[Federal Register: October 2, 2003 (Volume 68, Number 191)]
[Notices]
[Page 56839-56840]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02oc03-63]
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
[DA 03-2882]
Notice of Suspension and of Proposed Debarment Proceedings;
Schools and Libraries Universal Service Support Mechanism
AGENCY: Federal Communications Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Enforcement Bureau (``Bureau'') gives notice of Mr. Duane
Maynard's suspension from the schools and libraries universal service
support mechanism. In addition, the Bureau gives notice that debarment
proceedings are commencing against him. Mr. Maynard, or any person who
has an existing contract with or intends to contract with him to
provide or receive services in matters arising out of activities
associated with or related to the schools and libraries support, may
respond by filing an opposition request, supported by documentation.
DATES: Opposition requests must be received by November 3, 2003.
However, an opposition request by the party to be suspended must be
received 30 days from the receipt of the suspension letter or November
3, 2003, whichever comes first. The Bureau will decide any opposition
request for reversal or modification of suspension or debarment within
90 days of its receipt of such requests.
FOR FURTHER INFORMATION CONTACT: Diana Lee, Federal Communications
Commission, Enforcement Bureau, Investigations and Hearings Division,
Room 6-C326, 445 12th Street, SW., Washington, DC 20554. Diana Lee may be contacted by phone at (202) 418-1420 or e-mail at diana.lee@fcc.gov.
SUPPLEMENTARY INFORMATION: The Bureau has suspension and debarment
authority under 47 CFR 54.521 and 47 CFR 0.111(a)(14). Suspension will
help to ensure that the party to be suspended cannot continue to
benefit from the schools and libraries mechanism pending resolution of
the debarment process. Attached is the suspension letter, Notice of
Suspension and of Proposed Debarment Proceedings, DA 03-2882, which was
mailed to Mr. Maynard and released on August 21, 2003. The letter (1)
gives notice of the suspension and proposed debarment; (2) gives the
reasons for the proposed debarment; (3) explains the debarment
procedures, and (4) describes the potential effect of debarment. The
complete text of the suspension letter is available for public
inspection and copying during regular business hours at the FCC
Reference Information Center, Portals II, 445 12th Street, SW., Room
CY-A257, Washington, DC 20554. In addition, the complete text of this
letter may be retrieved from the FCC's Web site at http://www.fcc.gov.
The text may also be purchased from the Commission's duplicating
contractor, Qualex International, Portals II, 445 12th Street, SW.,
Room CY-B402, Washington, DC 20554, telephone (202) 863-2893, facsimile (202) 863-2898, or via e-mail qualexint@aol.com.
Federal Communications Commission.
Maureen F. Del Duca,
Chief, Investigations and Hearings Division, Enforcement Bureau.
The suspension letter follows:
Federal Communications Commission, Washington, DC 20554
[DA 03-2882]
September 11, 2003.
Via Certified Mail Return Receipt Requested
Mr. Duane Maynard
Howe Electric, Inc., 4682 E. Olive Ave., Fresno, CA 93702
Re: Notice of Suspension and of Proposed Debarment, File No. EB-03-
IHD-0387.
Dear Mr. Maynard: The Federal Communications Commission (``FCC''
or ``Commission'') has received notice of your August 26, 2003
conviction pursuant to 15 U.S.C. 1 for bid rigging.\1\ Consequently,
pursuant to 47 CFR 54.521, this letter constitutes official notice
of your suspension from the schools and libraries universal service
support mechanism. In addition, the Enforcement Bureau (``Bureau'')
hereby notifies you that we are commencing debarment proceedings
against you.\2\
---------------------------------------------------------------------------
\1\ Any further reference in this letter to ``your conviction''
refers to your August 26, 2003 guilty plea and conviction of this
count based on your participation, on behalf of your employer, Howe
Electric, Inc., in a ``combination and conspiracy to suppress
bidding for the West Fresno Elementary School District E-Rate
project and to allocate among conspirators the responsibility for
supplying goods and services for that project.'' See United States
v. Maynard, Criminal Docket No. 1:03cr5325, Information at 2-3
(E.D.Cal. filed August 19, 2003) (``Maynard Felony Information'');
United States v. Maynard, Criminal Docket No. 1:03cr5325, Plea
Agreement at 6-7 (E.D.Cal. filed August 26, 2003) (``Maynard Plea
Agreement'').
