[Federal Register: January 8, 2004 (Volume 69, Number 5)]
[Notices]
[Page 1285-1287]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08ja04-15]
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FEDERAL COMMUNICATIONS COMMISSION
[DA 03-4088]
Notice of Debarment; Schools and Libraries Universal Service
Support Mechanism
AGENCY: Federal Communications Commission.
ACTION: Notice.
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SUMMARY: The Federal Communications Commission (the ``Commission'')
debars Mr. John Angelides from the schools and libraries universal
service support mechanism for a period of three years.
DATES: Debarment commences on the date of Mr. Angelides' receipt of the
debarment letter or January 8, 2004, 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 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 Commission debarred Mr. John Angelides
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. Angelides from
the schools and libraries mechanism, pending debarment proceedings. See
68 FR 56837, October 2, 2003. Attached is the debarment letter, Notice
of Debarment, DA 03-4088, which was mailed to Mr. Angelides and
released on December 23, 2003, that in turn attached the suspension
letter, Notice of Suspension and of Proposed Debarment Proceedings, DA
03-2707. The complete text of the debarment letter, including
attachment 1, 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 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,
Deputy Chief, Investigations and Hearings Division, Enforcement Bureau.
The debarment letter, which attached the suspension letter,
follows:
December 23, 2003.
[DA 03-4088]
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 Debarment, File No. EB-03-IHD-0376.
Dear Mr. Angelides: 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 August 21, 2003, 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 2, 2003.\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 Maureen F. Del Duca, Chief, Investigations and
Hearings Division, Enforcement Bureau, Federal Communications
Commission, to John Angelides, Notice of Suspension and Proposed
Debarment, 18 FCC Rcd 16672 (2003) (Attachment 1).
\3\ 68 FR 56837 (Oct. 2, 2003).
\4\ See Notice of Suspension, 18 FCC Rcd at 16672-73 (imposing
suspension pending the Bureau's final debarment determination).
\5\ See id., 18 FCC Rcd at 16673 (describing the basis for your
proposed debarment).
\6\ See id., 18 FCC Rcd at 16674 (describing procedures to
contest proposed debarment).
\7\ See id., 18 FCC Rcd at 16674 (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 your receipt of the Notice of Suspension or
publication of the Notice of Suspension in the Federal Register,
whichever came first.\8\ On or about September 22, 2003, the Bureau
granted your request to extend the time to contest issues raised in
the Notice of Suspension until October 14, 2003.\9\ The Bureau
received your response on that date.\10\ Your Response explicitly
states that you do not challenge your debarment.\11\ The Response
merely ``emphasizes'' that this proceeding is directed ``only
against Mr. Angelides.'' \12\ The Bureau notes that the Notice of
Suspension and the Notice of Debarment are addressed to and
applicable to you, Mr. Angelides, individually, and not to any other
person or entity. Such limitation does not bar the Commission from
taking additional enforcement action, subject to its rules, against
such other persons or entities.
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\8\ See 47 CFR 54.521(e)(3) and (4).
\9\ Letter from Karen H. Broomberg, Cohen & Gresser LLP, to
Diana Lee, Investigations and Hearings Division, Enforcement Bureau,
Federal Communications Commission, dated Sep. 22, 2003.
\10\ Letter from Mark S. Cohen, Cohen & Gresser LLP, to Diana
Lee, Investigations and Hearings Division, Enforcement Bureau,
Federal Communications Commission, dated Oct. 14, 2003 (the
``Response'').
\11\ Response at 1 (stating, ``Mr. Angelides does not challenge
his individual debarment.'').
\12\ Id.
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As discussed in the Notice of Suspension, on May 22, 2003, you
pled guilty to charges of falsely representing to schools that they
could participate in the E-Rate program at no cost, falsely
representing to fund administrators and Government investigators
that the schools would pay or had paid their unsubsidized share,
falsifying documents, and attempting to persuade school
administrators not to reveal evidence to Government investigators in
order to conceal the scheme.\13\ 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.\14\ 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
in the Federal Register.\15\ 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
[[Page 1286]]
consulting with, assisting, or advising applicants or service
providers regarding the schools and libraries support mechanism.''
\16\
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\13\ Notice of Suspension, 18 FCC Rcd at 16673.
\14\ Notice of Suspension, 18 FCC Rcd at 16674; 47 CFR
54.521(c).
\15\ See Notice of Suspension, 18 FCC Rcd at 16674.
\16\ See 47 CFR 54.521(a)(1), 54.521(a)(5), 54.521(d); Notice of
Suspension, 18 FCC Rcd at 16674.
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Sincerely yours,
William H. Davenport,
Deputy Chief, Investigations and Hearings Division, Enforcement
Bureau.
cc: Mark S. Cohen, Cohen & Gressler, LLP (Via E-mail and United
States Mail), Kristy Carroll, USAC (Via E-mail).
August 21, 2003.Attachment 1
August 21, 2003.
[DA 03-2707]
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).\17\ 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.\18\
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\17\ 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'').
\18\ 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,\19\
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.\20\ Your suspension becomes effective upon the earlier of
your receipt of this letter or publication of notice in the Federal
Register.\21\
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\19\ 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'').
\20\ 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).
\21\ 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.\22\ Such requests,
however, will not ordinarily be granted.\23\ The Bureau may reverse
or limit the scope of suspension only upon a finding of
extraordinary circumstances.\24\ Absent extraordinary circumstances,
the Bureau will decide any request for reversal or modification of
suspension within 90 days of its receipt of such request.\25\
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\22\ Second Report and Order, 18 FCC Rcd at 9226, ]70; 47 CFR
54.521(e)(4).
\23\ Second Report and Order, 18 FCC Rcd at 9226, ]70.
\24\ 47 CFR 54.521(f).
\25\ 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.\26\ 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.\27\ These actions constitute the
conduct or transactions upon which this debarment proceeding is
based.\28\
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\26\ Second Report and Order, 18 FCC Rcd at 9225, ]66.
\27\ See Angelides Felony Information at 3-11.
\28\ 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.\29\ 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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\29\ ``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.\30\ Absent extraordinary
circumstances, the Bureau will debar you.\31\ 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.\32\ 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.\33\
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\30\ Second Report and Order, 18 FCC Rcd at 9226, ]70; 47 CFR
54.521(e)(2)(i), 54.521(e)(3).
\31\ Second Report and Order, 18 FCC Rcd at 9227, ]74.
\32\ Second Report and Order, 18 FCC Rcd at 9226, ]70; 47 CFR
54.521(e)(5).
\33\ 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.\34\ The Bureau may, if
necessary to protect the public interest, extend the debarment
period.\35\
Please direct any responses to the following address:
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\34\ Second Report and Order, 18 FCC Rcd at 9225, ]67; 47 CFR
54.521(d), 54.521(g).
\35\ Id.
Diana Lee, Federal Communications Commission, Enforcement Bureau,
Investigations and Hearings Division, Room 6-C326, 445 12th Street,
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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.
[[Page 1287]]
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. 04-366 Filed 1-7-04; 8:45 am]
BILLING CODE 6712-01-P