Notice of Suspension and of Proposed Debarment Proceedings; Schools and Libraries Universal Service Support Mechanism, 57574-57576 [E7-19922]

Download as PDF 57574 Federal Register / Vol. 72, No. 195 / Wednesday, October 10, 2007 / Notices Competition Policy Division, Wireline Competition Bureau, Federal Communications Commission, The Portals II, 445 12th Street, SW., Suite 5–C162, Washington, DC 20554. FOR FURTHER INFORMATION CONTACT: Deborah Blue, Special Assistant to the Designated Federal Officer (DFO) at (202) 418–1466 or Deborah.Blue@fcc.gov. The fax number is: (202) 418–2345. The TTY number is: (202) 418–0484. SUPPLEMENTARY INFORMATION: Released October 2, 2007. The GSA has renewed the charter of the North American Numbering Council (Council) through September 27, 2009. The Council will continue to advise the Federal Communications Commission (Commission) on rapidly evolving and competitively significant numbering issues facing the telecommunications industry. In October 1995, the Commission established the North American Numbering Council, a federal advisory committee created pursuant to the Federal Advisory Committee Act, 5 U.S.C., App. 2 (1988), to advise the Commission on issues related to North American Numbering Plan (NANP) administration in the United States, including local number portability administration issues. The original charter of the Council was effective on October 5, 1995, establishing an initial two-year term. Amended charters were filed on October 5, 1997, October 5, 1999, October 5, 2001, October 5, 2003, and September 26, 2005 each renewing the term of the charter for an additional two years. Since the last charter renewal, the Council has provided the Commission with critically important recommendations regarding number administration, such as the development and recommendation of interim and permanent guidelines for pseudo Automatic Number Identification administration. In addition, the Council developed and recommended technical requirements for a request for proposals associated with a new Pooling Administrator (PA) contract. The Council also provided detailed evaluations of the North American Numbering Plan Administrator (NANPA) and the PA. The Council will continue to evaluate the NANPA’s and the PA’s performances annually. Moreover, the Council is presently considering and formulating recommendations on other important numbering-related issues that will require work beyond the term of the present charter. The term of the rwilkins on PROD1PC63 with NOTICES ADDRESSES: VerDate Aug<31>2005 17:08 Oct 09, 2007 Jkt 214001 Council’s renewed charter begins September 27, 2007 and runs through September 27, 2009. The value of this federal advisory committee to the telecommunications industry and to the American public cannot be overstated. Numbers are the means by which consumers gain access to, and reap the benefits of, the public switched telephone network. The Council’s recommendations to the Commission will facilitate fair and efficient number administration in the United States, and will ensure that numbering resources are available to all telecommunications service providers on a fair and equitable basis, consistent with the requirements of the Telecommunications Act of 1996. Federal Communications Commission. Marilyn Jones, Attorney, Competition Policy Division, Wireline Competition Bureau. [FR Doc. E7–19939 Filed 10–9–07; 8:45 am] BILLING CODE 6712–01–P FEDERAL COMMUNICATIONS COMMISSION [DA 07–4036] Notice of Suspension and of Proposed Debarment Proceedings; Schools and Libraries Universal Service Support Mechanism Federal Communications Commission. ACTION: Notice. AGENCY: SUMMARY: The Federal Communications Commission (the ‘‘Commission’’) debars Mr. Brown from the schools and libraries universal service support mechanism for a period of three years because of violation of 18 U.S.C. 1341. Therefore, the Enforcement Bureau is commencing debarment proceedings against him. DATES: Debarment commences on the date Mr. Richard E. Brown receives the debarment letter or October 10, 2007, whichever date come first, for a period of three years. FOR FURTHER INFORMATION CONTACT: Diana Lee, Federal Communications Commission, Enforcement Bureau, Investigations and Hearings Division, Room 4-C330, 445 12th Street, SW., Washington, DC 20554. Diana Lee may be contacted by phone at (202) 418– 0843 or e-mail 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 e-mail at