Notice of Suspension and Commencement of Proposed Debarment Proceedings; Schools and Libraries Universal Service Support Mechanism, 31011-31013 [2012-12663]
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Federal Register / Vol. 77, No. 101 / Thursday, May 24, 2012 / Notices
the settlement if comments received
disclose facts or considerations which
indicate that the settlement is
inappropriate, improper or inadequate.
The Agency’s response to any comments
received will be available for public
inspection at 77 West Jackson
Boulevard, 7th floor Superfund File
Room, Chicago, Illinois.
DATES: Comments must be submitted on
or before June 25, 2012.
ADDRESSES: The proposed settlement is
available for public inspection at 77
West Jackson Boulevard, 7th floor
Superfund File Room, Chicago, Illinois.
A copy of the proposed settlement may
be obtained from Deborah Carlson,
Associate Regional Counsel, C–14J, 77
West Jackson Boulevard, Chicago,
Illinois 60604, telephone: 312–353–
6121. Comments should reference the
Piqua Hospital Site in Piqua, Ohio and
EPA Docket No. V–W–09–C–922 and
should be addressed to Deborah
Carlson, Associate Regional Counsel, C–
14J, 77 West Jackson Boulevard,
Chicago, Illinois 60604.
FOR FURTHER INFORMATION CONTACT:
Deborah Carlson, Associate Regional
Counsel, C–14J, 77 West Jackson
Boulevard, Chicago, Illinois 60604,
telephone 312–353–6121
Authority: The Comprehensive
Environmental Response, Compensation, and
Liability Act of 1980, as amended, 42 U.S.C.
9601, et seq.
Dated: May 11, 2012.
Richard C. Karl,
Director, Superfund Division, Region 5,
United States Environmental Protection
Agency.
[FR Doc. 2012–12627 Filed 5–23–12; 8:45 am]
BILLING CODE P
FEDERAL COMMUNICATIONS
COMMISSION
[DA 12–733]
Notice of Suspension and
Commencement of Proposed
Debarment Proceedings; Schools and
Libraries Universal Service Support
Mechanism
Federal Communications
Commission.
ACTION: Notice.
srobinson on DSK4SPTVN1PROD with NOTICES
AGENCY:
The Enforcement Bureau (the
‘‘Bureau’’) gives notice of Mr. Jonathan
M. Slaughter’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.
SUMMARY:
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16:31 May 23, 2012
Jkt 226001
Slaughter, 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.
DATES: Opposition requests must be
received by 30 days from the receipt of
the suspension letter or June 25, 2012,
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: Joy
Ragsdale, Federal Communications
Commission, Enforcement Bureau,
Investigations and Hearings Division,
Room 4–A236, 445 12th Street SW.,
Washington, DC 20554. Joy Ragsdale
may be contacted by phone at (202)
418–1697 or email at Joy.Ragsdale@fcc.
gov. If Ms. Ragsdale is unavailable, you
may contact Ms. Theresa Cavanaugh,
Chief, Investigations and Hearings
Division, by telephone at (202) 418–
1420 and by email at Theresa.
Cavanaugh@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 12–452, which
was mailed to Mr. Slaughter and
released on March 22, 2012. 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.
Federal Communications Commission.
Theresa Z. Cavanaugh,
Chief, Investigations and Hearings Division,
Enforcement Bureau.
May 9, 2012
PO 00000
Frm 00019
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31011
DA 12–733
SENT VIA CERTIFIED MAIL, RETURN
RECEIPT REQUESTED AND EMAIL
Mr. Jonathan M. Slaughter
c/o William R. Blanchard, Jr.
Blanchard Law Offices
505 South Perry Street
Montgomery, AL 36104
Re: Notice of Suspension and Initiation
of Debarment Proceeding
File No. EB–12–IH–0050
Dear Mr. Slaughter:
The Federal Communications
Commission (Commission or FCC) has
received notice of your conviction for
mail fraud in violation of 18 U.S.C 1341
in connection with your participation in
the federal 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 it will
commence debarment proceedings
against you.2
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 [E-Rate
program]’’ from receiving the benefits
associated with that program.3 The
1 Any further reference in this letter to ‘‘your
conviction’’ refers to your guilty plea and
subsequent sentencing for mail fraud in United
States v. Jonathan Michael Slaughter, Criminal Case
No. 2:11cr162–MEF–01, Judgment (M.D. Ala. 2012)
(Judgment).
