**Before the**

## Federal Communications Commission

## Washington, D.C. 20554

**In the Matter of** )

> ) File No. EB-03-DT-120

Paladen Communications, Inc. )

a/k/a CB Shop ) NAL/Acct. No. 200432360003

)

North Jackson, Ohio ) FRN: 0010 6809 40

)

NOTICE OF APPARENT LIABILITY FOR FORFEITURE

**Released: May 27, 2004**

By the District Director, Detroit Office, Northeast Region, Enforcement
Bureau:

# I. INTRODUCTION

I.  

1\. In this Notice of Apparent Liability for Forfeiture (\"NAL\"), we
find that Paladen Communications, Inc. a/k/a CB Shop ("Paladen"), has
apparently violated Section 302(b) of the Communications Act of 1934, as
amended[^1] ("the Act"), and Sections 2.815(b) and 2.815(c) of the
Commission's Rules ("Rules")[^2] by offering for sale Citizens Band
("CB") external radio frequency power amplifiers ("linears"). We
conclude that Paladen is apparently liable for a forfeiture in the
amount of seven thousand dollars (\$7,000).

## II. BACKGROUND

2\. On July 24, 2003, agents from the Detroit Office visited Paladen at
12274 Mahoning Avenue, Suite 14, North Jackson, Ohio. During this visit,
the agents observed a Palomar Deluxe Modulator DX-55V CB linear on sale
for \$250. The agents informed Arthur Dundorf and Preston Dundorf of
Paladen, that CB linears could not be legally sold. As a result of their
findings, the Detroit Office issued them a Citation on October 31, 2003.
The Citation informed Paladen of the violations and penalties that could
be imposed for selling linears. The Detroit Office received a reply from
Paladen, signed by Preston L. Dundorf, proprietor. He wrote that they
were unaware that they were violating marketing rules and that they
would not violate the rules in the future.

3\. On January 9, 2004, the Detroit Office received a complaint that
Paladen was continuing to violate the Commission's marketing rules by
selling CB linear amplifiers. As a result of this new report, an agent
traveled to North Jackson, Ohio to determine if Paladen was continuing
to sell CB linears. On February 24, 2004, a sales person for Paladen
offered to sell the agent a Palomar 100 watt linear amplifier for
\$124.00.

**III. DISCUSSION**

4\. Section 302 of the Act authorizes the Commission to regulate
equipment capable of emitting radio frequency energy that may cause
interference to radio communications. The Act further states that
"\[n\]o person shall manufacture, import, sell, offer for sale, or ship
devices or home electronic equipment and systems, or use devices, which
fail to comply with regulations promulgated pursuant to this section.
Section 2.815(b) of the Rules states that "...no person shall
manufacture, sell or lease, offer for sale or lease (including
advertising for sale or lease), or import, ship, or distribute for the
purpose of selling or leasing or offering for sale or lease, any
external radio frequency power amplifier or amplifier kit capable of
operation on any frequency or frequencies between 24 and 35 MHZ."[^3]
Section 2.815(c) of the rules states "No person shall manufacture, sell
or lease (including advertising for sale or lease) or import, ship or
distribute for the purpose of selling or leasing or offering for sale or
lease, any external radio frequency power amplifier or amplifier kit
capable of operation on any frequency or frequencies below 144 MHz
unless the amplifier has received a grant of type acceptance..." Paladen
was repeatedly warned, verbally and in writing, about the penalties for
selling CB linear amplifiers, yet, they continued to sell them in
violation of Section 302 of the Act[^4] and Sections 2.815(b) and
2.815(c) of the Rules.

5\. Based on the evidence before us, we find that Paladen willfully[^5]
and repeatedly[^6] violated Section 302 of the Act and Sections 2.815(b)
and 2.815(c) of the Rules by offering for sale CB linear amplifiers on
February 24, 2004. *The Commission's Forfeiture Policy Statement and
Amendment of Section 1.80 of the Rules to Incorporate the Forfeiture
Guidelines*, 12 FCC Rcd 17087, 17113 (1997), *recon. denied*, 15 FCC Rcd
303(1999) ("*Forfeiture Policy Statement*")[^7], sets the base
forfeiture amount for importation or marketing of unauthorized equipment
at seven thousand dollars (\$7,000). In assessing the monetary
forfeiture amount, we must take into account the statutory factors set
forth in Section 503(b)(2)(D) of the Act.[^8] These factors include the
nature, circumstances, extent, and gravity of the violation, and with
respect to the violator, the degree of culpability, any history of prior
offenses, ability to pay, and other such matters as justice may require.
Applying the *Forfeiture Policy Statement*, statutory factors and the
inflation adjustments to the base amount of Paladen's violation of
\$7,000 for marketing unauthorized equipment, we find no compelling
evidence to support any adjustments to the base forfeiture amount. Thus,
we believe that a forfeiture amount of seven thousand dollars (\$7,000)
is warranted.