\2\ 47 CFR 54.521; 47 CFR 0.111(a)(14) (delegating to the
Enforcement Bureau authority to resolve universal service suspension
and debarment proceedings pursuant to 47 CFR 54.521).
---------------------------------------------------------------------------
I. Notice of Suspension
Pursuant to section 54.521(a)(4) of the Commission's rules,\3\
your conviction requires the Bureau to suspend you from
participating in any activities associated with or related to the
schools and libraries fund mechanism, including the receipt of funds
or discounted services through the schools and libraries fund
mechanism, or consulting with, assisting, or advising applicants or
service providers regarding the schools and libraries support
mechanism.\4\ Your suspension becomes effective upon the earlier of
your receipt of this letter or publication of notice in the Federal
Register.\5\
---------------------------------------------------------------------------
\3\ 47 CFR 54.521(a)(4); Schools and Libraries Universal Service
Support Mechanism, Second Report and Order and Further Notice of
Proposed Rulemaking, 18 FCC Rcd 9202, 9225-27, ]] 67-74 (2003)
(``Second Report and Order''); id. at Appendix B, 18 FCC Rcd at
9263-65.
\4\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 U.S.C.
254; 47 CFR 54.502-54.503; 47 CFR 54.521(a)(4).
\5\ Second Report and Order, 18 FCC Rcd at 9226, ] 69; 47 CFR
54.521(e)(1).
---------------------------------------------------------------------------
Suspension is immediate pending the Bureau's final debarment
determination. You
[[Page 56840]]
may contest this suspension or the scope of this suspension by
filing arguments in opposition to the suspension, with any relevant
documentation. Your request must be received within 30 days after
you receive this letter or after notice is published in the Federal
Register, whichever comes first.\6\ Such requests, however, will not
ordinarily be granted.\7\ The Bureau may reverse or limit the scope
of suspension only upon a finding of extraordinary circumstances.\8\
Absent extraordinary circumstances, the Bureau will decide any
request for reversal or modification of suspension within 90 days of
its receipt of such request.\9\
---------------------------------------------------------------------------
\6\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR
54.521(e)(4).
\7\ Second Report and Order, 18 FCC Rcd at 9226, ] 70.
\8\ 47 CFR 54.521(f).
\9\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47
CFR 54.521(e)(5), 54.521(f).
---------------------------------------------------------------------------
II. Notice of Proposed Debarment
A. Reasons for and Cause of Debarment
The Commission's rules establish procedures to prevent persons
who have ``defrauded the government or engaged in similar acts
through activities associated with or related to the schools and
libraries support mechanism'' from receiving the benefits associated
with that program.\10\ On August 26, 2003, you admitted to
participating in a combination and conspiracy with West Fresno
Elementary School District representatives, a consultant and others
representing potential competitors, on behalf of your employer, Howe
Electric, Inc.\11\ Specifically, you admitted that you and the other
co-conspirators combined, conspired, and agreed that: (1) Howe
Electric, Inc. would be the successful bidder to provide goods and
services for the schools and libraries E-Rate project in the
district, while no other co-conspirator companies would bid for the
project; (2) certain co-conspirator companies would be Howe
Electric's subcontractors; and (3) any competing bids would be
disqualified as nonresponsive.\12\
---------------------------------------------------------------------------
\10\ Second Report and Order, 18 FCC Rcd at 9225, ] 66.
\11\ See United States v. Maynard, Criminal Docket No.
1:03cr5325, Docket Proceedings (E.D.Cal. filed August 26, 2003).