2 See 47 CFR 0.111 (delegating authority to the
Bureau to resolve universal service suspension and
debarment proceedings). The Commission adopted
debarment rules for the E-Rate program 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
§ 54.521 to suspend and debar parties from the ERate program). In 2007 the Commission extended
the debarment rules to apply to all 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; Rural
Health Care 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, app. C at 16410–12
(2007) (Program Management Order) (renumbering
§ 54.521 of the universal service debarment rules as
§ 54.8 and amending subsections (a)(1), (a)(5), (c),
(d), (e)(2)(i), (e)(3), (e)(4), and (g)).
3 Second Report and Order, 18 FCC Rcd at 9225,
para. 66; Program Management Order, 22 FCC Rcd
at 16387, para. 32. The Commission’s debarment
rules define a ‘‘person’’ as ‘‘[a]ny individual, group
of individuals, corporation, partnership,
association, unit of government or legal entity,
however organized.’’ 47 CFR 54.8(a)(6).
E:\FR\FM\24MYN1.SGM
24MYN1
31012
Federal Register / Vol. 77, No. 101 / Thursday, May 24, 2012 / Notices
srobinson on DSK4SPTVN1PROD with NOTICES
Commission’s rules are designed to
ensure that all E-Rate funds are used for
their intended purpose.4 For example,
schools and libraries must apply and
meet certain qualifications to be eligible
to receive E-Rate funds.5 Additionally,
services purchased at a discount under
the E-Rate program cannot be ‘‘sold,
resold, or transferred * * * [for] money
or any other thing of value.’’ 6
On September 29, 2011, you pled
guilty to committing fraudulent
activities associated with the E-Rate
program while you were owner and
president of E-Rate Consulting Services,
LLC (ECS) in Montgomery, Alabama.7
ECS assisted schools and school
districts in their efforts to qualify for ERate funding.8 ECS arranged to receive
through the mail its clients’ E-Rate
checks, and was supposed to forward
those checks to the clients.9 Between
May 2006 and January 2009, however,
you converted approximately $892,000
in E-Rate funds to your personal use
without your clients’ knowledge.10
Specifically, you deposited E-Rate
checks payable to your clients into an
ECS bank account and, instead of
transmitting the E-Rate funds to your
clients, kept the money and used it
largely for your personal expenses.11
Your fraudulent scheme affected six
schools and 14 school districts located
in 13 states.12
On January 6, 2012, the United States
District Court for the Middle District of
Alabama sentenced you to serve 51
months in prison followed by three
years of supervised release.13 The court
also ordered you to pay a $100 special
assessment.14
Pursuant to § 54.8(b) of the
Commission’s rules,15 upon your
conviction the Bureau is required to
suspend you from participating in any
activities associated with or related to
the E-Rate program, including the
receipt of funds or discounted services
4 In the Matter of NEC-Business Network
Solutions, Inc., Notice of Debarment and Order
Denying Waiver Petition, 21 FCC Rcd 7491, 7493,
para. 7 (2006).
5 47 CFR 54.501.
6 Id. 54.513(a).
7 United States v. Jonathan Slaughter, Case No.
2:11cr162–MEF–01, Plea Agreement at 3–4 (M.D.
Ala. 2011) (Plea Agreement).
8 Id. at 4.
9 Id.; Justice News, Dep’t of Justice, Montgomery
Man Pleads Guilty to Stealing $892,000 from
Schools in 13 States, Sept. 29, 2011, https://www.
justice.gov/usao/alm/press/current_press/2011_
09_29_slaughter.pdf (Press Release).
