[Federal Register: June 2, 2009 (Volume 74, Number 104)]
[Notices]
[Page 26400-26402]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02jn09-62]
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FEDERAL COMMUNICATIONS COMMISSION
[DA 09-1115]
Notice of Debarment
AGENCY: Federal Communications Commission.
ACTION: Notice.
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SUMMARY: The Enforcement Bureau (the ``Bureau'') debars Ms. Cynthia K.
Ayer from the schools and libraries universal service support mechanism
(or ``E-Rate Program'') for a period of three years. The Bureau takes
this action to protect the E-Rate Program from waste, fraud and abuse.
DATES: Debarment commences on the date Ms. Cynthia K. Ayer receives the
debarment letter or June 2, 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.
SUPPLEMENTARY INFORMATION: The Bureau debarred Ms. Cynthia K. Ayer from
the schools and libraries universal service support mechanism for a
period of three years pursuant to 47 CFR 54.8 and 47 CFR 0.111.
Attached is the debarment letter, DA 09-1115, which was mailed to Ms.
Cynthia K. Ayer and released on May 21, 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.
Irene Flannery,
Assistant Chief, Investigations and Hearings Division, Enforcement
Bureau.
The debarment letter, which attached the suspension letter,
follows:
May 21, 2009
Via Certified Mail Return Receipt Requested and Facsimile (803) 252-
8290
Ms. Cynthia K. Ayer, c/o James Edward Holler, Holler Dennis Corbett
[[Page 26401]]
Ormond Plante and Garner, P.O. Box 11006, Columbia, SC 29211.
Re: Notice of Debarment, File No. EB-09-IH-0002
Dear Ms. Ayer: 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 three
years.\1\
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\1\ See 47 CFR 0.111(a), 54.8.
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On February 26, 2009, 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 March 19, 2009.\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 Ms. Cynthia K. Ayer, Notice of Suspension and
Initiation of Debarment Proceedings, 24 FCC Rcd 2470 (Inv. &
Hearings Div., Enf. Bur. 2009) (Attachment 1).
\3\ 74 Fed. Reg. 11726-01 (Mar. 19, 2009).
\4\ See Notice of Suspension, 24 FCC Rcd at 2470-71.
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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 April 20, 2009. See supra note 3.
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As discussed in the Notice of Suspension, you pled guilty to mail
fraud in connection with your participation in the E-Rate program.\6\
You admitted to, among other things, submitting applications containing
false information to the E-Rate program and subsequently receiving
funds to which you were not entitled.\7\ 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.\8\ 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.\9\ 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.'' \10\
\6\ See Notice of Suspension, 24 FCC Rcd at 2470.
\7\ See id.
\8\ 47 CFR 54.8(c).
\9\ See 47 CFR 54.8(g) See also Notice of Suspension, 24 FCC Rcd
at 2471.
\10\ See 47 CFR 54.8(a)(1), 54.8(a)(5), 54.8(d); Notice of
Suspension, 24 FCC Rcd at 2470.
Sincerely,
Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.
cc: Kristy Carroll, Esq., Universal Service Administrative Company
(via e-mail).
Beth Drake, Assistant United States Attorney, United States
Department of Justice (via e-mail).
February 26, 2009
DA 09-476
Via Certified Mail
Return Receipt Requested and E-Mail
Ms. Cynthia K. Ayer, c/o James Edward Holler, Holler Dennis Corbett
Ormond Plante and Garner, P.O. Box 11006, Columbia, SC 29211.
Re: Notice of Suspension and Initiation of Debarment Proceedings, File
No. EB-09-IH-0002
Dear Ms. Ayer: The Federal Communications Commission (``FCC'' or
``Commission'') has received notice of your conviction of mail fraud,
in violation of 18 U.S.C. 2 and 1341, in connection with your
participation in the schools and libraries universal service support
mechanism (``E-Rate program'').\11\ 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.\12\
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\11\ Any further reference in this letter to ``your conviction''
refers to your guilty plea and subsequent conviction of one count of
mail fraud. United States v. Cynthia K. Ayer, Criminal Docket No.
