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S OFFtC E O FHEARING S WASHINGTON , D.C . ,^ ^ .p p , j A 10 : 0 1 IN TH E MATTE RO F PRECISIO N DISPLAY S AN D TOOL S FA A DOCKE T NO . CP09AL000 8 (Civi l Penalty Action ) DM S NO . FAA-2009-073 3 FAA' S NOTIFICATIO N T O JUDG E R E PRECISIO N DISPLAYS ' COMPLIANC E WIT H ORDE RO N MITIGATIO N O FPENALTY . AN D MOTIO N FO RDECISIO N SETTIN G PENALT Y I . Introduction . Complainan t

Federa l Aviatio n Administratio n C'FAA") , throug h counsel , hereb y (1 ) notifie s th e judg e of

responden t

Precisio n Display s an dTools ' ("Precisio n Displays" ) complianc e with th e judge' s Orde r o n Mitigatio n o f

Penalt y serve dAugus t

24 , 201 0 ("Orde r

o n Mitigation") ; an d(2 ) move s th e judg e unde r 1 4 C.F.R . § 1.3.218(e)(5 ) fo r adecisio n orderin g Precisio n Display s t o pa y th e $20,00 0 civi l penalty a s th e FA A praye di n it s complaint . II . Background . O n Augus t

4 , 2010 , th e judg e grante dth e FAA' s Motio n fo r Decisio n o n Violation. ' Wit h that order , th e judg e deeme da ^ prove n thos e allegation s of th e complain t

whic h concerne d th e violation s (effectivel y summar y judgmen t establishing th e 1 8 regulator y violation s a s alleged) , an dlimite dth e Augus t 17 , 201 0 hearin g requeste db y Precisio n Display s t o th e prope r civi l penalty t o b e imposed. ^ Orde r Grantin g Motio n fo r

Decision , serve dAugu.s t 4 , 2010 . Md . at2-3 .Durin g th e hearing , th e FA A explaine dwhy th e $20,00 0 civi l penalt y i t praye dfo r

wa s appropriate . In s o doing , th e FA A addresse dal l relevan t factor s includin g th e circumstance s of th e violations , th e natur e of th e shippe dmaterial s an dth e hazard s the y posed , Precisio n Displays * culpability , an dth e penalt y guidanc e containe di n FA A Orde r 2150.3B . In response . Precisio n Display s owne r Rober t Persekia n mad e general , nonspecifi c effort s to plac e Precisio n Displays ' ability t o pay i n issu e b y speakin g generall y abou t th e health problem s both h e an dhi s 2 5 year ol ddaughte r

hav e .struggle dwith i n recen t year s an ddescribin g ho w thos e issue s an dth e recen t recessio n combine dt o decreas e Precisio n Displays ' busines s o f late . Beyon dMr . Pcrsekian' s testimony , a t th e hearin g Precisio n Display s presente dn o evidenc e o f it s financia l situatio n o r

abilit y t o pay . A s th e judg e noted," ' i t

i s arespondent' s burde n t o demonstrat e a n inabilit y t o pay . Hampto n Ai r

Services . FA A Orde r

No . 97-1 1 (February 19 , 1997 ; Matte r o f Gulffrida . FA A Orde r No . 92-7 2 (Decembe r

21,1992) . Nevertheless , durin g th e hearing , th e judg e directe d Precisio n Display s t o gather,certai n financia l informatio n an dprovid e i t t o th e FA A for

further revie w an dsuspende dth e hearin g pendin g tha t action . Th e resultin g Orde r o n Mitigatio n detaile dth e financia l informatio n tha t Precisio n Display s wa s t o provide , an ddirecte dth e FA A t o infor mth e judg e "whethe r

Responden t

ha s complie dwith thi s Order."' * n i . Notificatio n Regardin g Precisio n Displays ' Compliance .