10 Plea Agreement at 4–5.
11 Id.
12 Id. See Appendix.
13 Judgment at 2–3.
14 Id. at 5.
15 47 CFR 54.8(b); see Second Report and Order,
18 FCC Rcd at 9225–27, paras. 67–74.
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16:31 May 23, 2012
Jkt 226001
through the E-Rate program, or
consulting with, assisting, or advising
applicants or service providers
regarding the E-Rate program.16 Your
suspension becomes effective upon
receipt of this letter or its publication in
the Federal Register, whichever comes
first.17
In accordance with the Commission’s
suspension and debarment rules, you
may contest this suspension or the
scope of this suspension by filing
arguments, with any relevant
documents, within thirty (30) calendar
days of receipt of this letter or its
publication in the Federal Register,
whichever comes first.18 Such requests,
however, will not ordinarily be
granted.19 The Bureau may reverse or
limit the scope of suspension only upon
a finding of extraordinary
circumstances.20 The Bureau will
decide any request to reverse or modify
a suspension within ninety (90)
calendar days of its receipt of such
request.21
II. Initiation of Debarment Proceedings
In addition to requiring your
immediate suspension from the E-Rate
program, your conviction is cause for
debarment as defined in § 54.8(c) of the
Commission’s rules.22 Therefore,
pursuant to § 54.8(b) of the rules, your
conviction requires the Bureau to
commence debarment proceedings
against you.23
As with the suspension process, you
may contest the proposed debarment or
the scope of the proposed debarment by
filing arguments and any relevant
documentation within thirty (30)
calendar days of receipt of this letter or
its publication in the Federal Register,
16 47
CFR 54.8(a)(1), (d).
Report and Order, 18 FCC Rcd at 9226,
para. 69; 47 CFR 54.8(e)(1).
18 47 CFR 54.8(e)(4).
19 Id.
20 Id. 54.8(f).
21 See Second Report and Order, 18 FCC Rcd at
9226, para. 70; 47 CFR 54.8(e)(5).
22 ‘‘Causes for suspension and debarment are
conviction of or civil judgment for attempt or
commission of criminal fraud, theft, embezzlement,
forgery, bribery, falsification or destruction of
records, making false statements, receiving stolen
property, making false claims, obstruction of justice
and other fraud or criminal offense arising out of
activities associated with or related to the schools
and libraries support mechanism, the high-cost
support mechanism, the rural healthcare support
mechanism, and the low-income support
mechanism.’’ 47 CFR 54.8(c). Associated activities
‘‘include the receipt of funds or discounted services
through [the federal universal service] support
mechanisms, or consulting with, assisting, or
advising applicants or service providers regarding
[the federal universal service] support
mechanisms.’’ Id. 54.8(a)(1).
23 Id. 54.8(b).
17 Second
PO 00000
Frm 00020
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whichever comes first.24 The Bureau, in
the absence of extraordinary
circumstances, will notify you of its
decision to debar within ninety (90)
calendar days of receiving any
information you may have filed.25 If the
Bureau decides to debar you, its
decision will become effective upon
either your receipt of a debarment
notice or publication of the decision in
the Federal Register, whichever comes
first.26
If and when your debarment becomes
effective, you will be prohibited from
participating in activities associated
with or related to the E-Rate program for
three years from the date of
debarment.27
The Bureau may set a longer debarment
period or extend an existing debarment
period if necessary to protect the public
interest.28
Please direct any response, if sent 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 Joy M. Ragsdale, Attorney Advisor,
Investigations and Hearings Division,
Enforcement Bureau, Room 4–A236,
with a copy to Theresa Z. Cavanaugh,
Chief, Investigations and Hearings
Division, Enforcement Bureau, Room 4–
C322, Federal Communications
Commission. All messenger or hand
delivery filings must be submitted
without envelopes.29 If sent by
commercial overnight mail (other than
U.S. Postal Service (USPS) Express Mail
and Priority Mail), the response must be
sent to the Federal Communications
Commission, 9300 East Hampton Drive,
Capitol Heights, Maryland 20743. If sent
by USPS First Class, Express Mail, or
Priority Mail, the response should be
addressed to Joy Ragsdale, Attorney
Advisor, Investigations and Hearings
Division, Enforcement Bureau, Federal
Communications Commission, 445 12th
Street SW., Room 4–A236, Washington,
DC 20554, with a copy to Theresa Z.
