Securus Fined $1.7 Million

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The FCC has imposed a $1.7 million fine in connection with the transfer of control of Securus Technologies, Inc., T-NETIX, Inc.  and T-NETIX Telecommunications Services, Inc. (collectively, the Licensees) from Securus Investment Holdings, LLC (Transferor, and, together with Licensees, Securus) to SCRS Acquisition Corporation (Transferee).  Although approving the transfer of control, the Commission levied the fine based on statements made by Securus during the license transfer process.  In seeking to expedite its FCC applications, Securus represented to the Commission that the transaction had received all necessary consents from governmental authorities and needed only the FCC’s consent to close the transaction.  It was discovered subsequently that at the time that statement was made the States of Pennsylvania, California and Alaska were still reviewing the transaction and had not in fact consented to the deal.  Securus’ defense was that the purchase agreement between the parties did not define “required consents” to include those three states where consent had not been obtained.  In rejecting that argument and in imposing the fine, the Commission found that “[i]t is precisely because these filers attempted to persuade the head of the agency to act more quickly on applications by relying on information known to be incorrect that the filers’ actions are so egregious.”

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