Notice of Suspension and of Proposed Debarment Proceedings; Schools and Libraries Universal Service Support Mechanism, 5447-5449 [05-1860]
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Federal Register / Vol. 70, No. 21 / Wednesday, February 2, 2005 / Notices
Total Annual Burden: 31,500 hours.
Total Annual Cost: N/A.
Privacy Act Impact Assessment: N/A.
Needs and Uses: The Commission
was directed by the United States
FOR FURTHER INFORMATION CONTACT: For
Congress, in the Balanced Budget Act of
additional information or copies of the
information collection(s), contact Judith 1997, to dedicate 2.4 MHz of
electromagnetic spectrum in the 746–
B. Herman at 202–418–0214 or via the
806 MHz band for public safety services.
Internet at Judith-B.Herman@fcc.gov.
Section 90.179 requires that Part 90
SUPPLEMENTARY INFORMATION:
licensees that share use of their private
OMB Control No.: 3060–0056.
land mobile radio facility on non-profit,
Title: Part 68—Connection of
cost-shared basis keep a written sharing
Terminal Equipment to the Telephone
agreement as part of the station records.
Network.
Regardless of the method of sharing, an
Form No: N/A.
up-to-date list of persons who are
Type of Review: Extension of a
sharing the station and the basis of their
currently approved collection.
eligibility under Part 90 must be
Respondents: Business or other formaintained. The requirement is
profit.
necessary to identify users of the
Number of Respondents: 58,520
systems should interference problems
respondents; 70,450 responses.
Estimated Time Per Response: .05—24 develop. This information is used by the
Commission to investigate interference
hours.
complaints and resolve interference and
Frequency of Response: On occasion
operational complaints that may arise
reporting requirement, recordkeeping
among the users. The Commission is
requirement and third party disclosure
seeking extension (no change) to this
requirement.
information collection in order to obtain
Total Annual Burden: 32,027 hours.
the full three-year clearance from OMB.
Total Annual Cost: $1,160,000.
Federal Communications Commission.
Privacy Act Impact Assessment: N/A.
Needs and Uses: The purpose of 47
Marlene H. Dortch,
CFR part 68 is to protect the telephone
Secretary.
network from certain types of harm and [FR Doc. 05–1939 Filed 2–1–05; 8:45 am]
interference to other subscribers. To
BILLING CODE 6712–01–P
ensure that consumers, providers of
telecommunications, the Administrative
Council, telecommunications
FEDERAL COMMUNICATIONS
certification bodies (TCBs), and the
COMMISSION
Commission are able to trace products
to the party responsible for placing
[DA 05–112]
terminal equipment on the market, it is
essential to require manufacturers and
Notice of Suspension and of Proposed
suppliers to provide the information
Debarment Proceedings; Schools and
required by part 68. In addition, it is
Libraries Universal Service Support
necessary that incumbent local
Mechanism
exchange carriers (ILECs) provide the
AGENCY: Federal Communications
information in part 68 to warn their
subscribers of impending disconnection Commission.
ACTION: Notice.
of service when subscriber terminal
equipment is causing telephone network
SUMMARY: The Enforcement Bureau
harm. The Commission is seeking
(Bureau) gives notice of Inter-tel
extension (no change) to this
information collection in order to obtain Technologies, Inc.’s (Inter-Tel)
the full three-year clearance from OMB. suspension from the schools and
libraries universal service support
OMB Control No.: 3060–0262.
mechanism. In addition, the Bureau
Title: Section 90.179, Shared Use of
gives notice that debarment proceedings
Radio Stations.
are commencing against Inter-tel.
Form No: N/A.
DATES: Opposition request must be
Type of Review: Extension of a
received by February 22, 2005. An
currently approved collection.
opposition request by the party to be
Respondents: Business or other forsuspended must be received 30 days
profit, not-for-profit institutions, and
from the receipt of the suspension letter
state, local and tribal government.
or by February 22, 2005. The Bureau
Number of Respondents: 42,000.
will decide any opposition request for
Estimated Time Per Response: .75
reversal or modification of suspension
hours.
Frequency of Response:
within 90 days of its receipt of such
Recordkeeping requirement.
requests.
Communications Commission, Room 1–
C804, 445 12th Street, SW., DC 20554 or
via the Internet to JudithB.Herman@fcc.gov.
