Notice of Debarment; Schools and Libraries Universal Service Support Mechanism, 48564-48566 [E9-22963]
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Federal Register / Vol. 74, No. 183 / Wednesday, September 23, 2009 / Notices
mstockstill on DSKH9S0YB1PROD with NOTICES
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.33
Absent extraordinary circumstances, the
Bureau will debar you.34 The Bureau will
decide any request for reversal or limitation
of debarment within 90 days of receipt of
such request.35 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.36
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.37 The Bureau may, if necessary to
protect the public interest, extend the
debarment period.38
Please direct any response, if by messenger
or hand delivery, to Marlene H. Dortch,
Secretary, Federal Communications
Commission, 236 Massachusetts Avenue,
N.E., Suite 110, Washington, D.C. 20002, to
the attention of Rebekah Bina, Attorney
Advisor, Investigations and Hearings
Division, Enforcement Bureau, Room 4–
C330, with a copy to Michele Levy Berlove,
Acting 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, S.W., Room 4–C330, Washington,
DC 20554, with a copy to Michele Levy
Berlove, Acting Assistant Chief,
Investigations and Hearings Division,
Enforcement Bureau, Federal
Communications Commission, 445 12th
Street, S.W., Room 4–C330, Washington, DC
20554. You shall also transmit a copy of the
response via email to Rebekah.Bina@fcc.gov
and to Michele.Berlove@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.
Michele Levy Berlove, Acting Assistant
33 47 C.F.R. § 54.8(e)(3), (5); see also Second
Report and Order, 18 FCC Rcd at 9226, ¶ 70.
34 47 C.F.R. § 54.8(e)(5); see also Second Report
and Order, 18 FCC Rcd at 9227, ¶ 74.
35 47 C.F.R. § 54.8(e)(5), (f); see also Second
Report and Order, 18 FCC Rcd at 9226, ¶ 70.
36 47 C.F.R. § 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 C.F.R. § 54.8(f).
37 47 C.F.R. § 54.8(a)(1), (d), (g); see also Second
Report and Order, 18 FCC Rcd at 9225, ¶ 67.
38 47 C.F.R. § 54.8(g).
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Chief, Investigations and Hearings Division,
by telephone at (202) 418–1477 and by e-mail
at Michele.Berlove@fcc.gov.
Sincerely yours,
Hillary S. DeNigro,
Chief, Investigations and Hearings Division
Enforcement Bureau.
´
cc: Michael R. Pauze, Assistant United States
Attorney, Department of Justice (via email) Kristy Carroll, Esq., Universal
Service Administrative Company (via email)
[FR Doc. E9–22962 Filed 9–22–09; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
[DA 09–2030]
Notice of Debarment; Schools and
Libraries Universal Service Support
Mechanism
AGENCY: Federal Communications
Commission.
ACTION: Notice.
SUMMARY: The Enforcement Bureau (the
‘‘Bureau’’) debars Mr. Steven Newton
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,
aiding and abetting, and collusion 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. Steven Newton receives the
debarment letter or September 23, 2009,
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 Michele
Berlove, Acting Assistant Division
Chief, Investigations and Hearings
Division, by telephone at (202) 418–
1420 and by e-mail at
michele.berlove@fcc.gov.
The
Bureau debarred Mr. Steven Newton
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 09–2030, which
was mailed to Mr. Steven Newton and
released on September 11, 2009. The
SUPPLEMENTARY INFORMATION:
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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.
Hillary S. DeNigro,
Chief, Investigations and Hearings Division,
Enforcement Bureau.
September 11, 2009
DA 09–2030
VIA CERTIFIED MAIL RETURN RECEIPT
REQUESTED
Mr. Steven Newton, 35402 Paseo Viento,
Capastrano Beach, California 92624–1837.
Re: Notice of Debarment, File No. EB–08–IH–
1928
Dear Mr. Newton: 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 (or ‘‘E–Rate program’’)
for a period of three years.1
On July 14, 2009, 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 July 22, 2009.3 The
Notice of Suspension suspended you from
participating in activities associated with or
relating to 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
1 47 C.F.R. 54.8(g) (2008). See also 47 C.F.R.
§ 0.111(a)(14).
