per week, 365-day per year basis. The Network was also obligated to provide all local station identifications, public affairs programming, and Emergency Broadcast System tests. An Amendment to Network Affiliation Agreement specified that MMBI retained the responsibility to ascertain the needs of its community and service area, that MMBI had the right to broadcast programming other than Network programming, that MMBI had the right to delete or preempt Network programming in order to broadcast MMBI programming responsive to the issues of concern to its community of license, and that MMBI maintained the right to delete or preempt any Network programming it believed to be unsatisfactory or unsuitable or contrary to the public interest, or to substitute programming which, in its opinion, was of greater local or national importance. The Amendment further provided that MMBI's acceptance and broadcast of Network programming was subject to MMBI's responsibility to comply with all FCC regulations including, among others, compliance with political programming and sponsorship identification rules, maintenance of the station's public and political files, and the compilation of quarterly issues/programs lists. Inasmuch as these provisions gave MMBI the right to substitute for, and to delete or preempt Network programming, they complied in all significant respects with the Commission's time brokerage and LMA programming policies. In this regard, the Commission (as well as the Bureau itself) has repeatedly approved agreements containing substantially similar language, and has held that licensees operating their stations in accordance with such agreements have retained ultimate programming control. WGPR, 10 FCC Rcd at 8142-43; Choctaw, 12 FCC Rcd at 8539; Gisela Huberman, Esquire, 6 FCC Rcd 5397 (MMB 1991); Russo, 5 FCC Rcd at 7586-87; Belisle, 5 FCC Rcd at 7585. 228. In addition, contrary to the arguments of both the Bureau and Universal, the record demonstrates that Weis actually exercised his ultimate authority over the programming of WJUX. At the time Weis acquired the CP and agreed to enter into the Network Affiliation Agreement, he was familiar with the programming and format of Jukebox Radio Network and he believed that such programming would appeal to a large segment of the Sullivan County population. At the commencement of WJUX operations, Weis directed that the station carry public affairs programming and PSAs serving Monticello and Sullivan County. To accomplish this, Weis had discussions with Blabey which resulted in the public affairs programs produced by Blabey and broadcast on WVOS, being rebroadcast over WJUX on different days and at different times than they were broadcast over WVOS. Weis explained that, in this manner, these programs would be heard by a separate listening audience in Sullivan County than originally heard them. 229. Weis also had discussions with Blabey which resulted in the broadcast over WJUX of PSAs which Weis believed were of interest to Monticello and Sullivan County. Montana was in charge of gathering material for the PSAs, compiling a bulletin board of prospective PSAs, and forwarding it to Jukebox Radio for broadcast over WJUX. Although Jukebox Radio made the determination as to which PSAs to produce and broadcast, Montana designated on the bulletin board, or called the Network regarding, PSAs that she considered particularly important which she believed should be aired. The Network followed her suggestions on almost every occasion. 230. According to Turro, Jukebox Radio Network had complete discretion to reject public affairs programming or PSAs forwarded for broadcast by Blabey and Montana. However, Turro recognized that if the Network was to exercise this discretion, MMBI would have the right to delete Network programming and put the PSAs and public affairs programming on the air directly from WJUX. 231. Blabey made decisions on putting emergency announcements regarding Sullivan County on WJUX. For example, during a snow storm in Sullivan County, Blabey received a call from the Sullivan County Manager concerning road closings. Blabey called Jukebox Radio, told them he had an emergency message to be broadcast over WJUX, prepared the message, and faxed it to the Dumont studio to be originated. In addition, in September 1995, Weis made the decision that WJUX would not accept further political advertisements. Weis communicated this decision to Blabey, who issued a statement to that effect. Weis subsequently changed this policy. 232. As noted above, the Network Affiliation Agreement required Jukebox Radio Network to provide MMBI with all of its public affairs programming. Weis's decision to procure and broadcast non-Network public affairs programming establishes that he did, in fact, substitute other programming in place of Network programming, as he was permitted to do under the Amendment to Network Affiliation Agreement. In addition, the record shows that MMBI broadcast its own programming (from the WJUX main studio) in the early summer of 1995 when the Network's program feed went out, and that MMBI preempted Network programming during the 1997 elections in order to broadcast political commercials. Under these circumstances, no transfer of ultimate programming control can be found. Cf. Choctaw, 12 FCC Rcd at 8539 (where licensee "prepar[ed]" programming material responsive to the needs of its community of license, no transfer of control over programming occurred). 233. Although the Bureau and Universal attempt to make much of the fact that WJUX's public service programs had also been broadcast on WVOS, they have failed to demonstrate how the rebroadcast of these programs on WJUX reduced the public interest value of such programming. Indeed, there was no evidence that WJUX's public affairs programming did not serve the needs and interests of Monticello and Sullivan County. Moreover, because the record reflects that stations WJUX and WVOS targeted different audiences in Sullivan County, the fact that certain public affairs programs were rebroadcast on WJUX served to ensure that a separate listening audience in that county had an opportunity to hear such programming. 234. The Bureau notes that Turro and Jukebox Radio sold virtually all of the commercial advertisements that were broadcast over WJUX, and argues that Turro controlled this aspect of the station's programming. While the facts relied on are correct, they do not give rise to a conclusion that programming control was transferred. Once again, the Commission (as well as the Bureau itself) has consistently observed that the sale of commercial time by a time broker is one of the typical characteristics of all time brokerage arrangements and that it is permissible so long as ultimate programming control resides, as it does in this case, in the licensee. WGPR, 10 FCC Rcd at 8140, 8145; Russo, 5 FCC Rcd at 7587; Peter D. O'Connell, Esquire, 6 FCC Rcd 1869 (MMB 1991) (agreement approved where the licensee "would sell all of its commercial advertising time to [the time broker] which would, in turn, resell and provide all advertising programming" on the station). 235. The Bureau and Universal rely on Salem to support their conclusions that control over programming was transferred to Turro. However, as discussed above, that case is distinguishable. In Salem, the licensee had not exercised its right to preempt the broker's programming, and a "Lease and Option Agreement" did not indicate that the licensee would originate programming or be responsive to the needs of its community of license. 6 FCC Rcd at 4173. Here, in contrast, Weis directed that WJUX carry public affairs programming and PSAs which would serve its community of license, Weis took steps to procure some of this public affairs programming, MMBI's employee gathered the material for the PSAs, and the public affairs programming and PSAs were, in fact, broadcast over WJUX. In addition, Turro acknowledged the ultimate right of MMBI to delete Network programming to broadcast PSAs and public affairs programming, and MMBI did, indeed, substitute its own programming for that of the Network. 236. Personnel. The findings establish, and it is concluded, that Weis, not Turro or any entity owned by Turro, exercised supervisory control over MMBI's and WJUX's personnel. Thus, Weis was solely responsible for hiring Blabey and, at Blabey's recommendation, Montana and Spicka. Weis was also directly responsible for hiring Kirschner, who replaced Turro as WJUX's Chief Operator. With Weis's approval, Blabey hired Silverstein to sell time locally for WJUX. There was no evidence indicating that Turro played any role in Weis's decisions to hire Blabey, Montana, Spicka, or Kirschner, or in Weis's decision to approve the hiring of Silverstein. Similarly, there was no evidence that an employer-employee relationship existed between Turro and any of these individuals, that Turro held termination authority over any of them, or that Turro was contractually or otherwise responsible for their compensation. 237. Weis had several meetings with Blabey before he was hired to become General Manager. Montana learned of the employment opportunity at WJUX from Blabey. Blabey introduced Montana to Weis before WJUX went on the air and she discussed a position at the station with Weis at that time. When Blabey and Montana were hired, they each entered into letter agreements with Weis, on behalf of MMBI, concerning their positions and compensation. Montana considered herself to be an employee of WJUX. Blabey was retained by MMBI as an "independent consultant," not as an employee, for tax reasons. There was no evidence that Turro discussed with Blabey, Montana, or anyone else, potential employment with MMBI or WJUX, or that any type of employment agreement relating to MMBI or WJUX existed between Turro and Blabey, Montana, or anyone else. 238. Blabey supervised Montana's work at WJUX and she consulted with him on WJUX matters. However, Montana ultimately reported to Weis, and met with him on an as-needed basis. Montana understood that Weis was Blabey's immediate supervisor and could give him directions. There was no evidence that Turro had the authority to supervise or direct the activities of Blabey, Montana, or any other MMBI employee, or that Turro did, in fact, supervise or direct any of their activities. 