Skip Navigation

Federal Communications Commission

English Display Options

Commission Document

Consent Decree adopted in Auction 79, resolving EB investigation.

Download Options

Released: May 14, 2013

Federal Communications Commission

DA 13-684

Before the

Federal Communications Commission

Washington, DC 20554

In the Matter of
)
File No.: EB-09-IH-1532
)
1 UGLY ENTERPRISE, LLC
)
Acct. No.: 201332080019
)
Applicant in Auction No. 79
)
FRN: 0018897280
)
)

ORDER

Adopted: May 9, 2013

Released: May 14, 2013
By the Chief, Enforcement Bureau:
1.
In this Order, we adopt a Consent Decree entered into between the Enforcement Bureau
(Bureau) of the Federal Communications Commission and 1 Ugly Enterprise, LLC (1 Ugly Enterprise).
The Consent Decree terminates the Bureau’s investigation into possible violations by 1 Ugly Enterprise
of Section 1.2105(c) of the Commission’s Rules, 47 C.F.R. § 1.2105(c), relating to prohibited contacts
and communications and the non-disclosure of such contacts and communications in Commission
auctions.
2.
A copy of the Consent Decree, negotiated by the Bureau and 1 Ugly Enterprise, is
attached hereto and incorporated herein by reference.
3.
After evaluating the facts before us and reviewing the terms of the Consent Decree, we
find that the public interest would be served by adopting the Consent Decree and terminating the
investigation.
4.
In the absence of material new evidence relating to this matter, we conclude that our
investigation raises no substantial or material questions of fact as to whether 1 Ugly Enterprise possesses
the basic qualifications, including those related to character, to hold or obtain any Commission license or
authorization.
5.
Accordingly,

IT IS ORDERED

that, pursuant to Sections 4(i) and 503(b) of the
Communications Act of 1934, as amended,1 and Sections 0.111 and 0.311 of the Rules,2 the Consent
Decree attached to this Order

IS ADOPTED.

6.

IT IS FURTHER ORDERED

that the above-captioned investigation

IS

TERMINATED.



1 47 U.S.C. §§ 154(i), 503(b).
2 47 C.F.R. §§ 0.111, 0.311.

Federal Communications Commission

DA 13-684

7.

IT IS FURTHER ORDERED

that a copy of this Order and Consent Decree shall be
sent by first class mail and certified mail, return receipt requested, to: James L. Oyster, Esq., counsel for 1
Ugly, LLC, 108 Oyster Lane, Castleton, VA 22716-2839.

FEDERAL COMMUNICATIONS COMMISSION

P. Michele Ellison
Chief, Enforcement Bureau
2

Federal Communications Commission
DA 13-684

Before the

Federal Communications Commission

Washington, D.C. 20554

In the Matter of
) File No. EB-09-IH-1532
)
1 UGLY ENTERPRISE, LLC
) Acct. No. 201332080019
)
Applicant in Auction No. 79
) FRN No. 0018897280
)

CONSENT DECREE

1.
The Enforcement Bureau of the Federal Communications Commission, 1 Ugly
Enterprise, LLC, and Matthew Salazar, by their authorized representatives, hereby enter into this Consent
Decree for the purpose of terminating the Enforcement Bureau’s investigation into possible violations by
1 Ugly Enterprise of Section 1.2105(c) of the Commission’s Rules,1 relating to prohibited contacts and
communications in Commission auctions.

I.

DEFINITIONS

2.
For purposes of this Consent Decree, the following definitions shall apply:
(a) “Act” means the Communications Act of 1934, as amended, 47 U.S.C. § 151 et seq.
(b) “Adopting Order” means an order of the Bureau adopting this Consent Decree
without any modifications adverse to 1 Ugly Enterprise, LLC.
(c) “1 Ugly Enterprise” or the “Company” means 1 Ugly Enterprise, LLC, of which
Matthew Salazar is the sole principal, and its predecessors-in-interest and successors-
in-interest.
(d) “Bureau” means the Enforcement Bureau of the Federal Communications
Commission.
(e) “Commission” and “FCC” mean the Federal Communications Commission and all of
its bureaus and offices.
(f) “Communications Laws” means collectively, the Act, the Rules, and the published
and promulgated orders and decisions of the Commission to which 1 Ugly Enterprise


1 47 C.F.R. § 1.2105(c).