vickie.robinson@fcc.gov. PO 00000 Frm 00062 Fmt 4703 Sfmt 4703 The Commission debarred Mr. Brown from the schools and libraries universal service support mechanism for a period of three years pursuant to 47 CFR 521 and 47 CFR 0.111(a)(14). Attached is the debarment letter, Notice of Suspension and Initiation of Debarment Proceedings, DA 07–4036, which was mailed to Mr. Brown and released on September 25, 2007. The complete text of the notice of suspension and initiation of debarment proceedings, 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., Portal II, 445 12th Street, SW., Room CY–B420, Washington, DC 20554, telephone (202) 488–5300 or (800) 378–3160, facsimile (202) 488– 5563, or via e-mail https:// www.bcpiweb.com. SUPPLEMENTARY INFORMATION: Federal Communications Commission. Hillary S. DeNigro, Chief, Investigations and Hearings Division, Enforcement Bureau. The suspension letter follows: September 25, 2007. [DA 07–4036] Via Certified Mail—Return Receipt Requested and E-Mail. 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 Suspension and Initiation of Debarment Proceedings, File No. EB–07– IH–5369. 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’’).1 Consequently, pursuant to 47 CFR 54.521, this letter constitutes official notice of your suspension from the E-Rate program. In addition, the Enforcement Bureau (‘‘Bureau’’) hereby notifies you that we are commencing debarment proceedings against you.2 1 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. 3:07–CR–29 (RNC), Plea Agreement (D.Conn. filed Feb. 13, 2007 and entered Feb. 14, 2007) (‘‘Brown Plea Agreement’’); United States v. Richard E. Brown, 3:07–CR–29 (RNC), Judgment (D.Conn. filed Sept. 6, 2007 and entered Sept. 7, 2007) (‘‘Brown Judgment’’). 2 47 CFR 54.521; 47 CFR 0.111(a)(14) (delegating to the Enforcement Bureau authority to resolve E:\FR\FM\10OCN1.SGM 10OCN1 Federal Register / Vol. 72, No. 195 / Wednesday, October 10, 2007 / Notices rwilkins on PROD1PC63 with NOTICES 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 three counts of mail fraud for activities in connection with your participation in the E-Rate program involving telecommunications upgrade projects in four Connecticut school districts.4 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 E-Rate fund.5 You admitted to participating in schemes to defraud the E-Rate program where fictitious bills for upgrades that were never performed were submitted to USAC for reimbursement from the E-Rate fund.6 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 E-Rate reimbursement.7 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 E-Rate fund.8 Pursuant to section 54.521(a)(4) of the Commission’s rules,9 your conviction requires the Bureau to suspend you from participating in any activities associated with or related to the schools and libraries fund universal service suspension and debarment proceedings pursuant to 47 CFR 54.521). 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. Richard E. Brown, Criminal Docket No. 3:07–CR–29 (RNC), Information (D.Conn. filed and entered Jul. 28, 2006) (‘‘Information’’); Brown Plea Agreement at 1; Brown Judgment at 1. 5 See Information at 2–3. 6 See Information at 1–8. 7 See Information at 8–10. 8 See Information at 3, 5, 8; https://www.usdoj.gov/ usao/ct/Press2007/20070829–3.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. EB–07–IH– 5171, (rel. June 27, 2007) (‘‘Federowicz Suspension Letter’’); 72 FR 39425 (Jul. 18, 2007). 9 47 CFR 54.521(a)(4). See Second Report and Order, 18 FCC Rcd at 9225–9227, ¶¶ 67–74 (2003). VerDate Aug<31>2005 17:08 Oct 09, 2007 Jkt 214001 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.10 Your suspension becomes effective upon the earlier of your receipt of this letter or publication of notice in the Federal Register.11 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.12 Such requests, however, will not ordinarily be granted.13 The Bureau may reverse or limit the scope of suspension only upon a finding of extraordinary circumstances.14 Absent extraordinary circumstances, the Bureau will decide any request for reversal or modification of suspension within 90 days of its receipt of such request.15 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.16 Therefore, pursuant to section 54.521(a)(4) of the Commission’s rules, your conviction requires the Bureau to commence debarment proceedings against you. 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 10 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). 