[Federal Register: May 28, 2009 (Volume 74, Number 101)]
[Notices]
[Page 25534-25537]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28my09-53]
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FEDERAL COMMUNICATIONS COMMISSION
[FCC 09-37]
Notice of Debarment; Schools and Libraries Universal Service
Support Mechanism
AGENCY: Federal Communications Commission.
ACTION: Notice.
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SUMMARY: The Enforcement Bureau (the ``Bureau'') debars Ms. Judy Green
from the schools and libraries universal service support mechanism (or
``E-Rate Program'') for a period of ten years. The Bureau takes this
action to protect the E-Rate Program from waste, fraud and abuse.
DATES: Debarment commences on the date Ms. Judy Green receives the
debarment letter or May 28, 2009, whichever date come first, for a
period of three years.
FOR FURTHER INFORMATION CONTACT: Rebekah Bina, Federal Communications
Commission, Enforcement Bureau, Investigations and Hearings Division,
Room 4-C330, 445 12th Street, SW., Washington, DC 20554. Rebekah Bina
may be contacted by phone at (202) 418-7931 or e-mail at
Rebekah.Bina@fcc.gov. If Ms. Bina 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.
[[Page 25535]]
SUPPLEMENTARY INFORMATION: The Bureau debarred Ms. Judy Green from the
schools and libraries universal service support mechanism for a period
of ten years pursuant to 47 CFR 54.8 and 47 CFR 0.111. Attached is the
debarment letter, FCC 09-37, which was mailed to Ms. Judy Green and
released on May 12, 2009. 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.
Marlene H. Dortch,
Secretary.
The debarment letter, which attached the suspension letter,
follows: May 12, 2009.
Via Certified Mail--Return Receipt Requested and Via Facsimile (510)
452-8405.
Ms. Judy Green, c/o Eric G. Babcock, Esq., Law Offices of Erick
Babcock, 1212 Broadway, Suite 726, Oakland, CA 94612.
Re: Notice of Debarment; File No. EB-08-IH-1139
Dear Ms. Green: Pursuant to section 54.8 of the rules of the
Federal Communications Commission (the ``Commission''), by this Notice
of Debarment you are debarred from the schools and libraries universal
service support mechanism (or ``E-Rate program'') for a period of ten
years.\1\
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\1\ See 47 CFR 0.111(a), 54.8.
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On September 4, 2008, the Enforcement Bureau (the ``Bureau'') sent
you a Notice of Suspension and Initiation of Debarment Proceedings (the
``Notice of Suspension'').\2\ That Notice of Suspension was published
in the Federal Register on September 17, 2008.\3\ The Notice of
Suspension suspended you from the schools and libraries universal
service support mechanism and described the basis for initiation of
debarment proceedings against you, the applicable debarment procedures,
and the effect of debarment.\4\
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\2\ Letter from Hillary S. DeNigro, Chief, Investigations and
Hearings Division, Enforcement Bureau, Federal Communications
Commission, to Mr. Joseph Mello, Notice of Suspension and Initiation
of Debarment Proceedings, DA 08-2041 (Inv. & Hearings Div., Enf.
Bur., rel. Sept. 4, 2008) (Attachment 1).
\3\ 73 FR 53868 (Sept. 17, 2008).
\4\ See Notice of Suspension, 73 FR at 53869-70.
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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.\5\ The
Commission did not receive any such opposition.
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\5\ See 47 CFR 54.8(e)(3) and (4). That date occurred no later
than October 17, 2008. See supra note 3.
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As discussed in the Notice of Suspension, you pled guilty to mail
fraud and income tax fraud, in violation of 18 U.S.C. 1341, in
connection with your participation in the E-Rate program involving
telecommunications upgrade projects in four Connecticut school
districts.\6\ You admitted to participating in a scheme to defraud the
E-Rate program whereby you agreed, in your capacity as Vice President
of Operations for Innovative Network Solutions (``INS''), to accept
invoices submitted by fictitious companies for work allegedly performed
in the Connecticut school districts.\7\ As a result of your actions,
INS made payments totaling $608,505 on those fictitious invoices that
were ultimately submitted to the Universal Service Administrative
Company as legitimately reimbursable services under the E-Rate
program.\8\ Such conduct constitutes the basis for your debarment, and
your conviction falls within the categories of causes for debarment
under section 54.8(c) of the Commission's rules.\9\ For the foregoing
reasons, you are hereby debarred for a period of ten 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.\10\
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.'' \11\
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\6\ 73 FR at 53869.
\7\ Id.
\8\ Id.
\9\ 47 CFR 54.8(c).
\10\ See 47 CFR 54.8(g). See also Notice of Suspension, 73 FR
at 53870.
\11\ See 47 CFR 54.8(a)(1), 54.8(a)(5), 54.8(d); Notice of
Suspension, 73 FR at 53869.
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Sincerely,
Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.
cc: Calvin B. Kurimai, Esq., Assistant United States Attorney,
Department of Justice (via e-mail)
Kristy Carroll, Esq., Universal Service Administrative Company (via
e-mail) September 4, 2008.
FCC 09-37.
Via Certified Mail--Return Receipt Requested and E-Mail.
