In June 2020, the licensee of a Hip-Hop & R&B station branded as “Power 106.5” filed an application to transfer control of the station. Three months later, it agreed to a second deal, this one involving its four remaining stations in the Clarksdale, Miss., area.
There’s just one problem with these FCC deal-approval asks: Stock transfers between the parties had already occurred. This is a no-no, and the Commission has issued a fine for the flub.
WAID-FM 106.5 in Clarksdale, a Radio Cleveland (RCI) property, is a sibling to WCLD-AM & FM in Cleveland, Miss.; WCLD-FM in Cleveland; WKDJ-FM in Clarksdale; and WMJW-FM in Rosedale, Miss.
Radio Cleveland wanted the Commission’s OK regarding the transfer of 45% of the company’s shares from Clint Webster to Kevin Cox, and 10% of the company’s shares from Greg Shurden to Cox.
The result: Cox would be the 100% equity interest owner in Radio Cleveland.
It turns out that Cox gained full ownership of Radio Cleveland via the stock transfers it seeks approval of, and that transpired on or about Jan. 1, 2020. This amounts to an unauthorized transfer of control, and as such Radio Cleveland agreed to a $6,000 fine.
Originally, Radio Cleveland was on the hook for a $8,000 forfeiture payment. However, the licensee saw a reduction as it is a first-time offender.
— Reporting by Ed Ryan, with editing by Adam Jacobson
