Notice of Suspension and Initiation of Debarment Proceedings; Schools and Libraries Universal Service Support Mechanism, 11724-11726 [E9-6017]
Download as PDF
11724
Federal Register / Vol. 74, No. 52 / Thursday, March 19, 2009 / Notices
sroberts on PROD1PC70 with NOTICES
of a debarment notice or publication of
the decision in the Federal Register.22
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 at least
three years from the date of
debarment.23 The Bureau may, if
necessary to protect the public interest,
extend the debarment period.24
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 Rebekah Bina, 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 Rebekah
Bina, 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 email to Rebekah.Bina@
fcc.gov and to Vickie.Robinson@fcc.gov.
If you have any questions, please
contact Ms. Bina via mail, by telephone
at (202) 418–7931 or by 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.
Sincerely yours,
Hillary S. DeNigro,
Chief, Investigations and Hearings
Division, Enforcement Bureau.
22 47 CFR 54.8(e)(5). 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).
23 Second Report and Order, 18 FCC Rcd at 9225,
¶ 67; 47 CFR 54.8(d), 54.8(g).
24 47 CFR 54.8(g).
VerDate Nov<24>2008
17:17 Mar 18, 2009
Jkt 217001
cc: Kristy Carroll, Esq., Universal
Service Administrative Company
(via e-mail),
Dayle A. Elieson, U.S. Attorney’s
Office, United States Department of
Justice (via mail).
[FR Doc. E9–6016 Filed 3–18–09; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
[DA 09–477]
Notice of Suspension and Initiation of
Debarment Proceedings; Schools and
Libraries Universal Service Support
Mechanism
AGENCY: Federal Communications
Commission.
ACTION: Notice.
SUMMARY: The Enforcement Bureau (the
‘‘Bureau’’) gives notice of Mr. R. Clay
Harris’s suspension from the schools
and libraries universal service support
mechanism (or ‘‘E-Rate Program’’).
Additionally, the Bureau gives notice
that debarment proceedings are
commencing against him. Mr. Harris, or
any person who has an existing contract
with or intends to contract with him to
provide or receive services in matters
arising out of activities associated with
or related to the schools and libraries
support, may respond by filing an
opposition request, supported by
documentation to Rebekah Bina, Federal
Communications Commission,
Enforcement Bureau, Investigations and
Hearings Division, Room 4–C330, 445
12th Street, SW., Washington, DC
20554.
DATES: Opposition requests must be
received by April 20, 2009. However, an
opposition request by the party to be
suspended must be received 30 days
from the receipt of the suspension letter
or April 20, 2009, whichever comes
first. The Bureau will decide any
opposition request for reversal or
modification of suspension or
debarment within 90 days of its receipt
of such requests.
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
PO 00000
Frm 00016
Fmt 4703
Sfmt 4703
telephone at (202) 418–1420 and by email at Vickie.Robinson@fcc.gov.
SUPPLEMENTARY INFORMATION: The
Bureau has suspension and debarment
authority pursuant to 47 CFR 54.8 and
47 CFR 0.111(a)(14). Suspension will
help to 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, DA 09–477, which
was mailed to Mr. Harris and released
on February 26, 2009. The complete text
of the notice of suspension and
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 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.
Hillary S. DeNigro,
Chief, Investigations and Hearings Division,
Enforcement Bureau, Federal
Communications Commission.
The suspension letter follows:
February 26, 2009.
DA 09–477
VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED AND
FACSIMILE (404–872–1622)
Mr. R. Clay Harris
c/o Allison Cobham Dawson
Federal Defender Program, Inc.
Suite 1700, The Equitable Building
100 Peachtree Street, NW
Atlanta, GA 30303.
