09/17/201 0 1G:1 7 FA X 202493514 2 FA A + DMS @1001/01 5

UNITED STATKS DEPARTMENT O F TRANSPORTATIO N

OFFIC E O F HEARING S WASHINGTON , D.C . I N THE MATTERO F PRECISIO N DISPLAY S AND TOOL S FA A DOCKE T NO . CPO9AL0O0 8 (Civi l Penalt

y Action ) DM S NO . FAA-2009-073 3 

### .HEPARTMEN T O F inAMSPORWIO N •i^AhlOPERATiON S



### T M

FAA' S NOTIFICATIO N T O .lUDG E R E PRECISIO N DISPLAYS ' COMPLIANC E WIT H ORDERO N MITIGATIO N O F PENALTY . AND MOTIO N FO RDECISIO N SETTIN G PENALT Y I . Introduction . Complaindn t

Federal Aviatio n Adniinisiratio n ("FAA") , throug h counsel , hereb y (1 ) notifie s th e judg e o

f responden t

Precisio n Display s andTools ' ("Precisio n Displays" ) complianc e wit

h th e judge' s Orde r

o n Mitigatio n o

f Penalty serve dAugus t

24 , 201 0 ("Orde r

on Mitigation") ; an d(2 ) move s th e judg e under 1 4 C.F.R . § 13.218(e)(5 ) fo r adecisio n orderin g Precisio n Display- S t

o pay th e $20,00 0 civi l penalt y a s the FAA praye di n U

s complaint . II . Background . O n Augus t

4 , 2010 . th e judg e grante dth e FAA'. s Motio n for Decisio n o n Violation. ' Wit h lliii t order , the judg e deeme da s 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

establishin g th e 1 8 regulatory violation s as 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 penalt

y t o b e imposed. ^ Orde r Grantin g Motio n for

Decision , serve dAugus t

4 , 2010 . Id . a t 2-3 .09/17/201 0 1G:1 7 FAX 202483514 2 FA A * DM S §1002/01 5

Durin g th e hearing , th e FAA explaine dwh y th e $20,00 0 civi l penalty i t praye dfo r wa s appropriate . In s o doing , th e FAA addresse dall relevan t factor s includin g th e circumstance s o f th e violations , th e natur e o f th e shippe dmaterial s andth e ha7.ard s the y po.sed . Precisio n Displays ' culpability , an dth e penalty guidanc e containe di n F/\ A Orde r

2150.3B , I

n response . Precisio n Display s owne r Robei t Pcrsckian mad e general , nonspecifi c effort s t o plac e Precisio n Displays ' abilit

y to pay in issu e b y speakin g generall y abou t th e healt h problem s bot

h h e an dhi s 2 5 yea r olddaughte r

hav e stniggle dwit

h i n recen t year s anddescribin g ho w thos e issue s an dth e recen t recessio n combine dto decreas e Precisio n Displays ' busines s o f late . Beyon dM:r

. Persckian' s testimony , at

th e hearin g Precisio n Display s presente dn o evidenc e o f it s financial situatio n o r

ability t o pay . A s th e judg e noted, ' it

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

Service.s . FA A Orde r

No . 97-1 1 (February 19 , 1997 ; Matter o f Guiffrida . FA

A Orde r No . 92-7 2 (Decembe r

21 , 1992) . Nevertheles.? . durin g th e hearing , th e judg e directe d Precisio n Display s t o gather,certai n financia l informatio n andprovid e it t o th e FA A fo

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

Responden t

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

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

affor dt o pa y whatever i t i s Mr . Blac k

i s askin g for.") . Orde r o n Mitigatio n a

t 2 . Precisio n Display s an dTool s DM S No . FAA-2009-097 6 FAA' s Notificaiio n to Judg e R e Precisio n Displays ' Complianc e wit h Orde r on Mitiealio n o f