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5447
FOR FURTHER INFORMATION CONTACT:
Romanda Williams, Federal
Communications Commission,
Enforcement Bureau, Investigations and
Hearings Division, Room 4–C330, 445
12th Street, SW., Washington DC 20554.
Romanda Williams may be contacted by
phone at (202) 418–1420 or e-mail at
Romanda.Williams@fcc.gov.
The
Bureau has suspension and debarment
authority under 47 CFR 54.521 and 47
CFR 0.111(a)(14). Suspension will help
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, Notice of Suspension and of
Proposed Debarment Proceeding, DA
05–112, which was mailed to Inter-tel
and released on January 19, 2005. The
letter (1) gives notice of the suspension
and proposed debarment; (2) gives the
reasons for the proposed debarment; (3)
explains the debarment procedure; and
(4) describes the potential effect of the
debarment. The complete text of the
suspension letter 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 https://www.fcc.gov. The text
may also be purchased from the
Commission’s duplicating contractor,
Best Copy and Printing, Inc., Portals II,
445 12th Street, SW., Room CY–B402,
Washington, DC 20554, telephone (202)
488–5300 or (800) 378–3160, facsimile
(202) 488–5563, or via e-mail https://
www.bcpiweb.com.
SUPPLEMENTARY INFORMATION:
Federal Communications Commission.
William H. Davenport,
Chief, Investigations and Hearings Division,
Enforcement Bureau.
The suspension letter follows:
January 19, 2005.
Via Certified Mail—Return Receipt
Requested
Mr. Steven G. Mihaylo,
Chief Executive Officer, Intel-Tel
Technologies, Inc., 1615 S 52nd Street,
Tempe, AZ 85281–6233.
Re: Notice of Suspension and of Proposed
Debarment, File No. EB–05–IH–0012
Dear Mr. Mihaylo: The Federal
Communications Commission (‘‘FCC’’ or
‘‘Commission’’) has received notice of the
January 5, 2005 conviction of Inter-Tel
Technologies, Inc. (‘‘Inter-Tel’’) for mail
fraud and aiding and abetting in violation of
18 U.S.C. 1341 and 2, and for conspiracy to
suppress and eliminate competition in
violation of the Sherman Antitrust Act, 15
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5448
Federal Register / Vol. 70, No. 21 / Wednesday, February 2, 2005 / Notices
U.S.C. 1.1 Consequently, pursuant to 47 CFR
54.521, this letter constitutes official notice
of Inter-Tel’s suspension from the schools
and libraries universal service support
mechanism (‘‘E-rate program’’). In addition,
the Enforcement Bureau (‘‘Bureau’’) hereby
notifies Inter-Tel that we are commencing
debarment proceedings against it.2
I. Notice of Suspension
Pursuant to section 54.521(a)(4) of the
Commission’s rules,3 Inter-Tel’s conviction
requires the Bureau to suspend it 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.4 Inter-Tel’s
suspension becomes effective upon the
earlier of its receipt of this letter or
publication of notice in the Federal
Register.5
Suspension is immediate pending the
Bureau’s final debarment determination.
Inter-Tel may contest this suspension or the
scope of this suspension by filing arguments
in opposition to the suspension, with any
relevant documentation. Inter-Tel’s request
must be received within 30 days after it
receives this letter or after notice is published
in the Federal Register, whichever comes
first.6 Such requests, however, will not
ordinarily be granted.7 The Bureau may
reverse or limit the scope of suspension only
upon a finding of extraordinary
circumstances.8 Absent extraordinary
circumstances, the Bureau will decide any
request for reversal or modification of
suspension within 90 days of its receipt of
such request.9
II. Notice of Proposed Debarment
A. Reasons for and Cause of Debarment
The Commission has established
procedures to prevent persons who have
‘‘defrauded the government or engaged in
similar acts through activities associated with
1 United States v. Inter-Tel Technologies, Inc., No.
CR–04–399–CRB, Plea Agreement (N.D.Cal. filed
Dec. 8, 2004) (‘‘Inter-Tel Plea Agreement’’). The
Order accepting this plea agreement was signed by
the Court on January 5, 2005, and entered on
January 10, 2005.
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).
3 47 CFR 54.521(a)(4). See Schools and Libraries
Universal Service Support Mechanism, Second
Report and Order and Further Notice of Proposed
Rulemaking, 18 FCC Rcd 9202, 9225–9227, ¶¶ 67–
74 (2003) (‘‘Second Report and Order’’).
