Federal Register: November 6, 2007 (Volume 72, Number 214)
DOCID: fr06no07-53 FR Doc E7-21750
FEDERAL COMMUNICATIONS COMMISSION
Federal Communications Commission
DA ID: [DA 07-4336]
NOTICE: NOTICES
DOCID: fr06no07-53
ACTION: Debarment proceedings:
DOCUMENT ACTION: Notice.
SUBJECT CATEGORY:
Notice of Suspension and Initiation of Debarment Proceedings; Schools and Libraries Universal Service Support Mechanism
DATES: Opposition requests must be received by December 6, 2007. However, an opposition request by the party to be suspended must be received 30 days from the receipt of the suspension letter or December 6, 2007, 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.
DOCUMENT SUMMARY:
The Enforcement Bureau (the ``Bureau'') gives notice of Mr. Arthur R. Scott's suspension from the schools and libraries universal service support mechanism (or ``ERate Program''). Additionally, the Bureau gives notice that debarment proceedings are commencing against him. Mr. Scott, 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 to Diana Lee, Federal Communications Commission, Enforcement Bureau, Investigations and Hearings Division, Room 4C330, 445 12th Street, SW., Washington, DC 20554.
SUMMARY:
Scott, Arthur R.,
SUPPLEMENTAL INFORMATION
The Bureau has suspension and debarment authority pursuant to 47 CFR 54.521 and 47 CFR 0.111(a)(14). 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. Attached is the suspension letter, DA 074336, which was mailed to Mr. Scott and released on October 18, 2007. 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 CYB420, Washington, DC 20554, telephone (202) 4885300 or (800) 3783160, facsimile (202) 4885563, or via email http://www.bcpiweb.com.
Federal Communications Commission.
Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.
The suspension letter follows:
October 18, 2007
DA 074336
VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED AND FACSIMILE (404872 1622)
Mr. Arthur R. Scott, c/o Seth D. Kirschenbaum, Esq., Davis Zipperman
Kirschenbaum & Lotito, 918 Ponce de Leon Avenue, NE., Atlanta, GA
303064212, EMail: skirschenbaum@dzkl.com.
Re: Notice of Suspension and Initiation of Debarment Proceedings, File No. EB07IH7304
Dear Mr. Scott:
The Federal Communications Commission (``FCC'' or
``Commission'') has received notice of your conviction for
conspiracy to defraud the United States and bribery in violation of
18 U.S.C. 371 and 666(a)(1)(B) in connection with your participation
in the schools and libraries universal service support mechanism
(``ERate program'').\1\ Consequently, pursuant to 47 CFR 54.521,
this letter constitutes official notice of your suspension from the
ERate 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 May 2, 2007 guilty plea and subsequent conviction of
one count of conspiracy to defraud the United States and one count
of bribery. United States v. Arthur R. Scott, Criminal Docket No.
1:07CR139CC01, Plea Agreement (N.D.Ga. filed May 2, 2007 and
entered May 7, 2007) (``Scott Plea Agreement''); United States v.
Arthur R. Scott, 1:07CR139CC01, Judgment (N.D.Ga. filed and entered Oct. 2, 2007) (``Scott Judgment'').
\2\ 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).
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 conspiracy to defraud the United States and bribery for activities in connection with your
participation in the ERate program.\4\ You admitted that while employed
[[Page 62648]]
as Director of Operational Technology of the Atlanta Public Schools
(``APS''), you conspired with others, including your wife Evelyn
Myers Scott (``Myers Scott''), to enter into an ERate contract on
behalf of APS in return for payments to the consulting firm owned by
you and Myers Scott from the vendor.\5\ In addition, you admitted
that you, as agent of APS, corruptly solicited, demanded, accepted
and agreed to accept $37,917 in order to be influenced and rewarded
in connection with APS's participation in the ERate program. The
loss and the restitution that you owed to the ERate program resulting from the criminal offenses was $300,176.10.\6\
\3\ See Schools and Libraries Universal Service Support
Mechanism, Second Report and Order and Further Notice of Proposed
Rulemaking, 18 FCC Rcd 9202, 9225, ] 66 (2003) (``Second Report and
Order''). 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 54.521(a)(6).
\4\ See generally United States v. Arthur R. Scott and Evelyn
Myers Scott a/k/a Evelyn M. Myers, Criminal Docket No. 1:07CR139,
Information (N.D.Ga.. filed Apr. 30, 2007 and entered May 3, 2007)
(`` Scott and Myers Scott Information''); Scott Plea Agreement at 1.
\5\ Scott and Myers Scott Information at 19. See also Letter
from Hillary S. DeNigro, Chief, Investigations and Hearings
Division, Enforcement Bureau, to Evelyn M. Scott, DA 074335, dated October 18, 2007.
\6\ See Scott Judgment at 5; see also Scott Plea Agreement at 4.
Pursuant to section 54.521(a)(4) of the Commission's rules,\7\ 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.\8\ Your suspension becomes effective upon the earlier of
your receipt of this letter or publication of notice in the Federal Register.\9\
\7\ 47 CFR 54.521(a)(4). See Second Report and Order, 18 FCC Rcd at 92259227, ] ] 6774 (2003).
\8\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 U.S.C. 254; 47 CFR 54.50254.503; 47 CFR 54.521(a)(4).
\9\ Second Report and Order, 18 FCC Rcd at 9226, ] 69; 47 CFR 54.521(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.\10\ Such requests, however, will
not ordinarily be granted.\11\ The Bureau may reverse or limit the scope of suspension only upon a finding of extraordinary
circumstances.\12\ Absent extraordinary circumstances, the Bureau
will decide any request for reversal or modification of suspension within 90 days of its receipt of such request.\13\
\10\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR 54.521(e)(4).
\11\ Second Report and Order, 18 FCC Rcd at 9226, ] 70. \12\ 47 CFR 54.521(e)(5).
\13\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR 54.521(e)(5), 54.521(f).
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 54.521(c) of the Commission's rules.\14\ Therefore, pursuant to section 54.521(a)(4) of the Commission's rules, your conviction requires the Bureau to commence debarment proceedings against you. \14\ ``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] 54.500 et seq.).'' 47 CFR 54.521(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.\15\ Absent
extraordinary circumstances, the Bureau will debar you.\16\ 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.\17\ 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.\18\
\15\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR 54.521(e)(2)(i), 54.521(e)(3).
\16\ Second Report and Order, 18 FCC Rcd at 9227, ] 74.
\17\ See id., 18 FCC Rcd at 9226, ] 70; 47 CFR 54.521(e)(5).
\18\ 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).
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.\19\ The Bureau may, if necessary to protect the public interest, extend the debarment period.\20\ \19\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR 54.521(d), 54.521(g).
\20\ 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 4C330, with a copy to
Vickie Robinson, Assistant Chief, Investigations and Hearings
Division, Enforcement Bureau, Room 4C330, 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 firstclass,
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 4C330, 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 4C330, 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) 4181420 or by email 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) 4181420 and by email at vickie.robinson@fcc.gov.
Sincerely yours,
Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.
cc: Kristy Carroll, Esq., Universal Service Administrative Company
(via email) Aaron M. Danzig, Esq., Assistant United States Attorney [FR Doc. E721750 Filed 11507; 8:45 am]
BILLING CODE 671201P
FOR FURTHER INFORMATION CONTACT
Diana Lee, Federal Communications Commission, Enforcement Bureau, Investigations and Hearings Division, Room 4C330, 445 12th Street, SW., Washington, DC 20554. Diana Lee may be contacted by phone at (202) 4180843 or email 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) 4181420 and by email at vickie.robinson@fcc.gov.