• Tr . 4 3 ("An dit' s incumben t upo n yo u t o demonstrat e t o th e Cour t that yo u canno t

affor dto pay whateve r i t i s Mr . Blac k

i s askin g for.") . ' * Orde r o n Mitigatio n at

2 . Precisio n Display s an dTool s DM S No , FAA-2009'097 6 FAA' s Notificatio n t o Judg e R e Precisio n Displays ' Complianc e y^it h Orde r o n Mitisatio n o f

Penalty , an dMotio n fo r

Decisio n Settin g Penalt y p 2A s aresul t o f th e Orde r

o n Mitigation , th e FA A receive dalarg e bo x o f financial record s fro mPrecisio n Display s o n Septembe r 2 , 2010."' * It

containe dfour

larg e bundle s o

f documents , on e eac h for

2007 , 2008 , 2009 , an d201 0 (throug h Jun e 30) . Th e bo x containe dsome , bu t not all , of th e informatio n tha t

th e judg e directe dPrecisio n Display s t o provide , to additio n t o bein g unsorte dan dgenerall y disorganized , very fe w o f th e document s provide db y Precisio n Display s ar e complete . I n particular , nearl y al l o f th e banking , lin e o f credit , an dcredi t

car dstatement s appear

t o hav e bee n printe db y th e financial institution s o n tw o sides . Bu t

i n providin g thos e statements , Precisio n Display s copie donl y on e side , significantl y diminishin g th e statements ' utility an dsuggestin g actua l contemp t for th e judge' s direction , Fo r

example , fo r

atypica l 7 pag e statement . Precisio n Display s almos t uniforml y provide donl y page s 1 , 3 , 5 , an d7 , forcin g th e FA A t o gues s wha t wa s o n page s 2 , 4 , an d6 , thereb y underminin g th e judge' s order . Moreover , it appear s that

Precisio n Display s ha. s no t produce dinformatio n o n al l o f th e accoimt s imder

it s control . An dman y statement s fo r thos e account s it

ha s disclose dar e missing , a s detaile dbelow . Th e FA A i s prepare dt o elaborat e shoul dth e judg e findthes e practice s materia l t o th e issue s tha t remai n i n thi s matter . A . Wha t

Precisio n Display s Disclosed . In it s Orde r

o n Mitigation , th e judg e directe dth e FA A t o provid e notic e o f what Precisio n Display s provide dpursuan t t o th e order . Th e followin g i s acatalo g o f everythin g that

Precisio n Display s provide dfollowin g th e order .

1 . 2007 . Th e FA A receive dth e followin g fro mPrecisio n Display s fo r yea r 2007 :

^ Ex . P . Precisio n Display s an dTool s DM S No . FAA'2009-097 6 FAA' s Notificatio n t o Judg e Re Precisio n Displays ' Complianc e wit h Orde r o n Mitisatio n o f

Penalty , an dMotio n fo r

Decisio n Settin g Penalt y pag e 3year-en dbalanc e shee t for Mayolo . Inc. ; year-en dprofi t

an dlos s shee t

fo r Mayolo , Inc. ; federal an dstat e tax return s for Mayolo , Inc. , identifie da s an S corporation ; federal an dstat e ta x return s fo r Robert Persekia n an dhi s wif

e Mari aValencia ; monthl y statement s fo r

te n credi t

cards : o Ame x Busines s Platinu mCar dfor "Robert Persekian , Precisio n Jewerl y TL";* ^ o Ame x Blue fo r

Busines s fo r

"Rober t Persekian , Precisio n Displays " (no t November) ; o Bof A Platinu mPlu s fo

r Busines s for

"Mari aValencia " (no t

January o r November) ; o Bof A Vis afor

"Robert J , Persekian " an d"Daa dPersekian" ; o Capito l On e Vis aBusines. ? Car dfo r "Mari aV . Baraja.s " of