4 Second Report and Order, 18 FCC Rcd at 9225,
¶ 67; 47 U.S.C. 254; 47 CFR 54.502–54.503; 47 CFR
54.521(a)(4).
5 Second Report and Order, 18 FCC Rcd at 9226,
¶ 69; 47 CFR 54.521(e)(1).
6 Second Report and Order, 18 FCC Rcd at 9226,
¶ 70; 47 CFR 54.521(e)(4).
7 Second Report and Order, 18 FCC Rcd at 9226,
¶ 70.
8 47 CFR 54.521(e)(5).
9 See Second Report and Order, 18 FCC Rcd at
9226, ¶ 70; 47 CFR 54.521(e)(5), 54.521(f).
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Jkt 205001
or related to the schools and libraries support
mechanism’’ from receiving the benefits
associated with that program.10 Based on the
plea agreement upon which Inter-Tel’s
conviction is based, Inter-Tel pled guilty to
mail fraud and other criminal offenses for
activities in connection with its participation
in the E-rate program with the San Francisco
Unified School District (‘‘SFUSD’’). In
connection with the mail fraud offense
charged against Inter-Tel, the company
admitted that it: (1) Assisted consultants in
falsely describing equipment to be supplied
to SFUSD, by hiding equipment not eligible
for funding under the E-rate program in order
to have the program pay for it; (2) learned
that consultants had submitted bills to the
Universal Service Administrative Company
(‘‘USAC’’) with inflated prices, and did
nothing to inform USAC that the prices had
been inflated by approximately $26 million
above the amounts originally bid for the
project; and (3) did nothing to disclose to the
SFUSD superintendent or school board that
the funding requests to USAC had been
increased over the original amounts, that
there were inflated estimates in the bid
documents, or that equipment ineligible for
funding had been hidden in documents
submitted to USAC. In connection with the
antitrust crime charged against Inter-Tel, the
company admitted that it: (1) Participated in
a conspiracy with one or more vendors of
equipment and services related to
telecommunications, Internet access and/or
internal connections, with a purpose of
suppressing and eliminating competition for
E-rate projects; and (2) reached an agreement
with its co-conspirators to frustrate the
competitive process in the E-rate projects by
allocating contracts and submitting
fraudulent and non-competitive bids; and (3)
submitted fraudulent and non-competitive
bids in accordance with the conspiratorial
agreement.11 These actions constitute the
conduct or transactions upon which this
debarment proceeding is based.12 Moreover,
Inter-Tel’s conviction on the basis of these
acts falls within the categories of causes for
debarment defined in section 54.521(c) of the
Commission’s rules.13 Therefore, pursuant to
section 54.521(a)(4) of the Commission’s
10 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 54.521(a)(6).
11 See Inter-Tel Plea Agreement at 5–7.
12 Second Report and Order, 18 FCC Rcd at 9226,
¶ 70; 47 CFR 54.521(e)(2)(i).
13 ‘‘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).
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Frm 00037
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rules, Inter-Tel’s conviction requires the
Bureau to commence debarment proceedings
against it.
B. Debarment Procedures
Inter-Tel 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.14 Absent extraordinary
circumstances, the Bureau will debar InterTel.15 Within 90 days of receipt of any
opposition to Inter-Tel’s suspension and
proposed debarment, the Bureau, in the
absence of extraordinary circumstances, will
provide Inter-Tel with notice of its decision
to debar.16 If the Bureau decides to debar
Inter-Tel, its decision will become effective
upon the earlier of Inter-Tel’s receipt of a
debarment notice or publication of the
decision in the Federal Register.17
C. Effect of Debarment
If and when Inter-Tel’s debarment becomes
effective, it will be prohibited from
participating in activities associated with or
related to the schools and libraries support
mechanism for at least three years from the
date of debarment.18 The Bureau may, if
necessary to protect the public interest,
extend the debarment period.19
Please direct any responses to the
following address: Romanda Williams,
Federal Communications Commission,
Enforcement Bureau, Investigations and
Hearings Division, Room 4–C443, 445 12th
Street, SW., Washington, DC 20554.
If Inter-Tel submits its response via handdelivery or non-United States Postal Service
delivery (e.g., Federal Express, DHL, etc.),
please send the response to Ms. Williams at
the following address: Federal
Communications Commission, 9300 East
Hampton Drive, Capitol Heights, MD 20743.