Cavanaugh, Chief, Investigations and
Hearings Division, Enforcement Bureau,
24 Second Report and Order, 18 FCC Rcd at 9226,
para. 70; 47 CFR 54.8(e)(3).
25 Second Report and Order, 18 FCC Rcd at 9226,
para. 70; 47 CFR 54.8(e)(5).
26 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. Id. 54.8(f).
27 Second Report and Order, 18 FCC Rcd at 9225,
para. 67; 47 CFR 54.8(d), (g).
28 47 CFR 54.8(g).
29 See FCC Announces Change in Filing Location
for Paper Documents, Public Notice, 24 FCC Rcd
14312 (2009) for further filing instructions.
E:\FR\FM\24MYN1.SGM
24MYN1
Federal Register / Vol. 77, No. 101 / Thursday, May 24, 2012 / Notices
Federal Communications Commission,
445 12th Street SW., Room 4–C322,
Washington, DC 20554. You shall also
transmit a copy of your response via
email to Joy M. Ragsdale, Joy.Ragsdale@
fcc.gov and to Theresa Z. Cavanaugh,
Terry.Cavanaugh@fcc.gov.
If you have any questions, please
contact Ms. Ragsdale via U.S. postal
mail, email, or by telephone at (202)
418–1697. You may contact me at (202)
418–1553 or at the email address noted
above if Ms. Ragsdale is unavailable.
Sincerely yours,
cc: Johnnay Schrieber, Universal Service
Administrative Company (via email)
Rashann Duvall, Universal Service
Administrative Company (via email)
Andrew O. Schiff, Assistant United
States Attorney, United States
Department of Justice (via email)
Theresa Z. Cavanaugh
Chief Investigations and Hearings Division,
Enforcement Bureau.
ECS’ Clients
State
Dermott Public School District ....................................................................................................
Citrus County School District ......................................................................................................
Eckerd Halfway House/E-Ku Sumee ..........................................................................................
Hendry County School District ...................................................................................................
Kuna Joint School District ..........................................................................................................
Middleton School District #134 ...................................................................................................
The Winchendon School ............................................................................................................
Northwood Children’s Services ..................................................................................................
Prairie Academy .........................................................................................................................
Poplar Bluff School District .........................................................................................................
Red Cloud Community School District .......................................................................................
SAU 41—Hollis Brookline Schools .............................................................................................
Beaufort County School District .................................................................................................
Middle Ohio Education ...............................................................................................................
Penns Valley Area School District ..............................................................................................
Bedford County School District ..................................................................................................
Banquete Independent School District .......................................................................................
Cleburne Independent School District ........................................................................................
Leander Independent School District .........................................................................................
Teague Independent School District ..........................................................................................
Arkansas ............................
Florida ................................
Florida ................................
Florida ................................
Idaho ..................................
Idaho ..................................
Massachusetts ...................
Minnesota ...........................
Minnesota ...........................
Missouri ..............................
Nebraska ............................
New Hampshire ..................
North Carolina ....................
Ohio ....................................
Pennsylvania ......................
Tennessee ..........................
Texas ..................................
Texas ..................................
Texas ..................................
Texas ..................................
Total .....................................................................................................................................
[FR Doc. 2012–12663 Filed 5–23–12; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL MARITIME COMMISSION
[Docket No. 12–07]
Notice of Inquiry; Solicitation of Views
on Requests To Develop and Release
Container Freight Rate Indices for U.S.
Agricultural Exports Based on a
Sampling of Service Contracts Filed
With the FMC
Federal Maritime Commission.
Notice of Inquiry.
