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Spitzer Nails Entercom

6

60sguy

Guest
A special bulletin this morning from Allaccess.com...

"NEW YORK State Attorney General ELIOT SPITZER has announced a lawsuit against ENTERCOM COMMUNICATIONS, alleging that the company illegally traded "air time" for payments".

The fallout from this should be interesting to watch.
 
More to Come?

It will be interesting to see if suits against other groups follow, or if it's just Entercom who's "Universally screwed".

I'm guessing that there will be other settlements, for less money than ends up coming out of Entercom's pockets. Entercom will bear the brunt of the legal fees, end up paying the largest fines, and suffer the greatest fallout.

And I'm pretty sure we can all guess why Entercom is the #1 target.
 
Re: More to Come?

Sir Roxalot wrote:

> And I'm pretty sure we can all guess why Entercom is the #1
> target.

Two words: Dave Universal.

One other question: Might Entercom lose one or more of it's licenses or be given one or more "short-term" license renewals instead of full-term license renewals??
 
Re: More to Come?

If you actually read the document it reveals that many more than Dave U. knew what was going on, and endorsed it. It does appear to back up Dave’s contention that his superiors knew what was going on and encouraged him to continue. One memo states the desire of the Buffalo cluster NOT to sign with an Indie because Dave did a better job at getting money FOR ENTERCOM. It also hints that other clusters in other states had their share of problems, including Norfolk, VA where the MD rats out the OM for putting money in his own pocket.

> It will be interesting to see if suits against other groups
> follow, or if it's just Entercom who's "Universally
> screwed".
>
> I'm guessing that there will be other settlements, for less
> money than ends up coming out of Entercom's pockets.
> Entercom will bear the brunt of the legal fees, end up
> paying the largest fines, and suffer the greatest fallout.
>
> And I'm pretty sure we can all guess why Entercom is the #1
> target.
>
 
Not just ETM Buffalo - but ETM Rochester as well!

> A special bulletin this morning from Allaccess.com...
>
> "NEW YORK State Attorney General ELIOT SPITZER has announced
> a lawsuit against ENTERCOM COMMUNICATIONS, alleging that the
> company illegally traded "air time" for payments".
>
> The fallout from this should be interesting to watch.
>

I know that much of this is focused on the Universal/Kiss mess, but Entercom Rochester was also named as a defendant in the filing.

One of the entries in the filing is titled "WBEE Documents Pertaining to Consideration Received For an Add".
 
A Place in History

> If you actually read the document it reveals that many more
> than Dave U. knew what was going on, and endorsed it.

I haven't actually had a chance to read the document yet, but the history of this investigation shows that Buffalo wasn't the only market with a problem, and Entercom wasn't the only group involved. My point is that DU made himself the poster boy for this investigation, and that his most recent appearance on ABC reaffirmed his place in Spitzer's cross-hairs.

In this case, Entercom will pay a far higher price even though they're not the biggest player, and may not even be the biggest offender. There's only one reason why Spitzer is targeting them first, and that reason is Dave Universal.

If Dave wanted a place in broadcasting history, he's earned it now.
 
Re: A Place in History

> If Dave wanted a place in broadcasting history, he's earned
> it now.

I wouldn't be surprised if he's drafting his own made-for-TV screenplay as we speak.
 
Re: A Place in History

> I wouldn't be surprised if he's drafting his own made-for-TV
> screenplay as we speak.

Yeah, but I don't think you can monetarily benefit from the proceeds of a crime.
 
Links

If you'd like to read the release from Spitzer's office, click here.

Note the links at the bottom of the page that take you to both the complaint and the exhibits. You'll need Adobe Reader for those two documents.

Both documents appear to be damning to both local personnel and corporate management all the way to the top of the ladder. Ouch.
 
Missing Links, Analysis & Questions

> If you'd like to read the release from Spitzer's office,
> click here.
>
> Note the links at the bottom of the page that take you to
> both the complaint and the exhibits. You'll need Adobe
> Reader for those two documents.
>
> Both documents appear to be damning to both local personnel
> and corporate management all the way to the top of the
> ladder. Ouch.
>
> The fallout from this should be interesting to watch.
<font face="times new roman" size="3" color="660033">
Wonder if Entercom invested in fallout shelters? I've read the
complaint and looked at the exhibits. I am not an attorney, but from what I can decipher, it does not bode well.

