Targeted News Service

WASHINGTON, May 23 -- The Federal Communications Commission's Wireline Competition Bureau issued the following public notice (WC Docket No. 26-125):

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The Wireline Competition Bureau seeks comment on a Petition for Preemption and Declaratory Ruling filed by AT&T Services, Inc. (AT&T)./1 In its Petition, AT&T requests that the Federal Communications Commission (Commission) declare that "any California law or regulation that interferes with or otherwise conditions AT&T's ability to discontinue [Plain Old Telephone Service (POTS)] as authorized by the Commission is preempted,"/2 following the ... Show Full Article

Stealth Communications Faces $14,000 FCC Forfeiture After Denying Two Compliance Inspections

WASHINGTON, May 22 -- The Federal Communications Commission has proposed a $14,000 forfeiture against Stealth Communications Services LLC, New York, for apparently refusing to allow compliance inspections at two of the company's equipment sites under the agency's "Secure and Trusted Communications Networks Reimbursement Program" (File No.: EB-FD-26-00040466). The Enforcement Bureau issued the Notice of Apparent Liability for Forfeiture on May 21, 2026.

The Reimbursement Program reimburses eligible providers for removing, replacing, and disposing of communications equipment deemed an unacceptable ... Show Full Article WASHINGTON, May 22 -- The Federal Communications Commission has proposed a $14,000 forfeiture against Stealth Communications Services LLC, New York, for apparently refusing to allow compliance inspections at two of the company's equipment sites under the agency's "Secure and Trusted Communications Networks Reimbursement Program" (File No.: EB-FD-26-00040466). The Enforcement Bureau issued the Notice of Apparent Liability for Forfeiture on May 21, 2026. The Reimbursement Program reimburses eligible providers for removing, replacing, and disposing of communications equipment deemed an unacceptablenational security risk. Participants are required to permit Commission-appointed representatives, including the program's Fund Administrator, to enter premises for compliance inspections to verify removal and disposal actions and confirm that funds were used appropriately.

According to the FCC, Stealth -- a regional provider offering fiber-based broadband in New York and accepted into the program on July 15, 2022 -- had made more than 170 program filings and received reimbursement claims totaling $38,049,156.77. On November 18, 2025, the Fund Administrator conducted scheduled onsite inspections at six locations Stealth identified as having or previously having covered equipment. Stealth allowed access at four locations but denied access at two sites. The two sites allegedly contained 67 pieces of covered equipment and 81 pieces of replacement equipment, according to company filings referenced by the Commission.

The Wireline Competition Bureau notified Stealth on April 9, 2026, that its refusal to permit inspections prevented verification of compliance and could lead to enforcement action under the Commission's rules. Stealth responded the same day with assertions about the circumstances that led to denial of access; portions of that response were redacted in the public notice. The FCC says Stealth did not provide supporting evidence for those assertions, and the Bureau could not confirm the company's statements. As of the notice's release, the two premises remained inaccessible to the Fund Administrator.

The Commission concluded that Stealth apparently willfully and repeatedly violated section 1.50004(o) of its rules by denying access to the inspectors at two separate premises on the date of the scheduled inspections. The FCC emphasized that onsite inspections are essential to preventing waste, fraud, and abuse in the reimbursement program and to verifying that covered equipment has actually been removed and disposed of in accordance with participants' plans.

Under the Commission's forfeiture guidelines, failure to permit inspection carries a base penalty of $7,000 for each violation. The Enforcement Bureau applied that base amount to each of the two incidents, resulting in a proposed total forfeiture of $14,000. The notice states that no upward or downward adjustments to that amount were warranted on the facts presented, but it warns program participants that higher forfeitures -- up to statutory maximums -- may be imposed in other cases depending on the circumstances.

The FCC's notice explains the statutory and regulatory backdrop for the enforcement action. Congress created the Secure and Trusted Communications Networks Act to address national security risks posed by certain communications equipment and directed the Commission to establish a reimbursement program for removing covered equipment. The Commission's rules require participants to cooperate with audits, reviews, and compliance inspections. The agency also designated Ernst & Young LLP as the Reimbursement Program Fund Administrator, responsible in part for verifying removals and performing audits and site visits.

