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Before the
Federal Communications Commission
Washington, D.C. 20554
) File No. EB-04-IH-0519
In the Matter of )
) Acct. No. 200632080001
Locus Telecommunications, Inc. )
) FRN No. 0010-7295-15
ORDER
Adopted: September 30, 2005
Released: October 3, 2005
By the Chief, Enforcement Bureau:
1. In this Order, we adopt the attached Consent
Decree entered into between the Enforcement Bureau and Locus
Telecommunications, Inc. (``Locus''). The Consent Decree
terminates the enforcement proceeding initiated by the
Enforcement Bureau against Locus for possible violations of the
universal service reporting and contribution requirements of
section 254 of the Communications Act of 1934, as amended (``the
Act'')1 and certain Commission rules relating to universal
service, the Telecommunications Relay Service Fund and the North
American Numbering Plan Administration, sections 52.17, 54.706,
54.711, 54.713, and 64.604 of the Commission's rules.2
2. The Enforcement Bureau and Locus have negotiated
the terms of a Consent Decree that would resolve this matter. A
copy of the Consent Decree is attached hereto and incorporated by
reference.
3. Based on the record before us, and in the absence
of material new evidence relating to this matter, we conclude
that are no substantial or material questions of fact as to
whether Locus possesses the basic qualifications, including those
related to character, to hold or obtain any Commission license or
authorization.
4. After reviewing the terms of the Consent Decree,
we find that the public interest will be served by adopting the
Consent Decree.
5. Accordingly, IT IS ORDERED that, pursuant to
section 4(i) of the Communications Act of 1934, as amended,3 and
sections 0.111 and 0.311 of the commission's rules,4 the Consent
Decree attached to this Order IS ADOPTED.
6. IT IS FURTHER ORDERED that the above-captioned
investigation IS TERMINATED.
FEDERAL COMMUNICATIONS COMMISSION
Kris Anne Monteith
Chief, Enforcement Bureau Before the
Federal Communications Commission
Washington, DC 20554
) File No. EB-04-IH-0519
In the Matter of )
) Acct. No. 200532080146
Locus Telecommunications, Inc. )
) FRN No. 0010-7295-15
CONSENT DECREE
1. The Enforcement Bureau (``Bureau'') of the Federal
Communications Commission (``Commission'') and Locus
Telecommunications, Inc. (``Locus'') hereby enter into this
Consent Decree for the purpose of terminating the Bureau's
investigation into whether Locus violated the universal service
reporting and contribution requirements of section 254 of the
Communications Act of 1934, as amended (the ``Act'')5 and/or
certain Commission rules relating to universal service, the
Telecommunications Relay Service Fund and the North American
Numbering Plan Administration.
2. For the purposes of this Consent Decree, the following
definitions shall apply:
(a) ``Commission'' and ``FCC'' mean the Federal
Communications Commission.
(b) ``Bureau'' means the Enforcement Bureau of the Federal
Communications Commission.
(c) ``Locus'' means Locus Telecommunications, Inc. and its
predecessors-in-interest and successors-in-interest.
(d) ``Parties'' means Locus and the Bureau.
(e) ``Order'' or ``Adopting Order'' means an Order of the
Commission or the Bureau adopting the terms of this
Consent Decree without change, addition, deletion, or
modification.
(f) ``Effective Date'' means the date on which the
Commission or the Bureau releases the Adopting Order.
(g) ``Investigation'' means the investigation commenced by
the Bureau's October 28, 2004 Letter of Inquiry6
regarding whether Locus violated the requirements of
section 254 of the Act and/or sections 1.1157, 52.17,
54.706, 54.711, 54.713, 64.604 and 64.1195 of the
Commission's rules relating to carrier registration,
universal service reporting and contribution, number
administration, telecommunications relay systems and
regulatory fee payment.
