[Federal Register: April 7, 2008 (Volume 73, Number 67)]
[Notices]
[Page 18797-18799]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07ap08-63]
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
[DA 08-129]
Notice of Suspension and Initiation of Debarment Proceedings;
Schools and Libraries Universal Service Support Mechanism
AGENCY: Federal Communications Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Enforcement Bureau (Bureau) gives notice of Mr. Keith J.
Madeiros suspension from the schools and libraries universal service
support mechanism (or E-Rate Program). Additionally, the Bureau gives
notice that debarment proceedings are commencing against him. Mr.
Madeiros, 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 May 7, 2008. However, an
opposition request by the party to be suspended must be received 30
days from the receipt of the suspension letter or May 7, 2008 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.
ADDRESSES: Federal Communications Commission, Enforcement Bureau,
Investigations and Hearings Division, Room 4-C330, 445 12th Street,
SW., Washington, DC 20554.
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) 418-0843 or e-mail at diana.lee@fcc.gov.
If Ms. Lee is unavailable, you may contact Ms. Vickie Robinson,
Assistant Chief, Investigations and Hearings Division, by telephone at
(202) 418-1420 and by e-mail at vickie.robinson@fcc.gov.
SUPPLEMENTARY INFORMATION: The Bureau has suspension and debarment
authority pursuant to 47 CFR 54.8 and 47 CFR 0.111. 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. Below is the suspension letter, DA 08-129, which
was mailed to Mr. Madeiros and released on January 18, 2008. The
complete text of the notice of debarment is available for public
inspection and copying during regular business hours at the FCC
Reference Information Center, Portal II, 445 12th Street, SW., Room CY-
A257, Washington, DC 20554. In addition, the complete text is available
on the FCC's Web site at http://www.fcc.gov. The text may also be
purchased from the Commission's duplicating inspection and copying
during regular business hours at the contractor, Best Copy and
Printing, Inc., Portal II, 445 12th Street, SW., Room CY-B420,
Washington, DC 20554, telephone (202) 488-5300 or (800) 378-3160,
facsimile (202) 488-5563, or via e-mail http://www.bcpiweb.com.
Federal Communications Commission.
Trent B. Harkrader,
Deputy Chief, Investigations and Hearings Division, Enforcement Bureau.
January 18, 2008
DA 08-129
VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED AND FACSIMILE (860-522-2490)
Mr. Keith J. Madeiros
c/o Richard R. Brown, Esq.
Brown Paindiris & Scott, LLP
100 Pearl Street, Suite 1100
Hartford, CT 06103
E-Mail: rbrown@bpslawers.com
Re: Notice of Suspension and Initiation of Debarment Proceedings, File
No. EB-07-IH-9550
Dear Mr. Madeiros:
The Federal Communications Commission (``FCC'' or ``Commission'')
has received notice of your conviction for mail fraud in violation of
18 U.S.C. 1341 in connection with your participation in the schools and
libraries universal service support mechanism (``E-Rate program'').\1\
Consequently, pursuant to 47 CFR 54.8, this letter constitutes official
notice of your suspension from the E-Rate program. 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 February 13, 2007 guilty plea and subsequent
conviction of mail fraud. United States v. Keith J. Madeiros.,
Criminal Docket No. 3:07-CR-29-RNC-2, Plea Agreement (D. Conn. filed
Feb. 13, 2007 and entered Feb. 15, 2007) (``Madeiros Plea
Agreement''); United States v. Keith J. Madeiros, 3:07-CR-29-RNC-2,
Judgment (D. Conn. filed and entered Dec. 10, 2007) (``Madeiros
Judgment'').
\2\ 47 CFR 54.8; 47 CFR 0.111 (delegating to the Enforcement
Bureau authority to resolve universal service suspension and
debarment proceedings). The Commission adopted debarment rules for
the schools and libraries universal service support mechanism in
2003. See Schools and Libraries Universal Service Support Mechanism,
Second Report and Order and Further Notice of Proposed Rulemaking,
18 FCC Rcd 9202 (2003) (``Second Report and Order'') (adopting
section 54.521 to suspend and debar parties from the E-rate
program). In 2007, the Commission extended the debarment rules to
apply to all of the Federal universal service support mechanisms.
