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NEW LPFM's outed to the FCC for filing fraudulent applications

It's amazing that so many didn't take the time to form a not for profit corporation with their Secretary of State. Maybe they didn't have the $25 to $75 filing fee.

Or maybe they are a little bit shady.
 
Flying Dutchman said:
It's amazing that so many didn't take the time to form a not for profit corporation with their Secretary of State. Maybe they didn't have the $25 to $75 filing fee. Or maybe they are a little bit shady.
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If you dig into many past licensees you'll likely see where they did form some sort of NFP with their State as some sort of educational institution, only to let their registration/charter expire. Yet many still hold the LPFM license for what should be an NCE station.
To your point, several new recent applicants don't even bother going that far, let alone the Commission confirming they're legit.
 
Generally if there is not as much as proof of registering the non-profit with the state, the application is flagged and proof required. Then again lots of non-profits lapse because most states put it on the organization to stay current.
 
Long ago, I convinced the FCC to look into bringing back low power FM licensing. I thought I was helping to create a public service.

Looks like I helped create a circus for a bunch of clowns instead.
 
bturner1 said:
Generally if there is not as much as proof of registering the non-profit with the state, the application is flagged and proof required. Then again lots of non-profits lapse because most states put it on the organization to stay current.
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Failing to keep your filing current is one thing. Lying and fraud is another.
 
bturner1 said:
Generally if there is not as much as proof of registering the non-profit with the state, the application is flagged and proof required. Then again lots of non-profits lapse because most states put it on the organization to stay current.
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But, don't you think they're notified by the state that their NFP corporate status is about to lapse? Even then, it seems like such a basic thing to keep track of such key dates.
 
There are over 20 stations in California alone that have expired or terminated SOS status. In the US about 25% of the LPFM stations have an issue with their SOS status.
 
Most states do not send out a mailing for renewals. In my state you have to remember to file. If your income does not meet a minimum amount there is no annual form to file. Some states charge a hefty fee and do send statements.
 
Yes. But, but, but it might be a problem if the licensee does not exist. Someone in charge like the president of the corporation should be able to keep up with the filing. Also an LPFM should have someone involved who knows basic engineering. That way the station reliably stays on the air.
 
bturner1 said:
Most states do not send out a mailing for renewals. In my state you have to remember to file. If your income does not meet a minimum amount there is no annual form to file. Some states charge a hefty fee and do send statements.
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Well honestly, someone needs to remember when their anniversary, family birthdays, and when to file their taxes, yet they don't make it a point of knowing when they need to renew their incorporating non-profit documents to comply? I maintain either they're complete morons or just don't care about being a legitimate broadcaster.

It's like the discussion on another thread about the Commission tossing around the idea of local broadcasters having some level of responsibility for broadcasting information during a disaster situation. True to form, some of the LPFM fans thought LP stations should be exempt from such a requirement. In other words, it seems like flakey operators only want to participate as a member of the community when it suits them, or at their convenience.
Boo hoo...
 
bturner1 said:
Most states do not send out a mailing for renewals. In my state you have to remember to file. If your income does not meet a minimum amount there is no annual form to file. Some states charge a hefty fee and do send statements.
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But, we're not talking about a group forgetting to file a yearly report. We're discussing fraud. That is filing with the FCC in the name of a corporation that does not exist. That is fraud.
 
Flying Dutchman said:
But, we're not talking about a group forgetting to file a yearly report. We're discussing fraud. That is filing with the FCC in the name of a corporation that does not exist. That is fraud.
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Possibly some of these folks are filing with the intent of creating the named NFP corporation if they are awarded the allocation. Why create a corporation if you never get the license in the first place? I mean, it's wrong, but people with limited experience with the process, trying to bootstrap this kind of project on a shoestring, might also be trying to keep their financial exposure to a minimum in the early stage of the process.
 
Weiserguy said:
Possibly some of these folks are filing with the intent of creating the named NFP corporation if they are awarded the allocation. Why create a corporation if you never get the license in the first place? I mean, it's wrong, but people with limited experience with the process, trying to bootstrap this kind of project on a shoestring, might also be trying to keep their financial exposure to a minimum in the early stage of the process.
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You can form a NFP Corp in most States for under $100. If they can't come up with $100, should they really be looking to build and operate a station?
 
RadioGuy1864 said:
You can form a NFP Corp in most States for under $100. If they can't come up with $100, should they really be looking to build and operate a station?
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I'm not trying to justify it, just trying to get inside someone's head whom I've never met.

It's not the cost of filing for an NFP corporation, it's the complexity. There are forms, more forms, annual reports, the IRS 501(c)3, etc., and if you don't get awarded the allocation, the complexity of folding the corporation.

I won't go into details, but I had the experience a few years ago of being an officer of a "Back East" NFP, and we needed to dissolve the corp because we were absorbed by a bigger organization which already was a NFP in its own right. I spent a year working on this (though not fulltime), it involved an attorney, a five figure legal fee, filings with three agencies of the state as well as the IRS. It was anything but trivial.
 
My wife filed for the not for profit corporation herself. It took her less than an hour and cost $25. She files her own reports. It takes just a few minutes and costs $7. She filed the IRS application for 501 c3 herself. That took a few hours and cost $500.

She's a ham. So, it took her less than one hour to apply for the LPFM. The LPFM will have been on the air for 20 years in May.

No one is beating the street trying to sell business underwriting. Although the symphony is coming in Friday to record announcement to promote their upcoming performance.

Money is not a problem. Our community loves us. There's enough in the station's bank account for the station to go another year or two without asking for money.

I can tell you that we are no longer young and need to retire. This is our last year.
 
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