If Inter-Tel has any questions, please
contact Ms. Williams via mail, by telephone
at (202) 418–1420 or by e-mail at
romanda.williams@fcc.gov. If Ms. Williams is
unavailable, you may contact Eric Bash by
telephone at (202) 418–1188 and by e-mail at
eric.bash@fcc.gov.
Sincerely yours,
William H. Davenport,
Chief, Investigations and Hearings Division,
Enforcement Bureau.
cc: Leo P. Cunningham, Esq., Wilson Sonsini
Goodrich & Rosati; Michael F. Wood,
Esq., United States Department of
Justice, Antitrust Division; Kristy Carroll,
14 See Second Report and Order, 18 FCC Rcd at
9226, ¶ 70; 47 CFR 54.521(e)(2(i), 54.521(e)(3).
15 Second Report and Order, 18 FCC Rcd at 9227,
¶ 74.
16 See id., 18 FCC Rcd at 9226, ¶ 70; 47 CFR
54.521(e)(5).
17 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).
18 Second Report and Order, 18 FCC Rcd at 9225,
¶ 67; 47 CFR 54.521(d), 54.521(g).
19 Id.
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Federal Register / Vol. 70, No. 21 / Wednesday, February 2, 2005 / Notices
Esq., USAC.
FEDERAL MARITIME COMMISSION
[FR Doc. 05–1860 Filed 2–1–05; 8:45 am]
Notice of Agreements Filed
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
[Report No. 2687]
Petitions for Reconsideration and
Clarification of Action in Rulemaking
Proceeding
January 19, 2005.
Petitions for Reconsideration and
Clarification have been filed in the
Commission’s Rulemaking proceeding
listed in this Public Notice and
published pursuant to 47 CFR 1.429(e).
The full text of this document is
available for viewing and copying in
Room CY–B402, 445 12th Street, SW.,
Washington, DC or may be purchased
from the Commission’s copy contractor,
Best Copy and Printing, Inc. (BCPI) (1–
800–378–3160). Oppositions to these
petitions must be filed by February 17,
2005. See Section 1.4(b)(1) of the
Commission’s rules (47 CFR 1.4(b)(1)).
Replies to an opposition must be filed
within 10 days after the time for filing
oppositions have expired.
Subject: In the Matter of Improving
Public Safety Communications in the
800 MHz Band (WT Docket No. 02–55).
Consolidating the 800 and 900 MHz
Industrial/Land Transportation and
Business Pool Channels to Allocate
Spectrum Below 3 GHz for Mobile and
Fixed Services to Support the
Introduction of New Advanced Wireless
Services, including Third Generation
Wireless Services (ET Docket No. 00–
258).
Petition for Rulemaking of the
Wireless Information Networks Forum
Concerning the Unlicensed Personal
Communications Service (RM–9498).
Petition for Rulemaking of UT
Starcom, Inc. Concerning the
Unlicensed Personal Communications
Service (RM–10024).
Amendment of Section 2.106 of the
Commission’s Rules to Allocate
Spectrum at 2 GHz for Use by the
Mobile Satellite Service (ET Docket No.
95–18).
Number of Petitions Filed: 15.
Marlene H. Dortch,
Secretary.
[FR Doc. 05–1942 Filed 2–1–05; 8:45 am]
BILLING CODE 6712–01–M
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The Commission hereby gives notice
of the filing of the following agreements
under the Shipping Act of 1984.
Interested parties may obtain copies of
agreements by contacting the
Commission’s Office of Agreements at
202–523–5793 or via e-mail at
tradeanalysis@fmc.gov. Interested
parties may submit comments on an
agreement to the Secretary, Federal
Maritime Commission, Washington, DC
20573, within 10 days of the date this
notice appears in the Federal Register.
Agreement No.: 011453–005.
Title: Southern Africa/Oceania
Agreement.
Parties: A.P. Moller-Maersk A/S;
Mediterranean Shipping Co., S.A.; and
Safmarine Container Lines N.V.
Filing Party: Wayne R. Rohde, Esq.,
Sher & Blackwell, 1850 M Street, NW.,
Suite 900, Washington, DC 20036.
Synopsis: The agreement deletes
Australia, New Zealand and other
islands of Oceania from the geographic
scope of the agreement.
Agreement No.: 011689–009.
Title: Zim/CSCL Space Charter
Agreement.
Parties: China Shipping Container
Lines Co., Ltd. and China Shipping
Container Lines (Hong Kong) Co., Ltd.