**IV. ORDERING CLAUSES**

6\. Accordingly, IT IS ORDERED THAT, pursuant to Section 503(b)[^9] of
the Act and Sections 0.111, 0.311 and 1.80 of the Rules[^10], Paladen
Communications a/k/a CB Shop, is hereby NOTIFIED of this APPARENT
LIABILITY FOR A FORFEITURE in the amount of seven thousand dollars
(\$7,000) for willful and repeated violation of Section 302(b) of the
Act and Sections 2.815(b) and 2,815(c) of the Rules.

7\. IT IS FURTHER ORDERED THAT, pursuant to Section 1.80 of the Rules,
within thirty (30) days of the release date of this NOTICE OF APPARENT
LIABILITY, Paladen, SHALL PAY the full amount of the proposed forfeiture
or SHALL FILE a written statement seeking reduction or cancellation of
the proposed forfeiture.

8\. Payment of the forfeiture may be made by mailing a check or similar
instrument, payable to the order of the Federal Communications
Commission, to the Forfeiture Collection Section, Finance Branch,
Federal Communications Commission, P.O. Box 73482, Chicago, Illinois
60673-7482. The payment should note the NAL/Acct. No. 200432360003, FRN:
0010 6809 40.

9\. The response, if any, must be mailed to Federal Communications
Commission, Detroit Office, 24897 Hathaway Street, Farmington Hills, MI
48335-1552, and MUST INCLUDE THE NAL/Acct. No. 200432360003.

10\. The Commission will not consider reducing or canceling a forfeiture
in response to a claim of inability to pay unless the petitioner
submits: (1) federal tax returns for the most recent three-year period;
(2) financial statements prepared according to generally accepted
accounting practices ("GAAP"); or (3) some other reliable and objective
documentation that accurately reflects the petitioner's current
financial status. Any claim of inability to pay must specifically
identify the basis for the claim by reference to the financial
documentation submitted.

11\. Requests for payment of the full amount of this Notice of Apparent
Liability under an installment plan should be sent to: Chief, Revenue
and Receivables Operations Group, 445 12th Street, S.W., Washington,
D.C. 20554.[^11]

12\. Under the Small Business Paperwork Relief Act of 2002, Pub L. No.
107-198, 116 Stat. 729 (June 28, 2002), the FCC is engaged in a two-year
tracking process regarding the size of entities involved in forfeitures.
If you qualify as a small entity and if you wish to be treated as a
small entity for tracking purposes, please so certify to us within
thirty (30) days of this NAL, either in your response to the NAL or in a
separate filing to be sent to the Federal Communications Commission,
Enforcement Bureau, Spectrum Enforcement Division, 445 12th Street,
S.W., Washington, D.C. 20554. Your certification should indicate whether
you, including your parent entity and its subsidiaries, meet one of the
definitions set forth in the list provided by the FCC's Office of
Communications Business Opportunities (OCBO) set forth in Attachment A
of this Notice of Apparent Liability. This information will be used for
tracking purposes only. Your response or failure to respond to this
question will have no effect on your rights and responsibilities
pursuant to Section 503(b) of the Communications Act. If you have
questions regarding any of the information contained in Attachment A,
please contact OCBO at (202) 418-0990.

13\. IT IS FURTHER ORDERED THAT this NOTICE OF APPARENT LIABILITY shall
be sent by Certified Mail, Return Receipt Requested, to Paladen
Communications a/k/a CB Shop, 12274 Mahoning Avenue, Suite 14, North
Jackson, Ohio 44451.

FEDERAL COMMUNICATIONS COMMISSION

James A. Bridgewater

District Director

> Detroit Office

Attachment A - FCC List of Small Entities, October 2002.

[^1]: 47 U.S.C. § 302(b).

[^2]: ^?^ 47 C.F.R. §§ 2.815(b), and 2.815(c).

[^3]: Note: For purposes of this part, the amplifier will be deemed
    incapable of operation between 24 and 35 MHz if: (1) The amplifier
    has no more than 6 decibels of gain between 24 and 26 MHz and
    between 28 and 35 MHz. (This gain is determined by the ratio of the
    input driving signal (mean power measurement) to the mean RF output
    power of the amplifier.): and (2) The amplifier exhibits no
    amplification (0 decibels of gain) between 26 and 28 MHz.

[^4]: Citation issued to Paliden Communications d/b/a The CB Shop,
    October 31, 2003.

[^5]: Section 312(f)(1) of the Act, 47 U.S.C. § 312(f)(1), which applies
    to violations for which forfeitures are assessed under Section
    503(b) of the Act, provides that "\[t\]he term 'willful', when used
    with reference to the commission or omission of any act, means the
    conscious and deliberate commission or omission of such act,
    irrespective of any intent to violate any provision of this Act
    ...." *See California Broadcasting, Co.,* 6 FCC Rcd 4387 (1991).

[^6]: Section 312(f), which also applies to Section 503(b), of the Act,
    provides that: "\[t\]he term "repeated", when used with reference to
    the commission or omission of any act, means the commission or
    omission of such act more than once or, if such commission or
    omission is continuous, for more than one day."

[^7]: 47 C.F.R. § 1.80.

[^8]: 47 U.S.C. § 503(b)(2)(D).

[^9]: 47 U.S.C. § 503(b).

[^10]: 47 C.F.R. §§ 0.111, and 0.311.

[^11]: See 47 C.F.R. § 1.1914.