E-Mail: allison_dawson@fd.org
Re: Notice of Suspension and Initiation
of Debarment Proceedings, File No. EB–
09–IH–0003
Dear Mr. Harris:
The Federal Communications
Commission (‘‘FCC’’ or ‘‘Commission’’)
has received notice of your conviction
of conspiracy to defraud the United
States and bribery, in violation of 18
U.S.C. 371 and 666(a)(2), in connection
with your participation in the schools
and libraries universal service support
mechanism (‘‘E-Rate program’’).1
1 Any further reference in this letter to ‘‘your
conviction’’ refers to your conviction by a federal
E:\FR\FM\19MRN1.SGM
19MRN1
Federal Register / Vol. 74, No. 52 / Thursday, March 19, 2009 / Notices
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.2
sroberts on PROD1PC70 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 On July 31, 2008, a
federal jury found you guilty of bribery
and conspiracy to defraud the United
States in connection with your
participation in the E-Rate program.4
Evidence provided at trial demonstrated
that, as President and majority owner of
Multimedia Communications Services
Corporation (‘‘MCSC’’), you provided
bribes to co-conspirators Arthur Scott
and Evelyn Myers Scott (‘‘coconspirators’’), former employees of
Atlanta Public Schools (‘‘APS’’) and cojury of conspiracy to defraud the United States and
bribery. United States v. R. Clay Harris, Criminal
Docket No. 1:07–CR–00287–CC, Verdict (N.D.Ga.
filed July 31, 2008 and entered Aug. 1, 2008)
(‘‘Harris Jury Verdict’’); Department of Justice Press
Release (July 31, 2008), available at https://
atlanta.fbi.gov/dojpressrel/pressrel08/
bribery073108.htm (DOJ July 31, 2008 Press
Release). See also United States v. R. Clay Harris,
1:07–CR–00287–CC, Judgment (N.D.Ga. filed and
entered Dec. 24, 2008) (finalizing conviction and
imposing sentence) (‘‘Harris Judgment’’); United
States v. R. Clay Harris, 1:07–CR–00287–CC,
Criminal Indictment (N.D.Ga. filed on Aug. 28, 2007
and entered Aug. 30, 2007) (‘‘Harris Indictment’’).
2 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)).
3 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 54.8(a)(6).
4 See Harris Jury Verdict; DOJ July 31, 2008 Press
Release.
VerDate Nov<24>2008
17:17 Mar 18, 2009
Jkt 217001
owners of M&S Consulting,5 in order for
the co-conspirators to support your
efforts in securing MCSC’s performance
of E-Rate and other technology-related
work for APS.6 As part of this
conspiracy, you provided the coconspirators and M&S Consulting over
$230,000 between November 2000 and
November 2002.7 During the same
period of time, Arthur Scott and other
APS employees allocated E-Rate work to
MCSC without requiring MCSC to
submit competitive bids. Arthur Scott
and MCSC also submitted defective
applications and bills to USAC resulting
in overpayments from the E-Rate
program to MCSC.8 As a result of your
conviction, you were sentenced to five
years in federal prison to be followed by
three years of supervised released. You
were also ordered to pay, along with the
co-conspirators, restitution totaling over
$234,000.9
Pursuant to section 54.8(a)(4) of the
Commission’s rules,10 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.11 Your suspension
becomes effective upon the earlier of
your receipt of this letter or publication
of notice in the Federal Register.12
Suspension is immediate pending the
Bureau’s final debarment determination.
5 Arthur Scott and Evelyn Myers Scott were
convicted in connection with their roles in this
scheme, and each was subsequently debarred from
the E-Rate program. See Letter from Hillary S.
DeNigro, Chief, Investigations and Hearings
Division, Enforcement Bureau, Federal
Communications Commission, to Mrs. Evelyn
Myers Scott, Notice of Debarment, 23 FCC Rcd 137
(Inv. & Hearings Div., Enf. Bur. 2008); Letter from
Hillary S. DeNigro, Chief, Investigations and
Hearings Division, Enforcement Bureau, Federal
Communications Commission, to Mr. Arthur Scott,
Notice of Debarment, 23 FCC Rcd 143 (Inv. &
Hearings Div., Enf. Bur. 2008). Evelyn Myers Scott
and Arthur Scott both testified at trial against Mr.
