Notice of Suspension and of Proposed Debarment Proceedings; Schools and Libraries Universal Service Support Mechanism, 5447-5449 [05-1860]

Download as PDF 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. VerDate jul<14>2003 14:19 Feb 01, 2005 Jkt 205001 PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 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 E:\FR\FM\02FEN1.SGM 02FEN1 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). VerDate jul<14>2003 14:19 Feb 01, 2005 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). PO 00000 Frm 00037 Fmt 4703 Sfmt 4703 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. E:\FR\FM\02FEN1.SGM 02FEN1 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 VerDate jul<14>2003 14:19 Feb 01, 2005 Jkt 205001 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. PO 00000 Frm 00038 Fmt 4703 Sfmt 4703 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: E:\FR\FM\02FEN1.SGM 02FEN1

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.

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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).
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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
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