239. Although Turro held the (unpaid) position of Chief Operator of WJUX from October 1994 until mid-1995, that fact would not establish any transfer to Turro of any ultimate decision-making functions. Indeed, the Commission (as well as the Bureau itself) has recognized the necessity for a time broker's staff to become involved with the licensee's facilities, and the sharing of staff between a licensee and a time broker has been permitted. WGPR, 10 FCC Rcd at 8143; Michael R. Birdsill, 7 FCC Rcd 7891 (MMB 1992). 240. Given all of the above, it is clear that MMBI has retained complete responsibility for, and control over, all aspects of WJUX's personnel operations, that MMBI's personnel activities were consistent with the Commission's rules and policies, and that a transfer of control of those functions did not occur. WGPR, 10 FCC Rcd at 8143. B. Issue 5: Main Studio Issue 241. This issue was designated to determine whether MMBI violated Sections 73.1120 and 73.1125(a) and (c) of the Commission's Rules with respect to the maintenance of a main studio for WJUX in Monticello, New York. The Commission specified this issue on the basis of those portions of Loginow's May 23, 1995, Radio Station Inspection Report which alleged that WJUX's presence at the WVOS main studio was limited to its lease of a former production room for its studio, that studio had no apparent program production and transmission capabilities, there was no apparent remote control equipment installed at the station to control the transmitter or to read its operating parameters, and it appeared that the WJUX transmitter was being controlled full-time, through telephone lines, by personnel at the Dumont studio. (HDO at para 15.) In addition, the Commission queried whether MMBI maintained a local toll-free telephone number for residents within its community of license. (Id.) The Commission also stated that "there was no indication to [Loginow]" that Blabey and Montana were operating under the direction of Weis "for matters attendant to the operation of WJUX." (Id.) Further, the Commission questioned whether the employment of Blabey and Montana "represent[ed] that type of 'meaningful management presence' contemplated by [the] main studio rule." (Id. at note 15, citations omitted.) For the reasons which follow, it is concluded that MMBI was in violation of Section 73.1125(c) of the Rules for a 12-day period. In all other respects MMBI was in full compliance with the applicable Commission rules. 242. Section 73.1120. This section of the rules states that each FM broadcast station will be licensed to the principal community "which it primarily serves." The Bureau and Universal maintain that MMBI has violated this rule because WJUX "primarily serves" Bergen County, New Jersey, rather than Monticello, New York, its community of license. Universal also suggests that the disparity between Jukebox Radio's commercial advertising rates and the local advertising rates of WJUX shows that the station is primarily serving the needs and interests of Bergen County and is being marketed in that county. 243. These arguments must be rejected. Put simply, neither the Bureau nor Universal offered evidence of any community need or interest in Monticello that was not addressed by WJUX's overall programming, including its public affairs programs and PSAs. See Deregulation of Radio, 84 FCC 2d 968, 982-83 (1981) (issue-responsive programming may consist of, but is not limited to, public affairs, PSAs, and community bulletin boards; the amount of such programming to be offered is within the licensee's sole discretion). In addition, neither the Commission nor WJUX received any complaints from listeners within the WJUX service area that the station's overall programming was not serving the needs and interests of its community of license. In this regard, Montana received only two complaints about WJUX, one concerning a listener's inability to receive the station on his cable system, and one complaining about the station not playing enough Perry Como music. 244. Further, there is no precedent for examining a station's local advertising rates or marketing strategy in connection with its service of the needs and interests of its community of license. Indeed, the Commission's station identification rule would have permitted WJUX to "include in its official station identification" the names of communities in Bergen County, New Jersey, so long as Monticello, New York, the station's community of license, was "named first." See Section 73.1201(b)(2) of the Rules. Consequently, there is no basis for concluding that MMBI has violated the provisions of Section 73.1120 of the Rules. See Broadcast Communications, Inc., 97 FCC 2d 61, 63 (1984) ("renewal expectancy" awarded where there was no evidence that the licensee omitted any "local public issues," and where there was an allegation that the licensee's programming was directed to audiences residing mostly outside its community of license); WHYY, Inc., 93 FCC 2d 1086, 1094 (1983) (no material and substantial question of fact was raised where the complainant failed to describe any significant problem, need or interest which had not been addressed by the licensee). 245. Section 73.1125(a). Section 73.1125(a) of the Rules, in conjunction with Section 73.315(a) of the Rules, requires an FM broadcast station to maintain a main studio within the 70 dBu (3.16 mV/m) contour of the station ("principal community contour"). The findings establish, and it is concluded, that the WJUX main studio in Ferndale, New York, was located within the principal community contour, and that MMBI has, at all times relevant to this proceeding, been in complete compliance with Section 73.1125(a). 246. Section 73.1125(c). This section of the rules requires an FM broadcast station to "maintain a local telephone number in its community of license or a toll-free number." The findings establish that although WJUX began broadcasting on October 21, 1994, the station did not establish a local telephone number until November 2, 1994. It must be concluded, therefore, that MMBI violated Section 73.1125(c) for a period of 12 days. 247. The findings further establish, and it is concluded, that beginning on November 2, 1994, MMBI was in full compliance with Section 73.1125(c) of the Rules. On that date MMBI established and maintained a separate telephone number for WJUX. In addition, the number was listed by the local telephone company and was readily available from directory assistance. The record reflects that, from November 2, 1994, to July 1995, calls to the WJUX telephone number were forwarded to Dumont, New Jersey, and that call forwarding and long distance charges were incurred. However, since such charges were not billed to the callers, calls to the WJUX number during that period were, in fact, toll free for residents of Monticello, the station's community of license. Beginning in July 1995, the call-forwarding arrangement was discontinued and all calls to the WJUX number were answered at the Ferndale main studio building. 248. No sanction is warranted for MMBI's violation of Section 73.1125(c). First, the violation was de minimis. Second, the duration of the violation was only 12 days, a relatively short period of time. Third, MMBI voluntarily disclosed in its response to the LOI to MMBI that WJUX's local telephone number was not established until "on or about November 2, 1994." Similarly, in its response to the Bureau's First Request for Admissions of Fact and Genuineness of Documents, MMBI admitted that it maintained a local toll-free telephone number "[b]eginning November 2, 1994." Finally, neither the Bureau nor Universal has contended that MMBI's lack of a local telephone number for this 12-day period warrants an adverse finding or conclusion against MMBI, or the imposition of any sanction. 249. The Bureau does argue, however, that MMBI was in violation of this section of the rules from October 1994 to July 1995 because there was no WJUX telephone instrument in its main studio and all calls to the WJUX number were forwarded to the Dumont studio and answered there. This argument is without merit. Section 73.1125(c) requires a broadcast station to maintain a local or toll-free "telephone number" in its community of license. The rule does not specify where telephone instruments must be located, or where telephone calls must be answered. The record in this proceeding reflects that MMBI did maintain a local toll- free "telephone number," and that calls to that number were answered. The requirements of the rule have, therefore, been met. 250. Program Origination Capability. The Commission requires broadcast licensees to maintain a main studio which is equipped with production and transmission facilities, and to maintain continuous program transmission capability. Main Studio and Program Origination Rules, 3 FCC Rcd 5024, 5026 (1988) ("Main Studio Clarification"). The findings establish, and it is concluded, that, from the time WJUX went on the air on October 21, 1994, the station's main studio was in complete compliance with these requirements. 251. The record establishes that, at all times relevant to this proceeding, the WJUX main studio contained all of the equipment necessary for the production of programming, and that the equipment was capable of being used in that manner. These facts were testified to by Weis, Turro, Hurst, and/or Blabey. Even Loginow testified that, although he was in the WJUX main studio "very briefly," he observed a control board of the type typically found in a broadcast studio from which programming could be originated, as well as a microphone and tape machines. He also testified that he had no reason to think the microphone and tape machines were not connected to the control board. Further, there was no evidence adduced indicating that the WJUX main studio lacked any critical piece of production equipment or that the equipment which was located in the main studio was not in working order. 252. The findings also establish, and it is concluded, that, at all times relevant to this proceeding, the WJUX main studio had continuous program transmission capability. Specifically, the WJUX main studio could be put on the air by throwing a switch, or making a connection at a switch patch, in the WVOS(AM) transmitter room. This room was located about 10 to 15 feet down the hall from the WJUX main studio. Although Loginow apparently believed, and reported in his May 23, 1995, Radio Station Inspection Report, that a visit to the WJUX transmitter site (about a 15-minute drive from the main studio) was necessary in order to put the main studio on the air, the record reveals that he was mistaken. A trip to the WJUX transmitter site was never required in order to originate programming from the WJUX main studio, and Loginow's belief to the contrary was based upon a misunderstanding. 