Harris. See Department of Justice Press Release
(Dec. 22, 2008) available at https://www.usdoj.gov/
usao/gan/press/2008/12–22–08b.pdf (DOJ Dec. 22,
2008 Press Release).
6 DOJ Dec. 22, 2008 Press Release; Harris
Indictment at 8–18.
7 DOJ Dec. 22, 2008 Press Release; Harris
Indictment at 8–10.
8 DOJ Dec. 22, 2008 Press Release; Harris
Indictment at 5–8.
9 DOJ Dec. 22, 2008 Press Release; Harris
Judgment at 2–5.
10 47 CFR 54.8(a)(4). See Second Report and
Order, 18 FCC Rcd at 9225–27, ¶¶ 67–74.
11 47 CFR 54.8(a)(1),(d).
12 Second Report and Order, 18 FCC Rcd at 9226,
¶ 69; 47 CFR 54.8(e)(1).
PO 00000
Frm 00017
Fmt 4703
Sfmt 4703
11725
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.13 Such requests,
however, will not ordinarily be
granted.14 The Bureau may reverse or
limit the scope of suspension only upon
a finding of extraordinary
circumstances.15 Absent extraordinary
circumstances, the Bureau will decide
any request for reversal or modification
of suspension within 90 days of its
receipt of such request.16
II. Initiation of Debarment Proceedings
Your conviction of bribery and
conspiracy to defraud the United States
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.17 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.18 Absent
extraordinary circumstances, the Bureau
will debar you.19 Within 90 days of
receipt of any opposition to your
suspension and proposed debarment,
the Bureau, in the absence of
13 47
CFR 54.8(e)(4).
14 Id.
15 47
CFR 54.8(e)(5).
Second Report and Order, 18 FCC Rcd at
9226, ¶ 70; 47 CFR 54.8(e)(5), 54.8(f).
17 ‘‘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 54.8(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 mechanism.’’ 47 CFR 54.8(a)(1).
18 See Second Report and Order, 18 FCC Rcd at
9226, ¶ 70; 47 CFR 54.8(e)(3).
19 Second Report and Order, 18 FCC Rcd at 9227,
¶ 74.
16 See
E:\FR\FM\19MRN1.SGM
19MRN1
11726
Federal Register / Vol. 74, No. 52 / Thursday, March 19, 2009 / Notices
sroberts on PROD1PC70 with NOTICES
extraordinary circumstances, will
provide you with notice of its decision
to debar.20 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.21
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.22 The
Bureau may, if necessary to protect the
public interest, extend the debarment
period.23
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 Rebekah Bina, 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 Rebekah
Bina, 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
email to Rebekah.Bina@fcc.gov and to
Vickie.Robinson@fcc.gov.
If you have any questions, please
contact Ms. Bina via mail, by telephone
at (202) 418–7931 or by e-mail at
Rebekah.Bina@fcc.gov. If Ms. Bina is
unavailable, you may contact Ms. Vickie
Robinson, Assistant Chief,
20 See id., 18 FCC Rcd at 9226, ¶ 70; 47 CFR
54.8(e)(5).
21 47 CFR 54.8(e)(5). 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).
22 Second Report and Order, 18 FCC Rcd at 9225,
¶ 67; 47 CFR 54.8(d),(g).
23 47 CFR 54.8(g).
VerDate Nov<24>2008
17:17 Mar 18, 2009
Jkt 217001
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: Glenn D. Baker, Assistant United
States Attorney, Department of
Justice (via e-mail)
Kristy Carroll, Esq., Universal Service
Administrative Company (via email)
[FR Doc. E9–6017 Filed 3–18–09; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
[DA 09–476]
Notice of Suspension and Initiation of
Debarment Proceedings; Schools and
Libraries Universal Service Support
Mechanism
AGENCY: Federal Communications
Commission.
ACTION: Notice.