Comprehensive Review of the Universal Service Fund Management,
Administration, and Oversight; Federal-State Joint Board on
Universal Service; Schools and Libraries Universal Service Support
Mechanism; Lifeline and Link Up; Changes to the Board of Directors
for the National Exchange Carrier Association, Inc., Report and
Order, 22 FCC Rcd 16372, 16410-12 (2007) (Program Management Order)
(renumbering section 54.521 of the universal service debarment rules
as section 54.8 and amending subsections (a)(1), (5), (c), (d),
(e)(2)(i), (3), (e)(4), and (g)).
---------------------------------------------------------------------------
[[Page 18798]]
I. Notice of Suspension
The Commission has established 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.\3\ You pled guilty to mail fraud for activities in connection
with your participation in the E-Rate program involving
telecommunications upgrade projects in four Connecticut school
districts.\4\ While employed at Southwestern Bell Communications
(``SBC''), you and Richard E. Brown, both SBC account managers,
recommended subcontractors to perform telecommunications upgrades for
the school districts.\5\ In addition, you and Mr. Brown reviewed
invoices submitted by subcontractors to SBC for payment, which SBC then
submitted to the Universal Service Administrative Company (``USAC'')
for reimbursement from the E-Rate fund.\6\ You admitted to
participating in a scheme with Brown and Scott A. Federowicz, a manager
of a SBC first-tier subcontractor, to defraud USAC.\7\ You and Mr.
Brown each created a sham company and submitted fictitious invoices
totaling approximately $452,203 to Mr. Federowicz, who approved those
invoices for payment on behalf of the SBC subcontractor.\8\ The SBC
subcontractor, unaware that no work had been performed, in turn billed
SBC and SBC ultimately sought from USAC reimbursement for those
fictitious expenses from the E-Rate program.\9\
---------------------------------------------------------------------------
\3\ See Second Report and Order, 18 FCC Rcd at 9225, para. 66;
Program Management Order, 22 FCC Rcd at 16387, para. 32. The
Commission's debarment rules define a ``person'' as ``[a]ny
individual, group of individuals, corporation, partnership,
association, unit of government or legal entity, however,
organized.'' 47 CFR 54.8(a)(6).
\4\ See Madeiros Plea Agreement at 1; United States v. Richard
E. Brown and Keith J. Madeiros., Criminal Docket No. 3:07-CR-29-RNC-
2, Information, paras. 1-21 (D. Conn. filed Feb. 13, 2007 and
entered Feb. 14, 2007) (``Madeiros/Brown Information'').
\5\ See Madeiros/Brown Information at paras. 8-9; http://
newhaven.fbi.gov/dojpressrel/2007/nh120707.htm (last accessed Dec.
11, 2007) (``DOJ December 7 Press Release''). The Bureau has
debarred Richard E. Brown from the E-Rate program. See Letter from
Hillary S. DeNigro to Richard E. Brown, Notice of Debarment, DA 07-
4732 (Enf. Bur., Investigations & Hearings Div., rel. Nov. 27,
2007).
\6\ See Madeiros/Brown Information at para. 9; DOJ December 7
Press Release at 1.
\7\ See Madeiros/Brown Information at paras. 11-21. The Bureau
also has debarred Scott A. Federowicz from the E-Rate program. See
Letter from Hillary S. DeNigro to Scott A. Federowicz, Notice of
Debarment, 22 FCC Rcd 17258 (Enf. Bur., Investigations & Hearings
Div., rel. Sept. 24, 2007).
\8\ See Madeiros/Brown Information at paras. 11-21; DOJ December
7 Press Release at 1.
\9\ See DOJ December 7 Press Release at 1.
---------------------------------------------------------------------------
Pursuant to section 54.8(a)(4) of the Commission's rules,\10\ 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.\11\ Your suspension becomes
effective upon the earlier of your receipt of this letter or
publication of notice in the Federal Register.\12\
---------------------------------------------------------------------------
\10\ 47 CFR 54.8(a)(4). See Second Report and Order, 18 FCC Rcd
at 9225-9227, paras. 67-74.
\11\ 47 CFR 54.8(a)(1), (d).
\12\ Second Report and Order, 18 FCC Rcd at 9226, para. 69; 47
CFR 54.8(e)(1).
