[Federal Register: December 16, 2004 (Volume 69, Number 241)]
[Notices]
[Page 75312-75314]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16de04-43]
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FEDERAL COMMUNICATIONS COMMISSION
[DA 04-3828]
Notice of Debarment; Schools and Libraries Universal Service
Support Mechanism
AGENCY: Federal Communications Commission.
ACTION: Notice.
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SUMMARY: The Enforcement Bureau (``Bureau'') debars Mr. John Dotson
from the schools and libraries universal service support mechanism for
a period of three years.
DATES: Debarment commences on the date Mr. Dotson receives the
debarment letter or whichever date comes first, for a period of three
years.
FOR FURTHER INFORMATION CONTACT: Diana Lee, Federal Communications
Commission, Enforcement Bureau, Investigations and Hearings Division,
Room 4-C330, 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 debarred Mr. John Dotson from
the schools and libraries universal service support mechanism for a
period of three years pursuant to 47 CFR 54.521 and 47 CFR
0.111(a)(14). The Commission previously suspended Mr. John Dotson from
the schools and libraries mechanism, pending debarment proceedings. See
69 FR 62047, October 22, 2004. Attached is the debarment letter, Notice
of Debarment; Schools and Libraries Universal Service Support
Mechanism, DA 04-3828, which was mailed to Mr. John Dotson and released
on December 6, 2004, in turn attached the suspension letter, Notice Of
Suspension and of Proposed Debarment Proceedings, DA 04-3209. The
complete text of the debarment letter with attachment 1 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.
William H. Davenport,
Chief, Investigations and Hearings Division, Enforcement Bureau.
The debarment letter, with attached suspension letter, follows:
VIA Certified Mail Return Receipt Requested
John Dotson, 2850 Webb Avenue, Apt. 4H, Bronx, NY 10468.
Re: Notice of Debarment, File No. EB-04-IH-0460.
Dear Mr. Dotson: Pursuant to section 54.521 of the rules of the
Federal Communications Commission (the ``Commission''), by this
Notice of Debarment you are hereby debarred from the schools and
libraries universal service support mechanism for a period of three
years.\1\
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\1\ See 47 CFR 0.111(a)(14), 54.521.
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On October 7, 2004, the Enforcement Bureau (the ``Bureau'') sent
you a Notice of Suspension and Proposed Debarment (the ``Notice of
Suspension'').\2\ That Notice of Suspension was published in the
Federal Register on October 22, 2004.\3\ The Notice of Suspension
suspended you from the schools and libraries universal service
support mechanism \4\ and described the basis for your proposed
debarment,\5\ the applicable debarment procedures,\6\ and the effect
of debarment.\7\
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\2\ Letter from William H. Davenport, Chief, Investigations and
Hearings Division, Enforcement Bureau, Federal Communications
Commission, to John Dotson, Notice of Suspension and Proposed
Debarment, 19 FCC Rcd 19662 (2004).
\3\ 69 FR 62047 (Oct. 22, 2004).
\4\ See Notice of Suspension, 19 FCC Rcd at 19662-63 (imposing
suspension pending the Bureau's final debarment determination)
(Attachment 1).
\5\ See id., 18 FCC Rcd at 19663-64 (describing the basis for
your proposed debarment).
\6\ See id., 18 FCC Rcd at 19664 (describing procedures to
contest proposed debarment).
\7\ See id. (describing effect of proposed debarment).
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Pursuant to the Commission's rules, any opposition to your
suspension or its scope or to your proposed debarment or its scope
had to be filed with the Commission no later than thirty (30)
calendar days from the earlier date of your receipt of the Notice of
Suspension or publication of the Notice of Suspension in the Federal
Register.\8\ The Commission did not receive any such opposition.
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\8\ See 47 CFR 54.521(e)(3) and (4). That date occurred no later
than November 21, 2004. See supra note 3.
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As discussed in the Notice of Suspension, on or about May 17,
2004, you were convicted of conspiracy to charge the E-Rate program
100 percent of the cost of E-Rate services provided through
Connect2Interne Networks, Inc. (``Connect2'') to certain schools
participating in the program, rather than requiring the schools to
pay their designated ten percent of those costs, by: (1) Falsely
representing to the schools that they
[[Page 75313]]
could participate in the program at no cost to them, and that their
share of the costs would be covered by outside sources donated to
Connect2 for that purpose; (2) requesting school officials to write
checks payable to Connect2 while agreeing either not to cash them or
to return those monies to the schools or their designees; and (3)
creating back-dated phony billing documents that give the false
appearance that Connect2 had billed the schools for their costs.\9\
Such conduct constitutes the basis for your debarment, and your
conviction falls within the categories of causes for debarment under
section 54.521(c) of the Commission's rules.\10\ For the foregoing
reasons, you are hereby debarred for a period of three years from
the debarment date, i.e., the earlier date of your receipt of this
Notice of Debarment or its publication date in the Federal
Register.\11\ Debarment excludes you, for the debarment period, from
activities ``associated with or related to the schools and libraries
support mechanism,'' including ``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 the schools and libraries support mechanism.''
\12\
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\9\ Notice of Suspension, 19 FCC Rcd at 19663-64.
\10\ Notice of Suspension, 19 FCC Rcd at 19664; 47 CFR
54.521(c).