2 Letter from Hillary S. DeNigro, Chief,
Investigations and Hearings Division, Enforcement
Bureau, Federal Communications Commission, to
Mr. Steven Newton, Notice of Suspension and
Initiation of Debarment Proceedings, 24 FCC Rcd
9098 (Inv. & Hearings Div., Enf. Bur. 2009)
(Attachment 1)(‘‘Notice of Suspension’’).
3 74 Fed. Reg. 36221 (July 22, 2009).
4 See Notice of Suspension, 24 FCC Rcd at 9099–
101.
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Federal Register / Vol. 74, No. 183 / Wednesday, September 23, 2009 / Notices
the Federal Register.5 The Commission did
not receive any such opposition.
As discussed in the Notice of Suspension,
you pleaded guilty and were sentenced to six
months in prison following your conviction
for federal crimes in connection with your
participation in two schemes to defraud the
E–Rate program.6 As former President at
Premio Computers, Inc., and principal
manager of SEMA4, Inc. and Digital Connect
Communications, Inc. you participated in
schemes to defraud the E–Rate program for
your personal financial gain by controlling
the bidding, application, and implementation
and invoicing process, and by submitting
materially false information to USAC
regarding the cost and eligibility of
equipment.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
Sincerely,
Hillary S. DeNigro,
Chief, Investigations and Hearings Division,
Enforcement Bureau.
cc: Michael Wood, Antitrust Division, United
States Department of Justice (via e-mail)
Kristy Carroll, Esq., Universal Service
Administrative Company (via e-mail)
mstockstill on DSKH9S0YB1PROD with NOTICES
Attachment 1
July 14, 2009
DA 09–1529
VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED AND
FACSIMILE (415–522–1506) AND EMAIL
(gsl@defendergroup.com)
Mr. Steven Newton, c/o Law Office of Garrick
S. Lew, Attn: Garrick Sherman Lew, 600
Townsend Street, Suite 329E, San
Francisco, California 94102.
5 See 47 C.F.R. § 54.8 (e)(3),(4). That date occurred
no later than Aug. 21, 2009. See supra note 3.
6 See Notice of Suspension, 24 FCC Rcd at 9099.
See also United States v. Steven Newton, Criminal
Docket No. 3:05–CR–00208–CRB–10, Plea
Agreement (N.D. Cal. filed and entered Apr. 20,
2007); United States v. Steven Newton, Criminal
Docket No. 3:05–CR–00208–CRB–10, Judgment
(N.D. Cal. filed and entered Mar. 31, 2009).
7 See Notice of Suspension, 24 FCC Rcd at 9099.
See also United States v. Video Network
Communications, Inc. et al., Criminal Docket No.
3:05–CR–00208–CRB, Superseding Indictment (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).
8 47 C.F.R. § 54.8(c). See also § 54.8(a)(4),(b)–(e).
9 See 47 C.F.R. § 54.8(e)(5),(g). See also Notice of
Suspension, 24 FCC Rcd at 9101.
10 See 47 C.F.R. § 54.8(a)(1),(a)(5),(d),(g); Notice of
Suspension, 24 FCC Rcd at 9101.
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Re: Notice of Suspension and Initiation of
Debarment Proceedings, File No. EB–08–
IH–1928
Dear Mr. Newton: The Federal
Communications Commission (‘‘FCC’’ or
‘‘Commission’’) has received notice of your
conviction of Wire Fraud, Aiding and
Abetting, and Collusion, in violation of 18
U.S.C. §§ 2 and 1343, and 15 U.S.C. § 1, in
connection with your participation in the
schools and libraries universal service
support mechanism (‘‘E–Rate program’’).11
Consequently, pursuant to 47 C.F.R. § 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
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 pleaded
guilty and were sentenced to six months in
11 Any further reference in this letter to ‘‘your
conviction’’ refers to your guilty plea and
subsequent two count conviction on wire fraud,
collusion, and aiding and abetting. See United
States v. Steven Newton, Criminal Docket No. 3:05–
CR–00208–CRB–10, Plea Agreement (N.D. Cal. filed
and entered Apr. 20, 2007) (‘‘Newton Plea’’). See
also United States v. Steven Newton, Criminal
Docket No. 3:05–CR–00208–CRB–10, Judgment
(N.D. Cal. filed and entered Mar. 31, 2009)
(Convicted on Counts 11 and 22)(‘‘Newton
Judgment’’). See also generally United States v.
Video Network Communications, Inc. et al.,
Criminal Docket No. 3:05–CR–00208–CRB,
Superseding Indictment (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 C.F.R. § 54.8 (2008). See also 47 C.F.R.
