[Federal Register: October 2, 2003 (Volume 68, Number 191)]
[Notices]
[Page 56837-56839]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02oc03-62]
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FEDERAL COMMUNICATIONS COMMISSION
[DA 03-2707]
Notice of Suspension and of Proposed Debarment Proceedings;
Schools and Libraries Universal Service Support Mechanism
AGENCY: Federal Communications Commission.
ACTION: Notice.
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SUMMARY: The Enforcement Bureau (``Bureau'') gives notice of Mr. John
Angelides'' suspension from the schools and libraries universal service
support mechanism. In addition, the Bureau gives notice that debarment
proceedings are commencing against him. Mr. Angelides, 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
[[Page 56838]]
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 03-2707, which was
mailed to Mr. Angelides 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 03-2707]
August 21, 2003.
Via Certified Mail, Return Receipt Requested
Mr. John Angelides,
Chief Executive Officer, Connect2 Internet Networks, Inc., 26 Bay
Street, Staten Island, NY 10301
Re: Notice of Suspension and of Proposed Debarment, File No. EB-03-
IHD-0376
Dear Mr. Angelides: The Federal Communications Commission
(``FCC'' or ``Commission'') has received notice of your May 22, 2003
conviction under 18 U.S.C. 371 for conspiracy to commit an offense
against or to defraud the United States. Specifically, you were
convicted of conspiracy to violate the following laws of the United
States: (1) 18 U.S.C. 287 (false, fictitious, and fraudulent
claims); (2) 18 U.S.C. 1001 (false statements and entries
generally); and (3) 18 U.S.C. 1343 (fraud by wire, radio, or
television).\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\
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\1\ Any further reference in this letter to ``your conviction''
refers to your May 22, 2003 guilty plea and conviction on this count
based on your fraudulent scheme to obtain schools and libraries E-
Rate program funds. See United States v. Angelides, Docket No.
1:03cr635, Felony Information (S.D.N.Y. filed May 20, 2003)
(``Angelides Felony Information'').
\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).
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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\
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\3\ 47 CFR 54.521(a)(4) See Schools and Libraries Universal
Service Support Mechanism, Second Report and Order and Further
Notice of Proposed Rulemaking, 18 FCC Rcd 9202, 9225--9227, ]] 67-74
(2003) (``Second Report and Order'').
\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).
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Suspension is immediate pending the Bureau's final debarment
determination. You 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\
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\6\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 247 CFR
54.521-54.521(e)(4).
\7\ Second Report and Order, 18 FCC Rcd at 9226, ] 70.
\8\ 47 CFR 54.521(f).
\9\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR
54.521(e)(5), 54.521(f).
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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 May 22, 2003, you admitted, among other
things, to selling eligible services to certain participating
schools through your company Connect2, imposing 100 percent of the
cost on the E-Rate program. You admitted to each of the following
acts: (1) Falsely representing to the schools that they could
participate in the program at no cost to them; (2) falsely
representing to fund administrators and Government investigators
that the schools would pay or had paid their unsubsidized share; and
(3) falsifying documents, as well as attempting to persuade school
administrators not to reveal evidence to Government investigators,
in order to conceal the scheme.\11\ These actions constitute the
conduct or transactions upon which this debarment proceeding is
based.\12\
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\10\ Second Report and Order, 18 FCC Rcd at 9225, ] 66.
\11\ See Angelides Felony Information at 3-11.
\12\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR
54.521(e)(2)(i).
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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.\13\ Therefore, pursuant to
section 54.521(a)(4) of the Commission's rules, your conviction
requires the Bureau to commence debarment proceedings against you.
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\13\ ``Causes for suspension and debarment are the conviction of
or civil judgment for attempt or commission of criminal fraud,
theft, embezzlement, forgery, bribery, falsification ordestruction
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 CFR 54.500 et seq.).'' 47 CFR
54.521(a)(1).
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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.\14\ Absent extraordinary
circumstances, the Bureau will debar you.\15\ Within 90 days of
receipt of any opposition to your suspension and proposed debarment,
[[Page 56839]]
the Bureau, in the absence of extraordinary circumstances, will
provide you with notice of its decision to debar.\16\ If the Bureau
decides to debar you, its decision will become effective upon the
earlier of your receipt of a debarment notice or the publication of
its decision in the Federal Register.\17\
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\14\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR
54.521(e)(2)(i), 47 CFR 54.521(e)(3).
\15\ Second Report and Order, 18 FCC Rcd at 9227, ] 74.
\16\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR
54.521(e)(5).
\17\ Id. The Commission may reverse a dabarment, or may limit
the scope or period of debarment upon a finding f 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).
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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.\18\ The Bureau may, if
necessary to protect the public interest, extend the debarment
period.\19\
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\18\ Second Report and Order, 18 FCC Rcd at 9225, ] 67. 47 CFR
54.521(d), 47 CFR 54.521(g).
\19\ Id.
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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: Mark S. Cohen, Cohen & Gressler, LLP
Kristy Carroll, USAC
[FR Doc. 03-24937 Filed 10-1-03; 8:45 am]
BILLING CODE 6712-01-P