Stealth's participation in the program entailed periodic reporting and certifications, and the Commission notes that recipients have an ongoing obligation to cooperate with inspections. The Enforcement Bureau rejected Stealth's explanations for denying access as insufficient to excuse noncompliance, noting that the company had prior notice of the inspections and opportunities to address any access issues before the scheduled visits.

The notice directs Stealth to pay the proposed forfeiture or file a written statement seeking reduction or cancellation within 30 calendar days of the notice's release. Any request to contest or reduce the forfeiture must include a detailed factual statement supported by documentation and affidavits, and assertions of inability to pay must be supported by financial records such as tax returns or financial statements for the prior three years. Payment instructions and procedures are set out in the notice.

The Enforcement Bureau said the proposed forfeiture does not foreclose additional enforcement measures, including recovery of reimbursement funds or other penalties provided under the program's rules. The FCC also stated that reimbursement program participants may be subject to audits, site visits, and proof-of-payment requests to ensure compliance with statutory and regulatory requirements and to guard against waste, fraud, and abuse.

The notice will be sent to Stealth's CEO at the company's New York address, and an email copy will be provided to the company. The Enforcement Bureau, which issued the notice, was led in this matter by Chief Patrick Webre.

-- Vidhi Gianani, Targeted News Service

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Original text here: https://docs.fcc.gov/public/attachments/DA-26-504A1.pdf

SEC Obtains Final Consent Judgment as to Ex-Alabama Investment Adviser

WASHINGTON, May 22 -- The Securities and Exchange Commission issued the following litigation release (No. 1:24-cv-00125; M.D. Ala. filed Sept. 28, 2022) involving ex-Alabama investment adviser:

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On May 20, 2026, the United States District Court for the Middle District of Alabama entered a final consent judgment against James Blake Daughtry, based on Daughtry's alleged breach of fiduciary duties to his clients in connection with the sale of his investment advisory business to Jared D. Eakes.

The SEC filed its complaint against Eakes and Daughtry on September 28, 2022 in the Middle District ... Show Full Article WASHINGTON, May 22 -- The Securities and Exchange Commission issued the following litigation release (No. 1:24-cv-00125; M.D. Ala. filed Sept. 28, 2022) involving ex-Alabama investment adviser: * * * On May 20, 2026, the United States District Court for the Middle District of Alabama entered a final consent judgment against James Blake Daughtry, based on Daughtry's alleged breach of fiduciary duties to his clients in connection with the sale of his investment advisory business to Jared D. Eakes. The SEC filed its complaint against Eakes and Daughtry on September 28, 2022 in the Middle Districtof Florida, but the SEC's claims against Daughtry were subsequently severed and that case was transferred to the Middle District of Alabama.

The SEC's complaint alleged that Daughtry breached his fiduciary duties to the clients that he moved and/or recruited to Eakes' investment advisory firm, GraySail Advisors, LLC. According to the complaint, Eakes misappropriated approximately $2.6 million from GraySail's clients, several of whom had previously been advisory clients of Daughtry. As alleged, Daughtry told his clients that he would monitor their accounts, and review any proposed investments with GraySail before such investments were consummated, but he failed to abide by these promises, even when several clients questioned certain investments that had been made in their accounts with GraySail. According to the complaint, Daughtry's failure to exercise the requisite care for his clients enabled Eakes to defraud these clients.

Without admitting or denying the allegations made in the SEC's complaint, Daughtry consented to the entry of the final judgment, which (a) permanently enjoins him from violating Section 206(2) of the Investment Advisers Act of 1940, (b) permanently enjoins him from associating with a broker, dealer or investment adviser, and (c) orders him to pay a $50,000 civil penalty. The SEC's litigation against Eakes remains pending in the Middle District of Florida.

The SEC's litigation against Daughtry was led by Paul Kim and H.B. Roback, under the supervision of M. Graham Loomis, all of the SEC's Atlanta Regional Office.

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Resources

* Final Judgment (https://www.sec.gov/files/litigation/litreleases/2026/judg26557.pdf)

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Original text here: https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26557

NCUA IG: Audit of the NCUA's Enterprise Risk Management Risk Profiles

ALEXANDRIA, Virginia, May 22 (TNSLrpt) -- The National Credit Union Administration Inspector General issued the following audit report (No. OIG-26-05) on May 20, 2026, entitled "Audit of the NCUA's Enterprise Risk Management Risk Profiles."

