Notice of Suspension and Commencement of Proposed Debarment Proceedings; Schools and Libraries Universal Service Support Mechanism, 15339-15341 [2014-06082]

Download as PDF Federal Register / Vol. 79, No. 53 / Wednesday, March 19, 2014 / Notices within 10 days from the date that such updates are filed with the Commission pursuant to § 95.815. Section 95.861(e) requires that each 218–219 MHz service licensee investigate and eliminate harmful interference to television broadcasting and reception, from its component cell transmitter stations (CTSs) and response transmitter units (RTUs) within 30 days of the time it is notified in writing, by either an affected television station, an affected viewer, or the Commission, of an interference complaint. This information will be used to monitor the co- and adjacent channel interference potential of proposed systems in the 218–219 MHz service, and to identify methods being used to minimize interference, as well as to show how the proposed systems will meet the service requirements set forth in § 95.831 of the Commission’s rules. Federal Communications Commission. Marlene H. Dortch, Secretary, Office of the Secretary, Office of Managing Director. [FR Doc. 2014–05975 Filed 3–18–14; 8:45 am] BILLING CODE 6712–01–P FEDERAL COMMUNICATIONS COMMISSION Information Collection Being Reviewed by the Federal Communications Commission Federal Communications Commission. ACTION: Notice and request for comments. AGENCY: As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3501– 3520), the Federal Communications Commission (FCC or the Commission) invites the general public and other Federal agencies to take this opportunity to comment on the following information collection. Comments are requested concerning: whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission’s burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information sroberts on DSK5TPTVN1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 18:28 Mar 18, 2014 Jkt 232001 collection burden on small business concerns with fewer than 25 employees. The FCC may not conduct or sponsor a collection of information unless it displays a currently valid control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the PRA that does not display a valid Office of Management and Budget (OMB) control number. DATES: Written PRA comments should be submitted on or before May 19, 2014. If you anticipate that you will be submitting comments, but find it difficult to do so within the period of time allowed by this notice, you should advise the contact listed below as soon as possible. ADDRESSES: Direct all PRA comments to Cathy Williams, FCC, via email PRA@ fcc.gov and to Cathy.Williams@fcc.gov. FOR FURTHER INFORMATION CONTACT: For additional information about the information collection, contact Cathy Williams at (202) 418–2918. SUPPLEMENTARY INFORMATION: OMB Control No.: 3060–0106. Title: Part 43 Reporting Requirements for U.S. Providers of International Telecommunications Services and Affiliates; 47 CFR 43.61. Form No.: Not applicable. Type of Review: Extension of a currently approved collection. Respondents: Business or other forprofit entities. Number of Responses and Respondents: 1,255 respondents and 1,255 responses. Estimated Time per Response: 2 hours–220 hours. Frequency of Response: Annual reporting requirement. Obligation to Respond: Required to obtain or retain benefits. The statutory authority for this collection of information is contained in Sections 1, 4(i), 4(j) 11, 201–205, 211, 214, 219, 220, 303(r), 309, and 403 of the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 154(j), 161, 201–205, 211, 214, 219, 220, 303(r), 309 and 403. Total Annual Burden: 19,530 hours. Total Annual Cost: $339,000. Privacy Act Impact Assessment: No impact(s). Nature and Extent of Confidentiality: In general there is no need for confidentiality with this collection of information. Needs and Uses: The Federal Communications Commission (‘‘Commission’’) is requesting a threeyear extension of OMB Control No. 3060–0106 titled, ‘‘Part 43 Reporting Requirements for U.S. Providers of PO 00000 Frm 00037 Fmt 4703 Sfmt 4703 15339 International Telecommunications Services and Affiliates; 47 CFR 43.61.’’ The reporting requirements for which the Commission is seeking a three year approval from the Office of Management and Budget (OMB) are as follows: 47 CFR 43.61: Reports of international telecommunications traffic (a) Each common carrier engaged in providing international telecommunications service between the United States (as defined in the Communications Act, as amended, 47 U.S.C. 153) and any country or point outside that area shall file a report with the Commission not later than July 31 of each year for service actually provided in the preceding calendar year. (1) The information contained in the reports shall include actual traffic and revenue data for each and every service provided by a common carrier, divided among service billed in the United States, service billed outside the United States, and service transiting the United States. (2) Each common carrier shall submit a revised report by October 31 identifying any inaccuracies included in the annual report exceeding five percent of the reported figure. (3) The information required under this section shall be furnished in conformance with the instructions and reporting requirements prepared under the direction of the Chief, Wireline Competition Bureau, prepared and published as a manual, in consultation and coordination with the Chief, International Bureau. Federal Communications Commission. Marlene H. Dortch, Secretary, Office of the Secretary, Office of Managing Director. [FR Doc. 2014–05931 Filed 3–18–14; 8:45 am] BILLING CODE 6712–01–P FEDERAL COMMUNICATIONS COMMISSION [DA 14–249] Notice of Suspension and Commencement of Proposed Debarment Proceedings; Schools and Libraries Universal Service Support Mechanism Federal Communications Commission. ACTION: Notice. AGENCY: The Enforcement Bureau (the ‘‘Bureau’’) debars Bryan J. Cahoon from the schools and libraries universal service support mechanism (or ‘‘E-Rate Program’’) for a period of three years. SUMMARY: E:\FR\FM\19MRN1.SGM 19MRN1 15340 Federal Register / Vol. 79, No. 53 / Wednesday, March 19, 2014 / Notices sroberts on DSK5TPTVN1PROD with NOTICES The Bureau takes this action to protect the E-Rate Program from waste, fraud, and abuse. DATES: Debarment commences on the date Mr. Bryan J. Cahoon receives the debarment letter or March 19, 2014, whichever date comes first, for a period of three years. FOR FURTHER INFORMATION CONTACT: Joy M. Ragsdale, Attorney Advisor, Federal Communications Commission, Enforcement Bureau, Investigations and Hearings Division, Room 4–C330, 445 12th Street SW., Washington, DC 20554. Joy Ragsdale may be contacted by telephone at (202) 418–1697 or by 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 Terry.Cavanaugh@fcc.gov. SUPPLEMENTARY INFORMATION: The Bureau debarred Mr. Bryan J. Cahoon from the schools and libraries service support mechanism for a period of three years pursuant to 47 CFR 54.8. Attached is the debarment letter, DA 14–249, which was mailed to Mr. Cahoon and released on February 24, 2014. 