FCC will now review Stipe sale
The FCC, in an about-face, has decided to reconsider its decision that allowed Gene Stipe, a prominent Oklahoma politician convicted of perjury and obstruction of justice to sell his group of stations. Stipe's Little Dixie Radio sold KMCO-FM and KNED-AM to Southeastern Oklahoma Radio, and KESC-FM to KESC Enterprises. Stipe's other company, Bottom Line Broadcasting sold KTMC AM & FM. Our story on the Stipe sale ran (6/17/04 RBR #118).
Stipe reported his conviction with the application, but called it "Non-FCC misconduct."
The decision to approve the sale initially was considered a bit askew of the broadcast ownership rules, because the agency requires the forfeiture of licenses by those who fail a character test. The character test, which requires truthfulness in dealing with the government, is an integral part of the rules. The commission had never considered a case involving a conviction of perjury before a federal agency, but, of course, has revoked licenses for a variety of other crimes, from sexual abuse of a minor to fraud to dealing in illegal narcotics.
Stipe stepped down in 2003 after 53 years in the state legislature, as investigators focused on his role in a scheme to launder money given to the congressional campaign of a friend. He then plead guilty to three criminal counts, acknowledging his role in an illegal scheme to funnel more than 245,000 into the failed campaign of Walter Roberts for a seat in the House of Representatives. Stipe was sentenced to five years' probation and six months' house arrest.
Media Access Project head Jay Schwartzman found out about the deal recently and alerted both the NY Times and the Commission to its potential improprieties.
After the Times called officials at the commission about the matter last week, Powell reportedly abruptly reversed course. On Friday, commission officials said the full commission had agreed to order a review of the case.
Are you reading this from a forwarded email?