§ 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 of the Commission’s rules
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 Second Report and Order, 18 FCC Rcd at 9225,
¶ 66; Program Management Order, 22 FCC Rcd at
16387, ¶ 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 C.F.R. § 54.8(a)(6).
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48565
prison in connection with your participation
in two schemes to defraud the E–Rate
program.14 Specifically, you admitted that as
former Vice President at Premio Computers,
Inc.15 and principal manager of SEMA4,
Inc.16 and Digital Connect Communications,
Inc.17 you participated in schemes to defraud
the E–Rate program of money and property
through materially false and fraudulent
pretenses for your own enrichment.18 You
did this, with the help of other coconspirators or defendants, by controlling the
bidding, application, and implementation
and invoicing process of the E–Rate
program.19 You submitted materially false
information to USAC regarding the cost and
eligibility of equipment services and
intentionally misrepresented the school
district’s ability and willingness to pay their
portion of the E–Rate projects.20
Pursuant to section 54.8 of the
Commission’s rules, your conviction on
criminal offenses arising out of activities
associated with or related to the schools and
libraries support mechanism requires the
Bureau to suspend you from continuing to
participate in any activities associated with
or related to the schools and libraries support
mechanism.21 Activities arising out of or
related to the schools and libraries support
mechanism 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 the schools and
libraries support mechanism.22
Your suspension becomes effective upon
the earlier of your receipt of this letter or
publication of notice in the Federal Register,
14 Newton Judgment at 1–2. See also VNCI
Superseding Indictment at ¶¶ 4–6, 8–11, 15, 19, 22–
24, 72–78, 133–137, 145–151.
15 Premio Computers, Inc. manufactures
computers, software and peripheral equipment, and
sells them to wholesale, commercial, and
government entities. See In the Matter of Premio,
Inc., Notice of Debarment, 22 FCC Rcd 1019, 1021
(Jan. 22, 2007). Premio Computers, Inc. was
debarred from the E–Rate program for its
involvement in E–Rate related fraud. See generally
id.
16 SEMA4 is a California company that provided
equipment and services for a project funded by the
E–Rate program. See VNCI Superseding Indictment
at ¶¶ 74–75. The charges against SEMA4 were
dismissed. See United States v. SEMA4, Inc.,
Criminal Docket No. 3:05–CR–00208–CRB–3 (N.D.
Cal. terminated June 12, 2007).
17 Digital Connect Communications, Inc. was a
California company that provided
telecommunication and Internet access equipment
and services to schools participating in the E–Rate
program. See VNCI Superseding Indictment at ¶¶
134–135. The charges against this company were
dismissed. See United States v. Digital Connect
Communications, Inc., Criminal Docket No. 3:05–
CR–00208–CRB–4 (N.D. Cal. terminated June 12,
2007).
18 See VNCI Superseding Indictment at ¶¶ 4–6, 8–
11, 15–16, 19, 22–24, 72–78, 133–137, 145–151.
19 Id.
20 These misrepresentations included inflating
the costs of eligible telecommunications equipment
and services in applications to cover the cost of
ineligible equipment and services. See VNCI
Superseding Indictment at ¶¶ 8–11, 22–24, 78, 145–
151.
21 47 C.F.R. § 54.8(b)–(e); see also § 54.8(a)(4).
22 47 C.F.R. § 54.8(a)(1); see also § 54.8(a)(3).
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Federal Register / Vol. 74, No. 183 / Wednesday, September 23, 2009 / Notices
pending the Bureau’s final debarment
determination.23 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.24 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.25
Such requests, however, will not ordinarily
be granted.26 The Bureau may reverse or
limit the scope of suspension only upon a
finding of extraordinary circumstances.27
The Bureau will decide any request for
reversal or modification of suspension within
90 days of its receipt of such request.28
II. Initiation of Debarment Proceedings
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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 suspension and debarment defined
in section 54.8(c) of the Commission’s
rules.29 Therefore, pursuant to section 54.8 of
the Commission’s rules, your conviction
requires the Bureau to commence debarment
proceedings against you.30
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.31
Absent extraordinary circumstances, the
Bureau will debar you.32 The Bureau will
decide any request for reversal or limitation
of debarment within 90 days of receipt of
such request.33 If the Bureau decides to debar
you, its decision will become effective upon
the earlier of your receipt of a debarment
23 47 C.F.R. § 54.8(a)(7), (e)(1); see also Second
Report and Order, 18 FCC Rcd at 9226, ¶ 69.
