Notice of Debarment; Schools and Libraries Universal Service Support Mechanism, 50620-50622 [E8-19877]
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Federal Register / Vol. 73, No. 167 / Wednesday, August 27, 2008 / Notices
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Therefore, pursuant to section 54.8(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 or of publication in
the Federal Register.14 Absent
extraordinary circumstances, the Bureau
will debar you.15 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.16 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.17
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.18 The
Bureau may, if necessary to protect the
public interest, extend the debarment
period.19
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
[the Federal universal service] support
mechanisms.’’ 47 CFR 54.8(a)(1).
14 See Second Report and Order, 18 FCC Rcd at
9226, para. 70; 47 CFR 54.8(e)(3).
15 Second Report and Order, 18 FCC Rcd at 9227,
para. 74.
16 See id., 18 FCC Rcd at 9226, para. 70; 47 CFR
54.8(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 54.8(f).
18 Second Report and Order, 18 FCC Rcd at 9225,
para. 67; 47 CFR 54.8(d), 54.8(g).
19 Id.
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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 email at vickie.robinson@fcc.gov.
Sincerely yours,
Hillary S. DeNigro,
Chief, Investigations and Hearings Division,
Enforcement Bureau.
cc: Kristy Carroll, Esq., Universal
Service Administrative Company
(via e-mail) Michael Wood,
Antitrust Division, United States
Department of Justice
[FR Doc. E8–19876 Filed 8–26–08; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
[DA 08–1864]
Notice of Debarment; Schools and
Libraries Universal Service Support
Mechanism
Federal Communications
Commission.
ACTION: Notice.
AGENCY:
The Enforcement Bureau (the
‘‘Bureau’’) debars Mr. George Marchelos
from the schools and libraries universal
service support mechanism (or ‘‘E-Rate
Program’’) for a period of three years
based on his conviction of wire fraud
and aiding and abetting, as well as
collusion and siding and abetting in
connection with his participation in the
program. The Bureau takes this action to
protect the E-Rate Program from waste,
fraud and abuse.
DATES: Debarment commences on the
date Mr. George Marchelos receives the
debarment letter or August 27, 2008,
whichever date comes first, for a period
of three years.
FOR FURTHER INFORMATION CONTACT:
Rebekah Bina, Federal Communications
SUMMARY:
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Commission, Enforcement Bureau,
Investigations and Hearings Division,
Room 4–C330, 445 12th Street, SW.,
Washington, DC 20554. Rebekah Bina
may be contacted by phone at (202)
418–7931 or e-mail at
Rebekah.Bina@fcc.gov. If Ms. Bina is
unavailable, you may contact Ms. Vickie
Robinson, Assistant Chief,
Investigations and Hearings Division, by
telephone at (202) 418–1420 and by email at vickie.robinson@fcc.gov.
SUPPLEMENTARY INFORMATION: The
Bureau debarred Mr. George Marchelos
from the schools and libraries universal
service support mechanism for a period
of three years pursuant to 47 CFR 54.8
and 47 CFR 0.111. Attached is the
debarment letter, DA 08–1864, which
was mailed to Mr. George Marchelos
and released on August 7, 2008. The
complete text of the notice of debarment
is available for public inspection and
copying during regular business hours
at the FCC Reference Information
Center, Portal II, 445 12th Street, SW.,
Room CY–A257, Washington, DC 20554.
In addition, the complete text is
available on the FCC’s Web site at
https://www.fcc.gov. The text may also be
purchased from the Commission’s
duplicating inspection and copying
during regular business hours at the
contractor, Best Copy and Printing, Inc.,
Portal II, 445 12th Street, SW., Room
CY–B420, Washington, DC 20554,
telephone (202) 488–5300 or (800) 378–
3160, facsimile (202) 488–5563, or via email https://www.bcpiweb.com.
Federal Communications Commission.
Vickie Robinson,
Assistant Chief, Investigations and Hearings
Division, Enforcement Bureau.
The debarment letter, which attached
the suspension letter, follows:
August 7, 2008
DA 08–1864
VIA CERTIFIED MAIL RETURN
RECEIPT REQUESTED AND
FACSIMILE (415–436–7706)
Mr. George Marchelos,
c/o Geoffrey A. Hanson, Esq.,
Federal Public Defender,
19th Floor Federal Building—Box
36106,
450 Golden Gate Avenue,
San Francisco, CA 94102.