Federal Communications Commission

DA 13-684

is subject by virtue of its business activities.
(g) “Deborah Salazar” means Deborah Salazar, an applicant in Auction No. 79.
(h) “Effective Date” means the date on which the Bureau releases the Adopting Order.
(i) “Investigation” means the Bureau’s investigation of 1 Ugly Enterprise’s compliance
with Section 1.2105(c) of the Commission’s rules, arising from its conduct in
Auction No. 79.
(j) “Jesus Salazar” means Matthew Salazar’s father, Deborah Salazar’s spouse, and an
authorized bidder for Deborah Salazar in Auction No. 79.
(k) “Matthew Salazar” means the sole principal of 1 Ugly Enterprise and the son of
Deborah Salazar and Jesus Salazar.
(l) “Parties” means the Bureau, 1 Ugly Enterprise, LLC and Matthew Salazar, each of
which is a “Party.”
(m) “Rules” means the Commission’s regulations found in Title 47 of the Code of
Federal Regulations.

II.

BACKGROUND

3.
Section 1.2105(c)(1) of the Rules, commonly referred to as the Commission’s “anti-
collusion rule,” prohibits auction applicants for licenses in any of the same geographic license areas from
“cooperating or collaborating with respect to, discussing with each other, or disclosing to each other in
any manner the substance of their own, or each other’s, or any other competing applicants’ bids or
bidding strategies, or discussing or negotiating settlement agreements” beginning immediately after the
short-form application filing deadline until after the down payment deadline “unless such applicants are
members of a bidding consortium or other joint bidding arrangement identified on the bidder’s short-form
application . . . .”2 In addition, Section 1.2105(c)(6) of the Rules requires that “[a]ny applicant that
makes or receives a communication of bids or bidding strategies prohibited under [Section 1.2105(c)(1)
of the Rules] shall report such communication in writing to the Commission immediately, and in no case
later than five business days after the communication occurs.”3
4.
On February 27, 2009, the Commission’s Wireless Telecommunications Bureau and
Media Bureau announced the auction of 122 FM broadcast construction permits in Auction No. 79.4 For
Auction No. 79, the anti-collusion rule prohibitions were in effect from 6:00 p.m. ET on June 25, 2009,
the short-form application filing deadline, until October 2, 2009, the down payment deadline. 5 Bidding in
Auction No. 79 began on September 1, 2009, and concluded on September 15, 2009.


2 47 C.F.R. § 1.2105(c)(1).
3 Id. § 1.2105(c)(6).
4 Auction of FM Broadcast Construction Permits Scheduled for September 1, 2009; Comment Sought on
Competitive Bidding Procedures For Auction 79
, Public Notice, 24 FCC Rcd 2589 (2009).
5 Auction of FM Broadcast Construction Permits Scheduled for September 1, 2009; Notice and Filing Requirements,
Minimum Opening Bids, Upfront Payments and Other Procedures for Auction 79
, Public Notice, 24 FCC Rcd 4448
(2009).
2

Federal Communications Commission

DA 13-684

5.
1 Ugly Enterprise is a limited liability company based in San Angelo, Texas. Its sole
owner is Matthew Salazar. Deborah Salazar is an individual residing in Uvalde, Texas and is the mother
of Matthew Salazar. On June 25, 2009, 1 Ugly Enterprise and Deborah Salazar each submitted a short-
form application to participate in Auction No. 79.6 1 Ugly Enterprise selected nine construction permits
on which it intended to bid in Auction No. 79, including the construction permit for the Peach Springs,
Arizona, market. Deborah Salazar also identified the construction permit for the Peach Springs, Arizona,
market as among the construction permits on which she intended to bid. Additionally, in its short-form
application, 1 Ugly Enterprise identified Matthew Salazar as its sole authorized bidder. In her short-form
application, Deborah Salazar specified that she and her spouse, Jesus Salazar, father of Matthew Salazar,
would serve as authorized bidders. Neither 1 Ugly Enterprise nor Deborah Salazar identified the
existence of any joint bidding consortium or agreement between them nor did they disclose that Deborah
Salazar and Jesus Salazar were Matthew Salazar’s parents. Because these two applicants did not disclose
the existence of any bidding agreement between them, the Commission’s anti-collusion rule prohibited
them from communicating with each other about bids or bidding strategies during the prescribed period.
6.
At the conclusion of Auction No. 79, 1 Ugly Enterprise was the winning bidder for an
FM construction permit in Leakey, Texas. Thereafter, on July 31, 2009, 1 Ugly Enterprise submitted its
upfront payment to the Commission along with a Remittance Advice Form (FCC Form 159). A review of
the FCC Form 159 revealed that Jesus Salazar, the authorized bidder for Deborah Salazar, had signed the
FCC Form 159 certifying that he was the responsible party for making 1 Ugly Enterprise’s upfront
payment of $2,500. This prompted the Wireless Telecommunications Bureau to refer the matter to the
Enforcement Bureau for investigation of a potential violation of Section 1. 2105(c) of the Commission’s
Rules.
7.
On October 22, 2009, the Enforcement Bureau commenced its Investigation by issuing
letters of inquiry to 1 Ugly Enterprise, Deborah Salazar, and Jesus Salazar. The letters of inquiry sought
information about, among other things, their respective conduct in Auction No. 79. In its response, 1
Ugly Enterprise stated that Matthew Salazar had communicated with Jesus Salazar a short time prior to
the commencement of bidding regarding the construction permits on which 1 Ugly Enterprise intended to
bid in Auction No. 79. The record also revealed that Jesus Salazar had paid 1 Ugly Enterprise’s upfront
payment from his own account to the Commission’s auction payment lockbox bank, the U.S. Bank in St.
Louis, Missouri. The record also revealed that Deborah Salazar had called Jesus Salazar’s bank to initiate
the wire transfer for 1 Ugly Enterprise. Neither 1 Ugly Enterprise nor Deborah Salazar notified the
Commission about the communication between the two applicants, or between 1 Ugly Enterprise and
Jesus Salazar.
8.
Following the Investigation, the Bureau, 1 Ugly Enterprise and Matthew Salazar entered
into discussions aimed at resolving the Investigation. Between April and November, 2012, 1 Ugly
Enterprise provided financial information to the Bureau documenting its claimed inability to pay a large
forfeiture or voluntary contribution.