\11\ See Notice of Suspension, 19 FCC Rcd at 19664.
\12\ See 47 CFR 54.521(a)(1), 54.521(a)(5), 54.521(d); Notice of
Suspension, 19 FCC Rcd at 19664.
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Sincerely yours,
William H. Davenport,
Chief, Investigations and Hearings Division, Enforcement Bureau.
cc: Philip L. Weinstein, Federal Defender Division Legal Aid Society
Kristy Carroll, USAC (Via Email)
David M. Siegal, Assistant United States Attorney, Southern District
of New York (Via Email)
Attachment 1
VIA Certified Mail Return Receipt Requested
John Dotson, 2850 Webb Avenue, Apt. 4H, Bronx, NY 10468.
Re: Notice of Suspension and of Proposed Debarment, File No. EB-04-
IH-0460.
Dear Mr. Dotson: The Federal Communications Commission (``FCC''
or ``Commission'') has received notice of your conviction on or
about May 17, 2004 pursuant to 18 U.S.C. 371 for conspiracy to
defraud the United States.\13\ 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). Consequently,
pursuant to 47 CFR 54.521, this letter constitutes official notice
of your suspension from the schools and libraries universal service
support mechanism, also known as the E-Rate program. In addition,
the Enforcement Bureau (``Bureau'') hereby notifies you that we are
commencing debarment proceedings against you.\14\
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\13\ Any further reference in this letter to ``your conviction''
refers to your conviction on or about May 17, 2004 of this count
based on your participation in a fraudulent scheme to obtain schools
and libraries E-Rate program funds. See United States v. Dotson,
Docket No. 1:03cr01113BSJ, Indictment (S.D.N.Y. filed September 17,
2003) (``Dotson Indictment''); United States v. Dotson, Docket No.
1:03cr01113BSJ, Judgment (S.D.N.Y. May 17, 2004) (``Dotson
Judgment'').
\14\ 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,\15\
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.\16\ Your suspension becomes effective upon the earlier of
your receipt of this letter or publication of notice in the Federal
Register.\17\
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\15\ 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'').
\16\ 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).
\17\ 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.\18\ Such requests,
however, will not ordinarily be granted.\19\ The Bureau may reverse
or limit the scope of suspension only upon a finding of
extraordinary circumstances.\20\ Absent extraordinary circumstances,
the Bureau will decide any request for reversal or modification of
suspension within 90 days of its receipt of such request.\21\
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\18\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR
54.521(e)(4).
\19\ Second Report and Order, 18 FCC Rcd at 9226, ] 70.
\20\ 47 CFR 54.521(f).
\21\ See 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
Commission 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.\22\ Based on your February 13, 2004 guilty plea, you were
convicted on or about May 17, 2004 of conspiracy to defraud the
Government by selling E-Rate services through Connect2Internet
Networks, Inc. (``Connect2'') to certain schools participating in
the E-Rate program but charging 100 percent of the costs to the
program rather than requiring the schools to pay ten percent of the
costs as required by the program rules.\23\ In particular, you
admitted to combining, conspiring and carrying out, with other co-
conspirators, the following acts: (1) falsely representing to
certain schools that they could participate in the E-Rate program at
no cost to them, and that their share of the costs would be covered
by outside sources donated to Connect2 for that purpose; (2)
requesting certain school officials to write checks payable to
Connect2 while agreeing either not to cash them or to return those
monies to the schools or their designees; and (3) creating back-
dated phony billing documents that give the false appearance that
Connect2 had billed the schools for their costs.\24\ These actions
constitute the conduct or transactions upon which this debarment
proceeding is based.\25\ 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.\26\
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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\22\ Second Report and Order, 18 FCC Rcd at 9225, ] 66.
\23\ See Dotson Indictment at 2, 3; Dotson Judgment.
\24\ Dotson Indictment at 4-5.
\25\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR
54.521(e)(2)(i).
\26\ ``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 CFR] Sec. 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.\27\ Absent extraordinary
circumstances, the Bureau will debar you.\28\ 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.\29\ If the Bureau
[[Page 75314]]
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.\30\
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\27\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47
CFR 54.521(e)(2)(i), 54.521(e)(3).
\28\ Second Report and Order, 18 FCC Rcd at 9227, ] 74.
\29\ See id., 18 FCC Rcd at 9226, ] 70; 47 CFR 54.521(e)(5).
\30\ 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).
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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.\31\ The Bureau may, if
necessary to protect the public interest, extend the debarment
period.\32\
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\31\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR
54.521(d), 54.521(g).
\32\ Id.
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Please direct any responses to the following address:
Diana Lee, Esq., Federal Communications Commission, Enforcement
Bureau, Investigations and Hearings Division, Room 4-A265, 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 Eric Bash by telephone at
(202) 418-1420 and by e-mail at eric.bash@fcc.gov.
Sincerely yours,
William H. Davenport,
Chief, Investigations and Hearings Division, Enforcement Bureau.
cc: Philip L. Weinstein, Federal Defender Division Legal Aid Society
Kristy Carroll, USAC (Via E-mail)
David M. Siegal, Assistant United States Attorney, Southern District
of New York (Via E-mail)
[FR Doc. 04-27587 Filed 12-15-04; 8:45 am]
BILLING CODE 6712-01-U