Notice of Suspension and Initiation of Debarment Proceedings; Schools and Libraries Universal Service Support Mechanism, 20846-20848 [2010-9181]
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20846
Federal Register / Vol. 75, No. 76 / Wednesday, April 21, 2010 / Notices
limit the scope of suspension only upon a
finding of extraordinary circumstances.17
The Bureau will decide any request for
reversal or modification of suspension within
90 days of its receipt of such request.18
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.19
Therefore, pursuant to section 54.8 of the
Commission’s rules, your conviction requires
the Bureau to commence debarment
proceedings against you.20
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.21
Absent extraordinary circumstances, the
Bureau will debar you.22 The Bureau will
decide any request for reversal or limitation
of debarment within 90 days of receipt of
such request.23 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.24
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.25 The Bureau may, if necessary to
protect the public interest, extend the
debarment period.26
17 47
CFR § 54.8(e)(5).
Second Report and Order, 18 FCC Rcd at
9226, ¶ 70; see also 47 CFR § 54.8(e)(5),(f).
19 ‘‘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).
20 See 47 CFR § 54.8(b), (c).
21 See 47 CFR § 54.8(e)(3), (e)(5); see also Second
Report and Order, 18 FCC Rcd at 9226,
¶ 70.
22 47 CFR § 54.8(e)(5); see also Second Report and
Order, 18 FCC Rcd at 9227, ¶ 74.
23 See 47 CFR § 54.8(e)(5), (f); see also Second
Report and Order, 18 FCC Rcd at 9226, ¶ 70.
24 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).
25 Second Report and Order, 18 FCC Rcd at 9225,
¶ 67; 47 CFR § 54.8(d), (g).
26 47 CFR § 54.8(g).
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18 See
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Please direct any response, if by messenger
or hand delivery, to Marlene H. Dortch,
Secretary, Federal Communications
Commission, 445 12th Street, SW., Room
TW–A325, Washington, DC 20554, 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, SW., 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, 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,
Hillary S. DeNigro
Chief, Investigations and Hearings Division,
Enforcement Bureau.
cc: United States Attorney’s Office,
Department of Justice (via e-mail)
Kristy Carroll, Esq., Universal Service
Administrative Company (via e-mail)
[FR Doc. 2010–9187 Filed 4–20–10; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
[DA 10–584]
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
(Bureau) gives notice to Mr. Benjamin
Rowner of his suspension from the
schools and libraries universal service
support mechanism (E-Rate Program).
Additionally, the Bureau gives notice
that debarment proceedings are
PO 00000
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Fmt 4703
Sfmt 4703
commencing against him. Mr. Rowner,
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 May 21, 2010. However, an
opposition request by the party to be
suspended must be received 30 days
from the receipt of the suspension letter
or May 21, 2010, 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.
Michele Levy Berlove, Assistant Chief,
Investigations and Hearings Division, by
telephone at (202) 418–1477 and by email at Michele.Berlove@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 10–584, which
was mailed to Mr. Rowner and released
on April 7, 2010. 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–
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Federal Register / Vol. 75, No. 76 / Wednesday, April 21, 2010 / Notices
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:
April 7, 2010
DA 10–584
VIA CERTIFIED MAIL RETURN RECEIPT
REQUESTED
AND E–MAIL (jmontana@vedderprice.com)
AND FACSIMILE (312) 609–5005
Mr. Benjamin Rowner, c/o Vedder Price P.C.