III.

TERMS OF AGREEMENT

9.

Adopting Order.

The Parties agree that the provisions of this Consent Decree shall be
subject to final approval by the Bureau by incorporation of such provisions by reference in the Adopting


6 See FCC Form 175 of 1 Ugly Enterprise, LLC, Application to Participate in an FCC Auction, submitted on June
25, 2009 at 2:53 p.m. ET; FCC Form 175 of Deborah Salazar, Application to Participate in an FCC Auction,
submitted on June 25, 2009 at 2:52 p.m. ET. 1 Ugly Enterprise and Deborah Salazar were classified as eligible to
participate in the auction. See Auction of FM Broadcast Construction Permits: 77 Bidders Qualified to Participate
in Auction 79
, Public Notice, 24 FCC Rcd 10782 (2009).
3

Federal Communications Commission

DA 13-684

Order.
10.

Jurisdiction.

1 Ugly Enterprise and Matthew Salazar agree that the Bureau has
jurisdiction over them and the matters contained in this Consent Decree and that the Bureau has authority
to enter into and adopt this Consent Decree.
11.

Effective Date; Violations.

The Parties agree that this Consent Decree shall become
effective on the Effective Date as defined herein. As of the Effective Date, the Adopting Order and this
Consent Decree shall have the same force and effect as any other order of the Commission. Any violation
of the Adopting Order or of the terms of this Consent Decree shall constitute a separate violation of a
Commission Order, entitling the Commission to exercise any rights and remedies attendant to the
enforcement of a Commission order.
12.

Termination of Investigation.

1 Ugly Enterprise represents that it does not hold any
FCC licenses or authorizations other than the construction permit that it won in Auction No. 79 for a new
FM station at Leakey, Texas. Matthew Salazar represents that he does not individually hold any FCC
licenses or authorizations. In express reliance on the covenants and representations in this Consent
Decree and to avoid further expenditure of public resources, the Bureau agrees to terminate the
Investigation. In consideration for the termination of the Investigation, 1 Ugly Enterprise and Matthew
Salazar agree to the terms, conditions, and procedures contained herein. The Bureau further agrees that in
the absence of new material evidence, the Bureau will not use the facts developed in the Investigation
through the Effective Date, or the existence of this Consent Decree, to institute on its own motion, any
new proceeding, formal or informal, or take any action on its own motion against 1 Ugly Enterprise or
Matthew Salazar concerning the matters that were the subject of the Investigation. The Bureau also
agrees that in the absence of new material evidence, it will not use the facts developed in the Investigation
through the Effective Date, or the existence of this Consent Decree, to institute on its own motion, any
proceeding, formal or informal, or take any action on its own motion against 1 Ugly Enterprise with
respect to 1 Ugly Enterprise’s basic qualifications, including its character qualifications to be a
Commission licensee or to hold Commission licenses or authorizations.
13.

Settlement Terms.