I. BACKGROUND
3. Pursuant to section 254(d) of the Act and sections
52.17, 54.706, 54.711, 54.713, and 64.604 of the Commission's
rules, telecommunications carriers that provide interstate
telecommunications services and private service providers that
provide interstate telecommunications are required to file annual
and quarterly Telecommunications Reporting Worksheets (FCC Forms
499-A and 499-Q) and contribute to the Universal Service Fund,
Telecommunications Relay Service Fund and North American
Numbering Plan Administration.7
4. Locus is a provider of prepaid calling services. On
October 28, 2004, the Bureau initiated the Investigation by
issuing a Letter of Inquiry (``LOI'') directing Locus to provide
information about its compliance with, among other matters, the
Commission's universal service reporting and contribution
requirements. Locus submitted a response to the Bureau's LOI on
December 1, 2004.8 On July 15, 2005, Locus submitted
supplemental information in response to the Bureau's request.9
II. AGREEMENT
5. The Parties agree that the provisions of this Consent
Decree shall be subject to final approval by the Bureau, through
entry of the Order, which shall immediately resolve and terminate
the Investigation.
6. The Parties agree that this Consent Decree does not
constitute either an adjudication on the merits or a factual or
legal finding or determination regarding any compliance or
noncompliance with the requirements of the Act or the
Commission's rules and orders. The Parties agree that this
Consent Decree is for settlement purposes only and that by
agreeing to this Consent Decree, Locus does not admit or deny
liability for violating any statute, regulation, or
administrative rule in connection with matters that are the
subject of this Consent Decree.
7. Locus agrees that it will make a voluntary contribution
to the United States Treasury in the amount of $330,000, in three
equal installments of $110,000 each paid over a three month
period, with the first payment due 30 days after the Effective
Date and each of the two successive payments due 30 days after
the previous payment. The payment must be made by check or
similar instrument, payable to the order of the Federal
Communications Commission. The payment must include ``Acct. No.
200532080146'' and ``FRN No. 0010-7295-15.'' Payment by check or
money order may be mailed to Federal Communications Commission,
P.O. Box 358340, Pittsburgh, PA 15251-8340. Payment by overnight
mail may be sent to Mellon Bank /LB 358340, 500 Ross Street, Room
1540670, Pittsburgh, PA 15251. Payment by wire transfer may be
made to ABA Number 043000261, receiving bank Mellon Bank, and
account number 911-6106.
8. For purposes of settling the matters set forth herein,
Locus agrees to maintain a compliance program related to future
compliance with the Act, the Commission's rules, and the
Commission's orders. The program will include, at a minimum, the
following components:
(a) Compliance Manual. The Company shall maintain and
update as necessary its existing Compliance Manual.
Company personnel shall have ready access to the
Compliance Manual and are to follow the procedures
contained in it. The Compliance Manual, among other
things, describes the universal service,
Telecommunications Relay Service and North American
Numbering Plan Administration rules and requirements as
they apply to Locus. The Compliance Manual encourages
personnel to contact the Company's Designated Contact,
President, and/or Chief Financial Officer with any
questions or concerns that arise. The Company shall
submit to the Bureau a final version of its Compliance
Manual 30 days after the Effective Date.
(b) Compliance Training Program. The Company will
establish an FCC compliance training program for
employees who engage in activities subject to FCC
regulation. Training sessions will be conducted at least
annually to ensure compliance with the Act and the FCC's
regulations and policies and, for new employees, within
the first 30 days of employment.
(c) Designated Contact. The Company will designate one
employee as the point of contact for all
telecommunications compliance matters.
(d) Review and Monitoring. The Company will review the FCC
Compliance Training Program annually to ensure that it is
maintained in a proper manner and continues to address
the objectives set forth therein.
(e) Audits. The Company will ensure that external and
internal audit reviews specifically address compliance
with FCC regulatory requirements.
(f) Termination. Locus's obligation under this Paragraph 8
shall expire twenty four (24) months after the Effective
Date.