Here are excerpts:

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Executive Summary

OIG-26-05 Audit of the NCUA's Enterprise Risk Management Risk Profiles

Why We Did This Audit

The NCUA OIG conducted this self-initiated audit to assess the NCUA's Enterprise Risk Management Risk Profiles. The objective of our audit was to determine if the NCUA adequately established, maintained, and used risk ... Show Full Article ALEXANDRIA, Virginia, May 22 (TNSLrpt) -- The National Credit Union Administration Inspector General issued the following audit report (No. OIG-26-05) on May 20, 2026, entitled "Audit of the NCUA's Enterprise Risk Management Risk Profiles." Here are excerpts: * * * Executive Summary OIG-26-05 Audit of the NCUA's Enterprise Risk Management Risk Profiles Why We Did This Audit The NCUA OIG conducted this self-initiated audit to assess the NCUA's Enterprise Risk Management Risk Profiles. The objective of our audit was to determine if the NCUA adequately established, maintained, and used riskprofiles to address enterprise-level risks. The scope of our audit covered the NCUA's risk profiles from January 1, 2023, to April 1, 2025.

Office of Management and Budget (OMB) Circular A-123 (2016) 1 required "an effective agencywide approach to addressing the full spectrum of the organization's significant risks by understanding the combined impact of risks as an interrelated portfolio, rather than addressing risks only within silos." The primary purpose of a risk profile is to provide an analysis of the risks an agency faces toward achieving its strategic objectives arising from its activities and operations, and to identify appropriate options for addressing significant risks. In 2026, the Office of Management and Budget reissued Circular A-123, which revised the requirement of risk profiles to a best practice.

What We Found

Our audit determined the NCUA's Enterprise Risk Management Council (ERM Council) did not consistently establish, update, or use risk profiles to address the agency's enterprise-level risks.

The NCUA's ERM Council needs to improve the regular assessment and updating of all enterprise-level risks. The ERM Council should improve how it communicates its results to necessary agency officials, as appropriate. Without improvements, the NCUA may not consistently make informed decisions to enable proactive mitigation and monitoring strategies of enterprise-level risks so as not to exceed the agency's risk appetite.

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View full report here: https://ncua.gov/files/audit-reports/oig-26-05-ncua-erm-risk-profiles-report.pdf

FCC Grants WXBU License Renewal After HSH Lancaster Agrees to $41,000 Contribution Over Public File Lapses

WASHINGTON, May 22 -- The Federal Communications Commission has approved a consent decree with HSH Lancaster (WLYH) Licensee LLC resolving an inquiry into the station's license renewal filing for WXBU, Lancaster, Pennsylvania (File No.: 0000212902). The Media Bureau's Video Division adopted the decree on May 21, 2026 and granted the station's renewal application, conditioned on the licensee's compliance with the agreement.

The Bureau's review of the renewal application found the licensee answered inaccurately to a certification about timely uploads to the station's online public inspection file ... Show Full Article WASHINGTON, May 22 -- The Federal Communications Commission has approved a consent decree with HSH Lancaster (WLYH) Licensee LLC resolving an inquiry into the station's license renewal filing for WXBU, Lancaster, Pennsylvania (File No.: 0000212902). The Media Bureau's Video Division adopted the decree on May 21, 2026 and granted the station's renewal application, conditioned on the licensee's compliance with the agreement. The Bureau's review of the renewal application found the licensee answered inaccurately to a certification about timely uploads to the station's online public inspection file(OPIF). The application, filed March 23, 2023, initially indicated that required materials had been uploaded when staff records showed a number of missing or late filings. After staff identified the discrepancies and suspended processing, the licensee amended its application on February 9, 2026 to disclose the late OPIF entries. The OPIF has since been brought up to date.

The Investigation centered on compliance with two rule provisions: the requirement to provide complete and accurate information to the Commission under section 1.17(a)(2), and the OPIF obligations for full service television stations under section 73.3526(e)(11). Division staff found multiple late or missing entries across three OPIF categories: quarterly TV issues/programs lists, commercial limits records for children's programming, and children's television programming reports.