Penally , an dMotio n fo r

Decisio n Seirin} ^ Penalty Pa^j e 209/17/201 0 16:1 7 FAX 202493514 2 FA A * DM S @1003/01 5

As aicsul i o

f th e Orde r

o n Mitigation , th e FAA receive dalarg e bo x o f financial record s fro mPrecisio n Display s o n Septembe r 2 , 2010. ^ I

t containe dfou

r larg e bundle s o f

documents , on e eac h fo

r 2007 , 2008 . 2009 , an d201 0 (tliroug h Jun e 30) . Th e bo x containe dsome , but no t all , of th e informatio n tha

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

car dstatement s appea

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

in providin g tho.s e statements . Precisio n Display s copie donl y on e side , significantl y diminishin g th e statements ' utility an dsuggestin g actual contemp t fo r th e judge' s direction . Fo r

example , for

atypical 7 pag e statement , Precisio n Display s almos t uniforml y provide donl y page s 1 , 3 , 5 , an d7 . forcin g di e FA A to gues s wha t wa s on page s 2 , 4 , and6 , thereb y underminin g th e judge' s order . Moreover , i t appear s tha

t Precisio n Display s ha s no t produce dinformatio n o n all of th e account s unde r

it s control . An dman y statement s for thos e account s i t ha s disclose dar e mi.ssing . a s detaile dbelow . Th e FAA i s prepare dt o elaborat e shoul dth e judg e findthes e practice s material t o th e issue s tha t remai n i n thi s matter . A . WTia

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 wha t Precisio n Display s provide dpursuan t to th e order . Th e followin g i s acatalo g o f everythin g tha

t Precisio n Display s provide dfollowin g th e order .

1 . 2007 . Th e FAA 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 to Judg e R e Precisio n Displays ' Complianc e wit h Orde r on Miti natio n o f

Penalty , an dMotio n fo r

Decisio n Settin g Penalty Paf^ e 309/17/201 0 16:1 7 FA X 202493514 2 FA A * OM S E|004/01 5

6 c Sic . year-en dbalanc e shee t fo r Mayolo , Inc. ; year-en dprofi t

an dlos s shee t

fo r Mayolo , Inc. ; federa l an dstat e ta x return s fo r Mayolo , Inc. , identifie da s a n S corporation ; federa l an dstat e tax return s fo r Rober t Persckia 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 dfo r "Rober t Persekian , Precisio n Jewerl y TL"; * o Ame x Blu e fo r

Busines s fo r

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

Busines s fo r

"Mari aValencia " (no t

Januar y o r November) ; o Bof A Vis afo r

"Rober t J . Persekian " an d"Daa dPersekian" ; 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

October-December) ; o Chas e Southwes t

Airline s Rapi dReward s Vis afo r "Rober t Persckian" ; o Cit i Platinu mSelec t Car dfo r "Rober t Persekian" ; o Discove r

Platinu mCar dfo r

"Rober t 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 fo r

thre e line s o f

credit : o Bof A Commercia l Loa n t o "Mayol o In c DB A Trad e Rit e Market " (no t January . May , o r

December) ; o Bof A Premiu mCreditLin e l 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 Jewelr y 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 fo r "Rober t J . Persekian . Precisio n Displays" ; o Bof A busines s checkin g accoun t fo r "Mayolo , Inc . DB A Trad e Rit e Market " (no t January) ;

Precisio n Disr>lc man dTool s DM S No . FAA-2009-097 6 FAA' s Notificatio n t o Judf^ e R e Precisio n Di.'iplays ' Complianc e with Orde r

o n Mitiaatio n ofPetuilty . an dMotio n fo r Decisio n Settin g Penalt y Pag e 409/17/201 0 16:1 7 FAX 202493514 2 FA A + DMS @1005/01 5

o WaM u busines s checkin g accouii l fo r "Mari aValenci aBaraja s DB A 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 . DB A Precisio n Display s an dShowcases " (July-Octobe r only) ; o 2 WaM

u busines s checkin g account s for "Mayolo , Inc . DB A Precisio n Display s an dTools " (bot

h lac k January-June , on e als o lack s November

December ) o WaM u busines s mone

y marke t account fo r "Mari aValenci aBaraja s an d Rober t Joh n Persekian , Precisio n Jeweli- y Display s Tool s Boxes " (August