11 Second Report and Order, 18 FCC Rcd at 9226, ¶ 69; 47 CFR 54.521(e)(1). 12 Second Report and Order, 18 FCC Rcd at 9226, ¶ 70; 47 CFR 54.521(e)(4). 13 Second Report and Order, 18 FCC Rcd at 9226, ¶ 70. 14 47 CFR 54.521(e)(5). 15 See Second Report and Order, 18 FCC Rcd at 9226, ¶ 70; 47 CFR 54.521(e)(5), 54.521(f). 16 ‘‘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 00063 Fmt 4703 Sfmt 4703 57575 or of publication in the Federal Register.17 Absent extraordinary circumstances, the Bureau will debar you.18 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.19 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.20 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.21 The Bureau may, if necessary to protect the public interest, extend the debarment period.22 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 4–C330, with a copy to Vickie Robinson, Assistant Chief, Investigations and Hearings Division, Enforcement Bureau, Room 4–C330, Federal Communications Commission. If sent by commercial overnight mail (other than U.S. Postal Service Express Mail and Priority Mail), the response should be sent to the Federal Communications Commission, 9300 East Hampton Drive, Capitol Heights, Maryland 20743. If sent by first-class, Express, or Priority mail, the response should be sent to Diana Lee, Attorney Advisor, Investigations and Hearings Division, Enforcement Bureau, Federal Communications Commission, 445 12th Street, SW., Room 4–C330, Washington, DC 20554, with a copy to Vickie Robinson, Assistant Chief, Investigations and Hearings Division, Enforcement Bureau, Federal Communications Commission, 445 12th Street, SW., Room 4–C330, Washington, DC 20554. You shall also transmit a copy of the response via e-mail to 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) 418– 1420 or by e-mail 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 e-mail at vickie.robinson@fcc.gov. Sincerely yours, 17 See Second Report and Order, 18 FCC Rcd at 9226, ¶ 70; 47 CFR 54.521(e)(2)(i), 54.521(e)(3). 18 Second Report and Order, 18 FCC Rcd at 9227, ¶ 74. 19 See id., 18 FCC Rcd at 9226, ¶ 70; 47 CFR 54.521(e)(5). 20 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). 21 Second Report and Order, 18 FCC Rcd at 9225, ¶ 67; 47 CFR 54.521(d), 54.521(g). 22 Id. E:\FR\FM\10OCN1.SGM 10OCN1 57576 Federal Register / Vol. 72, No. 195 / Wednesday, October 10, 2007 / Notices 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 e-mail). [FR Doc. E7–19922 Filed 10–9–07; 8:45 am] BILLING CODE 6712–01–P FEDERAL RESERVE SYSTEM rwilkins on PROD1PC63 with NOTICES Change in Bank Control Notices; Acquisition of Shares of Bank or Bank Holding Companies The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and § 225.41 of the Board’s Regulation Y (12 CFR 225.41) to acquire a bank or bank holding company. The factors that are considered in acting on the notices are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)). The notices are available for immediate inspection at the Federal Reserve Bank indicated. The notices also will be available for inspection at the office of the Board of Governors. Interested persons may express their views in writing to the Reserve Bank indicated for that notice or to the offices of the Board of Governors. Comments must be received not later than October 24, 2007. A. Federal Reserve Bank of Chicago (Burl Thornton, Assistant Vice President) 230 South LaSalle Street, Chicago, Illinois 60690–1414: 1. James P. Stein; Mary Ann Bramhall–Lambert; Thomas L. Lambert; Velma M. Lambert; as a family acting in concert; and William M. Parks, individually and in concert with Ann F. Parks, all of Muscatine, Iowa, to acquire voting shares of Central Bancshares, Inc., and thereby indirectly Central State Bank, both of Muscatine, Iowa; Farmers and Mechanics Bank, Galesburg, Illinois; Freedom Security Bank, Coralville, Iowa; and West Chester Savings Bank, Washington, Iowa. B. Federal Reserve Bank of Kansas City (Todd Offenbacker, Assistant Vice President) 925 Grand Avenue, Kansas City, Missouri 64198–0001: 1. The Regnier Trust (Ann Regnier, trustee), as general partner of the Robert D. and Ann Regnier Family Limited Partnership, Leawood, Kansas; Victor A. Regnier, Los Angeles, California; Catherine M. Regnier, Mission, Kansas; Ranch Mart Hardware (Robert D. Regnier, president); Regnier Investments, both of Shawnee Mission, Kansas; and Regnier Management LLC (Robert