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Start Free Trial NowTitle: KVBC owner tells of fight for control: Rogers testifies on success in blocking station takeover
Description: 1B; KSNV
is the he between “We meeting South destroy would would “We KVBC owner tells of fight for control Rogers testifies on success in blocking station takeover By David Koenig Review-Journal Washington Bureau WASHINGTON - The major owner of KVBC-TV in Las Vegas finished Wednesday with three days of testimony detailing a web of stock transactions that were part of a long fight for control of the sta tion. James E. Rogers described his successful efforts in 1982-83 to block a group of “dissident” minor ity owners from gaining control of Channel 3. Rogers, a lawyer who specializes in medical malpractice lawsuits, owns 48 percent of Valley Broadcasting, which operates the NBC affiliate. At one point Rogers pleaded with a minority owner, Dr. James Mc Millan, not to sell his stock to Rog ers’ rivals. “I said to Mac, ‘You simply can’t do this to me ... I’ve been at this for 10 years, you can’t do this,”’ Rogers testified at a hearing before a Feder al Communications Commission judge. Now Rogers is trying to fend off a license challenge from former state Sen. Bill Hernstadt. Hernstadt’s lawyers allege that Rogers and others at KVBC de frauded the government, hid infor mation, violated federal broadcast ownership rules and should be stripped of their license for the sta tion — which was valued at $16 million three years ago. McMillan is a central figure in the fraud charge, and he is sched uled to testify today or Friday. Hernstadt’s chief lawyer, Robert Healy of Washington, will allege that McMillan and Rogers arranged a “scam” sale of McMillan’s valu able stock in late 1982 so it would not be seized by the government. McMillan owed the Small Business Administration $220,000 for a loan on a liquor distributorship that failed. Rogers said he knew McMillan had “cash problems,” including a $100,000 bank note that was com ing due the next year. Rogers said McMillan owed him $48,000. But above all, Rogers feared that McMillan would sell his Valley Broadcasting stock to Las Vegas investor Louis Wiener Jr., who was then aligned with a group of stock holders unhappy with the station’s management. McMillan’s stock would give the “dissidents” control ling interest in the station, Rogers said. Rogers and McMillan struck what Rogers conceded was a “strange” deal. Rogers took over the stock even though no price had been ; negotiated. Later, unable to pay the $258,000 price they settled on, Rog ers returned the stock to McMillan. ‘ But in the time Rogers held the' stock, Valley Broadcasting once re- • ported to the FCC that he paid $258,000 for it, then later reported ’ he had paid nothing for it. McMil lan continued to act as a voting shareholder until a prospective buy er for the station checked and learned he held no stock. Rogers said he could ill afford to buy McMillan’s stock, but feared the alternative. “1 certainly didn’t need the addi tional burden,” Rogers said, “but I certainly needed to prevent (Mc Millan) from selling to somebody else. Please see STATION/6B
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Clipped 6 months ago
- Las Vegas Review-Journal
- Las Vegas, Nevada
- Jul, 24 1986 - Page 12