Ms. Judy Green, c/o Erik G. Babcock, Esq., Law Offices of Erik Babcock,
1212 Broadway, Suite 726, Oakland, CA 94612.
Re: Notice of Suspension and Initiation of Debarment Proceedings, File
No. EB-08-IH-1139
Dear Ms. Green: The Federal Communications Commission (``FCC'' or
``Commission'') has received notice of your conviction of mail fraud,
in violation of 18 U.S.C. 1341, and subscribing a false tax return, in
violation of 26 U.S.C. 7206(1), in connection with your participation
in the schools and libraries universal service support mechanism (``E-
Rate program'').\12\ 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.\13\
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\12\ Any further reference in this letter to ``your conviction''
refers to your guilty plea and subsequent conviction of one count of
mail fraud and one count of subscribing a false tax Return. United
States v. Joseph E. Mello, Criminal Docket No. 3:07-CR-00224 (RNC-
1), Plea Agreement (D.Conn. filed and entered Oct. 9, 2007) (``Mello
Plea Agreement''); United States v. Joseph E. Mello, 3:07-CR-00224
(RNC-1), Judgment (D.Conn. filed June 26, 2008 and entered June 30,
2008) (``Mello Judgment''). See also United States v. Joseph E.
Mello, Criminal Docket No. 3:07-CR-00224 (RNC-1), Information (D.
Conn. filed and entered Oct. 9, 2007) (``Mello Information'').
\13\ 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)).
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[[Page 25536]]
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.\14\ You pled guilty to mail fraud and income tax fraud in
connection with your participation in the E-Rate program involving
telecommunications upgrade projects in four Connecticut school
districts.\15\ While employed as Vice President of Operations for
Innovative Network Solutions (``INS''), a first-tier subcontractor of
Southwestern Bell Communications (``SBC'') for performing E-Rate funded
telecommunications upgrades, you and former SBC employees Richard E.
Brown and Keith J. Madeiros participated in a scheme to defraud the E-
Rate program.\16\ In your position at INS, you agreed to accept
invoices submitted by fictitious companies created by Mr. Madeiros and
Mr. Brown for work allegedly performed in the Connecticut school
districts.\17\ INS made payments totaling $608,505 on those fictitious
invoices and then passed the costs on to SBC as legitimately
reimbursable services under the E-Rate program.\18\
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\14\ Second Report and Order, 18 FCC Rcd at 9225, para. 66. 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).
\15\ See Mello Information at 2; Mello Plea Agreement at 1-2, 5;
Mello Judgment at 1.
\16\ Mello Information at 3. The Bureau has debarred Richard E.
Brown and Keith Madeiros from the E-Rate Program. See Letter from
Hillary S. DeNigro, Chief, Investigations and Hearings Division,
Enforcement Bureau, to Richard E. Brown, Notice of Debarment, 22 FCC
Rcd 20569 (Inv. & Hearings Div., Enf. Bur. 2007); Letter from
Hillary S. DeNigro, Chief, Investigations and Hearings Division,
Enforcement Bureau, to Keith J. Madeiros, Notice of Debarment, 23
FCC Rcd 7959 (Inv. & Hearings Div., Enf. Bur. 2008).
\17\ Mello Information at 2-4. See also Department of Justice,
Press Release (Oct. 9, 2007)(available at http://www.usdoj.gov/usao/
ct/Press2007/20071009.html)(last accessed Feb. 5, 2008)(``DOJ
October 9 Press Release'').
\18\ Mello Information at 4.
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Pursuant to section 54.8(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 54.8(a)(4). See Second Report and Order, 18 FCC Rcd
at 9225-27, paras. 67-74.
\20\ Second Report and Order, 18 FCC Rcd at 9225, para. 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, para. 69; 47
CFR 54.8(e)(1).
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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.\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\ 47 CFR 54.8(e)(4).
\23\ Id.
\24\ 47 CFR 54.8(e)(5).
\25\ See Second Report and Order, 18 FCC Rcd at 9226, para. 70;
47 CFR 54.8(e)(5), 54.8(f).
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II. Initiation of Debarment Proceedings
Your guilty plea to 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.\26\ Therefore, pursuant to section 54.8(a)(4) of
the Commission's rules, your conviction requires the Bureau to commence
debarment proceedings against you.
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\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
54.8(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
mechanism.'' 47 CFR 54.8(a)(1).
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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.\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 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.\30\
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\27\ See Second Report and Order, 18 FCC Rcd at 9226, para. 70;
47 CFR 54.8(e)(3).
\28\ Second Report and Order, 18 FCC Rcd at 9227, para. 74.
\29\ See id., 18 FCC Rcd at 9226, para. 70; 47 CFR 54.8(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 54.8(f).
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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.\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, para. 67; 47
CFR 54.8(d), 54.8(g).
\32\ Id.
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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 Rebekah Bina, 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 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 Rebekah Bina, Attorney Advisor,
Investigations and Hearings Division, Enforcement Bureau, Federal
Communications Commission, 445 12th Street, SW.,
[[Page 25537]]
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 e-mail to Rebekah.Bina@fcc.gov and to
Vickie.Robinson@fcc.gov.
If you have any questions, please contact Ms. Bina via mail, by
telephone at (202) 418-7931 or by e-mail at Rebekah.Bina@fcc.gov. If
Ms. Bina 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,
Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.
cc: Calvin B. Kurimai, Esq., Assistant United States Attorney.
Kristy Carroll, Esq., Universal Service Administrative Company (via
e-mail).
[FR Doc. E9-12420 Filed 5-27-09; 8:45 am]
BILLING CODE 6712-01-P