253. Remote Control Capability. Although the Commission's station location and main studio rules, Sections 73.1120 and 73.1125, respectively, were specifically and exclusively referred to in the text of Issue 5, those rules are completely silent on the subject of remote control. Nevertheless, since the HDO in this proceeding discussed questions relating to WJUX's remote control capabilities under Issue 5, and the parties litigated this matter under that issue, those questions will be addressed here. 254. The Commission's remote control rules in effect during the period from October 1994 through November 1995 provided, inter alia, that it was permissible for an FM broadcast station to be operated by remote control, that no authorization by the Commission was required to do so, and that "a remote control point [could be established] at a location other than at the main studio or transmitter." 47 C.F.R.  73.1400 (1994, 1995). In addition, broadcast stations being operated by remote control were required to "provide at remote control points sufficient control and operating parameter monitoring capability to allow technical operation in compliance with the Rules applicable to that station and the terms of the station authorization." 47 C.F.R.  73.1410(a) (1994, 1995). 255. The findings establish, and it is concluded, that, at all times relevant to this issue, the WJUX transmitter was capable of being controlled by remote control from either the WJUX main studio or the Dumont studio, and that such operation was totally consistent with then Sections 73.1400 and 73.1410 of the Rules. The record reveals that, from the commencement of operation of the station, the WJUX transmitter was equipped with a dial-up remote control system which could be accessed from a telephone instrument, located anywhere, by merely dialing a telephone number and entering a code. After accessing the system, the telephone instrument could be used to turn the transmitter off and on, to take transmitter readings, and to perform other functions required by the Commission's regulations. In addition, both Blabey and Montana knew how to use the dial-up remote control system. Further, the evidence establishes that there was a telephone instrument (belonging to WVOS) located in the WJUX main studio, and that this instrument could have been used to dial up and control the WJUX transmitter, if necessary. 256. The record also reveals that the WJUX transmitter could be remotely controlled from the Dumont studio by utilizing one of the TC-8 remote control units located there. In this regard, Turro leased a 56 Kbps land line from the telephone company and used its narrow data channel to carry remote control commands to the TC-8 unit connected to the WJUX transmitter. 257. Universal argues that, at the time of Loginow's inspection, there was no operator on duty in control of the WJUX transmitter either at the WJUX main studio or at the Dumont studio, and that this was a violation of then Section 73.1860 of the Rules. Universal's contention must be rejected; it is based on speculation. Although Turro was out of town on the dates of the inspection, there was no evidence of record that another licensed operator was not on duty at the Dumont studio at that time. Indeed, neither Universal nor the Bureau sought to establish such facts at the hearing, and Loginow himself did not make such an allegation. Moreover, Section 73.1860 was not the subject of a designated issue, nor was it even referred to in the HDO. This matter is, therefore, beyond the scope of Issue 5. 258. Staffing. In Main Studio Clarification, 3 FCC Rcd at 5026, the Commission stated that licensees must maintain at their main studios "[a] meaningful management and staff presence [in order to] help expose stations to community activities, help them identify community needs and interests and thereby meet their community service requirements." The Commission elaborated on the meaning of this statement in Jones Eastern of the Outer Banks, Inc., 6 FCC Rcd 3615 (1991) ("Jones I "), recon. granted in part and clarified 7 FCC Rcd 6800 (1992) ("Jones II "). There, the Commission stated that, to be considered "meaningful," there must be management and staff "presence" at a station's main studio on a full-time basis during regular business hours. Jones I, 6 FCC Rcd at 3616 n.2. In addition, management presence on a full-time basis may consist of more than two people working on part-time bases. Jones II, 7 FCC Rcd at 6800 n.4. The managerial personnel must also be authorized to make "typical managerial decisions." Id. at 6801. The Commission further stated: Because some [management] positions may require the person occupying them to conduct significant business outside the office, we would not, of course, require management personnel to remain "chained to their desks" during normal business hours. Rather, we require that management personnel report to work at the main studio on a daily basis, spend a substantial amount of time there and . . . use the studio as a "home base." Ultimately, that management presence must remain responsible for whatever station operations occur from that studio. To the extent that the staff person may fully perform its [sic] station functions with time to spare, and coverage of the main studio permits, that person may also take on responsibilities for another business, as long as the main studio remains attended during normal business hours. Id. at 6802, footnote omitted. 259. The findings establish, and it is concluded, that the presence of Blabey and Montana at the Ferndale main studio building constituted a meaningful management and staff presence which was fully consistent with the Commission's guidelines. Thus, the record establishes that both Blabey and Montana reported to work at that building on a daily basis, that they used that building as a home base, that they were present at the building during normal business hours, and that they spent substantial amounts of time there. Consequently, the WJUX main studio "remain[ed] attended during normal business hours" within the parameters set forth in Jones I and Jones II. Moreover, there was no evidence whatsoever that the WJUX main studio was not properly staffed or attended at any particular time, including the date of Loginow's inspection, or that WJUX's studio hours were not regular or normal. Compare KLDT-TV 55, Inc., 8 FCC Rcd 6316 (1993), forfeiture reduced 10 FCC Rcd 3198 (1995), with the instant case. 260. The record further establishes that Blabey was authorized to perform, and did in fact perform, duties and functions for WJUX which were typically managerial in nature. Specifically, Blabey recommended prospective employees for Weis to hire, and they were hired. Blabey supervised Montana's work for WJUX and she reported to him. Blabey consulted with Montana on WJUX matters and directed her to prepare the PSA bulletin boards and forward them to the Network. Blabey recommended to Weis that Montana's salary be raised, and it was raised. Blabey had discussions with Weis which resulted in the broadcast of public affairs and public service programming over WJUX and arranged for such programming to be broadcast over the station. Blabey made decisions to put emergency announcements concerning Sullivan County on the air over WJUX and prepared those announcements. Blabey was responsible for initiating steps to put WJUX back on the air on those occasions when it went off the air. Blabey "hosted" Loginow during his inspection of WJUX. Blabey retained Spicka to assist Loginow during the course of the inspection of WJUX and, subsequently, to originate programming from the WJUX main studio at the time the Network's program feed was cut. Blabey made the decision to hire Silverstein to sell time for WJUX, and Weis approved the hiring. Blabey arranged for Martin to cover the office functions of WJUX on the days he (Blabey) and Montana were testifying in this proceeding. Blabey represented WJUX in the community through his memberships in local civic organizations and his attendance at local civic functions. Moreover, there was no evidence of record that Blabey was not completely responsible for whatever station operations and activities were carried out at the WJUX main studio. 261. The record also reflects that Montana performed various staff functions for WJUX on a daily basis. She picked up the mail at the post office and distributed it when she returned to the studio building. She made sure Blabey and Weis saw mail that needed their attention. She brought bills to the attention of Blabey and Weis for payment. She handled petty cash, dealt with walk-ins, answered the telephone, and took care of the callers' requests, including their complaints about WJUX. In addition, Montana gathered material for and prepared a bulletin board of prospective PSAs. She was the one who decided what was and was not to be included on the bulletin board and she forwarded it to the Network for production and broadcast. She specified on the bulletin board or called the Network regarding PSAs which she considered particularly important and warranted broadcast, and the Network followed her suggestions on nearly every occasion. 262. The Bureau and/or Universal argue that Blabey and Montana did not constitute a meaningful management and staff presence at WJUX because they were not full-time employees and Blabey was a "consultant," their salaries were not commensurate with management-level positions, the functions they performed were ministerial not managerial, and they devoted much of their time to matters involving WVOS. These contentions must be rejected. Jones I and Jones II require a full-time presence at a main studio, not the employment of individuals on a full-time basis. The record clearly reflects that the WJUX main studio remained attended on a full-time basis during normal business hours by Blabey and Montana. The fact that Blabey and Montana also devoted time to WVOS matters did not render their presence at the main studio building less than full-time or meaningful. Indeed, Jones II specifically permits staff persons, such as Montana, to undertake responsibilities for another business in their spare time, and there appears to be no reason why individuals in managerial positions, such as Blabey, should not be able to do the same provided that the main studio remains attended, as it was in this case. Further, there is no precedent holding that such other business cannot under any circumstances be another broadcast station. Cf. KQQK, Inc., 10 FCC Rcd 132 (MMB 1995) (the Bureau did not hold that the President of Station A could not be appointed to the position of Assistant General Manager of Station B, to which Station A leased main studio space; rather, the Bureau ruled that his presence at Station B's main studio was not managerial because Station B could give no description of his duties). 