Attn: James S. Montana, Jr., 222 North
LaSalle Street, Site 2600, Chicago, IL
60601
Re: Notice of Suspension and Initiation of
Debarment Proceedings, File No. EB–10–
IH–2079
Dear Mr. Rowner: The Federal
Communications Commission (‘‘FCC’’ or
‘‘Commission’’) has received notice of your
guilty plea for conspiracy to defraud the
United States in violation of 18 U.S.C. § 371
in connection with your participation in the
schools and libraries universal service
support mechanism (‘‘E–Rate program’’).1
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
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I. Notice of Suspension
The Commission has established
procedures to prevent persons who have
1 Any further reference in this letter to ‘‘your
conviction’’ refers to your guilty plea and
subsequent sentencing for conspiracy to defraud the
United States. United States v. Benjamin Rowner,
Criminal Docket No. 1:08–cr–00464–1, Plea
Agreement (N.D. Ill. filed Feb. 4, 2010 and entered
Mar. 15, 2010) (‘‘Rowner Judgment’’); United States
v. Benjamin Rowner, Criminal Docket No. 1:08–cr–
00464–1, Plea Agreement (N.D. Ill. filed July 10,
2008 and entered July 14, 2008) (‘‘Rowner Plea’’);
United States v. Benjamin Rowner and Jay H. Soled,
Criminal Docket No. 1:08–cr–20047–01–02 CM/JPO,
Information (D. Kan. filed and entered Apr. 23,
2008) (‘‘Rowner and Soled Information’’).
2 47 CFR § 54.8; see also 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 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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14:33 Apr 20, 2010
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‘‘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 10,
2008, you, Benjamin Rowner, entered a plea
agreement and pleaded guilty to knowingly
and intentionally conspiring with others to
defraud and obtain money from the E–Rate
Program through submission of materially
false representations, concealment of
material facts, mail fraud, wire fraud, and
intentional manipulation of the competitive
bidding process.4 Specifically, from Fall 1999
to at least November 2003, you held yourself
out as an E–Rate salesperson and installer for
the purpose of defrauding the E–Rate
Program.5 You admitted that you and others
devised schemes to defraud school districts
and the E–Rate program by having your coconspirators steer E-rate related contracts to
various companies that directly benefited
you, your conspirators, and your company,
primarily DeltaNet, Inc.6 In furtherance of the
schemes, you submitted misleading,
fraudulent and false documents to the
Universal Service Administrative Company
(‘‘USAC’’) claiming schools were paid or
would pay their co-pay, submitted other
materially false and fraudulent documents to
USAC, and concealed from the school
districts relationships with co-conspirators in
order to induce schools to select your
companies as service providers in violation
of E–Rate Program rules.7 Ultimately, your
conspiracy was comprised of two closely
related schemes that affected at least thirteen
different schools in eight different States
across the United States.8
On February 4, 2010, you were sentenced
to serve twenty-seven months in prison, to be
followed by twenty-four months of
supervised release for your role in the
scheme to defraud the E–Rate program.9 You
were also ordered to pay $271,716 in
restitution to USAC for your role in the
schemes.10
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 Rowner Plea at 2–3; see also Rowner and Soled
Information at 5–12; Department of Justice Press
Release (Apr. 23, 2008), available at https://
www.justice.gov/atr/public/press_releases/2008/
232526.htm (‘‘DOJ April 2008 Press Release’’).
5 Rowner Plea at 3–8; see also Rowner and Soled
Information at 5–12.
6 Rowner Plea at 3–8; see also Rowner and Soled
Information at 5–12; Department of Justice Press
Release (Feb. 4, 2010), available at https://
chicago.fbi.gov/dojpressrel/pressrel10/
cg020410a.htm (‘‘DOJ February 2010 Press
Release’’).
7 Rowner Plea at 3–8; see also Rowner and Soled
Information at 5–12.
8 Rowner Plea at 4–6; see also Rowner and Soled
Information at 8–11 (Listing the schools and States
including Wisconsin, Illinois, Kansas, California,
Oregon, New York, New Jersey, and Arkansas); DOJ
February 2010 Press Release at 1.
9 Rowner Judgment at 2–3; see also DOJ February
2010 Press Release at 1.
10 Rowner Judgment at 4–5 (You were also
ordered to pay a $100 assessment); see also DOJ
February 2010 Press Release at 1.
