Powell Williams, a businessman from Los Angeles, for hearing. The commission ordered the hearings over complications in ownership. The FCC alleged that, over two years of what Variety called "financial gamesmanship", ownership had passed from Television Company of America to Nevada Broadcasters' Fund to a company controlled by Johnson, who advanced funds to keep the station in business; that there was an unauthorized contract for a transfer of control to Johnson; and that Nevada Broadcasters' Fund had disclosed in stock sales that it acquired control of KSHO-TV before even filing the application with the FCC, which must approve all transfers of control of radio and television stations. Hearings were held in Las Vegas before an FCC examiner over the various unauthorized transfers and attempts to solicit public investment. KSHO-TV's weakened position also was revealed by testimony in a concurrent FCC battle over the licensing of channel 4 in Boulder City, wherein applicants for that station—including KSHO-TV's station manager—were found to have discussed how to seek a network affiliation and "what part Channel 13 would play if it became dead". FCC hearing examiner Millard French handed down an initial decision in November 1964 against the license renewal and proposed transfers of control to Williams, citing Nevada Broadcasters' Fund's "misrepresentations and statements that were calculated to deceive", that stakeholders were selling stock they no longer owned, and that Johnson's company, KBLI Inc., attempted to raise stock only to be told by the securities commissioner in Idaho that it could not invest any of the money it raised outside the state. In July 1965, the FCC ruled against Television Company of America. It represented the first time the commission had denied renewal of a television license at hearing; even though the FCC held that some innocent creditors and others would be punished, it rebuked the "most incredibly lax manner" in which KSHO-TV was operated and noted that concealing the Johnson ownership interest was "outstanding and willful". Arthur Powell Williams lodged an appeal, noting that the commission found him to be of "blameless character". However, a federal appeals court upheld the commission's action in June 1966, and the Supreme Court refused to take up the case in February 1967. Talmac and Williams ownership On June 9, 1967, KSHO-TV's operating authority expired; the same day, the FCC granted interim operating authority to a group consisting of five of the seven applicants seeking to operate the