263. The fact that Blabey was retained as a "consultant" is neither determinative nor controlling, and to rule otherwise would place form over substance. The record establishes that Blabey chose that title for tax purposes only, that Weis treated and addressed Blabey as his General Manager not as his consultant, that Blabey followed all of Weis's directions and policies, that Blabey functioned more like an employee than a consultant, and that Blabey's duties were more similar to an employee's than to a consultant's. In addition, in arguing that Blabey and Montana were paid less than what the salary would be for comparable positions at other radio stations, the Bureau has completely ignored the fact that WJUX operated under the Network Affiliation Agreement. As a result, substantially less time was required of Blabey and Montana to perform their duties than would have been required had WJUX been operated differently, and their pay reflected that reality. Moreover, as demonstrated above, Blabey's duties and responsibilities for WJUX were, in fact, managerial in nature, and appeared typical of those carried out by general managers of stations operating under time brokerage arrangements where the broker was providing the programming and selling the advertising time within such programming. 264. Universal contends that MMBI's engagement of Blabey and Montana violated the Commission's cross-interest policy and is disqualifying. This matter is beyond the scope of Issue 5. At the time this case was designated for hearing, the Commission was fully aware of both the cross-interest policy and of the role of Blabey and Montana at WJUX. See HDO at notes 8 and 15. However, the Commission failed to specify an issue to determine whether there was a violation of that policy. Indeed, after noting the cross-interest policy, the Commission's only statement was that a question remained as to whether the presence of Blabey and Montana at WJUX "represent[ed] that type of 'meaningful management presence' contemplated by [the] main studio rule." Id. at note 15, citations omitted. Under these circumstances, no consideration of the cross-interest policy is warranted. C. Issue 1: Translator and Auxiliary Station Rules Issue 265. Issue 1 was designated to determine whether Turro's operation of the Fort Lee and Pomona translators violated Section 74.1231(b) of the Rules relating to FM broadcast translator stations, and Section 74.531(c) of the Commission's Rules relating to aural broadcast auxiliary stations. This issue was specified because the Commission had information that all the programming airing on WJUX and the Pomona and Fort Lee translators was originating from Jukebox Radio's Dumont studio, that intercity relay station WMG-499 was being used to deliver the programming from the Dumont studio directly to the Fort Lee translator, that the programming being delivered by WMG-499 was being broadcast by the Fort Lee translator, that the Fort Lee translator was not retransmitting the off-air signal of WJUX, and that the Pomona and Fort Lee translators had also been programmed through telephone lines from the Dumont studio. (HDO at paras. 7 and 13.) For the reasons which follow, it is concluded that Turro's operation of the Fort Lee and Pomona translators was in full compliance with Section 74.1231(b) of the Rules, but that his operation of WMG-499 beginning in late October 1994 was in violation of Section 74.531(c). 266. Section 74.1231(b). This section of the Commission's rules provides, in pertinent part, that "[a]n FM translator may be used for the purpose of retransmitting the signals of a primary FM radio broadcast station . . . which have been received directly through space, converted, and suitably amplified." In this regard, the Commission has stated that the signal of the FM radio station being rebroadcast must be received "directly over-the-air at the translator site." FM Translator II, 8 FCC Rcd at 5093. The findings establish, and it is concluded, that at all times pertinent to this issue, including the period between October 21, 1994, and July 1995, Turro's operation of the Fort Lee and Pomona translators was in complete compliance with this rule. 267. First, there was no competent or reliable proof substantiating the charge in the HDO that telephone lines were used to deliver programming from the Dumont studio to the Fort Lee translator for the purpose of retransmission. The only "evidence" from a credible witness suggesting such use was contained in an August 1, 1995, e-mail from Loginow to Mass Media Bureau and Wireless Telecommunications Bureau personnel. In this e-mail, which reported on his July 31, 1995, observations, Loginow stated that the audio quality of the Fort Lee translator indicated that the input signal was not being received off the air from the Pomona translator but from some other "alternate means, presumably via telephone lines." The record establishes, however, that Loginow's statement was nothing more than sheer, unsupported speculation. 268. Loginow based his statement solely on the high quality audio he heard on July 31, 1995, in comparison to the lesser audio quality he remembered hearing during his April 1995 inspection. He also thought that the high quality audio he observed on July 31, 1995, was consistent with the audio quality he observed on May 15, 1995. However, Loginow performed no testing on July 31, 1995, did not inspect or observe the Fort Lee or Pomona translators on that date, and did not look for some alternate mechanism of program delivery. In addition, Loginow admitted that in April 1995 he observed that the power of the WJUX transmitter was reduced. He also admitted that a signal being received by the Fort Lee translator would be stronger, and the audio quality would be better, if it was being transmitted at full power by the WJUX transmitter than it would be if that transmitter was operating at reduced power. (Hurst, too, testified that a reduction in the power of the Monticello transmitter could have caused some degradation of the audio quality heard from the Fort Lee translator.) Loginow further admitted that the fact that he heard a better signal on May 15 and July 31, 1995, might have been attributable to the fact that something had been fixed and the WJUX transmitter was operating at full power. Moreover, on August 2, 1995, only two days after his July 31, 1995, observations, Loginow inspected both the Fort Lee and Pomona translators to the extent that he saw fit and found no means of program delivery other than reception off the air. 269. Next, the evidence establishes that the Fort Lee translator was capable of receiving, and did in fact receive, the off-air signal of WJUX "directly through space." Prior to the time that WJUX went on the air on October 21, 1994, Turro performed tests on the roof of the Mediterranean Towers and determined that WJUX could be received directly off-the-air at the Fort Lee translator site. Turro located a "hot spot" on the roof, installed a receive antenna at that location for reception of WJUX, installed a second antenna a few feet away to receive the signal of first adjacent channel WBAI, and connected the two antennas to a filtering device which was adjusted to eliminate interference from WBAI. This arrangement was in use from late October 1994 to mid-January 1995. Based upon his monitoring of the Fort Lee translator on a daily basis during this period, Turro testified that this arrangement at all times provided an adequate signal from WJUX for rebroadcast. Although there were two subsequent changes in filtering devices, the reception quality of the Fort Lee translator remained essentially the same. After the Pomona translator started to rebroadcast WJUX, the Fort Lee translator began to retransmit the signal of the Pomona translator on a regular basis. However, that did not affect the capability of the Fort Lee translator to receive and rebroadcast the signal of WJUX. 270. The ability of the Fort Lee translator to receive the off-air signal of WJUX "directly through space" was observed by Hurst, Hidle, and Loginow. Those three individuals also observed the off-air reception of WJUX at the hot spot. In this connection, Hurst testified that "good quality" reception of WJUX was possible in the hot spot without the use of filtering devices, and that a good quality signal from WJUX could be received from any other location on the roof provided that filtering devices were used. In addition, Hurst confirmed Turro's testimony concerning the stability and longevity of the hot spot, and there was no evidence adduced demonstrating that the hot spot was artificially created, such as by locally generating a signal into a "dummy load." 271. The evidence additionally establishes that the Pomona translator was capable of receiving, and did in fact receive, the off-air signal of WJUX "directly through space." Such reception was never in serious question and was observed by Loginow on several occasions. Indeed, testing by Hurst, Hidle, and Kirschner demonstrated that the Pomona translator remained able to receive the off-air signal of WJUX with the WJUX transmitter operating at levels below 100 watts. WJUX was authorized to operate with an ERP of 6.0 kW. 272. The record further reveals that the Fort Lee translator was capable of receiving, and did in fact receive, the off-air signal of the Pomona translator "directly through space" with the receive antenna for the Pomona translator located on the roof of the Mediterranean Towers. This fact was testified to by Turro and confirmed by Hurst, Hidle, and Loginow, each of whom had observed such off-air reception. Hurst characterized the off-air signal received on the roof of the Mediterranean Towers from the Pomona translator as a "good quality" signal, and Loginow characterized it as "a consistent high quality audio signal." In addition, the evidence establishes that the signal of the Pomona translator could be received "directly through space" in the basement of the Mediterranean Towers. This fact was testified to by Turro, Hurst, and Hidle. Hurst characterized such reception as "unusual [and] possibly phenomenal," and Hidle stated that it was "acceptable audio." Loginow never observed, or sought to observe, such reception in the basement, and performed no tests at that location. 