\12\ See Maynard Felony Information at 3; Maynard Plea Agreement
at 6-7. The conspiracy violated the Commission's competitive bid
requirements for telecommunications services supported by the
schools and libraries E-Rate program. 47 CFR 54.504.
---------------------------------------------------------------------------
These actions constitute the conduct or transactions upon which
this debarment proceeding is based.\13\ Moreover, your conviction on
the basis of these acts falls within the categories of causes for
debarment defined in section 54.521(c) of the Commission's
rules.\14\ Therefore, pursuant to section 54.521(a)(4) of the
Commission's rules, your conviction requires the Bureau to commence
debarment proceedings against you.
---------------------------------------------------------------------------
\13\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR
54.521(e)(2)(i).
\14\ ``Causes for suspension and debarment are the conviction of
or civil judgment for attempt or commission of criminal fraud,
theft, embezzlement, forgery, bribery, falsification or destruction
of records, making false statements, receiving stolen property,
making false claims, obstruction of justice and other fraud or
criminal offense arising out of activities associated with or
related to the schools and libraries support mechanism.'' 47 CFR
54.521(c). Such activities ``include the receipt of funds or
discounted services through the schools and libraries support
mechanism, or consulting with, assisting, or advising applicants or
service providers regarding schools and libraries support mechanism
described in this section ([47 C.F. R.] 54.500 et seq.).'' 47 CFR
54.521(a)(1).
---------------------------------------------------------------------------
B. Debarment Procedures
You may contest debarment or the scope of the proposed debarment
by filing arguments and any relevant documentation within 30
calendar days of the earlier of the receipt of this letter or of
publication in the Federal Register.\15\ Absent extraordinary
circumstances, the Bureau will debar you.\16\ Within 90 days of
receipt of any opposition to your suspension and proposed debarment,
the Bureau, in the absence of extraordinary circumstances, will
provide you with notice of its decision to debar.\17\ If the Bureau
decides to debar you, its decision will become effective upon the
earlier of your receipt of a debarment notice or publication of its
decision in the Federal Register.\18\
---------------------------------------------------------------------------
\15\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47
CFR 54.521(e)(2(i), 54.521(e)(3).
\16\ Second Report and Order, 18 FCC Rcd at 9227, ] 74.
\17\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47
CFR 54.521(e)(5).
\18\ Id. The Commission may reverse a debarment, or may limit
the scope or period of debarment upon a finding of extraordinary
circumstances, following the filing of a petition by you or an
interested party or upon motion by the Commission. 47 CFR 54.521(f).
---------------------------------------------------------------------------
C. Effect of Debarment
If and when your debarment becomes effective, you will be
prohibited from participating in activities associated with or
related to the schools and libraries support mechanism for at least
three years from the date of debarment.\19\ The Bureau may, if
necessary to protect the public interest, extend the debarment
period.\20\
---------------------------------------------------------------------------
\19\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR
54.521(d), 54.521(g).
\20\ Id.
---------------------------------------------------------------------------
Please direct any responses to the following address: Diana Lee,
Federal Communications Commission, Enforcement Bureau,
Investigations and Hearings Division, Room 6-C326, 445 12th Street,
SW., Washington, DC 20554.
If you submit your response via hand-delivery or non-United
States Postal Service delivery (e.g., Federal Express, DHL, etc.),
please send your response to Ms. Lee at the following address:
Federal Communications Commission, 9300 East Hampton Drive, Capitol
Heights, MD 20743.
If you have any questions, please contact Ms. Lee via mail, by telephone at (202) 418-1420 or by e-mail at diana.lee@fcc.gov. If
Ms. Lee is unavailable, you may contact William Davenport by
telephone at (202) 418-1420 and by e-mail at william.davenport@fcc.gov.
Sincerely yours,
Maureen F. Del Duca,
Chief, Investigations and Hearings Division, Enforcement Bureau.
cc: Kenneth Alan Reed, Law Office of Kenneth Alan Reed Kristy
Carroll, USAC.
[FR Doc. 03-24936 Filed 10-1-03; 8:45 am]
BILLING CODE 6712-01-P