Opinion ID: 185067
Heading Depth: 2
Heading Rank: 2

Heading: Challenge with Regard to HPI

Text: 6 In the order affirming Damsky's disqualification, the Commission also accepted the Homewood Radio settlement agreement. Throughout the permit application process, Damsky challenged the corporate structure of HPI, one of the settling parties, as violating FCC rules and alleged that HPI had made various disqualifying misrepresentations to the FCC. The resulting inquiry primarily focused on whether two of the five HPI principals impermissibly acquired their ownership interests prior to the filing of HPI's amended application. Two checks formed the heart of the debate. Apparently, two investors gave the three original partners two $1200 checks marked respectively 20% Interest Radio and Ownership 20% of Homewood Partners. The agency inquiry focused on whether the checks constituted an ownership interest or a loan. Although conflicting documentary evidence existed, the ALJ evaluated all of the evidence and resolved the issue in HPI's favor by deeming the payments loans. See In re Heidi Damsky, 9 F.C.C.R. 4011 pp 61-68 (1994) (Supplementary Initial Decision). The Commission affirmed the ALJ's findings. See Memorandum Opinion and Order, 13 F.C.C.R. 11688 pp 13-23.