"Mayol o Inc . DB A Traderi t Market " (no t

October-December) ; o Chas e Southwes t

Airline s Rapi dReward s Vis afor "Rober t Persekian" ; o Citi Platinu mSelec t

Car dfo r "Rober t Persekian" ; o Discove r

Platiniu n Cardfor

"Robert Persekian " (January-Apri l only) ; o Hom e Depo t

Car dfo r "Rober t Persekian" ; an d o Prudentia l Financia l FI A Car dService s fo r "Mari aB Valencia' * an d"Regin o Barajas" ; monthl y statement s for

thre e line s o f

credit : o Bof A Commercia l Loan t o "Mayol o In c DBA Trad e Rit e Market " (no t January , May , o r

December) ; o Bof A Premiu mCreditLin e t o "Rober t J . Persekia n DB A Precisio n Boxe s Displays " (no t

July) ; an d o WaM u Busines s Lin e o f Credi t t o "Mari aValenci aBaraja s DB A Precisio n Jewelry Displays " (no t

Augus t o r December) ; an d monthl y statement s fo r

seve n ban k

accounts : o Bof A busines s checkin g accoun t for "Rober t J . Persekian , Precisio n Displays" ; o Bof A busines s checkin g accoun t fo r "Mayolo , Inc . DBA Trad e Rit e Market " (no t January) ; /'Sic . Precisio n Display s an dTool s DM S No . FAA-2009-097 6 FA A s Notificatio n t o Judg e Re Precisio n Displays ' Complianc e ^''•f h Orde r o n Mitisatio n o f

Penalty , an dMotio n fo r

Decisio n Settin g Penalt y p^^ ^ ^I r-iv-*i

_u<-» /

UJ<*xcj^z.cjx u xa-J ^ J U f Z . f X Z.OtJ U

o WaM u busines s checkin g accoun t fo r "Mari aValenci aBaraja s DBA Precisio n Jewerl y Displays , Tools , Boxe s an dSupplies " (no t January-June) ; o WaM u busines s checkin g accoun t fo r "Mayolo , Inc . DBA Precisio n Display s an dShowcases' " (July-October only) ; o 2 WaM u busines s checkin g account s fo r "Mayolo , Inc . DBA Precisio n Display s an dTools " (both lac k January-June , on e als o lack s November

December ) o WaM u busines s mone y marke t accoun t for "Mari aValenci aBaraja s an d Rober t Joh n Persekian , Precisio n Jewelr y Display s Tool s Boxes " (August

Decembe r

only) . 2 . 200S . Th e FA A receive dth e followin g fro mPrecisio n Display s fo r 2008 : • year-en dbalanc e .shee t for Mayolo , Inc. ; • year-en dprofi t

an dlos s shee t

fo r Mayolo , Inc. ; • federal an dstat e tax return s for Mayolo , Inc. , identifie da s a n S corporation ; • federal an dstat e ta x return s fo r Rober t Persekia n an dhi s wif

e Mari aValencia ; • monthl y statement s for fifteen credi t

cards : o Ame x Busines s Platinu mCar dfor "Rober t J . Persekian , Precisio n Jewerl y TL"; ' o Ame x Blu e for

Busines s fo r

"Robert Persekian , Precisio n Displays " (no t July

December) ; o Ame x Costc o Busines s Car dfo r "Mari aValencia , Trad e Rite " (November, Decembe r

only) ; o Bof A Platinu mPlu s for

Busines s for

"Mari aValencia " (no t

January) ; o Bof A Vis afo r

"Robert J . Persekian " an d"Daa dPersekian " (no t April , August , o r

September) ; o Barclay s U S Airway s Dividen dMile s fo r "Mari aV . Barajas , Precisio n Displays " (August-Decembe r only) ; o Barclay s U S Airway s Dividen dMile s fo r "Robert.! , Persekian , Precisio n Displays' * (August-Decembe r only) ; o Chas e Southwes t

Airline s Rapi dReward s Vis afor "Robert Persekian" ; o Cit i Platinu mSelec t

Car dfo r "Robert Persekian " (no t

April) ; ^Sic . Precisio n Display s an dTool s DM S No . FAA-2009-097 6 FAA' s Notificatio n t o Judg e R e Precisio n Displays ' Complianc e wit h Orde r o n Mil l natio n o f