Decembe r only) . 2 . 2008 . Th e FAA receive dth e followin g fro mPrecisio n Display s fo

r 2008 : • year-en dbalanc e shee t fo r Mayolo , Inc. ; • year-en dprofi t

an dlos s shee t

for Mayolo , Inc. ; • federa l an dstat e ta x return s fo

r Mayolo , Inc. , identifie da s a n S corporation ; • federa l an dstat e ta

x return s fo

r Rober t Persekian an dhi s wif

e Mari aValencia ; • monthl y .statement s fo r fiftee n credi t cards : o Amex Busines s Platinu mCardfo r "Rober t J . Persekian , Precisio n Jewerl y TL"; ^ o Ame x Blu e fo

r Busines s fo

r "Rober t 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 ouly) ; o Bof A Platinu mPlu s fo

r Busines s fo

r ''Mari aValencia " (no t

January) ; o Bof A Vis afo r "Rober t J . Persekian " an

d"DaadPersekian " (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 US Airway s Dividen dMile s fo r "Rober t J . Persekian , Precisio n Di.splays " (August-Decembe r only) ; o Chas e Southwes t

Airline s Rapi dReward s Vis afo r "Rober t Persekian" : o Cit i Platinu mSelec t

Cardfo r "Rober t Persekian " (no t

April) ; ^Sic . Precisio n Display s an dTool s DM S No . FAA-2009-097 6 FA A s Notificatio n to Judg e R e Precisio n Displays ' Complianc e wit h Orde r o n Mitiaatio n o f

Penalty , an dMotio n fo r

Decisio n Settin g Fenalr

y pag e 509/17/201 0 16:1 8 FAX 202493514 2 FA A ^ DM S i006/01 5

o Citi Advantag e Worl dMasterCar dfor "Mari aValencia " (July-Decembe r only) ; o Discove r

Platinu mCar

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

Car dfor "Robei t Pcrsckian" ; o Hom e Depo t

Cardfo r unidentifie ddebto r

(August-Decembe r

only) ; o Pnidentia l Fimmcia

l FI A CardService s fo

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

cardfo r "Mari aBarajas " (Decembe r only) ; • monthl y statement s fo r 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 "Robert J . Persekian 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 Jewelry Displays " (no t

Marc h or May) ; and

• monthl y statement s for te n bank accounts : o Bof A busines s checkin g accoun t for "Robert J . Persekian , Precisio n Displays" ; o Bof A busines s checkin g accoun t for "Mayolo , Inc . DB A 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 P*recisio n Display s an

dShowcases " (Febiuary-Apri l only) ; o 2 WaM u busine.s s checkin g account s fo r "Mayolo , Inc . DB A Precisio n Display s an

dTools " (January-Apri l only) ; o WaMu checkin g accoun t fo r "Mari aValenci aBarajas " (April , May , July , October-Decembe r

only ) ("Rober

t J . Persekian " adde dt o accoun t i n July) ; o WaMu Certificat e o

f Deposi t accoun t fo r "Mayol o Inc. " (May only ) ; an d o WaM u busines s mone y marke t accoun t fo r "Mari aValenci aBaraja s an d Robert Joh n Persekian , Precisio n Jewelry Di.splay s Tool s Boxes " . 3 . 2009 . Th e FAA receive dth e followin g fromPrecisio n Display s fo r 2009 : • year-en dbalanc e shee t fo r Mayolo , Inc. ; • year-en dprofit

andlos s shee t

fo r 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 Re Precisio n Displays ' Complianc e wit h Orde r o n Mitigatio n o f