24 47 C.F.R. § 54.8(e)(4).
25 Id.
26 Id.
27 47 C.F.R. § 54.8(f); see also Second Report and
Order, 18 FCC Rcd at 9226, ¶ 70.
28 47 C.F.R. § 54.8(e)(5), (f); see also Second
Report and Order, 18 FCC Rcd at 9226, ¶ 70;
29 ‘‘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 C.F.R. § 54.8(c). You were
convicted on various fraud charges. See supra note
4.
30 See 47 C.F.R. § 54.8(b), (c).
31 47 C.F.R. § 54.8(e)(3), (5); see also Second
Report and Order, 18 FCC Rcd at 9226, ¶ 70.
32 47 C.F.R. § 54.8(e)(5); see also Second Report
and Order, 18 FCC Rcd at 9227, ¶ 74.
33 47 C.F.R. § 54.8(e)(5), (f); see also Second
Report and Order, 18 FCC Rcd at 9226, ¶ 70.
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17:06 Sep 22, 2009
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notice or publication of the decision in the
Federal Register.34
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.35 The Bureau may, if necessary to
protect the public interest, extend the
debarment period.36
Please direct any response, if by messenger
or hand delivery, to Marlene H. Dortch,
Secretary, Federal Communications
Commission, 236 Massachusetts Avenue,
N.E., Suite 110, Washington, D.C. 20002, to
the attention of Rebekah L. Bina, Attorney
Advisor, Investigations and Hearings
Division, Enforcement Bureau, Room 4–
C330, with a copy to Michele Levy Berlove,
Acting 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 L. Bina,
Attorney Advisor, Investigations and
Hearings Division, Enforcement Bureau,
Federal Communications Commission, 445
12th Street, SW., Room 4–C327, Washington,
DC, 20554, with a copy to Michele Berlove,
Acting 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
Rebekah.Bina@fcc.gov and to
Michele.Berlove@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. Michele Levy Berlove, Acting Assistant
Chief, Investigations and Hearings Division,
by telephone at (202) 418–1477 and by e-mail
at Michele.Berlove@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)
[FR Doc. E9–22963 Filed 9–22–09; 8:45 am]
BILLING CODE 6712–01–P
34 47 C.F.R. § 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 C.F.R. 54.8(f).
35 47 C.F.R. § 54.8(a)(1), (d), (g); see also Second
Report and Order, 18 FCC Rcd at 9225, ¶ 67.
36 47 C.F.R. § 54.8(g).
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FEDERAL MARITIME COMMISSION
Notice of Agreements Filed
The Commission hereby gives notice
of the filing of the following agreements
under the Shipping Act of 1984.
Interested parties may submit comments
on the agreements to the Secretary,
Federal Maritime Commission,
Washington, DC 20573, within ten days
of the date this notice appears in the
Federal Register. Copies of the
agreements are available through the
Commission’s Web site (www.fmc.gov)
or by contacting the Office of
Agreements at (202)–523–5793 or
tradeanalysis@fmc.gov.
Agreement No.: 010071–036.
Title: Cruise Lines International
Association Agreement.
Parties: AMA Waterways; American
Cruise Lines, Inc.; Azamara Cruises;
Carnival Cruise Lines; Celebrity Cruises,
Inc.; Costa Cruise Lines; Crystal Cruises;
Cunard Line; Disney Cruise Line;
Holland America Line; Hurtigruten,
Inc.; Majestic America Line; MSC
Cruises; NCL Corporation; Oceania
Cruises; Orient Lines; Princess Cruises;
Regent Seven Seas Cruises; Royal
Caribbean International; Seabourn
Cruise Line; SeaDream Yacht Club;
Silversea Cruises, Ltd.; Uniworld River
Cruises, Inc.; and Windstar Cruises.
Filing Party: Terry Dale, President;
Cruise Lines International Association,
Inc.; 910 SE 17th Street, Suite 400; Fort
Lauderdale, FL 33316.
Synopsis: The amendment would add
Avalon Waterways and Paul Gauguin
Cruises and delete Majestic America
Line and Orient Lines as parties to the
agreement.
Agreement No.: 012081.