D. Regnier, managing member), VerDate Aug<31>2005 17:08 Oct 09, 2007 Jkt 214001 as general partner of the Regnier Family Limited Partnership; Regnier Family Limited Partnership II; and the Regnier Family Limited Partnership III, all of Shawnee Mission, Kansas, as members of the Regnier Family Group; to retain voting shares of Blue Valley Ban Corp., and thereby indirectly retain voting shares of Bank of Blue Valley, both in Overland Park, Kansas. Board of Governors of the Federal Reserve System, October 4, 2007. Robert deV. Frierson, Deputy Secretary of the Board. [FR Doc. E7–19919 Filed 10–9–07; 8:45 am] BILLING CODE 6210–01–S FEDERAL RESERVE SYSTEM Formations of, Acquisitions by, and Mergers of Bank Holding Companies The companies listed in this notice have applied to the Board for approval, pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) (BHC Act), Regulation Y (12 CFR Part 225), and all other applicable statutes and regulations to become a bank holding company and/or to acquire the assets or the ownership of, control of, or the power to vote shares of a bank or bank holding company and all of the banks and nonbanking companies owned by the bank holding company, including the companies listed below. The applications listed below, as well as other related filings required by the Board, are available for immediate inspection at the Federal Reserve Bank indicated. The application also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing on the standards enumerated in the BHC Act (12 U.S.C. 1842(c)). If the proposal also involves the acquisition of a nonbanking company, the review also includes whether the acquisition of the nonbanking company complies with the standards in section 4 of the BHC Act (12 U.S.C. 1843). Unless otherwise noted, nonbanking activities will be conducted throughout the United States. Additional information on all bank holding companies may be obtained from the National Information Center website at www.ffiec.gov/nic/. Unless otherwise noted, comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors not later than November 5, 2007. A. Federal Reserve Bank of Chicago (Burl Thornton, Assistant Vice President) 230 South LaSalle Street, Chicago, Illinois 60690–1414: PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 1. Greenfield Bancorporation, Ltd., to become a bank holding company by acquiring 100 percent of the voting shares of Union State Bank, both of Greenfield, Iowa. B. Federal Reserve Bank of Minneapolis (Jacqueline G. King, Community Affairs Officer) 90 Hennepin Avenue, Minneapolis, Minnesota 55480–0291: 1. Dairyland Bancorp Inc., Bruce, Wisconsin; to merge with Gilman Corporation, and thereby indirectly acquire State Bank of Gilman, both of Gilman, Wisconsin. Board of Governors of the Federal Reserve System, October 4, 2007. Robert deV. Frierson, Deputy Secretary of the Board. [FR Doc. E7–19920 Filed 10–9–07; 8:45 am] BILLING CODE 6210–01–S FEDERAL RESERVE SYSTEM Notice of Proposals to Engage in Permissible Nonbanking Activities or to Acquire Companies that are Engaged in Permissible Nonbanking Activities The companies listed in this notice have given notice under section 4 of the Bank Holding Company Act (12 U.S.C. 1843) (BHC Act) and Regulation Y (12 CFR Part 225) to engage de novo, or to acquire or control voting securities or assets of a company, including the companies listed below, that engages either directly or through a subsidiary or other company, in a nonbanking activity that is listed in § 225.28 of Regulation Y (12 CFR 225.28) or that the Board has determined by Order to be closely related to banking and permissible for bank holding companies. Unless otherwise noted, these activities will be conducted throughout the United States. Each notice is available for inspection at the Federal Reserve Bank indicated. The notice also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing on the question whether the proposal complies with the standards of section 4 of the BHC Act. Additional information on all bank holding companies may be obtained from the National Information Center website at www.ffiec.gov/nic/. Unless otherwise noted, comments regarding the applications must be received at the Reserve Bank indicated or the offices of the Board of Governors not later than October 24, 2007. A. Federal Reserve Bank of New York (Anne MacEwen, Bank Applications Officer) 33 Liberty Street, New York, New York 10045–0001: E:\FR\FM\10OCN1.SGM 10OCN1

