ALJ Halprin Preserves WJBE License

Tennessee radio station WJBE(AM) Powell -- the only black-owned station in its area -- won’t lose its license over a 2016 felony tax fraud conviction by owner Joseph Armstrong, ruled FCC Administrative Law Judge Jane Halprin Thursday. “The station has an overall positive record of public service and the evidence suggests a sincere commitment to its listeners,” wrote Halprin. “As a result, the Presiding Judge finds that Mr. Armstrong’s felony conviction does not warrant revocation of Arm & Rage’s license for WJBE.” said the decision. Armstrong -- a former Tennessee state legislator -- was convicted over failing to include $300,000 in profits on a tax form. The profits came from Armstrong buying and then flipping cigarette tax stamps as the legislature increased the state’s cigarette tax. Armstrong committed the crime in 2007, bought the station in 2013, and was convicted in 2016, which he reported to the FCC 14 days later than required. The FCC granted WJBE’s renewal in 2020, and only designated the matter for hearing in 2022. In her decision, Halprin rejected Enforcement Bureau arguments that the EB should have been permitted to investigate other possible tax issues involving Armstrong. “In pursuing wide-ranging discovery regarding other tax issues, the Enforcement Bureau essentially asked Arm & Rage to perform a self-audit to identify other potential federal income tax violations,” wrote Halprin “This proceeding is not intended to relitigate the crime or second-guess the trial court’s findings.” Halprin also pushed back on EB arguments that minor violations of FCC procedural rules by the station showed a pattern of dishonest behavior, and denied what she called “overly broad” discovery requests about possible rule violations. The station’s FCC compliance is relevant to the case but “it does not follow” that “virtually unlimited discovery regarding other potential violations of the Commission’s rules was warranted.” The EB should have presented additional evidence to justify forays into Armstrong’s tax history and FCC compliance, she said. “Absent Mr. Armstrong’s felony conviction, it is doubtful that this matter would have been designated for hearing,” Halprin wrote.