Penalty , an dMotio n fo r

Decisio n Settin g Penalt y Pag e 5CJj yXU / Z.UX U xo . o* ^ I i-ir- 1 _J U f , ^

f X ^uo u

o Cit i Advantag e Wori dMasterCar dfor "Mari aValencia " (July-Decembe r only) ; o Discove r

Platinu mCar dfo r

"Rober t Persekian " (August-Decembe r only) ; o Hom e Depo t

Car dfor "Robert Persekian" ; o Hom e Depo t

Car dfor unidentifie ddebto r

(August-Decembe r

only) ; o Prudentia l Financia l FT A Car dService s fo r

"Mari aB Valencia " an d"Regin o Barajas" ; an d o WaM u credi t

car dfo r "Mari aBarajas " (Decembe r only) ; • monthl y statement s for thre e line s o f

credit : o Bof A Commercia l Loa n t o "Mayol o In c DBA Trad e Rit e Market" ; o Bof A Premiu mCreditLin e t o "Rober t J , Persekia n DB A Precisio n Boxe s Displays " (no t

April) ; an d o WaM u Busines s Lin e o f Credi t t o "Mari aValenci aBaraja s DB A Precisio n Jewelr y Displays " (no t

Marc h o r

May) ; an d • monthl y statement s for te n ban k accounts : o Bof A busines s checkin g accoun t fo r "Rober t J . Persekian , Precisio n Displays" ; o Bof A busines s checkin g accoun t fo r "Mayolo , Inc , DBA Trad e Rit e Market " ; o WaM u busines s checkin g accoun t fo r "Mari aValenci aBaraja s DB A Precisio n Jewerl y Displays , Tools , Boxe s an dSupplies " o 2 WaM u busines s checkin g account s fo r "Mayolo , Inc, DB A Precisio n Display s an dShowcases " (February-Apri l only) ; o 2 WaM u busines s checkin g account s fo r "Mayolo , Inc . DBA Precisio n Display s an dTools " (January-Apri l only) ; o WaM u checkin g accoun t for "Mari aValenci aBarajas " (April , May , July , October-Decembe r

only ) ("Robert

J . Persekian " adde dt o accoun t in July) ; o WaM u Certificat e of

Deposi t accoun t fo r "Mayol o Inc. " (Ma y only) ; an d o WaM u busines s mone y marke t accoun t for "Mari aValenci aBaraja s an d Robert Joh n Persekian , Precisio n Jewelr y Display s Tool s Boxes " .

. 3 , 2009 . Th e FA A receive dth e followin g fro mPrecisio n Display s fo r 2009 : • year-en dbalanc e shee t fo r Mayolo , Inc. ; • year-en dprofi t

an dlos s shee t

for Mayolo , Inc. ; Precisio n Display s an dTool s DM S No . FAA-2009-097 6 FA A ^ s Notificatio n t o Judg e R e Precisio n Displays ' Complianc e wit h Orde r o n Mitigatio n o f

Penalty , an dMotio n fo r

Decisio n Settin g Penalt y P^g e 6R Sic , federal an dstat e tax return s for Mayolo , Inc. , identifie da s a n S corporation ; federal an dstat e tax return s for Robert Persekia n an dbi s wif

e Mari aValencia ; montlil y statement s fo r

fiftee n credi t

cards : o Ame x Busines s Platinu mCar dfor "Rober t J . Persekian , Precisio n Jeweri y TL" * (January-Apri l only) ; o Ame x Costc o Busines s Car dfor "Mari aValencia , Trad e Rite " (January-Jun e only) ; o Bof A Platinu mPlu s for

Busines s for

"Mari aValencia" ; o Bof A Vis afor

"Rober t J . Persekian " an d"Daa dPersekian" ; o Barclay s U S Airway s Dividen dMile s fo x "Mari aV . Barajas , Precisio n Display.s " (No t

January) ; o Barclay s U S Airway s Dividen dMile s for "Rober t J . Persekian , Precisio n Displays" ; o Capito l On e Vis aBusines s Car dfo r "Mari aV . Barajas " o f