(‘‘CSCL’’); and Zim Integrated Shipping
Service, Ltd. (‘‘Zim’’).
Filing Party: Wayne R. Rohde, Esq.,
Sher & Blackwell, LLP, 1850 M Street,
NW., Suite 900, Washington, DC 20036.
Synopsis: The amendment extends
the duration of the agreement, adds a
slot swap between one leg of Zim’s AMP
service and CSCL’s ANW service,
revises provisions dealing with
equipment sizes, and deletes provisions
relating to certain defaults, dry docking,
and omission of ports.
Agreement No.: 011898.
Title: APS Joint Service Agreement.
Parties: BBC Chartering & Logistic
GmbH & Co. KG (‘‘BBC’’), Clipper Elite
Carriers Ltd. (‘‘Clipper’’) and Asia
Project Services Ltd. (‘‘APS’’).
Filing Party: C. Jonathan Benner, Esq.
and Matthew Thomas, Esq., Troutman
Sanders LLP, 401 9th Street, NW., Suite
1000, Washington, DC 20004–2134.
Synopsis: The subject agreement
would permit BBC and Clipper to
establish a joint service, APS, in the
trade between United States’ ports and
ports in Asia, Australia, and New
Zealand.
By Order of the Federal Maritime
Commission.
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5449
Dated: January 28, 2005.
Bryant L. VanBrakle,
Secretary.
[FR Doc. 05–1959 Filed 2–1–05; 8:45 am]
BILLING CODE 6730–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Office of the Secretary
[Document Identifier: OS–4040–0001]
Notice of Proposed Requirement To
Establish Government-wide Standard
Data Elements for Use by All Federal
Grant Making Agencies
Office of the Secretary,
Grants.gov Program Management Office.
In compliance with the requirement
of section 3506(c)(2)(A) of the
Paperwork Reduction Act of 1995, the
Office of the Secretary (OS), Department
of Health and Human Services, is
publishing the following summary of
proposed collections for public
comment. Interested persons are invited
to send comments regarding this burden
estimate or any other aspect of this
collection of information, including any
of the following subjects: (1) The
necessity and utility of the proposed
information collection for the proper
performance of the agency’s functions;
(2) the accuracy of the estimated
burden; (3) ways to enhance the quality,
utility, and clarity of the information to
be collected; and (4) the use of
automated collection techniques or
other forms of information technology to
minimize the information collection
burden. Emergency Clearance for the
data set was published in the Federal
Register on September 3, 2004 [Vol. 69,
No. 171]. Public comments from the
Emergency Clearance were incorporated
into the proposed information
collection.
#1 Type of Information Collection
Request: Regular, Extension of a
currently approved collection;
Title of Information Collection: SF–
424 Research & Related (R&R);
Form/OMB No.: OS–4040–0001.
Use: The SF–424 (R&R) will become
the government-wide data set for
research grant applications. Federal
agencies and grant applicants will use
the standard data set and definitions for
paper and electronic research grants
applications. The standard data set will
become the common Federal data set for
research grant applications, replacing
numerous agency data sets and reducing
the administrative burden placed on the
research grants community. The data set
provides information to assist Federal
AGENCY:
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Agencies
[Federal Register Volume 70, Number 21 (Wednesday, February 2, 2005)]
[Notices]
[Pages 5447-5449]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-1860]
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FEDERAL COMMUNICATIONS COMMISSION
[DA 05-112]
Notice of Suspension and of Proposed Debarment Proceedings;
Schools and Libraries Universal Service Support Mechanism
AGENCY: Federal Communications Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Enforcement Bureau (Bureau) gives notice of Inter-tel
Technologies, Inc.'s (Inter-Tel) suspension from the schools and
libraries universal service support mechanism. In addition, the Bureau
gives notice that debarment proceedings are commencing against Inter-
tel.
DATES: Opposition request must be received by February 22, 2005. An
opposition request by the party to be suspended must be received 30
days from the receipt of the suspension letter or by February 22, 2005.
The Bureau will decide any opposition request for reversal or
modification of suspension within 90 days of its receipt of such
requests.
FOR FURTHER INFORMATION CONTACT: Romanda Williams, Federal
Communications Commission, Enforcement Bureau, Investigations and
Hearings Division, Room 4-C330, 445 12th Street, SW., Washington DC
20554. Romanda Williams may be contacted by phone at (202) 418-1420 or
e-mail at Romanda.Williams@fcc.gov.