Title: MSC/CMA CGM Cross Slot
Charter Agreement.
Parties: CMA CGM. S.A. and MSC
Mediterranean Shipping Company S.A.
Filing Party: Draughn B. Arbona, Esq.;
CMA CGM (America) LLC; 5701 Lake
Wright Drive; Norfolk, VA 23502–1868.
Synopsis: The agreement would
authorize the parties to exchange slots
in the trade between California ports
and ports in China.
By Order of the Federal Maritime
Commission.
Dated: September 18, 2009.
Karen V. Gregory,
Secretary.
[FR Doc. E9–22986 Filed 9–22–09; 8:45 am]
BILLING CODE 6730–01–P
E:\FR\FM\23SEN1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 183 (Wednesday, September 23, 2009)]
[Notices]
[Pages 48564-48566]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-22963]
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FEDERAL COMMUNICATIONS COMMISSION
[DA 09-2030]
Notice of Debarment; Schools and Libraries Universal Service
Support Mechanism
AGENCY: Federal Communications Commission.
ACTION: Notice.
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SUMMARY: The Enforcement Bureau (the ``Bureau'') debars Mr. Steven
Newton 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, aiding and abetting, and collusion 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. Steven Newton receives the
debarment letter or September 23, 2009, 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
Michele Berlove, Acting Assistant Division Chief, Investigations and
Hearings Division, by telephone at (202) 418-1420 and by e-mail at
michele.berlove@fcc.gov.
SUPPLEMENTARY INFORMATION: The Bureau debarred Mr. Steven Newton 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 09-2030, which was mailed to Mr.
Steven Newton and released on September 11, 2009. 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.
Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.
September 11, 2009
DA 09-2030
VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED
Mr. Steven Newton, 35402 Paseo Viento, Capastrano Beach, California
92624-1837.
Re: Notice of Debarment, File No. EB-08-IH-1928
Dear Mr. Newton: 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 (or ``E-Rate program'') for a
period of three years.\1\
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\1\ 47 C.F.R. 54.8(g) (2008). See also 47 C.F.R. Sec.
0.111(a)(14).
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On July 14, 2009, 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 July 22, 2009.\3\ The Notice of
Suspension suspended you from participating in activities associated
with or relating to 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. Steven Newton, Notice of Suspension and
Initiation of Debarment Proceedings, 24 FCC Rcd 9098 (Inv. &
Hearings Div., Enf. Bur. 2009) (Attachment 1)(``Notice of
Suspension'').
\3\ 74 Fed. Reg. 36221 (July 22, 2009).
\4\ See Notice of Suspension, 24 FCC Rcd at 9099-101.
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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
[[Page 48565]]
the Federal Register.\5\ The Commission did not receive any such
opposition.
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\5\ See 47 C.F.R. Sec. 54.8 (e)(3),(4). That date occurred no
later than Aug. 21, 2009. See supra note 3.
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As discussed in the Notice of Suspension, you pleaded guilty and
were sentenced to six months in prison following your conviction for
federal crimes in connection with your participation in two schemes
to defraud the E-Rate program.\6\ As former President at Premio
Computers, Inc., and principal manager of SEMA4, Inc. and Digital
Connect Communications, Inc. you participated in schemes to defraud
the E-Rate program for your personal financial gain by controlling
the bidding, application, and implementation and invoicing process,
and by submitting materially false information to USAC regarding the
cost and eligibility of equipment.\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, 24 FCC Rcd at 9099. See also
United States v. Steven Newton, Criminal Docket No. 3:05-CR-00208-
CRB-10, Plea Agreement (N.D. Cal. filed and entered Apr. 20, 2007);
United States v. Steven Newton, Criminal Docket No. 3:05-CR-00208-
CRB-10, Judgment (N.D. Cal. filed and entered Mar. 31, 2009).
\7\ See Notice of Suspension, 24 FCC Rcd at 9099. See also
United States v. Video Network Communications, Inc. et al., Criminal
Docket No. 3:05-CR-00208-CRB, Superseding Indictment (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).
\8\ 47 C.F.R. Sec. 54.8(c). See also Sec. 54.8(a)(4),(b)-(e).
\9\ See 47 C.F.R. Sec. 54.8(e)(5),(g). See also Notice of
Suspension, 24 FCC Rcd at 9101.
\10\ See 47 C.F.R. Sec. 54.8(a)(1),(a)(5),(d),(g); Notice of
Suspension, 24 FCC Rcd at 9101.