Re: Notice of Debarment, File No. EB–
08–IH–1140
Dear Mr. Marchelos:
Pursuant to section 54.8 of the rules
of the Federal Communications
Commission (the ‘‘Commission’’), by
this Notice of Debarment you are
debarred from the schools and libraries
universal service support mechanism
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Federal Register / Vol. 73, No. 167 / Wednesday, August 27, 2008 / Notices
(or ‘‘E-Rate program’’) for a period of
three years.1
On May 19, 2008, the Enforcement
Bureau (the ‘‘Bureau’’) sent you a Notice
of Suspension and Initiation of
Debarment Proceedings (the ‘‘Notice of
Suspension’’).2 That Notice of
Suspension was published in the
Federal Register on June 9, 2008.3 The
Notice of Suspension suspended you
from the schools and libraries universal
service support mechanism and
described the basis for initiation of
debarment proceedings against you, the
applicable debarment procedures, and
the effect of debarment.4
Pursuant to the Commission’s rules,
any opposition to your suspension or its
scope or to your proposed debarment or
its scope had to be filed with the
Commission no later than thirty (30)
calendar days from the earlier date of
your receipt of the Notice of Suspension
or publication of the Notice of
Suspension in the Federal Register.5
The Commission did not receive any
such opposition.
As discussed in the Notice of
Suspension, you pled guilty to and were
convicted of wire fraud and aiding and
abetting, in violation of 18 U.S.C. 1343
and 2, as well as collusion and aiding
and abetting, in violation of 15 U.S.C. 1
and 2, in connection with your
participation in the E-Rate program.6
You admitted that you participated in
schemes to defraud the E-Rate program
and bid rigging on E-Rate projects for
certain school districts.7 Such conduct
constitutes the basis for your debarment,
and your conviction falls within the
categories of causes for debarment
under section 54.8(c) of the
Commission’s rules.8 For the foregoing
reasons, you are hereby debarred for a
period of three years from the
debarment date, i.e., the earlier date of
your receipt of this Notice of Debarment
or its publication date in the Federal
Register.9 Debarment excludes you, for
the debarment period, from activities
1 See
47 CFR 0.111(a), 54.8.
from Hillary S. DeNigro, Chief,
Investigations and Hearings Division, Enforcement
Bureau, Federal Communications Commission, to
Mr. George Marchelos, Notice of Suspension and
Initiation of Debarment Proceedings, 23 FCC Rcd
8219 (Inv. & Hearings Div., Enf. Bur. 2008)
(Attachment 1).
3 73 FR 32577 (June 9, 2008).
4 See Notice of Suspension, 23 FCC Rcd at 8220–
22.
5 See 47 CFR 54.8 (e)(3) and (4). That date
occurred no later than July 9, 2008. See supra note
3.
6 See Notice of Suspension, 23 FCC Rcd at 8219–
20.
7 See id. at 8220.
8 47 CFR 54.8(c).
9 See 47 CFR 54.8(g). See also Notice of
Suspension, 23 FCC Rcd at 8221.
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‘‘associated with or related to the
schools and libraries support
mechanism,’’ including ‘‘the receipt of
funds or discounted services through
the schools and libraries support
mechanism, or consulting with,
assisting, or advising applicants or
service providers regarding the schools
and libraries support mechanism.’’10
Sincerely,
Hillary S. DeNigro, Chief, Investigations
and Hearings Division, Enforcement
Bureau.
cc: Kristy Carroll, Esq., Universal
Service Administrative Company
(via e-mail) Michael Wood,
Antitrust Division, United States
Department of Justice (via mail)
May 19, 2008
DA 08–1181
VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED AND
FACSIMILE (415–436–7706)
Mr. George Marchelos, c/o Geoffrey A.
Hanson, Esq., Federal Public
Defender, 19th Floor Federal
Building–Box 36106, 450 Golden
Gate Avenue, San Francisco, CA
94102.
Re: Notice of Suspension and Initiation
of Debarment Proceedings, File No.