For purposes of settling the matters set forth herein, 1 Ugly
Enterprise and Matthew Salazar agree to the following:
(a)
1 Ugly Enterprise agrees that within five (5) business days of the Effective Date,
it shall surrender to the Commission for cancellation the construction permit it
won in Auction No. 79. It shall simultaneously send electronic notification of the
surrender of its construction permit to Theresa Z. Cavanaugh at
Terry.Cavanaugh@fcc.gov and to Brian J. Carter at Brian.Carter@fcc.gov.
(b)
1 Ugly Enterprise agrees to forfeit any and all monies paid to U.S. Bank relating
in any manner whatsoever to its participation in Auction No. 79, and relinquish
any claims thereto, including, but not limited to, its upfront payment, down
payment, and any payments 1 Ugly made in connection with the construction
permit for which it was the highest bidder.
(c)
1 Ugly Enterprise agrees that it will not participate in any future auctions
conducted by the Commission.
(d)
Matthew Salazar agrees that he: (i) will not participate in any future auctions
conducted by the Commission in his own capacity; (ii) will not participate in any
future auctions conducted by the Commission on behalf of any other person or
entity; and (iii) will not hold a position or interest of any kind and to any extent
4

Federal Communications Commission

DA 13-684

whatsoever (financial or otherwise) in an entity that participates in any future
auctions conducted by the Commission. Nothing in this subparagraph shall
prevent Matthew Salazar from holding a position or interest in an entity that is
publicly traded on the New York Stock Exchange or the NASDAQ Stock
Market.
14.

Compliance Reports

. I Ugly Enterprise and Matthew Salazar shall each file a
Compliance Report with the Commission ninety (90) calendar days after the Effective Date, twelve (12)
months after the Effective Date, twenty-four (24) months after the Effective Date, and thirty-six (36)
months after the Effective Date. 1 Ugly Enterprise and Matthew Salazar shall certify in their respective
Compliance Reports to their compliance with the terms and conditions contained in this Consent Decree.
If they are unable to provide the requisite certification, they shall provide a full and complete explanation
of the reasons why they are not able to do so. All Compliance Reports shall be submitted to the Chief,
Investigations and Hearings Division, Enforcement Bureau, Federal Communications Commission, Room
4-C330, 445 12th Street, S.W., Washington, D.C. 20554, with copies submitted electronically to Theresa
Z. Cavanaugh at Terry.Cavanaugh@fcc.gov and to Brian J. Carter at Brian.Carter@fcc.gov.
15.

Voluntary Contribution

. 1 Ugly Enterprise agrees that it will make a voluntary
contribution to the United States Treasury in the total amount of $5,000.00. This amount was arrived at
after careful consideration of 1 Ugly Enterprise’s claimed inability to pay a large voluntary contribution
and documentation submitted by 1 Ugly Enterprise to the Bureau in support thereof. The total payment
shall be made within 30 days after the Effective Date. 1 Ugly Enterprise shall also send electronic
notification of payment to Theresa Z. Cavanaugh at Terry.Cavanaugh@fcc.gov and to Brian J. Carter at
Brian.Carter@fcc.gov on the date said payment is made. The payment must be made by check or similar
instrument, wire transfer, or credit card, and must include the NAL/Account number and FRN referenced
above. Regardless of the form of payment, a completed FCC Form 159 (Remittance Advice) must be
submitted.7 When completing the FCC Form 159, enter the Account Number in block number 23A (call
sign/other ID) and enter the letters “FORF” in block number 24A (payment type code). Below are
additional instructions regarding the form of payment:8
• Payment by check or money order must be made payable to the order of the Federal
Communications Commission. Such payments (along with the completed Form 159) must be
mailed to Federal Communications Commission, P.O. Box 979088, St. Louis, MO 63197-
9000, or sent via overnight mail to U.S. Bank – Government Lockbox #979088, SL-MO-C2-
GL, 1005 Convention Plaza, St. Louis, MO 63101.
• Payment by wire transfer must be made to ABA Number 021030004, receiving bank
TREAS/NYC, and Account Number 27000001. To complete the wire transfer and ensure
appropriate crediting of the wired funds, a completed Form 159 must be faxed to U.S. Bank
at (314) 418-4232 on the same business day the wire transfer is initiated.
• Payment by credit card must be made by providing the required credit card information on
FCC Form 159 and signing and dating the Form 159 to authorize the credit card payment.
The completed Form 159 must then be mailed to Federal Communications Commission, P.O.
Box 979088, St. Louis, MO 63197-9000, or sent via overnight mail to U.S. Bank –
Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO.