273. The record establishes that audio programming which had originated in the Dumont studio was continuously delivered to the Fort Lee translator by WMG-499. Telemetry (i.e., data) was also transmitted continuously from the Dumont studio to the Fort Lee translator by WMG-499. Turro never denied those facts. Turro explained that the continuous telemetry path enabled him to switch remotely among the several different receiving antennas, transmitting antennas, and transmitters which were located at the Fort Lee transmitter site. Turro further testified that the continuous audio path made WMG-499 easily identifiable in the event that it caused interference, and permitted him to place emergency messages on the air. The evidence indicates, however, that, from October 21, 1994, until the time WMG-499 was deactivated, the audio programming received by the Fort Lee translator from WMG-499 was not retransmitted unless there was an emergency, and that it was possible that no emergency messages at all were broadcast during that period. Rather, the evidence shows that the audio feed from WMG-499 terminated into a dummy load, and that the Fort Lee translator retransmitted the off-air signals it received "directly through space" from either WJUX or the Pomona translator. 274. The most significant evidence contradicting these conclusions resulted from Loginow's May 15, 1995, tests. On that date, Loginow used a portable signal generator to generate "dead carrier" (i.e., silence) on each of the frequencies of WJUX, the Pomona translator, and WMG-499 while listening to the output of the Fort Lee translator over the air. Loginow was attempting to determine whether the Fort Lee translator would pick up the signal he was generating and retransmit it on its own frequency. If the dead carrier had gotten into the receiver of the Fort Lee translator, it would have overridden any other signal on that frequency and Loginow would have heard the output of the Fort Lee translator gradually become silent. 275. The signals Loginow generated on each of the frequencies of WJUX and the Pomona translator did not overwhelm the signal he was monitoring, and Loginow concluded that neither of those signals was being rebroadcast by the Fort Lee translator. The signal Loginow generated on the frequency of WMG-499 did overwhelm the signal Loginow was monitoring. That is, Loginow heard the output of the Fort Lee translator gradually become silent. Loginow concluded from this that the Fort Lee translator had been receiving and rebroadcasting the audio path from WMG-499. However, the weight of the evidence establishes that Loginow's results were not probative. 276. The record reveals that on May 15, 1995, the Fort Lee translator was retransmitting the off-air signal of the Pomona translator, and that the receive antenna being used to pick up that signal was situated in the basement of the Mediterranean Towers, at least 25 stories below the roof. Loginow performed his tests from the inside of a stairwell enclosed by cinder block walls located at the roof level of the Mediterranean Towers. The signal he was generating was a "low level signal" of less than half a watt. This low level signal was not of sufficient strength to have passed through the building and been picked up by the Pomona receive antenna located in the basement. Therefore, Loginow's generated signal could not have gotten into the receiver of the Fort Lee translator and overwhelmed the signal being received from the Pomona translator. Consequently, Loginow's conclusion that the Fort Lee translator had not been rebroadcasting the off-air signal of the Pomona translator was erroneous. 277. Loginow's own testimony undermined the legitimacy of his test results. Loginow testified that he understood that the receive antennas for WJUX, the Pomona translator, and WMG-499 were all located on the roof, that he performed his testing from the roof level because he wanted to be near those antennas, and that the closer he could get to the antennas being tested the more accurate his tests would be. Loginow also stated that the distance between the signal generator and the antenna he was trying to affect was important to the testing process, that at some distance the signal would be unable to affect a receiver, that obstructions between the signal generator and the system being tested could affect the validity of the tests, and that his surroundings on May 15, 1995, would have attenuated toward the receiving end the signal he was generating. Loginow never performed a complete inspection of the Mediterranean Towers and had no personal knowledge as to what materials, equipment, or other things may have been in the building that theoretically could have shielded from an antenna located in the basement the low level signals being transmitted by the signal generator. 278. Further, and more importantly, tests performed by Hurst and Hidle actually demonstrated that Loginow's less than half-watt signal generated from the roof level of the Mediterranean Towers could not have affected a receive antenna located in the basement. Specifically, from the basement of the Mediterranean Towers at the location where the Pomona receive antenna had been situated, Hurst and Hidle used a signal generator to generate a 5 watt signal on the frequency of the Pomona translator. This signal, which was about 10 times the strength of the signal generated by Loginow, was unable to pass through the building and cause interference to the roof-mounted receive antenna for the Pomona translator. Based upon these tests, Hurst testified that someone located on or near the roof of the Mediterranean Towers would not have been able to cause interference with the reception of the Pomona translator with a 0.5 watt signal when the Pomona receive antenna was located in the basement. In view of the above, and the absence of comparable testing by Loginow or anyone else, Hurst's testimony must be considered dispositive. Loginow's contradictory testimony, that "ducting" would have enabled his low level signal to have overwhelmed a receive antenna located in the basement, is entitled to no weight. Unlike the testimony of Hurst, it was unsupported and untested. 279. Loginow's conclusion that the Fort Lee translator had been rebroadcasting the audio path from WMG-499 was also flawed. As discussed earlier, WMG-499 was subdivided into an audio path and a telemetry path. As a "fail-safe," to enable him to get emergency messages on the air, Turro programmed the receiver and the remote control unit at the Fort Lee translator to immediately home onto the audio path on WMG-499 and rebroadcast that signal if the telemetry path was interrupted. In this connection, Turro testified that the telemetry path was the weakest component of his system. It was narrow and on the outside edge of the microwave, and was the first thing that would have been "strip[ped] away" by someone seeking to "jam" WMG-499. 280. When Loginow generated dead carrier on 951 MHz, the frequency of WMG-499, he gradually substituted silence for the signals that WMG-499 had been carrying. At some point, the dead carrier, which contained no telemetry, interrupted or blanketed the telemetry path on WMG-499. When that occurred, the fail-safe was activated and the Fort Lee translator immediately homed onto the audio path on WMG-499 and rebroadcast that signal. Thereafter, as the dead carrier overwhelmed the audio path, Loginow heard the output of the Fort Lee translator become silent. However, had the telemetry path not been interrupted or blanketed by Loginow, the fail-safe would not have been triggered and the audio path on WMG-499 would not have been put on the air. It is clear, therefore, that given this configuration of the Fort Lee translator, Loginow caused the results he obtained. 281. Loginow testified that Turro's fail-safe was inconsistent with good engineering practice, highly problematic, not logical, and close to being technically impossible. But Loginow admitted on cross- examination that each element of the fail-safe arrangement was, in fact, technically possible. Specifically, Loginow testified that an individual microwave path could be subdivided into an audio and a data channel, that the receiver and remote control unit of the Fort Lee translator could be programmable, and that those units could be programmed to home in on the microwave audio path if the data path was interrupted. 282. The Bureau argues that when Loginow "blocked" 951 MHz, the output of the Fort Lee translator should not have been silence, as observed by Loginow. Similarly, Universal contends that the "loss of the WMG-499 signal" should not have caused the Fort Lee translator to begin broadcasting WMG-499 because there was "no WMG-499 signal to rebroadcast due to [Loginow's] jamming," and because that "entire circuit" had been "knock[ed] . . . off the air." Rather, the Bureau and Universal claim that the Fort Lee translator should have begun to rebroadcast the off-the-air signal of either WJUX or the Pomona translator. In support, they rely on Turro's testimony relating to an additional fail-safe he programmed into the Fort Lee translator. 283. These arguments are without merit. Turro testified that the additional fail-safe was designed to force the Fort Lee translator to receive the off-air signal from the Pomona translator or WJUX if the Fort Lee translator lost the 951 MHz input completely, that is, if no 951 MHz signal at all was being received. However, the evidence establishes that when Loginow performed his tests on May 15, 1995, he did not at any time cause the Fort Lee translator to completely lose the 951 MHz input. A signal from that frequency was never totally blocked, lost, or "knock[ed] . . . off the air." On the contrary, the dead carrier being generated by Loginow on 951 MHz gradually became substituted for the signals which were being received from WMG- 499 on 951 MHz. In other words, the Fort Lee translator was receiving some signal on 951 MHz on a continuous basis throughout the course of Loginow's tests. Consequently, the conditions under which this additional fail-safe would have manifested itself were not present during the May 15, 1995, testing. 