SUPPLEMENTARY INFORMATION: The Bureau has suspension and debarment
authority under 47 CFR 54.521 and 47 CFR 0.111(a)(14). Suspension will
help 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, Notice of
Suspension and of Proposed Debarment Proceeding, DA 05-112, which was
mailed to Inter-tel and released on January 19, 2005. The letter (1)
gives notice of the suspension and proposed debarment; (2) gives the
reasons for the proposed debarment; (3) explains the debarment
procedure; and (4) describes the potential effect of the debarment. The
complete text of the suspension letter 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 https://www.fcc.gov. The text may also be
purchased from the Commission's duplicating contractor, Best Copy and
Printing, Inc., Portals II, 445 12th Street, SW., Room CY-B402,
Washington, DC 20554, telephone (202) 488-5300 or (800) 378-3160,
facsimile (202) 488-5563, or via e-mail https://www.bcpiweb.com.
Federal Communications Commission.
William H. Davenport,
Chief, Investigations and Hearings Division, Enforcement Bureau.
The suspension letter follows:
January 19, 2005.
Via Certified Mail--Return Receipt Requested
Mr. Steven G. Mihaylo,
Chief Executive Officer, Intel-Tel Technologies, Inc., 1615 S 52nd
Street, Tempe, AZ 85281-6233.
Re: Notice of Suspension and of Proposed Debarment, File No. EB-05-
IH-0012
Dear Mr. Mihaylo: The Federal Communications Commission (``FCC''
or ``Commission'') has received notice of the January 5, 2005
conviction of Inter-Tel Technologies, Inc. (``Inter-Tel'') for mail
fraud and aiding and abetting in violation of 18 U.S.C. 1341 and 2,
and for conspiracy to suppress and eliminate competition in
violation of the Sherman Antitrust Act, 15
[[Page 5448]]
U.S.C. 1.\1\ Consequently, pursuant to 47 CFR 54.521, this letter
constitutes official notice of Inter-Tel's suspension from the
schools and libraries universal service support mechanism (``E-rate
program''). In addition, the Enforcement Bureau (``Bureau'') hereby
notifies Inter-Tel that we are commencing debarment proceedings
against it.\2\
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\1\ United States v. Inter-Tel Technologies, Inc., No. CR-04-
399-CRB, Plea Agreement (N.D.Cal. filed Dec. 8, 2004) (``Inter-Tel
Plea Agreement''). The Order accepting this plea agreement was
signed by the Court on January 5, 2005, and entered on January 10,
2005.
\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
Pursuant to section 54.521(a)(4) of the Commission's rules,\3\
Inter-Tel's conviction requires the Bureau to suspend it 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.\4\ Inter-Tel's suspension becomes effective upon the
earlier of its receipt of this letter or publication of notice in
the Federal Register.\5\
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\3\ 47 CFR 54.521(a)(4). See Schools and Libraries Universal
Service Support Mechanism, Second Report and Order and Further
Notice of Proposed Rulemaking, 18 FCC Rcd 9202, 9225-9227, ]] 67-74
(2003) (``Second Report and Order'').
\4\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 U.S.C.
254; 47 CFR 54.502-54.503; 47 CFR 54.521(a)(4).
\5\ Second Report and Order, 18 FCC Rcd at 9226, ] 69; 47 CFR
54.521(e)(1).
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Suspension is immediate pending the Bureau's final debarment
determination. Inter-Tel may contest this suspension or the scope of
this suspension by filing arguments in opposition to the suspension,
with any relevant documentation. Inter-Tel's request must be
received within 30 days after it receives this letter or after
notice is published in the Federal Register, whichever comes
first.\6\ Such requests, however, will not ordinarily be granted.\7\
The Bureau may reverse or limit the scope of suspension only upon a
finding of extraordinary circumstances.\8\ Absent extraordinary
circumstances, the Bureau will decide any request for reversal or
modification of suspension within 90 days of its receipt of such
request.\9\
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\6\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR
54.521(e)(4).
\7\ Second Report and Order, 18 FCC Rcd at 9226, ] 70.
\8\ 47 CFR 54.521(e)(5).
\9\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47
CFR 54.521(e)(5), 54.521(f).