Agencies

[Federal Register Volume 72, Number 195 (Wednesday, October 10, 2007)]
[Notices]
[Pages 57574-57576]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-19922]


-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

[DA 07-4036]


Notice of Suspension and of Proposed Debarment Proceedings; 
Schools and Libraries Universal Service Support Mechanism

AGENCY: Federal Communications Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Federal Communications Commission (the ``Commission'') 
debars Mr. Brown from the schools and libraries universal service 
support mechanism for a period of three years because of violation of 
18 U.S.C. 1341. Therefore, the Enforcement Bureau is commencing 
debarment proceedings against him.

DATES: Debarment commences on the date Mr. Richard E. Brown receives 
the debarment letter or October 10, 2007, whichever date come first, 
for a period of three years.

FOR FURTHER INFORMATION CONTACT: Diana Lee, Federal Communications 
Commission, Enforcement Bureau, Investigations and Hearings Division, 
Room 4-C330, 445 12th Street, SW., Washington, DC 20554. Diana Lee may 
be contacted by phone at (202) 418-0843 or e-mail 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 e-mail at vickie.robinson@fcc.gov.

SUPPLEMENTARY INFORMATION: The Commission debarred Mr. Brown from the 
schools and libraries universal service support mechanism for a period 
of three years pursuant to 47 CFR 521 and 47 CFR 0.111(a)(14). Attached 
is the debarment letter, Notice of Suspension and Initiation of 
Debarment Proceedings, DA 07-4036, which was mailed to Mr. Brown and 
released on September 25, 2007. The complete text of the notice of 
suspension and initiation of debarment proceedings, 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., Portal II, 445 12th Street, SW., Room CY-B420, 
Washington, DC 20554, telephone (202) 488-5300 or (800) 378-3160, 
facsimile (202) 488-5563, or via e-mail https://www.bcpiweb.com.

Federal Communications Commission.
Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.
    The suspension letter follows:

September 25, 2007.
[DA 07-4036]
Via Certified Mail--Return Receipt Requested and E-Mail.

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 Suspension and Initiation of Debarment Proceedings, 
File No. EB-07-IH-5369.

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 (``E-Rate program'').\1\ Consequently, pursuant to 47 CFR 
54.521, this letter constitutes official notice of your suspension 
from the E-Rate program. In addition, the Enforcement Bureau 
(``Bureau'') hereby notifies you that we are commencing debarment 
proceedings against you.\2\
---------------------------------------------------------------------------

    \1\ 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. 3:07-CR-29 (RNC), Plea Agreement 
(D.Conn. filed Feb. 13, 2007 and entered Feb. 14, 2007) (``Brown 
Plea Agreement''); United States v. Richard E. Brown, 3:07-CR-29 
(RNC), Judgment (D.Conn. filed Sept. 6, 2007 and entered Sept. 7, 
2007) (``Brown 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).