Pencdty . an dMotio n fo r

Decisio n Settin g Penalty Pag e 609/17/201 0 16:1 8 FA X 202493514 2 FA A * DM S g|007/01 5

H Sic . federal an dstat e ta x return s fo

r Mayolo , Inc. , identifie da s a n S corporation ; federa l an dstat e ta x return s fo

r Rober t Persckian andhi s wif

e Mari aValencia ; monthl y statement s fo

r fiftee n credi t cards : o Ame x Busines s Platinu mCardfo r "Robert J . Persekian , Precisio n Jewerl y TL " (January-Apri l only) ; o Ame x Costc o Busines s Cardfo r "Mari aValencia , Trad e Rite " (January-Jun e only) ; o Bof A Platinu mPlu s fo

r Busines s fo

r "Mari aValencia" ; o Bof A Vis afor

"Robert J . Persekian " an d"Daa dPersekian" ; o Barclay s US Airway s Dividen dMile s fo r "Mari aV . Barajas , Precisio n Displays " (No t

January) ; o Barclay s U S Airway s Dividen dMile s for "Robert J . Pcrsckian , Precisio n Displays" ; o Capito l On e Vis aBusines s Cardfor "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 dfo r "Robert Persekian" ; o Citi Advantag e Worl dMasterCar dfo r "Mari aValencia" ; o Discove r

More Cardfo

r "Robert Persekian" ; o Hom e Depo t

Cardfor "Robert Persckian" ; o Hom e Depo t

Cardfo r "Mari aValencia" ; o Prudentia l Financial FI A Car dService s fo

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

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

credit : o Bof A Commercia l Loa

n t o "Mayol o Inc DB A Trad e Rite Market " (January-Jun e only) , wit

h deman dlette r

date dJun e 18 ; o Bof A Premiu mCreditLin e to 'Robert J . Persekia n DB A Precisio n Boxe s Di-splays " (no t

August-IDeccmber) ; 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

July) ; an d

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

Precisio n Display s an dTool s DM S No . FAA-2009'097 6 FAA' s Notificatio n to Judg e Re Precisio n DispUrys ' Complianc e wit h Orde r on Mitinatio n o f

Penalty , an dMotio n fo r

Decisio n Sellin g Penalt y Pag e 709/17/201 0 16:1 8 FA X 202493514 2 FA A * DM S 0008/01 5

o Bof A busines s checkin g accoun t fo r "Rober t J . Persekian , Precisio n Displays " (January-Apri l only) : o Bof A busines s checkin g account for "Mayolo , Inc . DB A Trad e Rit e Market " (January-May 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 in April) ; o 2 WaMu busines s checkin g acc<junt s fo r "Mayolo , Inc . DB A Precisio n Display s an dShowcases " (becam e Chas e account s i n April) ; an d o WaM u checkin g accoun t fo r "Mari aValenci aBaraja s andRobert J . Persckian " (becam e Chas e accoun t i n April) . 4 . 2010 . Th e FA A receive dth e followin g fromPrecisio n Display s fo r 2010 : • Januar y 1-Jun e 3 0 balanc e shee t

fo r Mayolo , Inc. ; • Januar y 1 -Jun e 3 0 profit

andlos s shee t

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

cards : o Bof A Platinu mPlu s fo

r Busines s fo

r "Mari aValencia " (no t

January) ; o Bof A Vis afo r "Robe n J . Persckian " and"DaadPersekian" ; o Barclay s U S Airway s Dividen dMile s fo r "Mari aV , Barajas . Precisio n Displays" ; o Barclay s U S Airway s Dividen dMile s fo r "Rober t J . Persekian , Precisio n Di.splays" ; 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 afo r "Rober t Persekian" ; o Chas e MasterCardfo

r unidentifie ddebtor ; o Cit i Platinu mSelec t

Car dfo r "Rober t Persekian " (no t

January) ; o Cit i Advantag e Worl dMasterCardfo r "Mari aValencia" ; o Discove r