"Mayol o Inc . DB A Traderi t Market " (no t

August) ; o Chas e Southwes t

Airline s Rapi dReward s Vis afor "Robert Persekian" ; o Cit i Platinu mSelec t

Car dfor "Rober t Persekian" ; o Citi Advantag e Worl dMasterCar dfor "Mari aValencia" ;

, o Discove r

Mor e Car dfor

"Rober t Persekian" ; o Hom e Depo t

Car dfo r "Rober t Persekian" ; o Hom e Depo t

Car dfor "Mari aValencia" ; o Prudentia l Financia l FI A Car dService s for "Mari aB Valencia " an d"Regin o Barajas" ; an d o WaM u credi t

car dfor "Mari aBarajas " (Decembe r only) ; • monthl y statement s fo r thre e line s o f

credit ; o Bof A Commercia l Loan t o "Mayol o In c DB A Trad e Rit e Market " (January-Jun e only) , with deman dlette r date dJun e IS ; o Bof A Premiu mCreditLin e t o "Robert J . Persekia n DB A decisio n Boxe s Displays " (no t

August-December) ; an d o WaM u Busines s Lin e o f Credi t t o "Mari aValenci aBaraja s DB A Precisio n Jewelr y Displays " (no t

July) ; an d

• monthl y statement s fo r si x ban k accounts :

Precisio n Display s an dTo_ol s DM S No . FAA-2009-097 6 FAA' s Notificatio n t o Judg e Re Precisio n Di.tplays ' Complianc e wit h Orde r o n Mitisatio n o f

Penalty , an dMotio n fo r

Decisio n Settin g Penalt y Pag e 7U_»4j.u^.^t_'Xt J x-J.-j- r _ji ^ r^. . I X ^v_>\-)\.. ^

o Bof A busines s checkin g accoun t fo r "Robert J . Persekian , Precisio n Displays " (January-Apri l only) ; o Bof A busines s checkin g accoun t fo r "Mayolo , Inc . DB A Trad e Rit e Market " (January-Ma y only) ; o WaM u busines s checkin g accoun t fo r "Mari aValenci aBaraja s DB A Precisio n Jewerl y Displays . Tools , Boxe s an dSupplies " (becam e Chas e accoun t i n April) ; o 2 WaM u busines s checkin g account s for "Mayolo , Inc . DBA Precisio n Display. ^ an dShowcases " (becam e Chas e account s i n April) ; an d o WaM u checkin g accoun t for "Mari aValenci aBaraja s an dRobert J . Persekian " (becam e Chas e accoun t i n April) . 4 . 2010 . Th e FA A receive dth e followin g fro mPrecisio n Display s for 2010 : • Januar y l-Jun e 3 0 balanc e shee t for Mayolo , Inc. ; • Januar y 1 -Jun e 3 0 profi t an dlos s shee t

fo r Mayolo , Inc. ; • monthl y statement s for thirtee n credi t

cards : o Bof A Platinu mPlu s for

Busines s for

"Mari aValencia " (no t

January) ; o Bof A Vis afor

"Robert . J . Persekian " an d"Daa dPersekian" ; o Barclay s U S Airway s Dividen dMile s for "Mari aV . Barajas , Precisio n Displays" ; o Barclay s U S Airway s Dividen dMile s for "Robert J . Persekian , Precisio n Displays" ; o Capito l On e Vis aBusines s Car dfo r "Mari aV . Barajas " o f

"Mayol o Inc , DB A Traderi t Market" ; o Chas e Southwes t

Airline s Rapi dReward s Vis afor "Robert Persekian" ; o Chas e MasterCar dfo r unidentifie ddebtor ; o Cit i Platinu mSelec t

Car dfor "Rober t Persekian " (no t

January) ; o Cit i Advantag e Worl dMa'jterCar dfor "Mari aValencia' ; o Discove r