---------------------------------------------------------------------------

[[Page 57575]]

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 three counts of mail fraud for 
activities in connection with your participation in the E-Rate 
program involving telecommunications upgrade projects in four 
Connecticut school districts.\4\ 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 E-Rate 
fund.\5\ You admitted to participating in schemes to defraud the E-
Rate program where fictitious bills for upgrades that were never 
performed were submitted to USAC for reimbursement from the E-Rate 
fund.\6\ 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 E-Rate reimbursement.\7\ 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 E-Rate fund.\8\
---------------------------------------------------------------------------

    \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. Richard E. Brown, Criminal 
Docket No. 3:07-CR-29 (RNC), Information (D.Conn. filed and entered 
Jul. 28, 2006) (``Information''); Brown Plea Agreement at 1; Brown 
Judgment at 1.
    \5\ See Information at 2-3.
    \6\ See Information at 1-8.
    \7\ See Information at 8-10.
    \8\ See Information at 3, 5, 8; https://www.usdoj.gov/usao/ct/
Press2007/20070829-3.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. EB-07-IH-5171, (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,\9\ 
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.\10\ Your suspension becomes effective upon the earlier of 
your receipt of this letter or publication of notice in the Federal 
Register.\11\
---------------------------------------------------------------------------

    \9\ 47 CFR 54.521(a)(4). See Second Report and Order, 18 FCC Rcd 
at 9225-9227, ]] 67-74 (2003).
    \10\ 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).
    \11\ 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.\12\ Such requests, however, will 
not ordinarily be granted.\13\ The Bureau may reverse or limit the 
scope of suspension only upon a finding of extraordinary 
circumstances.\14\ Absent extraordinary circumstances, the Bureau 
will decide any request for reversal or modification of suspension 
within 90 days of its receipt of such request.\15\
---------------------------------------------------------------------------

    \12\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR 
54.521(e)(4).
    \13\ Second Report and Order, 18 FCC Rcd at 9226, ] 70.
    \14\ 47 CFR 54.521(e)(5).
    \15\ 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.\16\ Therefore, pursuant 
to section 54.521(a)(4) of the Commission's rules, your conviction 
requires the Bureau to commence debarment proceedings against you.
---------------------------------------------------------------------------

    \16\ ``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] Sec.  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.\17\ Absent 
extraordinary circumstances, the Bureau will debar you.\18\ 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.\19\ 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.\20\
---------------------------------------------------------------------------

    \17\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
CFR 54.521(e)(2)(i), 54.521(e)(3).
    \18\  Second Report and Order, 18 FCC Rcd at 9227, ] 74.
    \19\ See id., 18 FCC Rcd at 9226, ] 70; 47 CFR 54.521(e)(5).
    \20\ 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.\21\ The Bureau may, if necessary 
to protect the public interest, extend the debarment period.\22\
---------------------------------------------------------------------------

    \21\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR 
54.521(d), 54.521(g).
    \22\ 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 4-C330, with a copy to 
Vickie Robinson, Assistant Chief, Investigations and Hearings 
Division, Enforcement Bureau, Room 4-C330, Federal Communications 
Commission. If sent by commercial overnight mail (other than U.S. 
Postal Service Express Mail and Priority Mail), the response should 
be sent to the Federal Communications Commission, 9300 East Hampton 
Drive, Capitol Heights, Maryland 20743. If sent by first-class, 
Express, or Priority mail, the response should be sent to Diana Lee, 
Attorney Advisor, Investigations and Hearings Division, Enforcement 
Bureau, Federal Communications Commission, 445 12th Street, SW., 
Room 4-C330, Washington, DC 20554, with a copy to Vickie Robinson, 
Assistant Chief, Investigations and Hearings Division, Enforcement 
Bureau, Federal Communications Commission, 445 12th Street, SW., 
Room 4-C330, Washington, DC 20554. You shall also transmit a copy of 
the response via e-mail to 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) 418-1420 or by e-mail 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 e-mail at vickie.robinson@fcc.gov.

    Sincerely yours,


[[Page 57576]]


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 
e-mail).

 [FR Doc. E7-19922 Filed 10-9-07; 8:45 am]
BILLING CODE 6712-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.