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Sincerely,
Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.
cc: Michael Wood, Antitrust Division, United States Department of
Justice (via e-mail) Kristy Carroll, Esq., Universal Service
Administrative Company (via e-mail)
Attachment 1
July 14, 2009
DA 09-1529
VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED AND FACSIMILE (415-522-1506) AND EMAIL
(gsl@defendergroup.com)
Mr. Steven Newton, c/o Law Office of Garrick S. Lew, Attn: Garrick
Sherman Lew, 600 Townsend Street, Suite 329E, San Francisco,
California 94102.
Re: Notice of Suspension and Initiation of Debarment Proceedings,
File No. EB-08-IH-1928
Dear Mr. Newton: The Federal Communications Commission (``FCC''
or ``Commission'') has received notice of your conviction of Wire
Fraud, Aiding and Abetting, and Collusion, in violation of 18 U.S.C.
Sec. Sec. 2 and 1343, and 15 U.S.C. Sec. 1, in connection with
your participation in the schools and libraries universal service
support mechanism (``E-Rate program'').\11\ Consequently, pursuant
to 47 C.F.R. Sec. 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 two count conviction on
wire fraud, collusion, and aiding and abetting. See United States v.
Steven Newton, Criminal Docket No. 3:05-CR-00208-CRB-10, Plea
Agreement (N.D. Cal. filed and entered Apr. 20, 2007) (``Newton
Plea''). See also United States v. Steven Newton, Criminal Docket
No. 3:05-CR-00208-CRB-10, Judgment (N.D. Cal. filed and entered Mar.
31, 2009) (Convicted on Counts 11 and 22)(``Newton Judgment''). See
also generally United States v. Video Network Communications, Inc.
et al., Criminal Docket No. 3:05-CR-00208-CRB, Superseding
Indictment (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 C.F.R. Sec. 54.8 (2008). See also 47 C.F.R. Sec. 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 of the
Commission's rules 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 pleaded guilty and were sentenced to six months in
prison in connection with your participation in two schemes to
defraud the E-Rate program.\14\ Specifically, you admitted that as
former Vice President at Premio Computers, Inc.\15\ and principal
manager of SEMA4, Inc.\16\ and Digital Connect Communications,
Inc.\17\ you participated in schemes to defraud the E-Rate program
of money and property through materially false and fraudulent
pretenses for your own enrichment.\18\ You did this, with the help
of other co-conspirators or defendants, by controlling the bidding,
application, and implementation and invoicing process of the E-Rate
program.\19\ You submitted materially false information to USAC
regarding the cost and eligibility of equipment services and
intentionally misrepresented the school district's ability and
willingness to pay their portion of the E-Rate projects.\20\
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\13\ Second Report and Order, 18 FCC Rcd at 9225, ] 66; Program
Management Order, 22 FCC Rcd at 16387, ] 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 C.F.R. Sec.
54.8(a)(6).
\14\ Newton Judgment at 1-2. See also VNCI Superseding
Indictment at ]] 4-6, 8-11, 15, 19, 22-24, 72-78, 133-137, 145-151.
\15\ Premio Computers, Inc. manufactures computers, software and
peripheral equipment, and sells them to wholesale, commercial, and
government entities. See In the Matter of Premio, Inc., Notice of
Debarment, 22 FCC Rcd 1019, 1021 (Jan. 22, 2007). Premio Computers,
Inc. was debarred from the E-Rate program for its involvement in E-
Rate related fraud. See generally id.
\16\ SEMA4 is a California company that provided equipment and
services for a project funded by the E-Rate program. See VNCI
Superseding Indictment at ]] 74-75. The charges against SEMA4 were
dismissed. See United States v. SEMA4, Inc., Criminal Docket No.
3:05-CR-00208-CRB-3 (N.D. Cal. terminated June 12, 2007).
\17\ Digital Connect Communications, Inc. was a California
company that provided telecommunication and Internet access
equipment and services to schools participating in the E-Rate
program. See VNCI Superseding Indictment at ]] 134-135. The charges
against this company were dismissed. See United States v. Digital
Connect Communications, Inc., Criminal Docket No. 3:05-CR-00208-CRB-
4 (N.D. Cal. terminated June 12, 2007).