AGENCY:
ACTION:
The Federal Maritime
Commission (‘‘FMC’’ or ‘‘Commission’’)
is issuing this Notice of Inquiry (‘‘NOI’’)
to solicit public comment on informal
requests the Commission has received
from some large U.S. exporters and
intermediaries to develop and release
container freight indices for U.S.
agricultural exports. The Commission is
seeking written comments and
information from U.S. exporters,
intermediaries, ocean carriers, and any
other interested parties on (1) Whether
and to what extent the shipping public
would find targeted U.S. export rate
indices beneficial; (2) whether the
Commission should extract rate
srobinson on DSK4SPTVN1PROD with NOTICES
SUMMARY:
VerDate Mar<15>2010
16:31 May 23, 2012
Jkt 226001
information from service contracts or
whether suitable alternatives exist; (3)
the positive and negative influences on
the export commodities and ocean
transportation marketplaces of the
greater transparency such indices might
provide; and (4) whether, these indices,
if developed, should be commodity
specific for different prescribed routes
or whether more broadly based indices
would meet U.S. exporters’ needs.
DATES: Responses are due on or before
July 9, 2012.
ADDRESSES: Submit comments to: Karen
V. Gregory, Secretary, Federal Maritime
Commission, 800 North Capitol Street
NW., Room 1046, Washington, DC
20573–0001. Or email non-confidential
comments to: secretary@fmc.gov (email
comments as attachments preferably in
Microsoft Word or PDF).
FOR FURTHER INFORMATION CONTACT:
Sandra L. Kusumoto, Director, Bureau of
Trade Analysis, Federal Maritime
Commission, 800 North Capitol Street
NW., Washington, DC 20573–0001,
Telephone: (202) 523–5796, Email:
skusumoto@fmc.gov.
SUPPLEMENTARY INFORMATION:
Submit Comments: Non-confidential
filings may be submitted in hard copy
or by email as an attachment (preferably
in Microsoft Word or PDF) addressed to
PO 00000
Frm 00021
Fmt 4703
Sfmt 4703
31013
Total amount
converted
$6,809.24
678,288.69
5,670
39,031.19
3,523.67
4,299.25
8,316.00
24,797.66
4,673.99
7,672.77
2,254.52
1,765.18
9,730.00
23.01
10,966.83
23,215.94
18,655.72
7,231.32
31,872.31
3,190.56
891,987.85
secretary@fmc.gov on or before July 9,
2012. Include in the subject line: ‘‘FMC
Export Index—Response to NOI’’.
Responses to this inquiry that seek
confidential treatment must be
submitted in hard copy by U.S. mail or
courier. Confidential filings must be
accompanied by a transmittal letter that
identifies the filing as ‘‘confidential’’
and describes the nature and extent of
the confidential treatment requested,
e.g., commercially sensitive data. When
submitting documents in response to
the NOI that contain confidential
information, the confidential copy of the
filing must consist of the complete filing
and be marked by the filer as
‘‘Confidential–Restricted,’’ with the
confidential material clearly marked on
each page. When a confidential filing is
submitted, an original and one
additional copy of the public version of
the filing must be submitted. The public
version of the filing should exclude
confidential materials, and be clearly
marked on each affected page,
‘‘confidential materials excluded.’’
Questions regarding filing or treatment
of confidential responses to this inquiry
should be directed to the Commission’s
Secretary, Karen V. Gregory, at the
telephone number or email provided
above.
E:\FR\FM\24MYN1.SGM
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Agencies
[Federal Register Volume 77, Number 101 (Thursday, May 24, 2012)]
[Notices]
[Pages 31011-31013]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-12663]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
[DA 12-733]
Notice of Suspension and Commencement of Proposed 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.
Jonathan M. Slaughter'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. Slaughter, 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.
DATES: Opposition requests must be received by 30 days from the receipt
of the suspension letter or June 25, 2012, 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: Joy Ragsdale, Federal Communications
Commission, Enforcement Bureau, Investigations and Hearings Division,
Room 4-A236, 445 12th Street SW., Washington, DC 20554. Joy Ragsdale
may be contacted by phone at (202) 418-1697 or email at
Joy.Ragsdale@fcc.gov. If Ms. Ragsdale is unavailable, you may contact
Ms. Theresa Cavanaugh, Chief, Investigations and Hearings Division, by
telephone at (202) 418-1420 and by email at Theresa.Cavanaugh@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 12-452,
which was mailed to Mr. Slaughter and released on March 22, 2012. 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.