SUMMARY: The Enforcement Bureau (the
‘‘Bureau’’) gives notice of Ms. Cynthia
K. Ayer’s suspension from the schools
and libraries universal service support
mechanism (or ‘‘E-Rate Program’’).
Additionally, the Bureau gives notice
that debarment proceedings are
commencing against her. Ms. Ayer, or
any person who has an existing contract
with or intends to contract with her to
provide or receive services in matters
arising out of activities associated with
or related to the schools and libraries
support, may respond by filing an
opposition request, supported by
documentation to Rebekah Bina, Federal
Communications Commission,
Enforcement Bureau, Investigations and
Hearings Division, Room 4–C330, 445
12th Street, SW., Washington, DC
20554.
DATES: Opposition requests must be
received by April 20, 2009. However, an
opposition request by the party to be
suspended must be received 30 days
from the receipt of the suspension letter
or April 20, 2009, whichever comes
first. The Bureau will decide any
opposition request for reversal or
modification of suspension or
debarment within 90 days of its receipt
of such requests.
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
PO 00000
Frm 00018
Fmt 4703
Sfmt 4703
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 has suspension and debarment
authority pursuant to 47 CFR 54.8 and
47 CFR 0.111(a)(14). Suspension will
help to 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, DA 09–476, which
was mailed to Ms. Ayer and released on
February 26, 2009. 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 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.
Hillary S. DeNigro,
Chief, Investigations and Hearings Division,
Enforcement Bureau, Federal
Communications Commission.
The suspension letter follows:
February 26, 2009.
[DA 09–476]
Via Certified Mail, Return Receipt
Requested and E-Mail
Ms. Cynthia K. Ayer, c/o James Edward
Holler, Holler Dennis Corbett Ormond
Plante and Garner, P.O. Box 11006,
Columbia, SC 29211.
Re: Notice of Suspension and Initiation
of Debarment Proceedings, File No. EB–
09–IH–0002
Dear Ms. Ayer:
The Federal Communications
Commission (‘‘FCC’’ or ‘‘Commission’’)
has received notice of your conviction
of mail fraud, in violation of 18 U.S.C.
2 and 1341, in connection with your
participation in the schools and libraries
universal service support mechanism
(‘‘E-Rate program’’).1 Consequently,
1 Any further reference in this letter to ‘‘your
conviction’’ refers to your guilty plea and
E:\FR\FM\19MRN1.SGM
19MRN1
Agencies
[Federal Register Volume 74, Number 52 (Thursday, March 19, 2009)]
[Notices]
[Pages 11724-11726]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-6017]
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
[DA 09-477]
Notice of Suspension and Initiation of Debarment Proceedings;
Schools and Libraries Universal Service Support Mechanism
AGENCY: Federal Communications Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Enforcement Bureau (the ``Bureau'') gives notice of Mr. R.
Clay Harris's suspension from the schools and libraries universal
service support mechanism (or ``E-Rate Program''). Additionally, the
Bureau gives notice that debarment proceedings are commencing against
him. Mr. Harris, or any person who has an existing contract with or
intends to contract with him to provide or receive services in matters
arising out of activities associated with or related to the schools and
libraries support, may respond by filing an opposition request,
supported by documentation to Rebekah Bina, Federal Communications
Commission, Enforcement Bureau, Investigations and Hearings Division,
Room 4-C330, 445 12th Street, SW., Washington, DC 20554.
DATES: Opposition requests must be received by April 20, 2009. However,
an opposition request by the party to be suspended must be received 30
days from the receipt of the suspension letter or April 20, 2009,
whichever comes first. The Bureau will decide any opposition request
for reversal or modification of suspension or debarment within 90 days
of its receipt of such requests.
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 has suspension and debarment
authority pursuant to 47 CFR 54.8 and 47 CFR 0.111(a)(14). Suspension
will help to 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, DA 09-477,
which was mailed to Mr. Harris and released on February 26, 2009. The
complete text of the notice of suspension and 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
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.
Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau,
Federal Communications Commission.
The suspension letter follows:
February 26, 2009.
DA 09-477
VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED AND FACSIMILE (404-872-1622)
Mr. R. Clay Harris
c/o Allison Cobham Dawson
Federal Defender Program, Inc.
Suite 1700, The Equitable Building
100 Peachtree Street, NW
Atlanta, GA 30303.
E-Mail: allison_dawson@fd.org
Re: Notice of Suspension and Initiation of Debarment Proceedings, File
No. EB-09-IH-0003
Dear Mr. Harris:
The Federal Communications Commission (``FCC'' or ``Commission'')
has received notice of your conviction of conspiracy to defraud the
United States and bribery, in violation of 18 U.S.C. 371 and 666(a)(2),
in connection with your participation in the schools and libraries
universal service support mechanism (``E-Rate program'').\1\
[[Page 11725]]
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.\2\
---------------------------------------------------------------------------
\1\ Any further reference in this letter to ``your conviction''
refers to your conviction by a federal jury of conspiracy to defraud
the United States and bribery. United States v. R. Clay Harris,
Criminal Docket No. 1:07-CR-00287-CC, Verdict (N.D.Ga. filed July
31, 2008 and entered Aug. 1, 2008) (``Harris Jury Verdict'');
Department of Justice Press Release (July 31, 2008), available at
https://atlanta.fbi.gov/dojpressrel/pressrel08/bribery073108.htm (DOJ
July 31, 2008 Press Release). See also United States v. R. Clay
Harris, 1:07-CR-00287-CC, Judgment (N.D.Ga. filed and entered Dec.
24, 2008) (finalizing conviction and imposing sentence) (``Harris
Judgment''); United States v. R. Clay Harris, 1:07-CR-00287-CC,
Criminal Indictment (N.D.Ga. filed on Aug. 28, 2007 and entered Aug.
30, 2007) (``Harris Indictment'').
\2\ 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)).
---------------------------------------------------------------------------
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\ On July 31, 2008, a federal jury found you guilty of
bribery and conspiracy to defraud the United States in connection with
your participation in the E-Rate program.\4\ Evidence provided at trial
demonstrated that, as President and majority owner of Multimedia
Communications Services Corporation (``MCSC''), you provided bribes to
co-conspirators Arthur Scott and Evelyn Myers Scott (``co-
conspirators''), former employees of Atlanta Public Schools (``APS'')
and co-owners of M&S Consulting,\5\ in order for the co-conspirators to
support your efforts in securing MCSC's performance of E-Rate and other
technology-related work for APS.\6\ As part of this conspiracy, you
provided the co-conspirators and M&S Consulting over $230,000 between
November 2000 and November 2002.\7\ During the same period of time,
Arthur Scott and other APS employees allocated E-Rate work to MCSC
without requiring MCSC to submit competitive bids. Arthur Scott and
MCSC also submitted defective applications and bills to USAC resulting
in overpayments from the E-Rate program to MCSC.\8\ As a result of your
conviction, you were sentenced to five years in federal prison to be
followed by three years of supervised released. You were also ordered
to pay, along with the co-conspirators, restitution totaling over
$234,000.\9\
---------------------------------------------------------------------------
\3\ 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 54.8(a)(6).
\4\ See Harris Jury Verdict; DOJ July 31, 2008 Press Release.
\5\ Arthur Scott and Evelyn Myers Scott were convicted in
connection with their roles in this scheme, and each was
subsequently debarred from the E-Rate program. See Letter from
Hillary S. DeNigro, Chief, Investigations and Hearings Division,
Enforcement Bureau, Federal Communications Commission, to Mrs.
Evelyn Myers Scott, Notice of Debarment, 23 FCC Rcd 137 (Inv. &
Hearings Div., Enf. Bur. 2008); Letter from Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau,
Federal Communications Commission, to Mr. Arthur Scott, Notice of
Debarment, 23 FCC Rcd 143 (Inv. & Hearings Div., Enf. Bur. 2008).