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20847
Pursuant to section 54.8 of the
Commission’s rules, your conviction requires
the Bureau to suspend you from participating
in any activities associated with or related to
the schools and libraries support
mechanism.11 Such activities include the
receipt of funds or discounted services
through the schools and libraries support
mechanism, or consulting with, assisting, or
advising applicants or service providers
regarding the schools and libraries support
mechanism.12
Your suspension becomes effective upon
the earlier of your receipt of this letter or
publication of notice in the Federal Register,
pending the Bureau’s final debarment
determination.13 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.14 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.15
Such requests, however, will not ordinarily
be granted.16 The Bureau may reverse or
limit the scope of suspension only upon a
finding of extraordinary circumstances.17
The Bureau will decide any request for
reversal or modification of suspension within
90 days of its receipt of such request.18
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.19
Therefore, pursuant to section 54.8 of the
Commission’s rules, your conviction requires
the Bureau to commence debarment
proceedings against you.20
As with your suspension, you may contest
debarment or the scope of the proposed
11 47 CFR § 54.8(b)–(e); see also 47 CFR
§ 54.8(a)(4); Second Report and Order, 18 FCC Rcd
at 9225–27, ¶¶ 67–74.
12 47 CFR § 54.8(a)(1); see also 47 CFR
§ 54.8(a)(3).
13 47 CFR § 54.8(a)(7), (e)(1); see also Second
Report and Order, 18 FCC Rcd at 9226, ¶ 69..
14 47 CFR § 54.8(e)(4).
15 Id.
16 Id.
17 47 CFR § 54.8(e)(5).
18 See Second Report and Order, 18 FCC Rcd at
9226, ¶ 70; see also 47 CFR § 54.8(e)(5), (f).
19 ‘‘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).
20 See 47 CFR § 54.8(b), (c).
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20848
Federal Register / Vol. 75, No. 76 / Wednesday, April 21, 2010 / Notices
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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.21
Absent extraordinary circumstances, the
Bureau will debar you.22 The Bureau will
decide any request for reversal or limitation
of debarment within 90 days of receipt of
such request.23 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.24
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.25 The Bureau may, if necessary to
protect the public interest, extend the
debarment period.26
Please direct any response, if by messenger
or hand delivery, to Marlene H. Dortch,
Secretary, Federal Communications
Commission, 445 12th Street, SW., Room
TW–A325, Washington, DC 20554, 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, 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.
21 See 47 CFR § 54.8(e)(3), (e)(5); see also Second
Report and Order, 18 FCC Rcd at 9226, ¶ 70.
22 47 CFR § 54.8(e)(5); see also Second Report and
Order, 18 FCC Rcd at 9227, ¶ 74.
23 See 47 CFR § 54.8(e)(5), (f); see also Second
Report and Order, 18 FCC Rcd at 9226, ¶ 70.
24 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).
25 Second Report and Order, 18 FCC Rcd at 9225,
¶ 67; 47 CFR § 54.8(d), (g).
26 47 CFR § 54.8(g).
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14:33 Apr 20, 2010
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Sincerely,
Hillary S. DeNigro,
Chief Investigations and Hearings Division
Enforcement Bureau.
cc: United States Attorney’s Office,
Department of Justice (via e-mail)
Kristy Carroll, Esq., Universal Service
Administrative Company (via e-mail)
acting in concert, to retain control of
Fidelity Banc Corporation, parent of The
Fidelity State Bank and Trust Company,
both of Dodge City, Kansas.
[FR Doc. 2010–9181 Filed 4–20–10; 8:45 am]
Board of Governors of the Federal Reserve
System, April 16, 2010.
Robert deV. Frierson,
Deputy Secretary of the Board.
BILLING CODE 6712–01–P
[FR Doc. 2010–9166 Filed 4–20–10; 8:45 am]
BILLING CODE 6210–01–S
FEDERAL RESERVE SYSTEM
FEDERAL RESERVE SYSTEM
Change in Bank Control Notices;
Acquisition of Shares of Bank or Bank
Holding Companies
Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
The notificants listed below have
applied under the Change in Bank
Control Act (12 U.S.C. 1817(j)) and
§ 225.41 of the Board’s Regulation Y (12
CFR 225.41) to acquire a bank or bank
holding company. The factors that are
considered in acting on the notices are
set forth in paragraph 7 of the Act (12
U.S.C. 1817(j)(7)).
