FCC Record, Volume 26, No. 19, Pages 14991 to 15893, October 24 - November 10, 2011 Page: 15,062
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accordance with the Act and with a license granted under the provisions of the Act." For the purposes of
section 301, the word "operate" has been interpreted to mean both the technical operation of the station, as
well as "the general conduct or management of a station as a whole, as distinct from the specific technical
work involved in the actual transmission of signals."t4 In other words, the use of the word "operate" in
section 301 of the Act captures not just the "actual, mechanical manipulation of radio apparatus,"' but
also operation of a radio station generally.' To determine whether an individual is involved in the
general conduct or management of the station, we can consider whether such individual exercises control
over the station, which the Commission has defined to include ". .. any means of actual working control
over the operation of the [station] in whatever manner exercised.""7
6. The facts of this case demonstrate that Mr. Cernmogg exercised sufficient control over the
general conduct and management of the station, tantamount to operating the station, for purposes of section
301 of the Act. On January 21, March 24, and April 14, 201 1, agents from the Miami Office determined
that an unlicensed radio station on the frequency 90.7 MHz operated from Mr. Cernogg's residence in
Miami, Florida.'" A review of the Commission's records revealed that Mr. Cernogg did not have a license
to operate a radio station on this frequency at this location. The agents also did not find any evidence to
suggest that anyone else living in the residence was involved in the operation or management of the station.
There is publicly available information showing that Mr. Cernogg actively marketed the unlicensed station,
and used the unlicensed station to cross-promote his other businesses (e.g., a club called the "Lady Luck
Social Club") and provide commercial advertisements under the guise of a legitimate commercial radio
station. Specifically, the unlicensed station in Miami operating on the frequency 90.7 MHz was advertised
on the Internet with variations of the phrase "Lady Luck Radio." Mr. Cernogg registered the domain name
for the ladyluckradio.net webpage and, according to the Division of Corporations's records, is the registered
agent for "Lady Luck Social Club, Inc." An address associated with Mr. Cernogg is listed on the Twitter
account for "LADYLUCKRADIO." Mr. Cernogg paid utilities for the residence for a period of time and,
according to another resident living in the same house, placed the radio equipment in a locked area to ensure
7. Mr. Cernogg's apparent violations of section 301 of the Act were "willful" because he
operated the station consciously and deliberately. Moreover, because Mr. Cernogg operated the station on
more than one day, we find the apparent violation was also repeated. Therefore, based on the evidence
before us, we find that Mr. Cernogg apparently willfully and repeatedly violated section 301 of the Act by
operating radio transmission equipment without the required Commission authorization.
8. Pursuant to the Commission's For/eiture Polic' Statement and section 1.80 of the Rules,
the base forfeiture amount for operation without an instrument of authorization is $10,000.'" In assessing
'i 47 U.S.C. 301.
'4 See Campbell i. United Statev, 167 F.2d 45 1. 453 (5th Ci'r. 1948) comparingg the use of the words "operate" and
"operation" in sections 30 1, 307, and 3 18 of the Act and concluding that the word "'operate" as used in section 301
of the Act means both the technical operation of the station as well as the general conduct or management of the
' l. See 47 U.S.C 307(c)( 1).
7 See Revision of Rule'. and Pol(e.s for the Direct B broadcast Satellite Service, I I FCC Red 9712, 9747 (1995),
rec-on. denied, DIRECTV. Inc . F'CC. 1 10i F.3d 8 16 ( D.C. Cir. 1997)
m The address of the shared residence is listed as a former address where Mr. 'crnogg paid utilities,
http://www.lexisnexis.comi/government/solutions/ilnvecstigative/, Utility Locator database (last visited Sept. 13,
5 The Comnunsvion " For/elature Policy Statement and. mendment of Section 1 80 of the Rites to Incoporate the
For/eiture Guldelines, Report and Ordr, 1 2 F'CC Red 17087 (1 997) ("Finfceiture Po/lcy Sttement"), reutorl denc Ld,
Federal Communications Commission
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United States. Federal Communications Commission. FCC Record, Volume 26, No. 19, Pages 14991 to 15893, October 24 - November 10, 2011, book, November 2011; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc133013/m1/86/: accessed September 24, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.