Federal Communications Commission.
Theresa Z. Cavanaugh,
Chief, Investigations and Hearings Division, Enforcement Bureau.
May 9, 2012
DA 12-733
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED AND EMAIL
Mr. Jonathan M. Slaughter
c/o William R. Blanchard, Jr.
Blanchard Law Offices
505 South Perry Street
Montgomery, AL 36104
Re: Notice of Suspension and Initiation of Debarment Proceeding
File No. EB-12-IH-0050
Dear Mr. Slaughter:
The Federal Communications Commission (Commission or FCC) has
received notice of your conviction for mail fraud in violation of 18
U.S.C 1341 in connection with your participation in the federal 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 it will commence
debarment proceedings against you.\2\
---------------------------------------------------------------------------
\1\ Any further reference in this letter to ``your conviction''
refers to your guilty plea and subsequent sentencing for mail fraud
in United States v. Jonathan Michael Slaughter, Criminal Case No.
2:11cr162-MEF-01, Judgment (M.D. Ala. 2012) (Judgment).
\2\ See 47 CFR 0.111 (delegating authority to the Bureau to
resolve universal service suspension and debarment proceedings). The
Commission adopted debarment rules for the E-Rate program 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 Sec.
54.521 to suspend and debar parties from the E-Rate program). In
2007 the Commission extended the debarment rules to apply to all
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; Rural Health Care
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, app. C at 16410-12 (2007)
(Program Management Order) (renumbering Sec. 54.521 of the
universal service debarment rules as Sec. 54.8 and amending
subsections (a)(1), (a)(5), (c), (d), (e)(2)(i), (e)(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 [E-Rate program]'' from
receiving the benefits associated with that program.\3\ The
[[Page 31012]]
Commission's rules are designed to ensure that all E-Rate funds are
used for their intended purpose.\4\ For example, schools and libraries
must apply and meet certain qualifications to be eligible to receive E-
Rate funds.\5\ Additionally, services purchased at a discount under the
E-Rate program cannot be ``sold, resold, or transferred * * * [for]
money or any other thing of value.'' \6\
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\3\ Second Report and Order, 18 FCC Rcd at 9225, para. 66;
Program Management Order, 22 FCC Rcd at 16387, para. 32. The
Commission's debarment rules define a ``person'' as ``[a]ny
individual, group of individuals, corporation, partnership,
association, unit of government or legal entity, however
organized.'' 47 CFR 54.8(a)(6).
\4\ In the Matter of NEC-Business Network Solutions, Inc.,
Notice of Debarment and Order Denying Waiver Petition, 21 FCC Rcd
7491, 7493, para. 7 (2006).
\5\ 47 CFR 54.501.
\6\ Id. 54.513(a).
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On September 29, 2011, you pled guilty to committing fraudulent
activities associated with the E-Rate program while you were owner and
president of E-Rate Consulting Services, LLC (ECS) in Montgomery,
Alabama.\7\ ECS assisted schools and school districts in their efforts
to qualify for E-Rate funding.\8\ ECS arranged to receive through the
mail its clients' E-Rate checks, and was supposed to forward those
checks to the clients.\9\ Between May 2006 and January 2009, however,
you converted approximately $892,000 in E-Rate funds to your personal
use without your clients' knowledge.\10\ Specifically, you deposited E-
Rate checks payable to your clients into an ECS bank account and,
instead of transmitting the E-Rate funds to your clients, kept the
money and used it largely for your personal expenses.\11\ Your
fraudulent scheme affected six schools and 14 school districts located
in 13 states.\12\
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\7\ United States v. Jonathan Slaughter, Case No. 2:11cr162-MEF-
01, Plea Agreement at 3-4 (M.D. Ala. 2011) (Plea Agreement).