One of the first keys in the Complaint is the subtle but powerful phrase in paragraph 4, "... the sale of Entercom's valuable air time to the highest bidder, without disclosure to its listeners."

Paragraph 22 of the Complaint notes, "Federal law also prohibits undisclosed sale of airplay."

Paragraph 28 of the Complaint brings to light the process by which money is maneuvered between record companies, independent promoters and the stations.

Section III, paragraphs 32 and 33 are eye-openers. Take a look at the amount of money and multiply it by the TOTAL number of Entercom stations cited in the Exhibits.

Paragraph 35, Section III is the hammer and nail.

Senior Entercom management clearly knew and contributed to the execution of the play for pay activities which occurred at WKSE and (in lesser degrees) WTSS. The activities at WBEE are particularly telling. Read Section III, paragraphs 43 through 50 (inclusive).

The activities cited in the Complaint, as they regard Dave Universal, begin in December 1999 and continue through January 2005.

Read paragraphs 40, 41 and 42 for further insight as to how the station, and ostensibly, upper management, was involved. Amazing!

Check the list of out-of-state Entercom stations and the dollar amounts proscribed to each station and you understand this wasn't any corner gin mill pokers game.

Dave Universal appears correct in his earlier assertions that his bosses knew of and encouraged his actions as program director of WKSE. It doesn't excuse those actions, and even though it might be argued that he was "simply following orders," his actions appear to be complicit. (Again, a layman's assessment.)

What's surprising is how many fingerprints of Entercom upper management are all over this. It appears to go as high as Entercom CEO, David Field, who according to e-mails noted in the Exhibits, appears to have been "CC'd" on most of the activities. Also directly involved are in-house consultant Pat Paxton and RVP Wheezie Kramer. Michael Doyle and Billy Kidd's names also appear on documents found in the Exhibit.

WTSS GM, Lawrence Robb is mentioned in paragraph 55 of the Complaint, which incriminates Entercom's oversight (or lack thereof) of the activities.

At least ONE Entercom employee had the temerity to speak up. Note paragraph 57 of the Complaint which quote's the employee's e-mail appeal to in-house consultant Pat Paxton and Entercom CEO, David Field. [God, how I wish radio people learned how to spell and construct a simple declarative sentence.] Whoever this employee was (I have my suspicions) she/he deserves a lot of credit.

Paragraph 58 makes one wonder if upper management had a clue, or the inclination to buy one.

Paragraph 61 relates Entercom CEO's bold expectations. Stunning.

Paragraph 64 could easily be titled, "It's Not About The Music, It's About The Money."

Paragraph 66: What's the opposite of "disclosure?" Check the word "conceal." One word speaks volumes

Check paragraph 69 and the "detection" scheme. Interesting ploy, isn’t it?

Paragraph 80: Repeated persistent fraud and illegality.

Paragraph 81: Deceptive business practices.

Wonderful way to serve the public interest, convenience and necessity, isn’t it.

Questions

One wonders when the ABC Nightline cameras will be focused on Entercom upper management? Unlike DU, Field, Paxton and Kramer most likely won't have much, if anything, to say.

Should Spitzer and his attorneys win this case, Entercom will be on the hook for a considerable sum, and deservedly so. Equally interesting is whether attorneys general in other states pursue legal action against Entercom based on the actions of the NYS attorney general’s office.

Who in the Entercom empire will be held accountable for the improprieties?

Will the FCC take punitive action, approving short term renewals for WBEE, WTSS and WKSE, if not all of the New York state Entercom stations? This is, after all, a license renewal year in New York.</font>
 
But what about...

KB isn't mentioned in any of these documents. Somebody had to be paying them to play all those Supremes records...
 
Re: But what about...

> KB isn't mentioned in any of these documents. Somebody had
> to be paying them to play all those Supremes records...

Rumor has it that Michael Jackson overpaying for a certain mobile sound system in order to curry favor with his former look-alike, Diana Ross.
 
Re: A Place in History

> > I wouldn't be surprised if he's drafting his own
> made-for-TV
> > screenplay as we speak.
>
> Yeah, but I don't think you can monetarily benefit from the
> proceeds of a crime.

True, but it can gain him the other thing he's addicted to: attention.
 
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