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Inquiry Continues on Boesky Ownership of Television Station

October 29, 1987

WASHINGTON (AP) _ Seema S. Boesky, wife of former stock speculator Ivan F. Boesky, blames a ″lapse in communications″ among the law firms handling her family’s affairs for the transfer late last year of an Oklahoma City television station to her control.

The Federal Communications Commission is investigating whether transactions between the Boeskys resulted in unauthorized transfer of control of KGMC-TV. FCC staff have recommended the agency hold a formal hearing on the transfer issues, which could result in revocation of the license, said a commission source, who demanded anonymity.

Seema Boesky, in a statement filed with the FCC, said the events that led her to sign the transfer papers in December 1986 ″occurred because there were simply too many layers of lawyers involved in the affairs of my family.

″This led to a lapse of communication between the law firms involved and a failure to inform me of pertinent facts,″ she said in the statement filed last May and released by the FCC this week. Four law firms handled matters related to the TV station, she said.

Seema Boesky said the transfer of control application, which is still pending at the FCC, was unrelated to her husband’s legal problems, which resulted in his pleading plead guilty to one criminal count stemming from insider stock trading violations. He paid a $50 million fine and gave up another $50 million in illegal profits.

The FCC is investigating two transactions involving the Boeskys, the first of which occurred on Sept. 3, 1986, when Seema Boesky acquired her husband’s stock holdings in Beverly Hills Hotel Corp. and obtained voting rights over a majority of the stock of the company, which owns 85 percent of KGMC-TV.

In December 1986, the hotel company was dissolved and control of the station was transferred to Seema Boesky, even though the FCC had informed Boesky family lawyers earlier that approval of the transfer application would not be granted before the end of the year.

In her statement to the FCC, Seema Boesky said that after the hotel sale, she had to sign documents that were thousands of pages long.

″I began signing documents and initially attempted to read everything I signed. It shortly became clear that the liquidation could not be concluded before the end of 1986 if I read every document so I then began to sign documents that I had not read on the basis of the advice I received″ from her lawyers, she said. ″My understanding was that everything was in order.″

She added, ″I realize that mistakes were made and am prepared to accept the consequences.″ However, she said, the mistakes are not grave enough to warrant a formal hearing.

The FCC could fine the station up to $20,000 without a hearing.

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