The notices are available for
immediate inspection at the Federal
Reserve Bank indicated. The notices
also will be available for inspection at
the office of the Board of Governors.
Interested persons may express their
views in writing to the Reserve Bank
indicated for that notice or to the offices
of the Board of Governors. Comments
must be received not later than May 4,
2010.
A. Federal Reserve Bank of
Richmond (A. Linwood Gill, III, Vice
President) 701 East Byrd Street,
Richmond, Virginia 23261-4528:
1. Robert E. Dye, Jr., Lane W. Dye,
Alexander C. Dye, Amy S. Dye, Brenda
W. Dye, Devon A. Young, Cassi
A.Young, and Taylor W. Young, all of
Easley, South Carolina; with Gary G.
Wells, Helen T. Wells, and the Joe
A.Young Trust, of Greenville, South
Carolina, and other family members; as
a group acting in concert to retain
shares of Peoples Bancorporation, Inc.,
Easley, South Carolina. and thereby
retain voting shares of Bank of
Anderson, National Association,
Anderson, South Carolina, Seneca
National Bank, Seneca, South Carolina,
and The Peoples National Bank, Easley,
South Carolina.
B. Federal Reserve Bank of Kansas
City (Todd Offenbacker, Assistant Vice
President) 1 Memorial Drive, Kansas
City, Missouri 64198–0001:
1. Benjamin F. Zimmerman, Dodge
City, Kansas, individually; and
Benjamin F. Zimmerman, Candace M.
Zimmerman, Dodge City, Kansas, and L.
Suzanne Zimmerman, Beaverton,
Oregon, as members of a family group
The companies listed in this notice
have applied to the Board for approval,
pursuant to the Bank Holding Company
Act of 1956 (12 U.S.C. 1841 et seq.)
(BHC Act), Regulation Y (12 CFR Part
225), and all other applicable statutes
and regulations to become a bank
holding company and/or to acquire the
assets or the ownership of, control of, or
the power to vote shares of a bank or
bank holding company and all of the
banks and nonbanking companies
owned by the bank holding company,
including the companies listed below.
The applications listed below, as well
as other related filings required by the
Board, are available for immediate
inspection at the Federal Reserve Bank
indicated. The applications also will be
available for inspection at the offices of
the Board of Governors. Interested
persons may express their views in
writing on the standards enumerated in
the BHC Act (12 U.S.C. 1842(c)). If the
proposal also involves the acquisition of
a nonbanking company, the review also
includes whether the acquisition of the
nonbanking company complies with the
standards in section 4 of the BHC Act
(12 U.S.C. 1843). Unless otherwise
noted, nonbanking activities will be
conducted throughout the United States.
Additional information on all bank
holding companies may be obtained
from the National Information Center
Web site at www.ffiec.gov/nic/.
Unless otherwise noted, comments
regarding each of these applications
must be received at the Reserve Bank
indicated or the offices of the Board of
Governors not later than May 14, 2010.
A. Federal Reserve Bank of Chicago
(Colette A. Fried, Assistant Vice
President) 230 South LaSalle Street,
Chicago, Illinois 60690-1414:
1. Dentel Bancorporation, Victor,
Iowa; to acquire 100 percent of Panora
State Bank, Panora, Iowa.
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]]>Agencies
[Federal Register Volume 75, Number 76 (Wednesday, April 21, 2010)]
[Notices]
[Pages 20846-20848]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-9181]
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
[DA 10-584]
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 (Bureau) gives notice to Mr. Benjamin
Rowner of his suspension from the schools and libraries universal
service support mechanism (E-Rate Program). Additionally, the Bureau
gives notice that debarment proceedings are commencing against him. Mr.
Rowner, 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 May 21, 2010. However,
an opposition request by the party to be suspended must be received 30
days from the receipt of the suspension letter or May 21, 2010,
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.