EB–08–IH–1140
Dear Mr. Marchelos:
The Federal Communications
Commission (‘‘FCC’’ or ‘‘Commission’’)
has received notice of your conviction
of wire fraud and aiding and abetting, in
violation of 18 U.S.C. 1343 and 2, as
well as collusion and aiding and
abetting, in violation of 15 U.S.C. 1 and
2, in connection with your participation
in the schools and libraries universal
service support mechanism (‘‘E-Rate
program’’).11 Consequently, pursuant to
47 CFR 54.8, 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.12
10 See 47 CFR 54.8(a)(1), 54.8(a)(5), 54.8(d);
Notice of Suspension, 23 FCC Rcd at 8221–22.
11 Any further reference in this letter to ‘‘your
conviction’’ refers to your guilty plea and
subsequent conviction. United States v. George
Marchelos, Criminal Docket No. 3:05–CR–00208–
CRB–009, Judgment (N.D.Cal. filed and entered
Apr. 10, 2008) (‘‘George Marchelos Judgment’’). See
United States v. Video Network Communications,
Inc., et al., Criminal Docket No. 3:05–CR–00208–
CRB, Superseding Indictment at paras. 72–88
(N.D.Cal. filed Dec. 8, 2005 and entered Dec. 12,
2005), https://www.usdoj.gov/atr/cases/f213600/
213626.htm (accessed May 1, 2008) (‘‘VNCI
Superseding Indictment’’).
12 47 CFR 54.8; 47 CFR 0.111 (delegating to the
Enforcement Bureau authority to resolve universal
service suspension and debarment proceedings).
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50621
I. Notice of Suspension
The Commission has established
procedures to prevent persons who have
‘‘defrauded the government or engaged
in similar acts through activities
associated with or related to the schools
and libraries support mechanism’’ from
receiving the benefits associated with
that program.13 You pled guilty to wire
fraud and collusion in connection with
your participation in two schemes to
defraud the E-Rate program.14
Specifically, you admitted that, as a
former consultant for two school
districts in California and sales
representative of Video Network
Communications, Inc. (‘‘VNCI’’), you
participated in schemes to defraud the
E-rate program and bid rigging on E-rate
projects for certain school districts in
favor of other co-conspirators or
defendants.15
Pursuant to section 54.8(a)(4) of the
Commission’s rules,16 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
The Commission adopted debarment rules for the
schools and libraries universal service support
mechanism in 2003. See Schools and Libraries
Universal Service Support Mechanism, Second
Report and Order and Further Notice of Proposed
Rulemaking, 18 FCC Rcd 9202 (2003) (‘‘Second
Report and Order’’) (adopting section 54.521 to
suspend and debar parties from the E-rate program).
In 2007, the Commission extended the debarment
rules to apply to all of the Federal universal service
support mechanisms. Comprehensive Review of the
Universal Service Fund Management,
Administration, and Oversight; Federal-State Joint
Board on Universal Service; Schools and Libraries
Universal Service Support Mechanism; Lifeline and
Link Up; Changes to the Board of Directors for the
National Exchange Carrier Association, Inc., Report
and Order, 22 FCC Rcd 16372, 16410–12 (2007)
(Program Management Order) (renumbering section
54.521 of the universal service debarment rules as
section 54.8 and amending subsections (a)(1), (5),
(c), (d), (e)(2)(i), (3), (e)(4), and (g)).
13 See Second Report and Order, 18 FCC Rcd at
9225, para. 66; Program Management Order, 22 FCC
Rcd at 16387, para. 32. 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 54.8(a)(6).
14 See George Marchelos Judgment at 1.
15 See VNCI Superseding Indictment at paras. 6,
72–88. The following four individuals, who were
also charged in the VNCI Superseding Indictment,
have pled guilty or been found guilty and
subsequently sentenced: Judy Green, Earl Nelson,
William Holman, and Allan Green. We are sending
separate notices of suspension and initiation of
debarment proceedings to these individuals. VNCI
is now defunct and charges against the company
have been dropped.
16 47 CFR 54.8(a)(4). See Second Report and
Order, 18 FCC Rcd at 9225–9227, paras. 67–74.