---------------------------------------------------------------------------
Suspension is immediate pending the Bureau's final debarment
determination. In accordance with the Commission's debarment rules, 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.\13\ Such requests, however, will not
ordinarily be granted.\14\ The Bureau may reverse or limit the scope of
suspension only upon a finding of extraordinary circumstances.\15\
Absent extraordinary circumstances, the Bureau will decide any request
for reversal or modification of suspension within 90 days of its
receipt of such request.\16\
---------------------------------------------------------------------------
\13\ 47 CFR 54.8(e)(4).
\14\ Id.
\15\ 47 CFR 54.8(e)(5).
\16\ See Second Report and Order, 18 FCC Rcd at 9226, para. 70;
47 CFR 54.8(e)(5), 54.8(f).
---------------------------------------------------------------------------
II. Initiation of Debarment Proceedings
Your guilty plea to and conviction of criminal conduct in
connection with the E-Rate program, in addition to serving as a basis
for immediate suspension from the program, also serves as a basis for
the initiation of debarment proceedings against you. Your conviction
falls within the categories of causes for debarment defined in section
54.8(c) of the Commission's rules.\17\ Therefore, pursuant to section
54.8(a)(4) of the Commission's rules, your conviction requires the
Bureau to commence debarment proceedings against you.
---------------------------------------------------------------------------
\17\ ``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, the high-
cost support mechanism, the rural healthcare support mechanism, and
the low-income support mechanism.'' 47 CFR 54.8(c). Such activities
``include the receipt of funds or discounted services through [the
Federal universal service] support mechanisms, or consulting with,
assisting, or advising applicants or service providers regarding
[the Federal universal service] support mechanisms.'' 47 CFR
54.8(a)(1).
---------------------------------------------------------------------------
As with your suspension, 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.\18\ Absent
extraordinary circumstances, the Bureau will debar you.\19\ 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.\20\ 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 the
decision in the Federal Register.\21\
---------------------------------------------------------------------------
\18\ See Second Report and Order, 18 FCC Rcd at 9226, para. 70;
47 CFR 54.8(e)(3).
\19\ Second Report and Order, 18 FCC Rcd at 9227, para. 74.
\20\ See id., 18 FCC Rcd at 9226, para. 70; 47 CFR 54.8(e)(5).
\21\ 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 54.8(f).
---------------------------------------------------------------------------
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 three years from the
date of debarment.\22\ The Bureau may, if necessary to protect the
public interest, extend the debarment period.\23\
---------------------------------------------------------------------------
\22\ Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47
CFR 54.8(d), 54.8(g).
\23\ Id.
---------------------------------------------------------------------------
Please direct any response, if by messenger or hand delivery, to
Marlene H. Dortch, Secretary, Federal Communications Commission, 236
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002, to the
attention of Diana Lee, Attorney Advisor, Investigations and Hearings
Division, Enforcement Bureau, Room 4-C330, with a copy to Vickie
Robinson, Assistant Chief, Investigations and Hearings Division,
Enforcement Bureau, Room 4- C330, Federal Communications Commission. If
sent by commercial overnight mail (other than U.S. Postal Service
Express Mail and
[[Page 18799]]
Priority Mail), the response should be sent to the Federal
Communications Commission, 9300 East Hampton Drive, Capitol Heights,
Maryland 20743. If sent by first-class, Express, or Priority mail, the
response should be sent to Diana Lee, Attorney Advisor, Investigations
and Hearings Division, Enforcement Bureau, Federal Communications
Commission, 445 12th Street, SW., Room 4-C330, Washington, DC 20554,
with a copy to Vickie Robinson, Assistant Chief, Investigations and
Hearings Division, Enforcement Bureau, Federal Communications
Commission, 445 12th Street, SW., Room 4-C330, Washington, DC 20554.
You shall also transmit a copy of the response via email to
diana.lee@fcc.gov and to vickie.robinson@fcc.gov.
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 Ms. Vickie Robinson, Assistant
Chief, Investigations and Hearings Division, by telephone at (202) 418-
1420 and by e-mail at vickie.robinson@fcc.gov.
Sincerely yours,
Trent B. Harkrader,
Deputy Chief, Investigations and Hearings Division, Enforcement
Bureau.
cc: Kristy Carroll, Esq., Universal Service Administrative Company
(via e-mail) Anthony E. Kaplan, Esq., Supervisory Assistant United
States Attorney Calvin B. Kurimai, Esq., Assistant United States
Attorney
[FR Doc. E8-7060 Filed 4-3-08; 8:45 am]
BILLING CODE 6712-01-P