7 An FCC Form 159 and detailed instructions for completing the form may be obtained at
http://www.fcc.gov/Forms/Form159/159.pdf.
8 Questions regarding payment procedures, it should contact the Financial Operations Group Help Desk by phone at
1-877-480-3201, or by e-mail at ARINQUIRIES@fcc.gov.
5

Federal Communications Commission

DA 13-684

Questions regarding payment procedures should be addressed to the Financial Operations Group Help
Desk by phone at 1-877-480-3201, or by e-mail at ARINQUIRIES@fcc.gov.
16.

Waivers

. 1 Ugly Enterprise and Matthew Salazar waive any and all rights they may have
to seek administrative or judicial reconsideration, review, appeal or stay, or to otherwise challenge or
contest the validity of this Consent Decree and the Adopting Order, provided the Bureau issues an
Adopting Order as defined herein. 1 Ugly Enterprise and Matthew Salazar shall retain the right to
challenge Commission interpretation of the Consent Decree or any terms contained herein. If any Party
(or the United States on behalf of the Commission), brings a judicial action to enforce the terms of the
Adopting Order, neither 1 Ugly Enterprise, Matthew Salazar nor the Commission shall contest the
validity of the Consent Decree or of the Adopting Order, and 1 Ugly Enterprise and Matthew Salazar
shall waive any statutory right to a trial de novo. 1 Ugly Enterprise and Matthew Salazar hereby agree to
waive any claims they may otherwise have under the Equal Access to Justice Act9 relating to the matters
addressed in this Consent Decree.
17.

Invalidity

. In the event that this Consent Decree in its entirety is rendered invalid by any
court of competent jurisdiction, it shall become null and void and may not be used in any manner in any
legal proceeding.
18.

Subsequent Rule or Order

. The Parties agree that if any provision of the Consent
Decree conflicts with any subsequent Rule or order adopted by the Commission (except an order
specifically intended to revise the terms of the Consent Decree to which 1 Ugly Enterprise and Matthew
Salazar do not expressly consent) that provision will be superseded by such Rule or Commission order.
19.

Successors and Assigns

. 1 Ugly Enterprise agrees that the provisions of this Consent
Decree shall be binding on its successors, assigns, and transferees.
20.

Final Settlement

. The Parties agree and acknowledge that this Consent Decree shall
constitute a final settlement between the Parties with respect to the Investigation. The Parties further
agree that this Consent Decree does not constitute either an adjudication on the merits or a factual or legal
finding or determination regarding any compliance or noncompliance with the Communications Laws.
21.

Modifications

. This Consent Decree cannot be modified without the advance written
consent of all Parties.
22.

Paragraph Headings

. The headings of the paragraphs in this Consent Decree are
inserted for convenience only and are not intended to affect the meaning or interpretation of this Consent
Decree.
23.

Authorized Representative

. The individual signing this Consent Decree on behalf of 1
Ugly Enterprise represents and warrants that he is authorized by 1 Ugly Enterprise to execute this Consent
Decree and to bind 1 Ugly Enterprise to the obligations set forth herein. The FCC signatory represents
that she is signing this Consent Decree in her official capacity and that she is authorized to execute this
Consent Decree.
24.

Counterparts

. This Consent Decree may be signed in any number of counterparts
(including by facsimile), each of which, when executed and delivered, shall be an original, and all of
which counterparts together shall constitute one and the same fully executed instrument.


9 Equal Access to Justice Act, Pub L. No. 96-481, 94 Stat. 2325 (1980) (codified at 5 U.S.C. § 504); see also
47 C.F.R. §§ 1.1501-1.1530.
6

Federal Communications Commission

DA 13-684

By: _____________________________________
By: _______________________________
P. Michele Ellison, Chief Matthew Salazar, individually, and
Enforcement Bureau
on behalf of 1 Ugly Enterprise, LLC
Federal Communications Commission
Date: ___________________________________
Date: _____________________________
7

Note: We are currently transitioning our documents into web compatible formats for easier reading. We have done our best to supply this content to you in a presentable form, but there may be some formatting issues while we improve the technology. The original version of the document is available as a PDF, Word Document, or as plain text.

close
FCC

You are leaving the FCC website

You are about to leave the FCC website and visit a third-party, non-governmental website that the FCC does not maintain or control. The FCC does not endorse any product or service, and is not responsible for, nor can it guarantee the validity or timeliness of the content on the page you are about to visit. Additionally, the privacy policies of this third-party page may differ from those of the FCC.