Michele Levy Berlove, Assistant Chief, Investigations and Hearings
Division, by telephone at (202) 418-1477 and by e-mail at
Michele.Berlove@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 10-584,
which was mailed to Mr. Rowner and released on April 7, 2010. 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-
[[Page 20847]]
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:
April 7, 2010
DA 10-584
VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED
AND E-MAIL (jmontana@vedderprice.com) AND FACSIMILE (312) 609-5005
Mr. Benjamin Rowner, c/o Vedder Price P.C. Attn: James S. Montana,
Jr., 222 North LaSalle Street, Site 2600, Chicago, IL 60601
Re: Notice of Suspension and Initiation of Debarment Proceedings,
File No. EB-10-IH-2079
Dear Mr. Rowner: The Federal Communications Commission (``FCC''
or ``Commission'') has received notice of your guilty plea for
conspiracy to defraud the United States in violation of 18 U.S.C.
Sec. 371 in connection with your participation in the schools and
libraries universal service support mechanism (``E-Rate
program'').\1\ Consequently, pursuant to 47 CFR 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.\2\
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\1\ Any further reference in this letter to ``your conviction''
refers to your guilty plea and subsequent sentencing for conspiracy
to defraud the United States. United States v. Benjamin Rowner,
Criminal Docket No. 1:08-cr-00464-1, Plea Agreement (N.D. Ill. filed
Feb. 4, 2010 and entered Mar. 15, 2010) (``Rowner Judgment'');
United States v. Benjamin Rowner, Criminal Docket No. 1:08-cr-00464-
1, Plea Agreement (N.D. Ill. filed July 10, 2008 and entered July
14, 2008) (``Rowner Plea''); United States v. Benjamin Rowner and
Jay H. Soled, Criminal Docket No. 1:08-cr-20047-01-02 CM/JPO,
Information (D. Kan. filed and entered Apr. 23, 2008) (``Rowner and
Soled Information'').
\2\ 47 CFR Sec. 54.8; see also 47 CFR 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.\3\ On July 10, 2008, you, Benjamin Rowner, entered a plea
agreement and pleaded guilty to knowingly and intentionally
conspiring with others to defraud and obtain money from the E-Rate
Program through submission of materially false representations,
concealment of material facts, mail fraud, wire fraud, and
intentional manipulation of the competitive bidding process.\4\
Specifically, from Fall 1999 to at least November 2003, you held
yourself out as an E-Rate salesperson and installer for the purpose
of defrauding the E-Rate Program.\5\ You admitted that you and
others devised schemes to defraud school districts and the E-Rate
program by having your co-conspirators steer E-rate related
contracts to various companies that directly benefited you, your
conspirators, and your company, primarily DeltaNet, Inc.\6\ In
furtherance of the schemes, you submitted misleading, fraudulent and
false documents to the Universal Service Administrative Company
(``USAC'') claiming schools were paid or would pay their co-pay,
submitted other materially false and fraudulent documents to USAC,
and concealed from the school districts relationships with co-
conspirators in order to induce schools to select your companies as
service providers in violation of E-Rate Program rules.\7\
Ultimately, your conspiracy was comprised of two closely related
schemes that affected at least thirteen different schools in eight
different States across the United States.\8\
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\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 Sec. 54.8(a)(6).
\4\ Rowner Plea at 2-3; see also Rowner and Soled Information at
5-12; Department of Justice Press Release (Apr. 23, 2008), available
at https://www.justice.gov/atr/public/press_releases/2008/232526.htm
(``DOJ April 2008 Press Release'').
\5\ Rowner Plea at 3-8; see also Rowner and Soled Information at
5-12.
\6\ Rowner Plea at 3-8; see also Rowner and Soled Information at
5-12; Department of Justice Press Release (Feb. 4, 2010), available
at https://chicago.fbi.gov/dojpressrel/pressrel10/cg020410a.htm
(``DOJ February 2010 Press Release'').