More Cardfo

r "Robe n Persekian" ; o Hom e Depo t Cardfo r "Rober t Persekian" ; o Hom e Depo t Car dfo r "Mari aValencia" ; an

d o Prudential Financial FI A CardService s fo

r "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 Re Precisio n Displays ' Complianc e wit h Orde r on Mitiaatio n o f

Penalty , an dMotio n fo r

Decisio n Settin g Penalty Pcig e S+ DM S 121009/01 5 09/17/201 0 16:1 8 FA X 202493514 2 FA A

• 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 fo r fou r ban k accounts : o Chas e checkin g accoun t fo r "Mari aValenci aBaraja s DB A Precisio n Jewerl y E>isplays , Tools, Boxe s an dSupplies" ; o 2 Chas e checkin g account s fo r "Mayolo , Inc , DB A Precisio n Display s an d Showcases" ; an d o Chas e checkin g account fo r "Mari aValenci aBaraja s an dRober t J . Persekian" . B . Wha

t Precisio n Display 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 to provide , an dwhat Precisio n Display s actuall y provided . 1 , "Ta

x return s fo r

2007 . 200 8 an d200 9 fo r

Precisio n Display s an dTool s an dRobert

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 Rober t Persekian , individuall y " Precisio n Tool s provide dnumerou s credi t car dstatements , a s note dabove . However , some car dstatement s appea

r suddenl y wit

h prio r balances , whil e othe r

statement s abruptl y sto p o n card s tha

t carry abalance . Nearl y al l o f th e statement s are onl y partiall y copied : mos t statement s appea

r t o hav e bee n printe do n tw o .sides , bu t onl y on e sid e was copie dt o th e FAA . O n som e o f

th e cards , th e debto r

i s unidentified . Other

card s appea

r 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 dPersckian , wit h 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 FA A 5 Notificatio n t

o .Judg e R e Precisio n Displays ' Complianc e wit h Orde r o n Mitieatio n o f

Penalty , an dMotio n fo r

Decisio n Settin g Penalt

y Pag e 909/17/201 0 16:1 8 FA X 202493514 2 FA A ^ DM S glOIO/01 5

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 dKoher i Persekian , individually " Non e provided . 4 . "Profi t

an dLos s statemen t

fo r Precisio n Di.vplay 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 compan y u

> Precisio n Displays . However , judgin g fro mth e disclose dfinancia l information , Mayol o Inc . appear s t o hav e unknow n relationship s l o numerou s othe r businesses , including :

• Precisio n Boxe s Displays ;

• Precisio n Display s an dShowcases ; Precisio n Di.splay s an dTools ; Precisio n Jewelr y 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 Di.'iplay s an d Tool s and/o r

Rober t Persekian , individually " Non e provided . 6 . "An y othe r

informatio n Responden t deem s relevan t

l o it s praye r

fo r mitigatio n " • *

"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 with Orde r

o n Mitigatio n o f

Penalty , an dMotio n fo r Decisio n Settin g Penalt y Pag e 1 009/17/201 0 16:1 8 FAX 202493514 2 FA A + DMS 12011/01 5

Non e provided . Beyon dth e item s identifie di n subsectio n A above , andsom e loos e copyin g receipt s apparentl y generate din respons e t o di e judge' s order , Mayol o provide dnothing . Notably , i t di dno t provid e a n index of th e disclose drecord s o r

an y explanatio n as to wh

y the y suppor t Precisio n Displays ' claime dinabilit y t o pa y th e propose dpenalty . IV . Th e Judg e Shoul dFin dtiia t Precisio n Display s Ha< ; Faile dt o Demon.strat 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 hadampl e opportunity to prov e it s claime dinabilit

y to 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 suppor t it' ? 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 of

some tangcntially-rclcvan t

financial record s an

dmaile dthe mt o th e FAA . Undersigne dcounse l ha s reviewe dal l of th e record s disclose db

