NEWSReport No.  DC 95-31             ACTION IN DOCKET CASE              February 16, 1995

    COMMERCIAL REALTY ST. PETE AND PRINCIPALS  ORDERED TO SHOW CAUSE
           WHY THEY SHOULD NOT BE BARRED FROM FUTURE AUCTIONS 
                             (WT DOCKET 95-26)

     As a result of an investigation initiated August 30, 1994, regarding the conduct of
bidders at the Interactive Video and Data Services (IVDS) auctions, the Commission has
ordered Commercial Realty St. Pete, Inc., and its principals, James C. Hartley, Teresa
Hartley, and Ralph E. Howe, to show cause why they should not be barred from
participating in any future Commission auctions and from holding any Commission licenses. 
The Commission also authorized the Administrative Law Judge who will preside at the
hearing to impose forfeitures if it is concluded that Commercial Realty and/or its principals
misrepresented facts to the Commission during the IVDS application process. 

     Commercial Realty is a for-profit company incorporated in Florida.  From the time of
its incorporation until 1989, James C. Hartley served as its sole director, President, and
Registered Agent. Ralph E. Howe is identified on company documents filed with the Florida
Department of State as the current director, President, and Registered Agent.  On February
17, 1994, Mr. Hartley's wife, Teresa Hartley, purchased all the outstanding shares of stock
in Commercial Realty for $500.

     On June 23, 1994, Commercial Realty filed with the Commission an application to
participate in the IVDS auctions, certifying that it was a woman-owned small business and
that it was legally, technically and financially qualified as an applicant.  The certification was
signed by Mr. Howe, who identified himself as a director of Commercial Realty.

     Commercial Realty was the successful bidder in 20 IVDS markets, claiming bidding
credits in the 17 markets where they were available.  Its total bids were $41,2500,000,
adjusted to $32,762,500 with bidding credits.  It was required to submit deposits of
$3,266,750 to the Commission within five business days after the July 28 and 29  auctions. 
Commercial Realty failed to tender any down payment and therefore was in default.

     The Commission's investigation disclosed that Commercial Realty had violated the
FCC's anti-collusion rules regarding the auction by sharing information with other parties,
and had misrepresented its financial qualifications and designated entity status.  By a separate
action, the Commission has notified Commercial Realty that it is apparently liable for a
forfeiture of $390,000 for these violations and misrepresentations.  

                                                         (over)


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     The Commission said it appeared that Commercial Realty and its principals have
engaged in serious misconduct that calls into question their basic qualifications to hold a
Commission license.  If such misconduct is established, Commercial Realty and its principals
will be prohibited from participating in future actions and will be deemed to lack the
requisite character qualifications to hold a Commission license.

     The Commission designated these issues for hearing before an FCC Administrative
Law Judge at a time and place to be set in a future order. 

     Action by the Commission February 15, 1995, by Order to Show Cause (FCC 95-59).
Chairman Hundt, Commissioners Quello, Barrett, Ness and Chong.


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