284. Section 74.531(c). Section 74.531(c) of the Commission's Rules provides, in pertinent part: An aural broadcast intercity relay station is authorized to transmit aural program material between noncommercial educational FM radio stations and their co-owned noncommercial educational FM translator stations assigned to reserved channels (Channels 201 to 220) and between FM radio stations and FM translator stations operating within the coverage contour of their primary stations. . . . See generally FM Translator I, 5 FCC Rcd at 7220-21; FM Translator II, 8 FCC Rcd at 5097-98; and Satellite and Terrestrial Microwave Feeds, 7 FCC Rcd 5546, 5547-48 (1992); see also Sections 74.501(b) and 74.532(a) of the Rules. The findings establish, and it is concluded that, from late October 1994 until it was deactivated in early July 1995, Turro's operation of WMG-499 was in violation of this rule. 285. Turro's application for what became WMG-499 stated that the Fort Lee translator (then) rebroadcast the signal of a noncommercial FM station in Franklin Lakes, New Jersey, and that WMG-499 would be used to feed 30-second announcements concerning financial support and operational communications from the studio of the noncommercial FM station to the Fort Lee translator. Turro's application was granted on September 23, 1993. Beginning in late October 1994, the Fort Lee translator ceased rebroadcasting the Franklin Lakes station and began to rebroadcast the signal of WJUX, Monticello, New York. WJUX was authorized to operate on Channel 259, and was a commercial FM station. On November 30, 1994, Turro formally informed the Bureau's Auxiliary Services Division that the Fort Lee translator was "now rebroadcast[ing] primary station" WJUX. By letter dated June 6, 1995, the Chief of the Commission's Microwave Branch directed Turro to show cause why his license for WMG-499 should not be revoked or cancelled. One of Turro's consulting engineers responded to the Commission by letter dated June 13, 1995, and Turro deactivated WMG-499 in early July 1995. 286. Turro readily admitted both in his response to the LOI to Turro and throughout the course of this proceeding that, from late October 1994 until early July 1995, WMG-499 had been used continuously to transmit aural program material from Jukebox Radio's Dumont studio to the Fort Lee translator. However, such use during this period violated Section 74.531(c) of the Rules. Specifically, beginning in late October 1994, WMG-499 had not been used for the purposes delineated in Section 74.531(c), namely, to transmit aural program material between co-owned noncommercial FM broadcast and translator stations, or between FM primary stations and translator stations operating within the coverage contours of the primary stations ("fill-in service"). Rather, WMG-499 had been used to transmit aural program material from a program production studio to a translator station. Nothing in Section 74.531(c), or in FM Translator I, FM Translator II, or Satellite and Terrestrial Microwave Feeds, contemplates or authorizes such use. Further, the record is clear that, during the period in question, the Fort Lee translator was not a noncommercial educational FM translator station, was not transmitting between co-owned stations, was not assigned to a reserved channel, and was not providing fill-in service. 287. Turro also admitted that, from late October 1994 until early July 1995, WMG-499 had been used continuously to transmit telemetry, also called operational communications, from Jukebox Radio's Dumont studio to the Fort Lee translator. Turro argues that his use of WMG-499 to transmit telemetry was expressly authorized by Section 74.531(f) of the Rules. This argument must be rejected. While Section 74.531(f) does authorize the multiplexing of an intercity relay transmitter to provide additional channels for the transmission of, among other things, operational communications, Turro's argument removes that subsection from its proper context. Read in context, Section 74.531(f) only permits such multiplexing if the intercity relay station is otherwise authorized to operate pursuant to Section 74.531(c). As discussed above, WMG-499 was not so authorized. To read Section 74.531(f) in any other manner would completely vitiate Section 74.531(c). Moreover, Section 74.531(f) specifically provides that "[a]n . . . intercity relay station may not be operated solely for the transmission of operational . . . communications." Consequently, Section 74.531(f) does not unconditionally authorize the transmission of operational communications on an intercity relay station as asserted by Turro. 288. Turro further argues that his use of WMG-499 to enable him to transmit emergency messages, if necessary, was specifically authorized by Section 74.1231(g) of the Rules. Turro's argument is without merit. Section 74.1231(g) authorizes translator stations to transmit aural material which is limited, inter alia, to "emergency warnings of imminent danger." But Section 74.1231(g) states that this material must be transmitted "as permitted" in Section 74.1231(f) of the Rules. However, Section 74.1231(f) does not authorize the transmission of this material by intercity relay station. Compare the Note to Section 74.1231(b) of the Rules (in connection with Sections 74.1231(b) and (h), the use of intercity relay stations to deliver signals to FM translator stations is authorized) with Sections 74.1231(f) and (g) (no similar statement). 289. Turro also argues that his operation of WMG-499 during the period from late October 1994 until early July 1995 was proper because there were no material changes in the purposes for which WMG-499 was being used, or in the actual use of WMG-499, after the Fort Lee translator started retransmitting WJUX. Turro further notes that, in his application for WMG-499, he identified the locations of the transmit and receive points and that those points remained the same after the change of primary stations. Turro's arguments are rejected. They are irrelevant to a determination of whether a violation of Section 74.531(c) occurred. As discussed above, an intercity relay station may only be used to transmit aural program material between co- owned noncommercial FM radio stations and noncommercial FM translator stations, or to transmit such material between FM radio stations and FM translator stations providing fill-in service. The Fort Lee translator was not providing fill-in service, and it ceased its affiliation with a noncommercial FM radio station in late October 1994. At the time the Fort Lee translator stopped rebroadcasting the Franklin Lakes station and began to rebroadcast commercial FM station WJUX, Turro's use of WMG-499 fell out of compliance with the provisions of Section 74.531(c). He therefore lost whatever authority he had under that section, and his license, to use WMG-499 for the purposes stated in his application, or for any other purpose. Similarly, the fact that the transmit and receive points of WMG-499 had not changed is irrelevant and could not in any case confer independent authority on Turro to use WMG-499 for purposes not authorized by Section 74.531(c). 290. The most appropriate sanction for Turro's violation of Section 74.531(c) of the Rules would be the imposition of a $3,000 forfeiture. Thus, Section I of the "Guidelines for Assessing Forfeitures," which appears as a Note to Section 1.80(b)(4) of the Rules, provides for a forfeiture penalty in the base amount of $4,000 for violations which are very similar in nature to a violation of Section 74.531(c) of the Rules. See "Unauthorized emissions" (base amount of $4,000); "Using unauthorized frequency" (base amount of $4,000); "Construction or operation at unauthorized location" (base amount of $4,000). Further, in accordance with Section II of the Guidelines, the base amount of the forfeiture would be reduced by $1,000 because Turro never denied that he used WMG-499 for the purposes in question, Turro fully disclosed such use in his response to the LOI to Turro and throughout the course of this proceeding, no substantial harm from the unauthorized use of WMG-499 was demonstrated, it was not shown that Turro realized any substantial economic gain through the unauthorized use of WMG-499, and Turro had a history of overall compliance with the Commission's rules. 291. However, the assessment of a forfeiture in this case is precluded by the statute of limitations. Section 503(b)(6)(i) of the Act and Section 1.80(c)(1) of the Rules provide, in pertinent part, that no forfeiture penalty shall be imposed if the violation occurred more than one year prior to the issuance of the appropriate notice. Turro's violation of 74.531(c) occurred between late October 1994 and early July 1995. The HDO in this proceeding, which served as the appropriate notice of forfeiture (HDO at paras. 31-33), was released on April 18, 1997, nearly two years after the last violation occurred. Since this was well after the expiration of the statute of limitations, no forfeiture may be imposed. Cf. Sun Over Jupiter Broadcasting, Inc., 8 FCC Rcd 8733 (Rev. Bd. 1993). E. Issues 3 and 7: Misrepresentation/Lack of Candor Issues 292. Issue 3 was designated to determine whether Turro made misrepresentations to or lacked candor with the Commission concerning the operation of the Fort Lee and Pomona translators. Issue 7 was designated to determine whether MMBI made misrepresentations to or lacked candor with the Commission concerning the operation of WJUX. In specifying these issues, the Commission stated that "there is a substantial and material question of fact as to whether Turro and MMBI have misrepresented or lacked candor . . . with respect to material facts concerning the operations" of the Fort Lee and Pomona translators and WJUX, that it appeared that Turro's and MMBI's statements "regarding the origination of the programming on the translators and the operation of WJUX were inaccurate," and that there was "substantial evidence that Turro and MMBI had a clear motive to conceal or misrepresent these activities, most of which . . . constitute violations of the Commission's Rules." (HDO at paras. 17-18.) For the reasons which follow, Issues 3 and 7 are resolved in favor of Turro and MMBI. 293. Misrepresentation and lack of candor in a licensee's dealings with the Commission are generally viewed as "serious breaches of trust." Character Qualifications, 102 FCC 2d 1179, 1211 (1986). Misrepresentation involves "false statements of fact," whereas lack of candor involves "concealment, evasion, and other failures to be fully informative." Fox River Broadcasting, Inc., 93 FCC 2d 127, 129 (1983). Direct misrepresentations or omissions to the Commission can result, by themselves, in disqualification. Old Time Religion Hour, Inc., 95 FCC 2d 713, 719 (Rev. Bd. 1983). However, intent to deceive is an essential element of a misrepresentation or lack of candor showing, and disqualification is not warranted in the absence of a deceptive intent. Intercontinental Radio, Inc., 98 FCC 2d 608, 639 (Rev. Bd. 1984); Fox River, 93 FCC 2d at 129. 