Specifically, staff identified 12 TV issues/programs lists that were either missing or uploaded late. The station's late TV issues/programs lists included one filed under one month late, five filed between one month and one year late, and six filed over one year late. For commercial limits certifications, Division staff found 14 entries that were missing or late; those comprised 12 quarterly filings and two annual filings, with six between one month and one year late and eight over one year late. For children's television programming reports, 11 entries were missing or late, including four filed less than one month late, five between one month and one year late, and two over one year late. Some of these timing issues reflect transitions in filing frequency established in prior FCC rulemaking, which moved certain submissions from quarterly to annual filings beginning in 2020.

The consent decree reflects the parties' negotiated resolution: HSH Lancaster will make a voluntary contribution of $41,000 to the U.S. Treasury. The Video Division agreed to terminate its Investigation in exchange for the payment and other commitments in the consent decree. In entering the agreement, the Bureau determined grant of the renewal application for an eight-year term, from the prior license expiration date, serves the public interest under section 309(k)(1) of the Communications Act.

Under terms of the agreement, the licensee admitted the factual description in the consent decree concerning its late and missing OPIF filings but did not admit liability for violations of the Communications Laws. The Bureau stated it found no evidence of an intent to mislead; rather, the failures were attributed to administrative oversight. The consent decree requires the licensee to place a copy of the agreement into the station's OPIF within 15 days of the effective date, in the folder titled "FCC Investigations or Complaints," and to retain it until grant of the station's next renewal application.

The agreement also specifies payment mechanics and deadlines. The voluntary contribution is due within 15 days after the effective date; failure to pay when due constitutes an Event of Default that will accelerate the debt, trigger interest at the U.S. Prime Rate plus 4.75 percent, and expose the licensee to collection costs and other remedies. Payment must be made through the Commission's CORES system or by wire transfer, and the licensee must notify the Video Division upon payment.

The Bureau committed that, absent new material evidence, it will not use the facts developed in the Investigation through the effective date of the consent decree, or the existence of the consent decree itself, to initiate new adverse proceedings or to question the licensee's basic qualifications. The consent decree does not preclude investigation of subsequent evidence of noncompliance or adjudication of third-party complaints based on matters occurring after the effective date.

The consent decree will be incorporated into an adopting order without change and will be enforceable as an FCC order. The adopting order and the consent decree will be mailed to Armstrong Williams at the licensee's listed address and emailed to designated contacts. The Video Division's action was issued by Chief David J. Brown.

-- Vidhi Gianani, Targeted News Service

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Original text here: https://docs.fcc.gov/public/attachments/DA-26-494A1.pdf

CPSC Issues Recall Alert Involving Portable Hook-On Chairs

WASHINGTON, May 22 -- The Consumer Product Safety Commission issued the following recall alert:

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Name of Product: Portable Hook-On Chairs

Hazard: The recalled portable hook-on chairs violate the mandatory standard for portable hook-on chairs because the crotch restraints can be removed without the use of a tool and infants can fall through an opening, posing a deadly fall hazard.

Remedy: Refund

Recall Date: May 21, 2026

Units: About 9,700

Consumer Contact: Email PandaEar at pandaear_recall@outlook.com.

Description: This recall involves two models of PandaEar portable hook-on chairs. ... Show Full Article

CPSC Issues Recall Alert Involving Bethlehem Lights 10-Inch Illuminated Ribbon Spheres

WASHINGTON, May 22 -- The Consumer Product Safety Commission issued the following recall alert:

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Name of Product: Bethlehem Lights 10-inch Illuminated Ribbon Spheres

Hazard: The LED lights on the recalled illuminated spheres can overheat, posing a risk of serious injury or death from a fire hazard.

Remedy: Refund

Recall Date: May 21, 2026

Units: About 2,000

Consumer Contact: Bethlehem Lights LLC toll-free at 877-661-8324 from 8 a.m. to 5 p.m. CT Monday through Friday, or by email at ribbonsphere@bethlehemlights.com, or at https://www.qvc.com/ and click on "Product Recall Info" at the ... Show Full Article

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