\7\ Rowner Plea at 3-8; see also Rowner and Soled Information at
5-12.
\8\ Rowner Plea at 4-6; see also Rowner and Soled Information at
8-11 (Listing the schools and States including Wisconsin, Illinois,
Kansas, California, Oregon, New York, New Jersey, and Arkansas); DOJ
February 2010 Press Release at 1.
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On February 4, 2010, you were sentenced to serve twenty-seven
months in prison, to be followed by twenty-four months of supervised
release for your role in the scheme to defraud the E-Rate
program.\9\ You were also ordered to pay $271,716 in restitution to
USAC for your role in the schemes.\10\
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\9\ Rowner Judgment at 2-3; see also DOJ February 2010 Press
Release at 1.
\10\ Rowner Judgment at 4-5 (You were also ordered to pay a $100
assessment); see also DOJ February 2010 Press Release at 1.
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Pursuant to section 54.8 of the Commission's rules, your
conviction requires the Bureau to suspend you from participating in
any activities associated with or related to the schools and
libraries support mechanism.\11\ Such activities include the receipt
of funds or discounted services through the schools and libraries
support mechanism, or consulting with, assisting, or advising
applicants or service providers regarding the schools and libraries
support mechanism.\12\
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\11\ 47 CFR Sec. 54.8(b)-(e); see also 47 CFR Sec. 54.8(a)(4);
Second Report and Order, 18 FCC Rcd at 9225-27, ]] 67-74.
\12\ 47 CFR Sec. 54.8(a)(1); see also 47 CFR 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, pending the Bureau's final debarment determination.\13\ 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.\14\ 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.\15\ Such requests, however,
will not ordinarily be granted.\16\ The Bureau may reverse or limit
the scope of suspension only upon a finding of extraordinary
circumstances.\17\ The Bureau will decide any request for reversal
or modification of suspension within 90 days of its receipt of such
request.\18\
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\13\ 47 CFR Sec. 54.8(a)(7), (e)(1); see also Second Report and
Order, 18 FCC Rcd at 9226, ] 69..
\14\ 47 CFR Sec. 54.8(e)(4).
\15\ Id.
\16\ Id.
\17\ 47 CFR Sec. 54.8(e)(5).
\18\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; see
also 47 CFR Sec. 54.8(e)(5), (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.\19\ Therefore,
pursuant to section 54.8 of the Commission's rules, your conviction
requires the Bureau to commence debarment proceedings against
you.\20\
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\19\ ``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
Sec. 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 Sec. 54.8(a)(1).
\20\ See 47 CFR Sec. 54.8(b), (c).
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As with your suspension, you may contest debarment or the scope
of the proposed
[[Page 20848]]
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.\21\ Absent extraordinary
circumstances, the Bureau will debar you.\22\ The Bureau will decide
any request for reversal or limitation of debarment within 90 days
of receipt of such request.\23\ 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.\24\
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\21\ See 47 CFR Sec. 54.8(e)(3), (e)(5); see also Second Report
and Order, 18 FCC Rcd at 9226, ] 70.
\22\ 47 CFR Sec. 54.8(e)(5); see also Second Report and Order,
18 FCC Rcd at 9227, ] 74.
\23\ See 47 CFR Sec. 54.8(e)(5), (f); see also Second Report
and Order, 18 FCC Rcd at 9226, ] 70.
\24\ 47 CFR 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 CFR Sec. 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.\25\ The Bureau may, if necessary
to protect the public interest, extend the debarment period.\26\
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\25\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR
Sec. 54.8(d), (g).
\26\ 47 CFR 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, 445
12th Street, SW., Room TW-A325, Washington, DC 20554, 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, 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,
Hillary S. DeNigro,
Chief Investigations and Hearings Division Enforcement Bureau.
cc: United States Attorney's Office, Department of Justice (via e-
mail)
Kristy Carroll, Esq., Universal Service Administrative Company (via
e-mail)
[FR Doc. 2010-9181 Filed 4-20-10; 8:45 am]
BILLING CODE 6712-01-P