5:06-453 (001 MBS), Plea Agreement (D. S.C. filed and entered Apr.
30, 2008) (``Ayer Plea Agreement''); United States v. Cynthia K.
Ayer, 5:06-453 (001 MBS), Judgment (D. S.C. filed and entered Dec.
11, 2008) (``Ayer Judgment''). See also United States v. Cynthia K.
Ayer, Criminal Docket No. 5:06-453 (001 MBS), Indictment (D. S.C.
filed Apr. 19, 2006 and entered Apr. 20, 2006) (``Ayer
Indictment'').
\12\ 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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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.\13\ On April 30, 2008, you pled guilty to mail fraud in
connection with your participation in the E-Rate program.\14\ While
employed as a technology director for Bamberg County School District
One in Bamberg, South Carolina, you admitted to submitting applications
containing false information to the E-Rate program.\15\ You
subsequently requested funds that you were not entitled to and caused
the Universal Service Administrative Company (``USAC'') to send you a
check in the amount of $25,243 made payable to your company, Go Between
Communications a/k/a Go Between Telecommunications.\16\ As a result of
your conviction, you have been sentenced to serve two years in prison
and ordered to pay $468,496 in restitution to USAC for using the mail
to submit fraudulent applications for E-Rate funding on behalf of
Bamberg County School District One.\17\
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\13\ Second Report and Order, 18 FCC Rcd at 9225, ] 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).
\14\ See Ayer Plea Agreement. See also Department of Justice
Press Release (Dec. 11, 2008), available at http://www.usdoj.gov/
atr/public/press_releases/2008/240283.pdf (DOJ Press Release).
\15\ DOJ Press Release at 1.
\16\ See Ayer Indictment at 13-15; DOJ Press Release at 1.
\17\ Ayer Judgment at 2-4; DOJ Press Release at 1.
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Pursuant to section 54.8(a)(4) of the Commission's rules,\18\ your
conviction requires the Bureau to suspend you
[[Page 26402]]
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.\19\
Your suspension becomes effective upon the earlier of your receipt of
this letter or publication of notice in the Federal Register.\20\
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\18\ 47 CFR 54.8(a)(4). See Second Report and Order, 18 FCC Rcd
at 9225-27, ]] 67-74.
\19\ 47 CFR 54.8(a)(1)(d).
\20\ Second Report and Order, 18 FCC Rcd at 9226, ] 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.\21\ Such requests, however, will not
ordinarily be granted.\22\ The Bureau may reverse or limit the scope of
suspension only upon a finding of extraordinary circumstances.\23\
Absent extraordinary circumstances, the Bureau will decide any request
for reversal or modification of suspension within 90 days of its
receipt of such request.\24\
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\21\ 47 CFR 54.8(e)(4).
\22\ Id.
\23\ 47 CFR 54.8(e)(5).
\24\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47
CFR 54.8(e)(5), (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.\25\ 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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\25\ ``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.\26\ Absent
extraordinary circumstances, the Bureau will debar you.\27\ 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.\28\ 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.\29\
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\26\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47
CFR 54.8(e)(3).
\27\ Second Report and Order, 18 FCC Rcd at 9227, ] 74.
\28\ See id., 18 FCC Rcd at 9226, ] 70; 47 CFR 54.8(e)(5).
\29\ 47 CFR 54.8(e)(5). 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.\30\ The Bureau may, if necessary to protect the
public interest, extend the debarment period.\31\
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\30\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR
54.8(d),(g).
\31\ 47 CFR 54.8(g).
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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., 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: Beth Drake, Assistant United States Attorney (via e-mail).
Kristy Carroll, Esq., Universal Service Administrative Company
(via e-mail).
[FR Doc. E9-12820 Filed 6-1-09; 8:45 am]
BILLING CODE 6712-01-P