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50622
Federal Register / Vol. 73, No. 167 / Wednesday, August 27, 2008 / Notices
regarding the schools and libraries
support mechanism.17 Your suspension
becomes effective upon the earlier of
your receipt of this letter or publication
of notice in the Federal Register.18
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.19 Such requests,
however, will not ordinarily be
granted.20 The Bureau may reverse or
limit the scope of suspension only upon
a finding of extraordinary
circumstances.21 Absent extraordinary
circumstances, the Bureau will decide
any request for reversal or modification
of suspension within 90 days of its
receipt of such request.22
II. Initiation of Debarment Proceedings
Your guilty plea and conviction of
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
54.8(c) of the Commission’s rules.23
Therefore, pursuant to section 54.8(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
17 47
CFR 54.8(a)(1), (d).
Report and Order, 18 FCC Rcd at 9226,
para. 69; 47 CFR 54.8(e)(1).
19 47 CFR 54.8(e)(4).
20 Id.
21 47 CFR 54.8(e)(5).
22 See Second Report and Order, 18 FCC Rcd at
9226, para. 70; 47 CFR 54.8(e)(5), 54.8(f).
23 ‘‘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, the high-cost
support mechanism, the rural healthcare support
mechanism, and the low-income support
mechanism.’’ 47 CFR 54.8(c). Such activities
‘‘include the receipt of funds or discounted services
through [the Federal universal service] support
mechanisms, or consulting with, assisting, or
advising applicants or service providers regarding
[the Federal universal service] support
mechanisms.’’ 47 CFR 54.8(a)(1).
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and any relevant documentation within
30 calendar days of the earlier of the
receipt of this letter or of publication in
the Federal Register.24 Absent
extraordinary circumstances, the Bureau
will debar you.25 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.26 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.27
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.28 The
Bureau may, if necessary to protect the
public interest, extend the debarment
period.29
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
24 See Second Report and Order, 18 FCC Rcd at
9226, para. 70; 47 CFR 54.8(e)(3).
25 Second Report and Order, 18 FCC Rcd at 9227,
para. 74.
26 See id., 18 FCC Rcd at 9226, para. 70; 47 CFR
54.8(e)(5).
27 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 54.8(f).
28 Second Report and Order, 18 FCC Rcd at 9225,
para. 67; 47 CFR 54.8(d), 54.8(g).
29 Id.
PO 00000
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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 email at vickie.robinson@fcc.gov.
Sincerely,
Hillary S. DeNigro, Chief, Investigations
and Hearings Division, Enforcement
Bureau.
cc: Kristy Carroll, Esq., Universal
Service Administrative Company
(via e-mail) Michael Wood,
Antitrust Division, United States
Department of Justice (via mail)
[FR Doc. E8–19877 Filed 8–26–08; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
[DA 08–1863]
Notice of Debarment; Schools and
Libraries Universal Service Support
Mechanism
Federal Communications
Commission.
ACTION: Notice.
AGENCY:
SUMMARY: The Enforcement Bureau (the
‘‘Bureau’’) debars Mr. Earl Nelson from
the schools and libraries universal
service support mechanism (or ‘‘E–Rate
Program’’) for a period of three years
based on his conviction of collusion and
aiding and abetting in connection with
his participation in the program. The
Bureau takes this action to protect the
E–Rate Program from waste, fraud, and
abuse.
DATES: Debarment commences on the
date Mr. Earl Nelson receives the
debarment letter or August 27, 2008,
whichever date come first, for a period
of three years.
FOR FURTHER INFORMATION CONTACT:
Rebekah Bina, Federal Communications
Commission, Enforcement Bureau,
Investigations and Hearings Division,
Room 4–C330, 445 12th Street, SW.,
Washington, DC 20554. Rebekah Bina
may be contacted by phone at (202)
418–7931 or e-mail at
Rebekah.Bina@fcc.gov. If Ms. Bina is
unavailable, you may contact Ms. Vickie
Robinson, Assistant Chief,
Investigations and Hearings Division, by
E:\FR\FM\27AUN1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 167 (Wednesday, August 27, 2008)]
[Notices]
[Pages 50620-50622]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-19877]
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
[DA 08-1864]
Notice of Debarment; Schools and Libraries Universal Service
Support Mechanism
AGENCY: Federal Communications Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Enforcement Bureau (the ``Bureau'') debars Mr. George
Marchelos from the schools and libraries universal service support
mechanism (or ``E-Rate Program'') for a period of three years based on
his conviction of wire fraud and aiding and abetting, as well as
collusion and siding and abetting in connection with his participation
in the program. The Bureau takes this action to protect the E-Rate
Program from waste, fraud and abuse.
