In The Matter Of: 

SERVED: August 22, 2016 

U.S. DEPARTMENT OF TRANSPORTATION 

OFFICE OF HEARINGS 

WASHINGTON, DC 

Docket No. FAA-2016-4264 

BEM SYSTEMS, INC. 

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Case No. 2015NM730029 

Respondent 

PREHEARING CONFERENCE REPORT 

On August 18, 2016, the undersigned judge held a prehearing conference in the above 

captioned case. Counsel for the Complainant and the pro se Respondent attended the conference 

telephonically to discuss the following: 

1. Substantive Issues 

a. The Respondent admits fault so the sole remaining issue is the amount of a civil 

penalty, if one is required. 

b. The Complainant alleges the Respondent to be a "business entity" for purposes of 

determining the appropriate sanction range for each alleged violation. 1 

c. The Respondent must provide evidence of financial hardship (such as balance sheets, 

tax returns, or other business documents) if they want the undersigned judge to find 

they have a financial inability to pay the amount of the FAA's assessed fine. 2 

2. Venue 

a. The Complainant requests the hearing be held in Anchorage, AK. Their sole intended 

witness resides and works in Anchorage and that is the location most convenient to 

the Complainant. 

b. The Respondent requests the hearing be held in Newark, NJ. That is the location 

most convenient to the Respondent; their two likely witnesses reside and work near 

1 See Department of Transportation, FAA Order No. 2150.38, Appendix C-14; see also Atlas Frontiers, LLC, FAA 

Order No. 2010-10 at 6 (June 16, 201 0) (describing the sanction range for entities that are alleged to have violated 

the hazardous material regulations). 2 See Frostad Atelier, Inc., FAA Order No. 2013-5 at 15 (Sep. 5, 2013) (citing Giuffrida, FAA Order No. 1992-72 

(Dec. 21, 1992)) (Respondent bears the burden to prove financial hardship). 
Newark. 

c. The undersigned judge will take this matter under advisement. 

3. Litigation Schedule 

The parties agree to the following litigation· schedule: 

a. Government Motion for Decision 

1. The Government shall file a Motion for Decision by October 1, 2016. 

11. Any response shall be filed within 30 days of the service of the motion. 

b. All discovery shall be exchanged and completed by December 1, 2016. 

c. Complete witness and evidence lists shall be exchanged by the parties and submitted 

to the undersigned judge at least 30 days before the hearing. 

d. Any subpoena requests shall be submitted to the undersigned judge at least 30 days 

before the hearing. 

e. Each party shall provide the undersigned judge a CD containing digital copies of 

premarked versions of all proposed exhibits at least 30 days before the hearing. 

f. The parties may, during the course of the hearing, request the opportunity to submit 

posthearing briefs pursuant to 14 C.F.R. § 13.231(c). 

4. Hearing Date 

The parties agree to keep the week of February 27 to March 3, 2017 open for a possible 

hearing. 

5. Settlement 

The undersigned judge encourages the parties to continue to discuss possible settlement .. The 

parties will hold an initial discussion on August 30 or 31, 2016. 

Pursuant to 14 C.F.R. § 13.205(a)(6) and§ 13.217(d), IT IS HEREBY ORDERED that the 

parties shall adhere to the litigation schedule described above ip. paragraph 3. 

Attachment: Service List 

-;::P~ DOUGLAS M. RAW ALD 

Administrative Law Judge 
SERVICE LIST - BY U.S. MAIL 

ORIGINAL & ONE COPY 

Federal Aviation Administration 

800 Independence Avenue, S.W. 

Washington, DC 20591 

Attention: Hearing Docket Clerk, AGC-430 

Wilbur Wright Building-Suite 2W1 0003 

BEM Systems, Inc., Respondent 

ATTN: Mark Murset, CFO 

100 Passaic A venue 

Chatham, NJ 07928 

Glenn H. Brown, Complainant's Counsel 

Enforcement Division; Western Team 

Federal Aviation Administration 

222 West 7th A venue Box 14 

Anchorage, AK 99513-7587 

TEL: 907~271-5271 

FAX: 907-271-2800 

ONE COPY 

The Honorable Douglas M. Rawald, Administrative Law Judge 

Office of Hearings, M-20 

U.S. Department of Transportation 

1200 New Jersey Avenue, S.E. (E11-310) 

Washington, DC 20590 

TEL: 202-366-5121 Staff Assistant 

FAX: 202-366-7536 

Docket No. FAA-2016-4264 

(Civil Penalty Action) 

3 Service was by U.S. Mail. For service in person or by expedited courier, use the following address: Federal 

Aviation Administration, 600 Independence Avenue, S.W., Wilbur Wright Building-Suite 2Wl000, Washington, 

DC 20591; Attention:· Hearing Docket Clerk, AGC-430. ·