Mor e Car dfo r

"Rober t Persekian" ; o Hom e Depo t

Cardfor "Rober t Persekian" ; o Hom e Depo t

Car dfo r "Mari aValencia" ; an d o Paidentia l Financia l FI A Car dService s for "Mari aB Valencia " an d"Regin o Barajas" ; Precisio n Display s an dTool s DM S No . FAA-2009-097 6 FA A '. s Notificatio n t o Judg e R e Precisio n Displays ' Complianc e wit h Orde r o n Mitisatio n o f

Penalty , an dMotion fo r

Decisio n Settin g Penalt y pag e 8• monthl y statement s for on e lin e o f

credit : o Chas e Busines s Lin e o f Credi t fo r "Mari aValenci aBarajas" ; an d

• monthl y statement s for four ban k accounts : o Chas e checkin g accoun t for "Mari aValenci aBaraja s DB A Precisio n Jeweri y Displays , Tools , Boxe s an dSupplies" ; o 2 Chas e checkin g account s fo r "Mayolo , Inc . DBA Precisio n Display s an d Showcases" ; an d o Chas e checkin g accoun t for "Mari aValenci aBaraja s an dRober t J . Persekian" . B . Wha t

Precisio n Displav s Faile dt o Provide . Th e followin g i s adiscussio n o f wha t th e judge , throug h th e Orde r o n Mitigation , ordere d Precisio n Display s t o provide , an dwha t Precisio n Display s actuall y provided . 1 . "Tax return s fo r

2007 , 200 8 an d200 9 fo r Precisio n Display s an dTool s an dRober t

Persekian , individually " Precisio n Tool s provide dth e ta x return s a s directed , 2 . "Copie s o f

th e mos t recen t credi t car dstatement s fo r

al l credi t

card s i n th e name s o f

Precisio n Display s an dTool s and/o r Robert Persekian , individually " Precisio n Tool s provide dnumerou s credi t car dstatements , a s note dabove . However , som e car dstatement s appear suddenl y with prio r

balances , whil e othe r

statement s abruptl y sto p o n card s tha t

carr y abalance . Nearl y al l o f th e statement s ar e onl y partiall y copied : mos t statement s appea r

t o hav e bee n printe do n tw o sides , but onl y on e sid e wa s copie dt o th e FAA . O n som e o f

th e cards , th e debto r

i s unidentified . Othe r

card s appear

t o b e for businesses , particularl y Mayol o Inc. , o r fo r individuals , suc h a s Regin o Baraja s an dDaa dPersekian , with n o know n relationshi p t o Precisio n Displays .

Precisio n Display s an dTool s DM S No . FAA-2009-097 6 FAA' s Notificatio n t o Judg e Re Precisio n Displays ' Complianc e wit h Orde r o n Mitigatio n o f

Penalty , an dMotio n fo r

Decisio n Settin g Penalt y Pag e 91 I-IVJI . X X / X u

3 . "Annua l credi t

car dstatement s fo r

2007 , 200 8 an d200 9 fo r Precisio n Display s an dTool s an dRober t Persekian , individually " Non e provided . 4 , "Profit

an dLos s statemen t

fo r Preciiio n Display s an dTool s fo r th e first si x (6 ) month s o f

calenda r 2010 " No t provided . Precisio n Display s di dproduc e aprofi t an dlos s statemen t

fo r th e requeste dperio dfo

r Mayolo , Inc. , whic h appear s t o b e aparen t company t o Precisio n Displays . However , judgin g fro mth e disclose dfmancial ixrformation , Mayol o Inc . appear s t o hav e unknow n relationship. s t o numerou s othe r businesses , including : Precisio n Boxe s Displays ; Precisio n Display s an dShowcases ; Precisio n Display s an dTools ; Precisio n Jewelry Displays ; Precisio n Jewelr y Display s Tool s Boxes ; Precisio n Jewerl y Displays , Tools , Boxe s an dSupplies ; Precisio n Jewerly ' TL ; Trad e Rite ; Trad e Rit e Market ; an d Traderi t Marke t 5 . "Copie s o f

an y outstandin g judgment s agains t Precisio n Display s an d Tool s and/o r

Rober t Persekian . individuall y " Non e provided . 6 . "An

y othe r informatio n Responden t

deem s relevan t

t o it s praye r

fo r mitigatio n "