294. Issue 3 Turro. The findings establish, and it is concluded, that Turro did not misrepresent facts to or lack candor with the Commission in his statements concerning the operation of the Fort Lee or Pomona translators or the origination of programming on the translators. On the contrary, the record reflects that, at all stages of this case, Turro dealt with the Commission and its representatives in a truthful, candid, and forthright manner. 295. The Bureau and/or Universal argue that Turro lacked candor in his January 30, 1991, request for a declaratory ruling by failing to disclose that his intentions were to provide 100 percent of the primary station's programming, to be the only purchaser of brokered air time on the primary station, and to have the translator station sell all of the commercial advertising during the brokered air time. These contentions must be rejected. First, the record does not show that Turro intended to deceive the Commission even assuming, arguendo, that he omitted any material information. Second, a review of contemporary case precedent establishes that, even if Turro had disclosed the above details to the Bureau in his request for a declaratory ruling, the Bureau's ruling would not have been substantially different. The following table summarizes some of the key elements of agreements which were considered and approved by the Bureau during the relevant time period. Joseph A. Belisle, Esq., 5 FCC Rcd 7585 (MMB 1990), released December 18, 1990. "Network affiliation agreement." Broker will provide between 12 and 24 hours of programming per day. Roy R. Russo, Esq., 5 FCC Rcd 7586 (MMB 1990), released December 18, 1990. "Reciprocal time brokerage agreements." Broker will provide all programming from 4 a.m. to midnight, seven days a week. Arrangement involved an almost complete programming format change by the broker, the broker determined the advertising rates and scheduling, and the solicitation of advertising accounts. Bureau noted that decisions made by the broker with respect to programming, advertising, and sales were "characteristic of all time brokerage agreements" and were permissible as long as they did not represent the ultimate decisions in those areas. J. Dominic Monahan, Esq., 6 FCC Rcd 1867 (MMB 1991), released April 4, 1991. "Programming affiliation agreement." Broker will provide programming from 6 a.m. to midnight, seven days a week. Broker retained the right to sell a majority of the advertising time of the station. Bureau noted that the Commission sets no limits on the amount of time a brokered station could sell. Peter D. O'Connell, Esq., 6 FCC Rcd 1869 (MMB 1991), released April 4, 1991. "Time brokerage agreement" and "program brokerage agreement." Station will sell all of its commercial advertising time to broker who will resell it and provide all advertising programming on the station. Broker will provide up to 24 hours of programming per day. Bureau noted that the Commission sets no limits on the amount of time a brokered station could sell. Brian M. Madden, Esq., 6 FCC Rcd 1871 (MMB 1991), released April 4, 1991. "Time brokerage agreement." Station will make its facilities available to the broker 24 hours per day, seven days per week, "except for a maximum of two hours on Sunday between midnight and 6 a.m. for routine maintenance." Broker will provide an entertainment format, which may include news, public service programming, promotions, contests, and commercial matter. Bureau noted that the Commission sets no limits on the amount of time a brokered station could sell. Gisela Huberman, Esq., 6 FCC Rcd 5397 (MMB 1991), released September 19, 1991. Two "time brokerage agreements." Stations will make their facilities available for programming provided by the broker 24 hours a day for up to 166 hours per week, "except for downtime occasioned by routine maintenance." Broker will provide an entertainment format, which may include news, public service programming, promotions, contests, and commercial matter. Broker will maintain remote control points for the stations. Bureau noted that the Commission sets no limits on the amount of time a brokered station could sell. Joseph F. Bryant, 6 FCC Rcd 6121 (MMB 1991), released October 31, 1991. "Time brokerage agreement." Broker "leased" access to 15« hours of air time per day and made changes in the station's format during those periods. 296. The Bureau next asserts that Turro falsely stated in his response to the LOI to Turro that he had no ownership interest in WJUX. The Bureau claims that Turro had such an interest because of the financial relationship he had with Weis and MMBI, and because of MMBI's complete dependence on Turro as its source of income and programming. These arguments are without merit. The record reflects that Turro's statement that he had no present or future ownership interest in MMBI was completely accurate. In addition, as discussed fully in the conclusions of law on Issues 2 and 6, the Unauthorized Transfer of Control Issues, the financial and programming arrangements between Turro and Weis were perfectly proper and comported in all respects with Commission (as well as Bureau) policy and precedent. Further, even assuming, arguendo, that such financial and programming arrangements constituted a transfer of control, they could not, as the Bureau apparently believes, have created a change in the "ownership" of WJUX. 297. The Bureau maintains that Turro did not disclose in his response to the LOI to Turro that he was providing all of the programming and commercials for WJUX or that he was guaranteeing payments to MMBI. The Bureau also alleges that Turro did not inform the Commission until the hearing that WMG-499 was used to deliver programming matter to the Fort Lee translator. These contentions are factually inaccurate. The record reflects that Turro did, in fact, disclose in his response to the LOI to Turro that he was providing programming, including commercials, to MMBI on a 7-day per week, 24-hour per day, 365-day per year basis. Similarly, Turro did, in fact, disclose that WMG-499 was transmitting programming to the Fort Lee translator. Turro also attached to his response, among other things, copies of the Network Affiliation Agreement and his Guaranty of Payment. The latter indicated that Turro was personally guaranteeing Jukebox Radio Network payments to MMBI. 298. The Bureau asserts that Turro's statement in his response to the LOI to Turro that the Network Affiliation Agreement met the requirements of the Bureau Letter was false because that arrangement was not a time brokerage agreement. The Bureau also avers that Turro did not comply with the Bureau Letter because he did not fulfill "the express condition" contained therein that he buy "discrete blocks of time" on the brokered station, and there was no evidence presented that the monthly payments being made by Turro were comparable to the rates charged to other time brokers in the local radio market. These arguments are rejected. The fact that Turro entered into a network affiliation agreement, rather than a time brokerage agreement, is without decisional significance. Commission (as well as Bureau) precedent treats network affiliation agreements and time brokerage agreements in an identical fashion with respect to determinations regarding control. See, e.g., Russo, 5 FCC Rcd at 7586-87 (time brokerage agreements); Belisle, 5 FCC Rcd at 7585 (network affiliation agreement). In addition, the record reveals that the arrangement between Turro and MMBI was structured as a network affiliation agreement based upon the advice of counsel, and that counsel had read Turro's request for declaratory ruling and the Bureau Letter prior to rendering this advice. Cf. RKO General, Inc. v. FCC, 670 F.2d 215, 231 (D.C. Cir. 1980), citing Asheboro Broadcasting Co., 20 FCC 2d 1, 3 (1969) (advice of counsel may be a mitigating factor in some circumstances). Further, the Bureau Letter contains no "express condition" that Turro buy "discrete blocks of time." The portion of the Letter to which the Bureau apparently refers merely contains a brief, general summary of what time brokerage arrangements "usually involve." In any event, there is no absolute requirement that time brokers purchase only discrete blocks of time. See O'Connell, 6 FCC Rcd at 1869 (under time brokerage and programming brokerage agreements, the broker was allowed to purchase all of the station's advertising time and provide up to 24 hours of programming per day). Moreover, to the extent that the record does not contain evidence of comparable rates, it is noted that the Bureau had the burden of going forward with the introduction of evidence on Issue 3 (HDO at para. 22), and that it failed to offer any evidence on that question. 299. The Bureau and Universal maintain that Turro had a motive for misrepresenting to the Commission his arrangement with MMBI. In this regard, they note that Turro was twice rebuffed by the Commission when he attempted to obtain a ruling permitting translator stations to be used to originate local programming. They also claim that the arrangement with MMBI was a "scheme" to deceive the Commission and to circumvent and evade those rulings as well as the Commission's translator rules and policies. These assertions are without merit. The record reflects that Turro did not circumvent the Commission or its rules. On the contrary, Turro requested from the Bureau the issuance of a declaratory ruling, Turro represented that certain "conditions would exist," Turro obtained the ruling he sought, and Turro lived up to his representations. Specifically, Turro stated that the licensee of the translator would purchase air time on the primary station, and it did. Turro stated that the translator would be operating outside of the originating station's primary contour, and it did. Turro stated that the primary station would not reimburse the translator licensee for air time, and it did not. Turro stated that the primary station would not financially support the translator licensee, and it did not. Turro stated that the translator licensee would abide by the Commission's time brokerage rules in connection with any air time that it purchased on the primary station, and it did. And, finally, Turro stated that the translator licensee may sell advertising to support its programming, and it did. Moreover, the Bureau must be presumed to have known of Turro's unsuccessful attempts to persuade the Commission to allow translators to originate programming inasmuch as the Bureau itself issued one of the rulings and the others were published. Yet the Bureau gave Turro the declaratory ruling he had requested, although it was under no obligation to do so. Under these circumstances, Turro cannot be faulted for relying on the Bureau Letter in his operation of the Fort Lee translator. See HDO at note 13 (Turro's contention that the Bureau Letter authorized his arrangement with MMBI was "not unreasonable"). 