\8\ Id. at 4.
\9\ Id.; Justice News, Dep't of Justice, Montgomery Man Pleads
Guilty to Stealing $892,000 from Schools in 13 States, Sept. 29,
2011, https://www.justice.gov/usao/alm/press/current_press/2011_09_29_slaughter.pdf (Press Release).
\10\ Plea Agreement at 4-5.
\11\ Id.
\12\ Id. See Appendix.
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On January 6, 2012, the United States District Court for the Middle
District of Alabama sentenced you to serve 51 months in prison followed
by three years of supervised release.\13\ The court also ordered you to
pay a $100 special assessment.\14\
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\13\ Judgment at 2-3.
\14\ Id. at 5.
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Pursuant to Sec. 54.8(b) of the Commission's rules,\15\ upon your
conviction the Bureau is required to suspend you from participating in
any activities associated with or related to the E-Rate program,
including the receipt of funds or discounted services through the E-
Rate program, or consulting with, assisting, or advising applicants or
service providers regarding the E-Rate program.\16\ Your suspension
becomes effective upon receipt of this letter or its publication in the
Federal Register, whichever comes first.\17\
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\15\ 47 CFR 54.8(b); see Second Report and Order, 18 FCC Rcd at
9225-27, paras. 67-74.
\16\ 47 CFR 54.8(a)(1), (d).
\17\ Second Report and Order, 18 FCC Rcd at 9226, para. 69; 47
CFR 54.8(e)(1).
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In accordance with the Commission's suspension and debarment rules,
you may contest this suspension or the scope of this suspension by
filing arguments, with any relevant documents, within thirty (30)
calendar days of receipt of this letter or its publication in the
Federal Register, whichever comes first.\18\ Such requests, however,
will not ordinarily be granted.\19\ The Bureau may reverse or limit the
scope of suspension only upon a finding of extraordinary
circumstances.\20\ The Bureau will decide any request to reverse or
modify a suspension within ninety (90) calendar days of its receipt of
such request.\21\
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\18\ 47 CFR 54.8(e)(4).
\19\ Id.
\20\ Id. 54.8(f).
\21\ See Second Report and Order, 18 FCC Rcd at 9226, para. 70;
47 CFR 54.8(e)(5).
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II. Initiation of Debarment Proceedings
In addition to requiring your immediate suspension from the E-Rate
program, your conviction is cause for debarment as defined in Sec.
54.8(c) of the Commission's rules.\22\ Therefore, pursuant to Sec.
54.8(b) of the rules, your conviction requires the Bureau to commence
debarment proceedings against you.\23\
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\22\ ``Causes for suspension and debarment are conviction of or
civil judgment for attempt or commission of criminal fraud, theft,
embezzlement, forgery, bribery, falsification or destruction of
records, making false statements, receiving stolen property, making
false claims, obstruction of justice and other fraud or criminal
offense arising out of activities associated with or related to the
schools and libraries support mechanism, the high-cost support
mechanism, the rural healthcare support mechanism, and the low-
income support mechanism.'' 47 CFR 54.8(c). Associated activities
``include the receipt of funds or discounted services through [the
federal universal service] support mechanisms, or consulting with,
assisting, or advising applicants or service providers regarding
[the federal universal service] support mechanisms.'' Id.
54.8(a)(1).
\23\ Id. 54.8(b).
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As with the suspension process, you may contest the proposed
debarment or the scope of the proposed debarment by filing arguments
and any relevant documentation within thirty (30) calendar days of
receipt of this letter or its publication in the Federal Register,
whichever comes first.\24\ The Bureau, in the absence of extraordinary
circumstances, will notify you of its decision to debar within ninety
(90) calendar days of receiving any information you may have filed.\25\
If the Bureau decides to debar you, its decision will become effective
upon either your receipt of a debarment notice or publication of the
decision in the Federal Register, whichever comes first.\26\
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\24\ Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47
CFR 54.8(e)(3).
\25\ Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47
CFR 54.8(e)(5).
\26\ 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. Id.
