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Other allegations related to failure of the parties to disclose stock ownership to the Board as required by the Act, the maintenace of certain interlocking relationships without obtaining prior Board approval, and the conduct of Colonial's business in such manner as to result in non-conformance with standards of honest, economical and efficient management.

The order issued by the Board today directs the respondents to cease and desist from failing and neglecting to keep accounts and records in accordance with Board requirements, from furnishing to any person or permitting any person to obtain free or reduced rate transportation in violation of the Act and the Board's Regulations, and from maintaining any interlocking relationship without first obtaining Board approval as required by the Act.  Further, Janas was directed to cease and desist from filing incomplete, inaccurate or false reports with the Board regarding shares of stock and other interests in any air carriers, any person engaged in any phase of aeronautics or in any common carrier.

The Board on June 15, 1951, referred the matter to the U.S. Attorney for the Southern District of New York for appropriate action, and at the same time made available to him the Board's complete files on the Colonial investigation for such further action as he may deem necessary.  The U.S. Attorney, on June 29, filed two criminal informations with the United States District Court charging Janas and Colonial Airlines, Inc., as co-defendants with 40 counts of violations of the provisions of the Act governing free and reduced rate transportation, and 40 counts of falsifying and altering reports, accounts, records and memoranda required to be kept by Colonial.  The Board pointed out that violation of filing to file reports or falsification of records, upon convictions, are punishable under the Civil Aeronautics Act by fines, only.

In referring to the U.S. Attorney the alleged criminal violations of the Civil Aeronautics Act on the part of Janas and Colonial, the Board considered that it was without statutary responsibility to deal with or consider possible criminal actions apart from those that may constitute violations of the Civil Aeronautics Act, which is the only type of violations for which the Board is authorized to request criminal prosecution.  The institution and prosecution of criminal actions is solely within the discretion of the U.S. Attorney, and the Board's action in accepting the proposal of the parties does not affect such other or further prosecutions of any criminal offenses which the U.S. Attorney may deem to have been committed in addition those referred by the Board.

The Board further ordered that the proceeding be closed without prejudice to the effect and enforcement of the order, or the right to reopen upon motion of the Office of Enforcement for good cause shown. Provision was also made that Colonial file, not later than 60 days after

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