FCC fines Securs $1.7 million for submitting misleading information
FCC FINES SECURUS $1.7M, RESOLVING INVESTIGATION OVER
SUBMITTING MISLEADING INFORMATION TO AGENCY
Commission Completes Investigation, Approves Sale of Securus to Platinum Equity
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WASHINGTON, October 30, 2017— The Federal Communications Commission today announced it has reached a $1.7 million consent decree with Securus Technologies resolving an investigation into whether Securus provided inaccurate and misleading information to the FCC regarding the company’s transfer of control to Platinum Equity, LLC.
As part of the consent decree, Securus will implement a strict compliance plan. With the resolution of the investigation and the commitment of Securus to the compliance plan, the agency approved the company’s proposed transfer of control from Securus Investment Holdings, LLC to Platinum Equity, LLC. The FCC’s Wireline Competition Bureau, in its review of the merger application, found “Securus’s cavalier and willful attitude towards the Commission and its transaction review process unacceptable.” Because this conduct was wholly relevant to the pending merger applications, the Wireline Competition and International Bureaus paused further consideration of the transaction and referred the matter to the FCC’s Enforcement Bureau.
As a result, the FCC’s Enforcement Bureau opened an investigation into apparent violations of FCC rules requiring all material information submitted to the agency not be incorrect or misleading, or omit material information. To conclude the investigation, Securus has agreed to pay a $1,700,000 civil penalty and to implement a three-year compliance plan to ensure that it adheres to Commission rules. The compliance plan requires Securus to appoint a compliance officer, implement internal procedures, submit periodic reports and ensure that all FCC filings be reviewed and receive written approval by legal counsel.
With the resolution of the Enforcement Bureau investigation and Securus’ commitment to the compliance plan, the FCC found that this transaction, which involves a transfer of control to a holding company entity with no competing operations and that was not involved in the violations of FCC rules, imposes no public interest harms. Additionally, the FCC found that the transaction may increase capital resources available to Securus to implement or continue offering certain services and programs for inmates and law enforcement that it has committed to offer.
The settlement, formally known as a Consent Decree, is available at:
https://apps.fcc.gov/edocs_public/attachmatch/FCC-17-140A1.pdf.
The Memorandum Opinion & Order approving the Securus transaction is available at:
<a href=”https://apps.fcc.gov/edocs_public/attachmatch/FCC-17-141A1.pdf” target=”_blank” rel=”noopener”>https://apps.fcc.gov/edocs_public/attachmatch/FCC-17-141A1.pdf</a>.