\18\ See VNCI Superseding Indictment at ]] 4-6, 8-11, 15-16, 19,
22-24, 72-78, 133-137, 145-151.
\19\ Id.
\20\ These misrepresentations included inflating the costs of
eligible telecommunications equipment and services in applications
to cover the cost of ineligible equipment and services. See VNCI
Superseding Indictment at ]] 8-11, 22-24, 78, 145-151.
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Pursuant to section 54.8 of the Commission's rules, your
conviction on criminal offenses arising out of activities associated
with or related to the schools and libraries support mechanism
requires the Bureau to suspend you from continuing to participate in
any activities associated with or related to the schools and
libraries support mechanism.\21\ Activities arising out of or
related to the schools and libraries support mechanism 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 the schools and
libraries support mechanism.\22\
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\21\ 47 C.F.R. Sec. 54.8(b)-(e); see also Sec. 54.8(a)(4).
\22\ 47 C.F.R. Sec. 54.8(a)(1); see also Sec. 54.8(a)(3).
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Your suspension becomes effective upon the earlier of your
receipt of this letter or publication of notice in the Federal
Register,
[[Page 48566]]
pending the Bureau's final debarment determination.\23\ 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.\24\ 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.\25\ Such requests, however,
will not ordinarily be granted.\26\ The Bureau may reverse or limit
the scope of suspension only upon a finding of extraordinary
circumstances.\27\ The Bureau will decide any request for reversal
or modification of suspension within 90 days of its receipt of such
request.\28\
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\23\ 47 C.F.R. Sec. 54.8(a)(7), (e)(1); see also Second Report
and Order, 18 FCC Rcd at 9226, ] 69.
\24\ 47 C.F.R. Sec. 54.8(e)(4).
\25\ Id.
\26\ Id.
\27\ 47 C.F.R. Sec. 54.8(f); see also Second Report and Order,
18 FCC Rcd at 9226, ] 70.
\28\ 47 C.F.R. Sec. 54.8(e)(5), (f); see also Second Report and
Order, 18 FCC Rcd at 9226, ] 70;
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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 suspension and
debarment defined in section 54.8(c) of the Commission's rules.\29\
Therefore, pursuant to section 54.8 of the Commission's rules, your
conviction requires the Bureau to commence debarment proceedings
against you.\30\
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\29\ ``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 C.F.R. Sec. 54.8(c). You
were convicted on various fraud charges. See supra note 4.
\30\ See 47 C.F.R. Sec. 54.8(b), (c).
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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.\31\ Absent
extraordinary circumstances, the Bureau will debar you.\32\ The
Bureau will decide any request for reversal or limitation of
debarment within 90 days of receipt of such request.\33\ 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.\34\
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\31\ 47 C.F.R. Sec. 54.8(e)(3), (5); see also Second Report and
Order, 18 FCC Rcd at 9226, ] 70.
\32\ 47 C.F.R. Sec. 54.8(e)(5); see also Second Report and
Order, 18 FCC Rcd at 9227, ] 74.
\33\ 47 C.F.R. Sec. 54.8(e)(5), (f); see also Second Report and
Order, 18 FCC Rcd at 9226, ] 70.
\34\ 47 C.F.R. Sec. 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 C.F.R. 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.\35\ The Bureau may, if necessary
to protect the public interest, extend the debarment period.\36\
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\35\ 47 C.F.R. Sec. 54.8(a)(1), (d), (g); see also Second
Report and Order, 18 FCC Rcd at 9225, ] 67.
\36\ 47 C.F.R. Sec. 54.8(g).
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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, N.E., Suite 110, Washington, D.C. 20002, to
the attention of Rebekah L. Bina, Attorney Advisor, Investigations
and Hearings Division, Enforcement Bureau, Room 4-C330, with a copy
to Michele Levy Berlove, Acting 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 L. Bina, Attorney Advisor, Investigations and Hearings
Division, Enforcement Bureau, Federal Communications Commission, 445
12th Street, SW., Room 4-C327, Washington, DC, 20554, with a copy to
Michele Berlove, Acting 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 Rebekah.Bina@fcc.gov
and to Michele.Berlove@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. Michele Levy Berlove,
Acting Assistant Chief, Investigations and Hearings Division, by
telephone at (202) 418-1477 and by e-mail at
Michele.Berlove@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)
[FR Doc. E9-22963 Filed 9-22-09; 8:45 am]
BILLING CODE 6712-01-P