DATES: Debarment commences on the date Mr. George Marchelos receives
the debarment letter or August 27, 2008, whichever date comes first,
for a period of three years.
FOR FURTHER INFORMATION CONTACT: Rebekah Bina, Federal Communications
Commission, Enforcement Bureau, Investigations and Hearings Division,
Room 4-C330, 445 12th Street, SW., Washington, DC 20554. Rebekah Bina
may be contacted by phone at (202) 418-7931 or e-mail at
Rebekah.Bina@fcc.gov. If Ms. Bina 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 Bureau debarred Mr. George Marchelos
from the schools and libraries universal service support mechanism for
a period of three years pursuant to 47 CFR 54.8 and 47 CFR 0.111.
Attached is the debarment letter, DA 08-1864, which was mailed to Mr.
George Marchelos and released on August 7, 2008. The complete text of
the notice of debarment is available for public inspection and copying
during regular business hours at the FCC Reference Information Center,
Portal II, 445 12th Street, SW., Room CY-A257, Washington, DC 20554. In
addition, the complete text is available on the FCC's Web site at
https://www.fcc.gov. The text may also be purchased from the
Commission's duplicating inspection and copying during regular business
hours at the contractor, Best Copy and Printing, Inc., Portal II, 445
12th Street, SW., Room 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.
Vickie Robinson,
Assistant Chief, Investigations and Hearings Division, Enforcement
Bureau.
The debarment letter, which attached the suspension letter,
follows:
August 7, 2008
DA 08-1864
VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED AND FACSIMILE (415-436-
7706)
Mr. George Marchelos,
c/o Geoffrey A. Hanson, Esq.,
Federal Public Defender,
19th Floor Federal Building--Box 36106,
450 Golden Gate Avenue,
San Francisco, CA 94102.
Re: Notice of Debarment, File No. EB-08-IH-1140
Dear Mr. Marchelos:
Pursuant to section 54.8 of the rules of the Federal Communications
Commission (the ``Commission''), by this Notice of Debarment you are
debarred from the schools and libraries universal service support
mechanism
[[Page 50621]]
(or ``E-Rate program'') for a period of three years.\1\
---------------------------------------------------------------------------
\1\ See 47 CFR 0.111(a), 54.8.
---------------------------------------------------------------------------
On May 19, 2008, the Enforcement Bureau (the ``Bureau'') sent you a
Notice of Suspension and Initiation of Debarment Proceedings (the
``Notice of Suspension'').\2\ That Notice of Suspension was published
in the Federal Register on June 9, 2008.\3\ The Notice of Suspension
suspended you from the schools and libraries universal service support
mechanism and described the basis for initiation of debarment
proceedings against you, the applicable debarment procedures, and the
effect of debarment.\4\
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\2\ Letter from Hillary S. DeNigro, Chief, Investigations and
Hearings Division, Enforcement Bureau, Federal Communications
Commission, to Mr. George Marchelos, Notice of Suspension and
Initiation of Debarment Proceedings, 23 FCC Rcd 8219 (Inv. &
Hearings Div., Enf. Bur. 2008) (Attachment 1).
\3\ 73 FR 32577 (June 9, 2008).
\4\ See Notice of Suspension, 23 FCC Rcd at 8220-22.
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Pursuant to the Commission's rules, any opposition to your
suspension or its scope or to your proposed debarment or its scope had
to be filed with the Commission no later than thirty (30) calendar days
from the earlier date of your receipt of the Notice of Suspension or
publication of the Notice of Suspension in the Federal Register.\5\ The
Commission did not receive any such opposition.
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\5\ See 47 CFR 54.8 (e)(3) and (4). That date occurred no later
than July 9, 2008. See supra note 3.