9 Sic . Precisio n Display s an dTool s DM S No . FAA'2009-097 6 FAA' s Notificatio n t o Judg e Re Precisio n Displays ' Complianc e wit h Orde r on Mitisatio n o f

Penalty , an dMotio n fo r

Decisio n Settin g Penalt y Pag e 1 0LVJ / ,^VJX*- ' X - J • —*~ T

Non e provided . Beyon dth e item s identifie di n subsectio n A above , an dsom e loos e copyin g receipt s apparentl y generate di n respons e t o th e judge' s order , Mayol o provide dnothing . Notably , i t

di dno t provid e an inde x o f

th e disclose drecord s o r

an y explanatio n a s t o wh y the y suppor t Precisio n Displays ' claime dinability t o pay th e propose dpenalty . IV . Th e Judg e Shoul dFin dtha t Precisio n Display s Ha s Faile dt o Demonstrat e a n Inabilit y t o Pa y an dOrde r Precisio n Display s t o Pa y a$20,00 0 Penalt y a s th e FA A Requests . Thi s cas e ha s gon e o n lon g enough . Precisio n Display s ha s ha dampl e opportunity t o prov e it s claime dinability t o pa y an dha s faile dt o d o so . Moreover , despit e th e cour t generousl y agreein g t o suspen dth e hearin g t o giv e Precisio n Display s additional tim e t o support it s claime d inabilit y t o pay , al l Precisio n Display s ha s don e i s mak e half-hearte dcopie s o f som e tangcntially-relevan t

financial record s an dmaile dthe mto th e FAA . Undersigne dcounse l ha s reviewe dal l o f th e record s disclose db y Precisio n Di-splay s an d see s n o reaso n t o believ e Precisio n Display s canno t pa y th e penalt y a s proposed . Indeed , th e record s docvtment

abusines s an dlifestyl e o f hig h spendin g combine dwith a n ability t o convinc e majo r financia l institution s t o gran t tremendou s credi t

t o Precisio n Display s an dit s associate d individual s an dentities . Precisio n Display s appear s t o b e shieldin g significan t informatio n fro mthi s proceeding . I n additio n t o failin g t o mak e decen t copies o f mos t everything , account s com e an dg o withou t explanation . Furthermore , ther e i s evidenc e that significan t

asset s may b e bein g shielde dfro m view . Fo r

instance , sinc e a

t leas t Decembe r

2008 , aWashingto n Mutua l (no w Chase ) checkin g accoun t unde r Mr . Persekian' s nam e ha s bee n use dt o wir e ove r ahal f amillio n dollar s t o unknow n accounts . Thos e accoimt s includ e on e that , accordin g t o th e statements , i s a Precisio n Display s an dTool s DM S No . FAA-2009-097 6 FAA' s Notificatio n t o Judg e Re Precisio n Displays ' Complianc e wit h Orde r o n Mitisatio n o f

Penalty , an dMotio n fo r

Decisio n Settin g Penalt y Pag e 1 1"Precision s Displays " accoun t with th e Mexico-base dfinancial institutio n Cas e D e Bolsa . Precisio n Display s ha s produce dn o informatio n regardin g tha t account , an di t

doesn' t appea r o n an y o f Precisio n Displays ' profi t an dloss , balanc e sheets , or ta x returns . Simpl y put , it' s unclea r wher e thes e fund s wen t

o r fo r what purpose." ^ A s note dabove , i t

i s Precisio n Display s obligatio n t o demonstrat e an inabilit y t o pay . I n thi s case , it