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 E-Rate program for three years from the date of debarment.\27\
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\27\ Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47
CFR 54.8(d), (g).
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The Bureau may set a longer debarment period or extend an existing
debarment period if necessary to protect the public interest.\28\
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\28\ 47 CFR 54.8(g).
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Please direct any response, if sent 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 Joy M. Ragsdale, Attorney Advisor, Investigations and Hearings
Division, Enforcement Bureau, Room 4-A236, with a copy to Theresa Z.
Cavanaugh, Chief, Investigations and Hearings Division, Enforcement
Bureau, Room 4-C322, Federal Communications Commission. All messenger
or hand delivery filings must be submitted without envelopes.\29\ If
sent by commercial overnight mail (other than U.S. Postal Service
(USPS) Express Mail and Priority Mail), the response must be sent to
the Federal Communications Commission, 9300 East Hampton Drive, Capitol
Heights, Maryland 20743. If sent by USPS First Class, Express Mail, or
Priority Mail, the response should be addressed to Joy Ragsdale,
Attorney Advisor, Investigations and Hearings Division, Enforcement
Bureau, Federal Communications Commission, 445 12th Street SW., Room 4-
A236, Washington, DC 20554, with a copy to Theresa Z. Cavanaugh, Chief,
Investigations and Hearings Division, Enforcement Bureau,
[[Page 31013]]
Federal Communications Commission, 445 12th Street SW., Room 4-C322,
Washington, DC 20554. You shall also transmit a copy of your response
via email to Joy M. Ragsdale, Joy.Ragsdale@fcc.gov and to Theresa Z.
Cavanaugh, Terry.Cavanaugh@fcc.gov.
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\29\ See FCC Announces Change in Filing Location for Paper
Documents, Public Notice, 24 FCC Rcd 14312 (2009) for further filing
instructions.
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If you have any questions, please contact Ms. Ragsdale via U.S.
postal mail, email, or by telephone at (202) 418-1697. You may contact
me at (202) 418-1553 or at the email address noted above if Ms.
Ragsdale is unavailable.
Sincerely yours,
Theresa Z. Cavanaugh
Chief Investigations and Hearings Division, Enforcement Bureau.
cc: Johnnay Schrieber, Universal Service Administrative Company (via
email)
Rashann Duvall, Universal Service Administrative Company (via email)
Andrew O. Schiff, Assistant United States Attorney, United States
Department of Justice (via email)
----------------------------------------------------------------------------------------------------------------
Total amount
ECS' Clients State converted
----------------------------------------------------------------------------------------------------------------
Dermott Public School District............. Arkansas....................................... $6,809.24
Citrus County School District.............. Florida........................................ 678,288.69
Eckerd Halfway House/E-Ku Sumee............ Florida........................................ 5,670
Hendry County School District.............. Florida........................................ 39,031.19
Kuna Joint School District................. Idaho.......................................... 3,523.67
Middleton School District 134..... Idaho.......................................... 4,299.25
The Winchendon School...................... Massachusetts.................................. 8,316.00
Northwood Children's Services.............. Minnesota...................................... 24,797.66
Prairie Academy............................ Minnesota...................................... 4,673.99
Poplar Bluff School District............... Missouri....................................... 7,672.77
Red Cloud Community School District........ Nebraska....................................... 2,254.52
SAU 41--Hollis Brookline Schools........... New Hampshire.................................. 1,765.18
Beaufort County School District............ North Carolina................................. 9,730.00
Middle Ohio Education...................... Ohio........................................... 23.01
Penns Valley Area School District.......... Pennsylvania................................... 10,966.83
Bedford County School District............. Tennessee...................................... 23,215.94
Banquete Independent School District....... Texas.......................................... 18,655.72
Cleburne Independent School District....... Texas.......................................... 7,231.32
Leander Independent School District........ Texas.......................................... 31,872.31
Teague Independent School District......... Texas.......................................... 3,190.56
Total.................................. 891,987.85
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[FR Doc. 2012-12663 Filed 5-23-12; 8:45 am]
BILLING CODE 6712-01-P