Federal Register: December 28, 2007 (Volume 72, Number 248)
DOCID: fr28de07-99 FR Doc E7-25133
FEDERAL COMMUNICATIONS COMMISSION
Federal Communications Commission
DA ID: [DA 07-4732]
NOTICE: NOTICES
DOCID: fr28de07-99
ACTION: Debarment proceedings:
DOCUMENT ACTION: Notice.
SUBJECT CATEGORY:
Notice of Debarment; Schools and Libraries Universal Service Support Mechanism
DATES: Debarment commences on the date Mr. Richard E. Brown receives the debarment letter or December 28, 2007, whichever date comes first, for a period of three years.
DOCUMENT SUMMARY:
The Enforcement Bureau (the ``Bureau'') debars Mr. Brown from the schools and libraries universal service support mechanism (or ``E Rate Program'') for a period of three years based on his conviction of mail fraud in connection with his participation in the program. The Bureau takes this action in order to protect the ERate Program from waste, fraud and abuse.
SUMMARY:
Brown, Richard E.,
SUPPLEMENTAL INFORMATION
The Bureau debarred Mr. Brown 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).
Attached is the debarment letter, DA 074732, which was mailed to Mr.
Brown and released on November 27, 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 CYA257, 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 at
http://www.bcpiweb.com. Federal Communications Commission.
Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.
The debarment letter, which attached the suspension letter, follows:
November 27, 2007
DA 074732
VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED AND EMAIL
Mr. Richard E. Brown, c/o Douglas McNabb, Esq., McNabb Associates PC.,
JP Morgan Chase Tower, 600 Travis Street, Suite 7070, Houston, TX 77002.
Re: Notice of Debarment, File No. EB07IH5369
Dear Mr. Brown:
Pursuant to section 54.521 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 ``ERate program'') for a period of three years.\1\
\1\ See 47 CFR 0.111(a)(14), 54.521.
On September 25, 2007, 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 October 10, 2007.\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\
\2\ Letter from Hillary S. DeNigro, Chief, Investigations and
Hearings Division, Enforcement Bureau, Federal Communications
Commission, to Mr. Scott A. Federowicz, Notice of Suspension and
Initiation of Debarment Proceedings, 22 FCC Rcd 17341 (Inv. & Hearings Div., Enf. Bur. 2007) (Attachment 1).
\3\ 72 FR 57574 (October 10, 2007).
\4\ See Notice of Suspension, 22 FCC Rcd at 17343.
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.
\5\ See 47 CFR 54.521(e)(3) and (4). That date occurred no later than November 9, 2007. See supra note 3.
As discussed in the Notice of Suspension, you pled guilty to and
were convicted of three counts of mail fraud, in violation of 18 U.S.C.
1341, for activities 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
schemes to defraud the ERate program where fictitious bills for
upgrades that were never performed and inflated bills for engineering
upgrade projects totaling approximately $956,203 were ultimately
submitted to the Universal Service Administrative Company for
reimbursement from the ERate fund.\7\ 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.\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, 22 FCC Rcd at 17342.
\7\ See id.
\8\ Id. at 17343; 47 CFR 54.521(c).
\9\ See Notice of Suspension, 22 FCC Rcd at 1734344.
\10\ See 47 CFR 54.521(a)(1), 54.521(a)(5), 54.521(d); Notice of Suspension, 22 FCC Rcd at 17344.
Sincerely,
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 email) September 25, 2007
DA 074036
VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED AND EMAIL
Mr. Richard E. Brown, c/o Douglas McNabb, Esq., McNabb Associates PC, [[Page 73822]]
JP Morgan Chase Tower, 600 Travis Street, Suite 7070, Houston, TX 77002.
Re: Notice of Suspension and Initiation of Debarment Proceedings, File No. EB07IH5369
Dear Mr. Brown:
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 (``ERate program'').\11\
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.\12\
\11\ Any further reference in this letter to ``your conviction''
refers to your February 13, 2007 guilty plea and subsequent
conviction of three counts of mail fraud. United States v. Richard
E. Brown, Criminal Docket No. 3:07CR29 (RNC), Plea Agreement
(D.Conn. filed Feb. 13, 2007 and entered Feb. 14, 2007) (``Brown
Plea Agreement''); United States v. Richard E. Brown, 3:07CR29
(RNC), Judgment (D.Conn. filed Sept. 6, 2007 and entered Sept. 7, 2007) (``Brown Judgment'').
\12\ 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.\13\ You pled guilty to three counts of mail fraud for
activities in connection with your participation in the ERate program
involving telecommunications upgrade projects in four Connecticut school districts.\14\ While employed at Southwestern Bell
Communications (``SBC''), the prime contractor servicing these school
districts, you recommended subcontractors to perform telecommunications
upgrades in four Connecticut school districts. You also reviewed
invoices submitted by the subcontractors to SBC for payment that SBC
then submitted to the Universal Service Administrative Company
(``USAC'') for reimbursement from the ERate fund.\15\ You admitted to
participating in schemes to defraud the ERate program where fictitious
bills for upgrades that were never performed were submitted to USAC for
reimbursement from the ERate fund.\16\ In another fraudulent scheme in
which you admitted to being a participant, engineering services for
upgrade projects were billed at inflated rates and the associated
invoices were also submitted to USAC for ERate reimbursement.\17\ In
sum, these schemes generated approximately $1,564,768 in fictitious
expenses and approximately $956,203 of these expenses ultimately were
submitted to the USAC for reimbursement from ERate fund.\18\
\13\ 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).
\14\ See generally United States v. Richard E. Brown, Criminal
Docket No. 3:07CR29 (RNC), Information (D.Conn. filed and entered
Jul. 28, 2006) (``Information''); Brown Plea Agreement at 1; Brown Judgment at 1.
\15\ See Information at 23.
\16\ See Information at 18.
\17\ See Information at 810.
\18\ See Information at 3, 5, 8; http://www.usdoj.gov/usao/ct/Press2007/200708293.html (Department of Justice Press Release dated
August 29, 2007) (last accessed September 12, 2007) (``DOJ August 29
Press Release''). See also Letter from Hillary S. DeNigro, Chief,
Investigations and Hearings Division, Enforcement Bureau, Federal
Communications Commission, to Scott A. Federowicz, c/o Paul H.D.
Stoughton, Conway & Stoughton, LLP, Notice of Suspension and
Initiation of Debarment Proceedings, File No. EB07IH5171, (rel.
June 27, 2007) (``Federowicz Suspension Letter''); 72 FR 39425 (Jul. 18, 2007).
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\
\19\ 47 CFR 54.521(a)(4). See Second Report and Order, 18 FCC Rcd at 92259227, ]] 6774 (2003).
\20\ 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).
\21\ 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.\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\
\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(e)(5).
\25\ 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 ERate
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.\26\ Therefore, pursuant to section 54.521(a)(4) of
the Commission's rules, your conviction requires the Bureau to commence debarment proceedings against you.
\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
54.521(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.\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
[[Page 73823]]
of a debarment notice or publication of the decision in the Federal Register.\30\
\27\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR 54.521(e)(2)(i), 54.521(e)(3).
\28\ Second Report and Order, 18 FCC Rcd at 9227, ] 74.
\29\ See id., 18 FCC Rcd at 9226, ] 70; 47 CFR 54.521(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 54.521(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.\31\ The Bureau may, if necessary to protect the public interest, extend the debarment period.\32\
\31\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR Sec. Sec. 54.521(d), 54.521(g).
\32\ 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) 418
1420 and by email 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 email) [FR Doc. E725133 Filed 122707; 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.