300. On the basis of the May 15, 1995, tests conducted by Loginow, the Bureau and Universal contend that Turro lied when he stated that the Fort Lee translator rebroadcast the off-air signal of WJUX or the Pomona translator, and when he stated that the Fort Lee translator did not rebroadcast the audio path on WMG-499. Their reliance on Loginow's testing is misplaced. As discussed in detail in the conclusions of law with respect to Issue 1, the Translator and Auxiliary Station Rules Issue, Loginow's test results were not probative since it was demonstrated that he reached an erroneous conclusion and caused the results he observed. Consequently, Turro's testimony on these matters was fully credited. The Bureau also reiterates its position that Loginow "blocked" the signals being received by the Fort Lee translator on 951 MHz. However, as shown in the conclusions on Issue 1, this view is totally incorrect. 301. The Bureau avers that Turro never showed the antenna in the basement of the Mediterranean Towers to Loginow, and never informed Loginow that there was such an antenna located in the basement. This allegation is highly misleading. Although Turro never specifically mentioned the basement antenna to Loginow, as correctly noted by the Bureau, the evidence is clear that during the course of the August 2, 1995, inspection, Turro informed Loginow that the roof-mounted antennas had been vandalized repeatedly and that he (Turro) had used other receive antennas located elsewhere in the building. Turro offered to show Loginow those antennas but Loginow told him that he was only interested in seeing the antennas in use that day. The record also reflects that Turro cooperated fully with Loginow during the course of this inspection, and that Loginow inspected as he saw fit. Given the above, the fact that Loginow did not avail himself of the opportunity to observe the other receive antennas that Turro used, including the basement antenna, can hardly be ascribed to or held against Turro. 302. Issue 7 MMBI. The findings establish, and it is concluded, that neither MMBI nor Weis misrepresented facts to or lacked candor with the Commission in their statements concerning the operation of WJUX. On the contrary, the record reflects that, at all stages of this case, MMBI and Weis dealt with the Commission in a truthful, candid, and forthright manner. 303. The Bureau and/or Universal argue that Weis's statement in the response to the LOI to MMBI, that he was responsible for all of the funds used to purchase equipment for, and to construct and operate WJUX, was a lack of candor because Weis's actual source for those funds was Turro. Similarly, the Bureau claims that Weis lacked candor when he represented that he had control over the finances of WJUX. The Bureau also asserts that Weis knew that Turro had "undue control" over the station's finances, but failed to disclose that to the Commission. These arguments are without merit. Put simply, it has not been shown that Weis's statements were untruthful. As discussed fully in the conclusions of law on Issues 2 and 6, Weis, and not Turro, was in sole control of the finances of MMBI and WJUX, as had been represented to the Commission. In addition, the financial arrangements between Turro and MMBI were fully disclosed, were entirely proper, and complied with Commission (as well as Bureau) policy and precedent. The findings establish that, consistent with his statements, Weis did provide all of the equipment used to build WJUX and did pay all of the costs of the station's construction (with the exception of Jukebox Radio Network equipment). Weis's statement that he was also responsible for all of WJUX's operating expenses and other financial obligations was totally accurate, and Weis candidly disclosed that Turro had paid MMBI's telephone bills. Further, it was not improper, or a violation of any Commission rule or policy, for Turro to have been the sole source of revenue for MMBI's operations. See Russo, 5 FCC Rcd at 7587; Choctaw, 12 FCC Rcd at 8541; WGPR, 10 FCC Rcd at 8145. 304. The Bureau and/or Universal maintain that Weis misrepresented facts in the response to the LOI to MMBI by stating that he controlled what was and was not broadcast on WJUX. In this regard, the Bureau and Universal allege that MMBI did not exercise any meaningful control over the programming of its station. The Bureau also contends that Weis knew that Turro had "undue control" over the programming of WJUX, but failed to disclose that to the Commission. These arguments must be rejected. Once again, it has not been demonstrated that Weis's statements were untruthful. As discussed in detail in the conclusions of law with respect to Issues 2 and 6, Weis, and not Turro, was in ultimate supervisory control of the programming of WJUX, as had been represented to the Commission. The Amendment to Network Affiliation Agreement gave MMBI the right, inter alia, to delete or preempt any Network programming, and to substitute its own programming for that of the Network. These provisions complied in all significant respects with the Commission's time brokerage and LMA policies, and the Commission (as well as the Bureau) has repeatedly held that licensees operating their stations in accordance with such agreements have retained ultimate programming control. WGPR, 10 FCC Rcd at 8142-43; Choctaw, 12 FCC Rcd at 8539; Huberman, 6 FCC Rcd at 5397; Russo, 5 FCC Rcd at 7586-87; Belisle, 5 FCC Rcd at 7585. Moreover, the record reflects that, consistent with his statements, Weis did exercise his ultimate authority over the programming of WJUX, and WJUX did substitute other programming for, and preempt, Network programming. 305. In connection with its arguments relating to the programming of WJUX, the Bureau avers that the Amendment to Network Affiliation Agreement was not "entered into" until after the letters of inquiry to Turro and MMBI were received. This is factually incorrect. Although Turro and Weis did not formally sign the Amendment until July 17, 1995, the uncontradicted and unrebutted evidence of record establishes that the Amendment was agreed to in November 1994 and was retroactive to the commencement of the Network Affiliation Agreement. 306. The Bureau and/or Universal claim that Weis misrepresented facts by stating that WJUX was fully staffed and had a properly equipped main studio, and that he lacked candor by failing to disclose the true nature of the positions of Blabey and Montana at WJUX. In this regard, the Bureau and Universal maintain that Blabey and Montana were token employees of MMBI because they performed minimal duties and received nominal salaries. These arguments are without merit. The record reflects that Weis's statements concerning Blabey and Montana, and the capabilities of the WJUX main studio, were entirely truthful and accurate. Moreover, for the reasons specified in the conclusions of law on Issue 5, the Main Studio Issue, it is clear that, consistent with Weis's statements, the presence of Blabey and Montana at the Ferndale main studio building constituted a meaningful management and staff presence, WJUX's main studio contained all of the necessary equipment for the production of programming, the equipment worked, and the main studio had continuous program transmission capability. IV. ULTIMATE CONCLUSIONS 307. In sum, it has been concluded that Turro's operation of the Fort Lee and Pomona translators did not violate Section 74.1231(b) of the Commission's Rules, that beginning in late October 1994 Turro's operation of WMG-499 was in violation of Section 74.531(c) of the Rules, and that although the assessment of a forfeiture would be the appropriate sanction for such a violation, a forfeiture may not be imposed in this proceeding because the statute of limitations has expired. It has also been concluded that neither Turro nor MMBI engaged in an unauthorized transfer of control over WJUX in violation of Section 310(d) of the Act and Section 73.3540(a) of the Rules, that MMBI did not violate Sections 73.1120 and 73.1125(a) of the Rules with respect to the maintenance of a main studio, that for a 12-day period MMBI was in violation of Section 73.1125(c) of the Rules with respect to the maintenance of a local telephone number, but that no sanction is warranted for that violation. It has been further concluded that Turro did not misrepresent facts to or lack candor with the Commission concerning his operation of the Fort Lee and Pomona translators, and that MMBI and Weis did not misrepresent facts to or lack candor with the Commission concerning the operation of WJUX. Consequently, it is ultimately concluded that the public interest will be served by a grant of Turro's applications for renewal of the licenses for the Fort Lee and Pomona translators. It is also ultimately concluded that MMBI possesses the requisite qualifications to be and to remain a Commission broadcast permittee, and that no basis exists for the revocation of its construction permit for WJUX. V. ORDERING CLAUSES Accordingly, IT IS ORDERED that, unless an appeal from this Initial Decision is taken by a party, or it is reviewed by the Commission on its own motion in accordance with Section 1.276 of the Rules, the above-captioned applications of Gerard A. Turro for renewal of licenses for FM translator stations W276AQ(FM), Fort Lee, New Jersey, and W232AL(FM), Pomona, New York, ARE GRANTED. IT IS FURTHER ORDERED that, inasmuch as it has been concluded that Monticello Mountaintop Broadcasting, Inc., possesses the requisite qualifications to be and to remain a Commission broadcast permittee, its construction permit for FM radio station WJUX(FM), Monticello, New York, SHALL NOT BE REVOKED. FEDERAL COMMUNICATIONS COMMISSION Arthur I. Steinberg Administrative Law Judge