9. The Bureau agrees that it will not use the facts
developed in this Investigation through the Effective Date of the
Consent Decree or the existence of this Consent Decree to
institute, on its own motion, any new proceeding, formal or
informal, or take any action on its own motion against Locus
concerning the matters that were the subject of the
Investigation. The Bureau also agrees that it will not use the
facts developed in this Investigation through the Effective Date
of this Consent Decree or the existence of this Consent Decree to
institute on its own motion any proceeding, formal or informal,
or take any action on its own motion against Locus with respect
to Locus's basic qualifications, including its character
qualifications, to be a Commission licensee or authorized common
carrier.
10. Nothing in this Consent Decree shall prevent the
Commission or its delegated authority from adjudicating
complaints filed pursuant to section 208 of the Act against Locus
or its affiliates for alleged violations of the Act, or for any
other type of alleged misconduct, regardless of when such
misconduct took place. The Commission's adjudication of any such
complaint will be based solely on the record developed in that
proceeding. Except as expressly provided in this Consent Decree,
this Consent Decree shall not prevent the Commission from
investigating new evidence of noncompliance by Locus of the Act,
the rules, or this Order.
11. Locus waives any and all rights it may have to seek
administrative or judicial reconsideration, review, appeal or
stay, or to otherwise challenge or contest the validity of this
Consent Degree and the Order adopting this Consent Decree,
provided the Bureau issues an Order adopting the Consent Decree
without change, addition, modification, or deletion. Locus shall
retain the right to challenge Commission interpretation of the
Consent Decree or any terms contained herein.
12. Locus's decision to enter into this Consent Decree is
expressly contingent upon the Bureau's issuance of an Order that
is consistent with this Consent Decree, and which adopts the
Consent Decree without change, addition, modification, or
deletion.
13. In the event that this Consent Decree is rendered
invalid by any court of competent jurisdiction, it shall become
null and void and may not be used in any manner in any legal
proceeding.
14. If either Party (or the United States on behalf of the
Commission) brings a judicial action to enforce the terms of the
Adopting Order, neither Locus nor the Commission shall contest
the validity of the Consent Decree or the Adopting Order, and
Locus shall waive any statutory right to a trial de novo.
15. Any violation of the Consent Decree or the Adopting
Order will constitute a separate violation of a Commission order,
entitling the Commission to exercise any rights or remedies
authorized by law attendant to the enforcement of a Commission
order.
16. The Parties also agree that if any provision of the
Consent Decree conflicts with any subsequent rule or order
adopted by the Commission (except an order specifically intended
to revise the terms of this Consent Decree to which Locus does
not expressly consent) that provision will be superseded by such
Commission rule or order.
17. Locus hereby agrees to waive any claims it may
otherwise have under the Equal Access to Justice Act, 5 U.S.C. §
504 and 47 C.F.R. § 1.1501 et seq., relating to the matters
addressed in this Consent Decree.
18. This Consent Decree may be signed in counterparts.
________________________________
Kris Anne Monteith
Chief, Enforcement Bureau
Federal Communications
Commission
________________________________
Date
________________________________
Jason W. Chon
President
Locus Telecommunications, Inc.
________________________________
Date
_________________________
1 47 U.S.C. § 254.
2 47 C.F.R. §§ 52.17, 54.706, 54.711, 54.713, 64.604.
3 47 U.S.C. § 154(i).
4 47 C.F.R. §§ 0.111, 0.311.
5 47 U.S.C. § 254.
6 See Letter from Hillary S. DeNigro, Deputy Chief,
Investigations and Hearings Division, Enforcement Bureau, FCC to
Jason W. Chon, President, Locus Telecommunications, Inc. (October
28, 2004).
7 47 U.S.C. § 254(d); 47 C.F.R. §§ 52.17, 54.706, 54.711,
54.713, 64.604.
8 See Letter from Locus' counsel, Jonathan S. Marashlian, The
Helein Law Group, to Hillary S. DeNigro, Deputy Chief,
Investigations and Hearings Division, Enforcement Bureau (Dec. 1,
2004).
9 See Letter from Jonathan S. Marashlian, The Helein Law
Group, to Hillary S. DeNigro, Deputy Chief, Investigations and
Hearings Division, Enforcement Bureau (July 15, 2005).