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As discussed in the Notice of Suspension, you pled guilty to and
were convicted of wire fraud and aiding and abetting, in violation of
18 U.S.C. 1343 and 2, as well as collusion and aiding and abetting, in
violation of 15 U.S.C. 1 and 2, in connection with your participation
in the E-Rate program.\6\ You admitted that you participated in schemes
to defraud the E-Rate program and bid rigging on E-Rate projects for
certain school districts.\7\ Such conduct constitutes the basis for
your debarment, and your conviction falls within the categories of
causes for debarment under section 54.8(c) of the Commission's
rules.\8\ For the foregoing reasons, you are hereby debarred for a
period of three years from the debarment date, i.e., the earlier date
of your receipt of this Notice of Debarment or its publication date in
the Federal Register.\9\ Debarment excludes you, for the debarment
period, from activities ``associated with or related to the schools and
libraries support mechanism,'' including ``the receipt of funds or
discounted services through the schools and libraries support
mechanism, or consulting with, assisting, or advising applicants or
service providers regarding the schools and libraries support
mechanism.''\10\
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\6\ See Notice of Suspension, 23 FCC Rcd at 8219-20.
\7\ See id. at 8220.
\8\ 47 CFR 54.8(c).
\9\ See 47 CFR 54.8(g). See also Notice of Suspension, 23 FCC
Rcd at 8221.
\10\ See 47 CFR 54.8(a)(1), 54.8(a)(5), 54.8(d); Notice of
Suspension, 23 FCC Rcd at 8221-22.
Sincerely,
Hillary S. DeNigro, Chief, Investigations and Hearings Division,
Enforcement Bureau.
cc: Kristy Carroll, Esq., Universal Service Administrative Company (via
e-mail) Michael Wood, Antitrust Division, United States Department of
Justice (via mail)
May 19, 2008
DA 08-1181
VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED AND FACSIMILE (415-436-7706)
Mr. George Marchelos, c/o Geoffrey A. Hanson, Esq., Federal Public
Defender, 19th Floor Federal Building-Box 36106, 450 Golden Gate
Avenue, San Francisco, CA 94102.
Re: Notice of Suspension and Initiation of Debarment Proceedings, File
No. EB-08-IH-1140
Dear Mr. Marchelos:
The Federal Communications Commission (``FCC'' or ``Commission'')
has received notice of your conviction of wire fraud and aiding and
abetting, in violation of 18 U.S.C. 1343 and 2, as well as collusion
and aiding and abetting, in violation of 15 U.S.C. 1 and 2, in
connection with your participation in the schools and libraries
universal service support mechanism (``E-Rate program'').\11\
Consequently, pursuant to 47 CFR 54.8, 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.\12\
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\11\ Any further reference in this letter to ``your conviction''
refers to your guilty plea and subsequent conviction. United States
v. George Marchelos, Criminal Docket No. 3:05-CR-00208-CRB-009,
Judgment (N.D.Cal. filed and entered Apr. 10, 2008) (``George
Marchelos Judgment''). See United States v. Video Network
Communications, Inc., et al., Criminal Docket No. 3:05-CR-00208-CRB,
Superseding Indictment at paras. 72-88 (N.D.Cal. filed Dec. 8, 2005
and entered Dec. 12, 2005), https://www.usdoj.gov/atr/cases/f213600/
213626.htm (accessed May 1, 2008) (``VNCI Superseding Indictment'').
\12\ 47 CFR 54.8; 47 CFR 0.111 (delegating to the Enforcement
Bureau authority to resolve universal service suspension and
debarment proceedings). The Commission adopted debarment rules for
the schools and libraries universal service support mechanism in
2003. See Schools and Libraries Universal Service Support Mechanism,
Second Report and Order and Further Notice of Proposed Rulemaking,
18 FCC Rcd 9202 (2003) (``Second Report and Order'') (adopting
section 54.521 to suspend and debar parties from the E-rate
program). In 2007, the Commission extended the debarment rules to
apply to all of the Federal universal service support mechanisms.
Comprehensive Review of the Universal Service Fund Management,
Administration, and Oversight; Federal-State Joint Board on
Universal Service; Schools and Libraries Universal Service Support
Mechanism; Lifeline and Link Up; Changes to the Board of Directors
for the National Exchange Carrier Association, Inc., Report and
Order, 22 FCC Rcd 16372, 16410-12 (2007) (Program Management Order)
(renumbering section 54.521 of the universal service debarment rules
as section 54.8 and amending subsections (a)(1), (5), (c), (d),
(e)(2)(i), (3), (e)(4), and (g)).