ha s no t don e so . Th e judg e shoul drecogniz e thi s failur e and , after allowin g Precisio n Display s an dopportunit y t o respon dt o thi s motion , rul e on th e requeste dpenalty . I n th e alternative , th e judg e shoul dreconven e th e hearin g t o resolv e whateve r issue s remai n regardin g th e penalt y t o b e imposed , V . Conclusion . Fo r th e foregoin g reason s an dth e reasoa s addresse ddurin g th e hearing , th e judg e shoul d conclud e thi s matte r

b y orderin g Precisio n Display s t o pay th e requeste d$20,00 0 civi l penalty i n thi s matter . Failin g that , th e judg e shoul dreconven e th e hearin g t o resolv e th e outstandin g questio n o f

th e amoun t

o f penalt y t o b e ordered , DATE D thi s f O "^a y of September , 2010 .

HOWAR D L . MARTIN , JR , Regiona l Ci^wnse

l

if f Attorne y

' ° T o protec t

Precisio n Displays ' reasonabl e interes t i n keepin g it s financia l record s private , th e FA A ha s not

attache dany financia l record s t o thi s pleading . Nevertheless , i t stand s b y it s characterizatio n o f

al l th e record s described , an di s committe dt o providin g the mwith whateve r protection s th e judg e deem s fit . i n camer ao r otherwise . Precisio n Display s an dTool s DM S No . FAA-2009-097 6 FAA' s Notificatio n t o Judg e R e Precisio n Displays ' Complianc e wit h Orde r o n Mitigatio n o f

Penalty , an dMotio n fo r

Decisio n Settin g Penalt y Rag e 1 2I ^ ^.X^KJK .

CERTIFICAT E O FSERVIC E

Re : Precisio n Display s an dTool s FA A Docke t

No . CP09AL000 8 DM S No . FAA-2009-073 3 I HEREB Y CERTIF Y tha t o n thi s dat e I hav e serve dacop y o f th e foregoin g b y postage-prepai d mail , facsimile , an demai l to : Th e Honorabl e Richar dC . Goodwi n Administrativ e La w Judg e Offic e o f Hearings , M-2 0 U.S . Departmen t

o f Transportatio n 12(X ) Ne w Jerse y Avenue , S.E . Eas t Buildin g Groun dFloor , Roo mE12-32 0 Washington , D C 2059 0 Fax : (202 ) 366-753 6 Email : Richard.Goodwin@dot.go v I HEREB Y FURTHE RCERTIF Y tha t o n thi s dat e I hav e sei-ved(1 ) th e origina l an dtw o copies o f th e foregoin g b y postage-prepai dmail , an d(2 ) th e origina l o f th e foregoin g b y facsimil e to : Federa l Aviatio n Administratio n ATTN : Docke t

Clerk , AGC-43 0 Wilbu r Wrigh t Buildin g - Suit e 2W100 0 80 0 Independenc e Avenue , S W Washington , D C 2059 1 FAX : (202 ) 493-502 0 I HEREB Y FURTHE RCERTIF Y tha t o n thi s dat e 1 hav e serve don e cop y o f th e foregoin g b y postage-prepai dfirst-class mai l to : Robert Persekia n Precisio n Display s an dTool s 155 5 Alu mRoc k

Avenue , Suit e 2 0 Sa n Jo.se , C A 9511 6

DATED : ..^^Jlp^ . /^ ^ /2^/ ^

Precisio n Display s an dTool s DM S No . FAA-2009-097 6 FAA' s Notificatio n t o Judg e Re Precisio n Displays ' Complianc e wit h Orde r o n Mitisatio n o f

Penalty , an dMotio n fo r

Decisio n Settin g Penalt y p^g ^ j ^Federa l Aviatio n Administratio n Offic e o f Regiona l Counse l 22 2 Wes t 7ti h Avenue , Bo x 14 , AAL- 7 Anchorage , A K

99513-738 7

Precisio n Display s an dToot s DM S No . FAA-2009-097 6 FAA' s Notificatio n t o Judg e R e Precisio n Displays ' Complianc e wit h Orde r o n Mitisatio n o f

Penalty , an dMotio n fo r

Decisio n Settin g Peruilt

y pag e 1 4

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