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II. Notice of Proposed Debarment
A. Reasons for and Cause of Debarment
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.\10\ Based on the plea agreement upon which Inter-Tel's
conviction is based, Inter-Tel pled guilty to mail fraud and other
criminal offenses for activities in connection with its
participation in the E-rate program with the San Francisco Unified
School District (``SFUSD''). In connection with the mail fraud
offense charged against Inter-Tel, the company admitted that it: (1)
Assisted consultants in falsely describing equipment to be supplied
to SFUSD, by hiding equipment not eligible for funding under the E-
rate program in order to have the program pay for it; (2) learned
that consultants had submitted bills to the Universal Service
Administrative Company (``USAC'') with inflated prices, and did
nothing to inform USAC that the prices had been inflated by
approximately $26 million above the amounts originally bid for the
project; and (3) did nothing to disclose to the SFUSD superintendent
or school board that the funding requests to USAC had been increased
over the original amounts, that there were inflated estimates in the
bid documents, or that equipment ineligible for funding had been
hidden in documents submitted to USAC. In connection with the
antitrust crime charged against Inter-Tel, the company admitted that
it: (1) Participated in a conspiracy with one or more vendors of
equipment and services related to telecommunications, Internet
access and/or internal connections, with a purpose of suppressing
and eliminating competition for E-rate projects; and (2) reached an
agreement with its co-conspirators to frustrate the competitive
process in the E-rate projects by allocating contracts and
submitting fraudulent and non-competitive bids; and (3) submitted
fraudulent and non-competitive bids in accordance with the
conspiratorial agreement.\11\ These actions constitute the conduct
or transactions upon which this debarment proceeding is based.\12\
Moreover, Inter-Tel's conviction on the basis of these acts falls
within the categories of causes for debarment defined in section
54.521(c) of the Commission's rules.\13\ Therefore, pursuant to
section 54.521(a)(4) of the Commission's rules, Inter-Tel's
conviction requires the Bureau to commence debarment proceedings
against it.
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\10\ 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 54.521(a)(6).
\11\ See Inter-Tel Plea Agreement at 5-7.
\12\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR
54.521(e)(2)(i).
\13\ ``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).
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B. Debarment Procedures
Inter-Tel 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.\14\ Absent extraordinary
circumstances, the Bureau will debar Inter-Tel.\15\ Within 90 days
of receipt of any opposition to Inter-Tel's suspension and proposed
debarment, the Bureau, in the absence of extraordinary
circumstances, will provide Inter-Tel with notice of its decision to
debar.\16\ If the Bureau decides to debar Inter-Tel, its decision
will become effective upon the earlier of Inter-Tel's receipt of a
debarment notice or publication of the decision in the Federal
Register.\17\
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\14\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47
CFR 54.521(e)(2(i), 54.521(e)(3).
\15\ Second Report and Order, 18 FCC Rcd at 9227, ] 74.
\16\ See id., 18 FCC Rcd at 9226, ] 70; 47 CFR 54.521(e)(5).
\17\ 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).
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C. Effect of Debarment
If and when Inter-Tel's debarment becomes effective, it will be
prohibited from participating in activities associated with or
related to the schools and libraries support mechanism for at least
three years from the date of debarment.\18\ The Bureau may, if
necessary to protect the public interest, extend the debarment
period.\19\
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\18\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR
54.521(d), 54.521(g).
\19\ Id.
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Please direct any responses to the following address: Romanda
Williams, Federal Communications Commission, Enforcement Bureau,
Investigations and Hearings Division, Room 4-C443, 445 12th Street,
SW., Washington, DC 20554.
If Inter-Tel submits its response via hand-delivery or non-
United States Postal Service delivery (e.g., Federal Express, DHL,
etc.), please send the response to Ms. Williams at the following
address: Federal Communications Commission, 9300 East Hampton Drive,
Capitol Heights, MD 20743.
If Inter-Tel has any questions, please contact Ms. Williams via
mail, by telephone at (202) 418-1420 or by e-mail at
romanda.williams@fcc.gov. If Ms. Williams is unavailable, you may
contact Eric Bash by telephone at (202) 418-1188 and by e-mail at
eric.bash@fcc.gov.
Sincerely yours,
William H. Davenport,
Chief, Investigations and Hearings Division, Enforcement Bureau.
cc: Leo P. Cunningham, Esq., Wilson Sonsini Goodrich & Rosati;
Michael F. Wood, Esq., United States Department of Justice,
Antitrust Division; Kristy Carroll,
[[Page 5449]]
Esq., USAC.
[FR Doc. 05-1860 Filed 2-1-05; 8:45 am]
BILLING CODE 6712-01-P