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I. Notice of Suspension
The Commission has established procedures to prevent persons who
have ``defrauded the government or engaged in similar acts through
activities associated with or related to the schools and libraries
support mechanism'' from receiving the benefits associated with that
program.\13\ You pled guilty to wire fraud and collusion in connection
with your participation in two schemes to defraud the E-Rate
program.\14\ Specifically, you admitted that, as a former consultant
for two school districts in California and sales representative of
Video Network Communications, Inc. (``VNCI''), you participated in
schemes to defraud the E-rate program and bid rigging on E-rate
projects for certain school districts in favor of other co-conspirators
or defendants.\15\
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\13\ See Second Report and Order, 18 FCC Rcd at 9225, para. 66;
Program Management Order, 22 FCC Rcd at 16387, para. 32. 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 54.8(a)(6).
\14\ See George Marchelos Judgment at 1.
\15\ See VNCI Superseding Indictment at paras. 6, 72-88. The
following four individuals, who were also charged in the VNCI
Superseding Indictment, have pled guilty or been found guilty and
subsequently sentenced: Judy Green, Earl Nelson, William Holman, and
Allan Green. We are sending separate notices of suspension and
initiation of debarment proceedings to these individuals. VNCI is
now defunct and charges against the company have been dropped.
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Pursuant to section 54.8(a)(4) of the Commission's rules,\16\ 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
[[Page 50622]]
regarding the schools and libraries support mechanism.\17\ Your
suspension becomes effective upon the earlier of your receipt of this
letter or publication of notice in the Federal Register.\18\
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\16\ 47 CFR 54.8(a)(4). See Second Report and Order, 18 FCC Rcd
at 9225-9227, paras. 67-74.
\17\ 47 CFR 54.8(a)(1), (d).
\18\ Second Report and Order, 18 FCC Rcd at 9226, para. 69; 47
CFR 54.8(e)(1).
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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.\19\ Such requests, however, will not
ordinarily be granted.\20\ The Bureau may reverse or limit the scope of
suspension only upon a finding of extraordinary circumstances.\21\
Absent extraordinary circumstances, the Bureau will decide any request
for reversal or modification of suspension within 90 days of its
receipt of such request.\22\
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\19\ 47 CFR 54.8(e)(4).
\20\ Id.
\21\ 47 CFR 54.8(e)(5).
\22\ See Second Report and Order, 18 FCC Rcd at 9226, para. 70;
47 CFR 54.8(e)(5), 54.8(f).
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II. Initiation of Debarment Proceedings
Your guilty plea and conviction of 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
54.8(c) of the Commission's rules.\23\ Therefore, pursuant to section
54.8(a)(4) of the Commission's rules, your conviction requires the
Bureau to commence debarment proceedings against you.
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\23\ ``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, the high-
cost support mechanism, the rural healthcare support mechanism, and
the low-income support mechanism.'' 47 CFR 54.8(c). Such activities
``include the receipt of funds or discounted services through [the
Federal universal service] support mechanisms, or consulting with,
assisting, or advising applicants or service providers regarding
[the Federal universal service] support mechanisms.'' 47 CFR
54.8(a)(1).
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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.\24\ Absent
extraordinary circumstances, the Bureau will debar you.\25\ 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.\26\ 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.\27\
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\24\ See Second Report and Order, 18 FCC Rcd at 9226, para. 70;
47 CFR 54.8(e)(3).
\25\ Second Report and Order, 18 FCC Rcd at 9227, para. 74.
\26\ See id., 18 FCC Rcd at 9226, para. 70; 47 CFR 54.8(e)(5).
\27\ 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 54.8(f).
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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.\28\ The Bureau may, if necessary to protect the
public interest, extend the debarment period.\29\
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\28\ Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47
CFR 54.8(d), 54.8(g).
\29\ Id.
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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,
Hillary S. DeNigro, Chief, Investigations and Hearings Division,
Enforcement Bureau.
cc: Kristy Carroll, Esq., Universal Service Administrative Company (via
e-mail) Michael Wood, Antitrust Division, United States Department of
Justice (via mail)
[FR Doc. E8-19877 Filed 8-26-08; 8:45 am]
BILLING CODE 6712-01-P
