### In The Matter Of: 

### SERVED: August 22, 2016 U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF HEARINGS WASHINGTON, DC

DocketNo. FAA-2016-4264 BEM SYSTEMS, INC. ) ) 

### ) ) ) 

### ) 

### Case No. 2015NM730029 Respondent PREHEARING CONFERENCE REPORT On August 18, 2016, the undersignedjudgeheld 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. SubstantiveIssues a. The Respondent admits fault so the sole remaining issue is the amount ofa civil penalty, ifone is required. b. The Complainant alleges the Respondent to be a "business entity" for purposes of determining the appropriate sanctionrange for each alleged violation. 1


### c. The Respondent mustprovide evidence offinancial hardship (such as balance sheets, tax returns, or otherbusiness documents) ifthey wantthe undersignedjudge to find they have a financial inability to pay the amount ofthe 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 inNewark, NJ. That is the location most convenient to the Respondent; their two likely witnesses reside and work near

1See Department ofTransportation, FAA OrderNo. 2150.38, Appendix C-14; see also Atlas Frontiers, LLC, FAA OrderNo. 2010-10 at 6 (June 16, 2010) (describing the sanction range for entities that are alleged to have violated the hazardous material regulations). 2 See FrostadAtelier, Inc., FAA OrderNo. 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 undersignedjudge 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 Decisionby 

### October 1, 2016. 11. Any response shall be filed within 

### 30 days ofthe service ofthe motion. b. All discovery shall be exchanged and completedby 

### December 1, 2016. c. Complete witness and evidence lists shall be exchangedbythe parties and submitted to the undersignedjudge at least 30 

### days before the hearing. d. Any subpoenarequests shall be submitted to the undersignedjudge at least 30 

### days before the hearing. e. Eachparty shall provide the undersignedjudge a CD containing digital copies of premarked versions ofall proposed exhibits at least 30 

### days before the hearing. f. The parties may, during the course ofthe hearing, request the opportunity to submit posthearing briefs pursuantto 14 C.F.R. 

### § 13.231(c). 4. 

### HearingDate The parties agree to keep the week ofFebruary 27 

### to March 3, 2017 open for a possible hearing. 

### 5. Settlement The undersignedjudge 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 LawJudge

### 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 2W10003



### BEM Systems, Inc., Respondent 

### ATTN: MarkMurset, CFO 100 Passaic Avenue Chatham, NJ 07928 Glenn H. Brown, Complainant's Counsel 

### Enforcement Division; Western Team Federal Aviation Administration 222 West 7th Avenue Box 14 Anchorage, AK 99513-7587 TEL: **907~271-5271** 

### FAX: 907-271-2800 ONE COPY



### The Honorable Douglas M. Rawald,Administrative LawJudge 

### Office ofHearings, M-20 U.S. Department ofTransportation 1200NewJersey Avenue, S.E. (E11-310) Washington, DC 20590 TEL: 202-366-5121 StaffAssistant FAX: 202-366-7536 DocketNo. FAA-2016-4264 (Civil Penalty Action)

3 Service was byU.S. Mail. For service in person orby 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. ·