Evelyn Myers Scott and Arthur Scott both testified at trial against
Mr. Harris. See Department of Justice Press Release (Dec. 22, 2008)
available at https://www.usdoj.gov/usao/gan/press/2008/12-22-08b.pdf
(DOJ Dec. 22, 2008 Press Release).
\6\ DOJ Dec. 22, 2008 Press Release; Harris Indictment at 8-18.
\7\ DOJ Dec. 22, 2008 Press Release; Harris Indictment at 8-10.
\8\ DOJ Dec. 22, 2008 Press Release; Harris Indictment at 5-8.
\9\ DOJ Dec. 22, 2008 Press Release; Harris Judgment at 2-5.
---------------------------------------------------------------------------
Pursuant to section 54.8(a)(4) of the Commission's rules,\10\ 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.\11\ Your suspension becomes
effective upon the earlier of your receipt of this letter or
publication of notice in the Federal Register.\12\
---------------------------------------------------------------------------
\10\ 47 CFR 54.8(a)(4). See Second Report and Order, 18 FCC Rcd
at 9225-27, ]] 67-74.
\11\ 47 CFR 54.8(a)(1),(d).
\12\ Second Report and Order, 18 FCC Rcd at 9226, ] 69; 47 CFR
54.8(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.\13\ Such requests, however, will not
ordinarily be granted.\14\ The Bureau may reverse or limit the scope of
suspension only upon a finding of extraordinary circumstances.\15\
Absent extraordinary circumstances, the Bureau will decide any request
for reversal or modification of suspension within 90 days of its
receipt of such request.\16\
---------------------------------------------------------------------------
\13\ 47 CFR 54.8(e)(4).
\14\ Id.
\15\ 47 CFR 54.8(e)(5).
\16\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47
CFR 54.8(e)(5), 54.8(f).
---------------------------------------------------------------------------
II. Initiation of Debarment Proceedings
Your conviction of bribery and conspiracy to defraud the United
States 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.\17\ Therefore, pursuant
to section 54.8(a)(4) of the Commission's rules, your conviction
requires the Bureau to commence debarment proceedings against you.
---------------------------------------------------------------------------
\17\ ``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
54.8(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
mechanism.'' 47 CFR 54.8(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.\18\ Absent
extraordinary circumstances, the Bureau will debar you.\19\ Within 90
days of receipt of any opposition to your suspension and proposed
debarment, the Bureau, in the absence of
[[Page 11726]]
extraordinary circumstances, will provide you with notice of its
decision to debar.\20\ 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.\21\
---------------------------------------------------------------------------
\18\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47
CFR 54.8(e)(3).
\19\ Second Report and Order, 18 FCC Rcd at 9227, ] 74.
\20\ See id., 18 FCC Rcd at 9226, ] 70; 47 CFR 54.8(e)(5).
\21\ 47 CFR 54.8(e)(5). 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).
---------------------------------------------------------------------------
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.\22\ The Bureau may, if necessary to protect the
public interest, extend the debarment period.\23\
---------------------------------------------------------------------------
\22\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR
54.8(d),(g).
\23\ 47 CFR 54.8(g).
---------------------------------------------------------------------------
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 Rebekah Bina, 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 Rebekah Bina, 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 email to Rebekah.Bina@fcc.gov and to Vickie.Robinson@fcc.gov.
If you have any questions, please contact Ms. Bina via mail, by
telephone at (202) 418-7931 or by 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.
Sincerely yours,
Hillary S. DeNigro,
Chief, Investigations and Hearings Division Enforcement Bureau.
cc: Glenn D. Baker, Assistant United States Attorney, Department of
Justice (via e-mail)
Kristy Carroll, Esq., Universal Service Administrative Company (via e-
mail)
[FR Doc. E9-6017 Filed 3-18-09; 8:45 am]
BILLING CODE 6712-01-P