y Precisio n Display s an d see s n o reaso n t o believ e Precisio n Display s canno t pa y th e penalty a s proposed . Lideed , th e record s documen t

abusines s an

dlifestyl e o f

hig h spendin g combine dwit h a n abilit y t o convinc e major financia l institution s t o grant

tremendou s credi t

t o Precisio n Display s andit s associate d individual s an dentities . Precisio n Display s appear s t o b e shieldin g significan t informatio n fromthi s proceeding . I n additio n t o failin g t o make decen t copie s of mos t everything , account s come andg o withou t explanation . Furthermore , there i s evidenc e tha t significant

asset s ma

y b e bein g .shieldedfro

m view . Fo r instance , sinc e a

t leas t December

2008 , aWashingto n Mutua l (no w Chase ) checkin g accoun t under Mr . Persekian' s nam e ha s bee n use dt o wire ove r

ahal f amillio n dollar s t o unknow n accounts . Thos e account 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 to Judg e R e Precisio n Displays ' Complianc e wit h Orde r o n Mitigatio n of

Penalty , an dMotio n fo r

Decisio n .Sellin g Penall y Pag e 1 109/17/201 0 16:1 9 FAX 202493514 2 FA A + DMS 0012/01 5

"Precision s Displays " accoun t wit h th e Mexico-base dfinancia l 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 , o r ta x returns . Simpl y put , it' s unclea r wher e thes e fund s wen t

o r fo r wha t purpose . A s note dabove , i t

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

ha s no t don e so . Th e judg e shoul drecogniz e thi s failur e and , afte r allowin g Precisio n Display s an dopportunit y t o respon dt o thi s motion , rul e o n 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 reason 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 pa y th e requeste d$20,00 0 civi l penalt y 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 _//) -a"a v o f September , 2010 .

HOWAR D L . MARTIN , JR . Regiona l Counse 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 no t

attache dan y 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 dicr n wit h 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 Mitifjatio n o f

Penalty , an dMotio n fo r Decisio n Settin g Penalt y Pag e 1 209/17/201 0 16:1 9 FA X 202493514 2 FA A • » DM S i013/01 5

CERTIFICAT E O F SERVIC 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 that o n thi s dat e I hav e serve dacop y o f th e foregoin g by postage-prepai d mail , facsimile , andemai 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

of Transportatio n 1200 Ne w Jerse y Avenue , S.E . Eas t Buildin g Groun dFloor , Roo mEI2-32 0 Wa.shington , D C 2059 0 Fax : (202 ) 366-753 6 Email : Richard.Goodwin@dot.go v I HEREB Y FURTHE RCERTIF Y tha t on thi s dat e I hav e serve d(1 ) th e origina l an dtw o copie s o f th e foregoin g b y postage-prepai dmail , an d(2 ) th e origina l of th e foregoin g b

y facsimil e lo : Federal Aviatio n Administratio n ATTN : Docke t

Clerk , AGC-43 0 Wilbu r Wright 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 I hav e serve don e cop y of th e foregoin g by postage-prepai dfirst-clas s mai l to : Robert Persekia n Precisio n Display s andTool s 155 5 Alu mRoc k

Avenue , Suit e 2 0 SanJo.se , C A 9511 6

DATED : ^^ . //9 . ^tP/ ^

Precisio n Display s an dTool s DM S No . FAA-2009-097 6 FAA' s Notificaiio 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 Penalty Pag e 1 309/17/201 0 16:1 9 FA X 202493514 2 FA A ^ OM S 0014/01 5

Federa l Aviatio n Administratio n Offic e o f Regiona l Counse l 22 2 Wes t 7t h Avenue , Bo x 14 , AAL- 7 Anchorage , A K

99513-758 7

Precisio n Di.iplav 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 Mitiealio n o f

Peiuilr w an dMotio n fo r

Decisio n Settin g Penalty Pag e 1 409/17/201 0 16:1 9 FAX 202493514 2 FA A + DM S 0015/01 5



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