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 http://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 http://www.bcpiweb.com. Federal Communications Commission. Theresa Z. Cavanaugh, Chief, Investigations and Hearings Division, Enforcement Bureau. February 24, 2014 DA 14–249 SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED AND EMAIL Mr. Bryan J. Cahoon Register Number 95443–038 FMC Devens Federal Medical Center P.O. Box 879 Ayer, MA 01432 Re: Notice of Suspension and Initiation of Debarment Proceedings FCC Case No. EB–IHD–13–00010969 Dear Mr. Cahoon: The Federal Communications Commission (Commission) has received notice of your VerDate Mar<15>2010 18:28 Mar 18, 2014 Jkt 232001 conviction for fraud and theft of federal funds in violation of 18 U.S.C. 666(a)(1)(A) in connection with 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 participating in activities associated with the E-Rate program. In addition, the Enforcement Bureau (Bureau) hereby notifies you that the Bureau will commence E-Rate program 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 statutory provisions and Commission rules relating to the E-Rate program are designed to ensure that all ERate funds are used for their intended purpose.4 Sections 54.503 and 54.504 of the Commission’s rules provide that an eligible entity must seek competitive bids for all services eligible for support and must comply with all applicable state and local competitive bidding requirements.5 1 Any further reference in this letter to ‘‘your conviction’’ refers to your guilty plea in United States v. Cahoon, Criminal Docket No. 1:13–cr– 10188–RWZ–1, Plea Agreement (D. Mass. filed June 28, 2013) (Plea Agreement). 2 47 CFR. 54.8; 47 CFR 0.111 (delegating to the Bureau authority 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 Section 54.521 to suspend and debar parties from the E-Rate program). In 2007, the Commission extended the debarment rules to apply to all 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, 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), (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). 4 NEC-Business Network Solutions, Inc., Notice of Debarment and Order Denying Waiver Petition, 21 FCC Rcd 7491, 7493, para. 7 (2006). 5 47 CFR 54.503, 54.504(a)(1)(vi); see FederalState Joint Board on Universal Service, CC Docket No. 96–45, Report and Order, 12 FCC Rcd 8776, 9078–80, paras. 480–81 (1997) (subsequent history omitted) (finding that without competitive bidding requirements, the applicant may not receive the most cost-effective services); see also Lazo Technologies, Inc., Order on Reconsideration, 26 FCC Rcd 16661, 16664, para. 7 (2011). PO 00000 Frm 00038 Fmt 4703 Sfmt 4703 Furthermore, the E-Rate program requires applicants to solicit services based on a fair and open competitive bidding process.6 On June 28, 2013, you pleaded guilty to one count of fraud and theft of federal funds in connection with the E-Rate program while employed both as the Director of the Information Technology Department (IT Department) for the City of Lawrence, Massachusetts and also as a city subcontractor through your company, Networks@Home, LLC (Networks@Home).7 As head of the IT Department, your responsibilities included preparing requests for proposals, reviewing and identifying the lowest qualified bids submitted in response to requests for proposal, as well as submitting final proposals to the City of Lawrence’s IT Purchasing Department to certify compliance with Massachusetts’s procurement laws.8 From early 2008 through December 2009, the City of Lawrence received federal grants of over $76 million, including approximately $2.3 million in E-Rate funds, to improve the network and technological infrastructure of the city’s schools and libraries.9 During that same period, you orchestrated a scheme to circumvent the state’s procurement requirements that provided bidding information and instructions to your friends and business associates, who were awarded at least eight contracts with the city totaling $178,555.10 You also hired friends and associates to perform cabling and rewiring work for the city as interns for the IT Department and then, through Networks@Home and another company for which Networks@Home was a subcontractor, billed the City of Lawrence for that work at inflated rates.11 As a result, the city was double-billed for the same work.12 At least a portion of the funds that your friends and business associates and Networks@Home received as a result of these schemes were E-Rate program funds.13 6 47 CFR 54.503(a). The Commission has upheld Universal Service Administrative Company (USAC) decisions that found applicants and service providers violated the Commission’s fair and open competitive bidding requirements and E-Rate program rules. See Request for Review of the Decision of the Universal Service Administrator by Ysleta Independent School District, El Paso, Texas, Federal-State Joint Board on Universal Service, Changes to the Board of Directors of the National Exchange Carrier Association, Inc., SLD Nos. 321479, CC Docket Nos. 96–45, 97–21, Order, 18 FCC Rcd 26407, 26408–09, paras. 1–4 (2003); see also Request for Review of Decisions of the Universal Service Administrator by MasterMind Internet Services, Inc., Federal-State Joint Board on Universal Service, Order, 16 FCC Rcd 4028, 4032– 33, para. 10 (2000). 7 See Plea Agreement at 1, 17; United States v. Cahoon, Criminal Docket No. 1:13–cr–10188–RWZ– 1, Information at 1 (D. Mass. filed June 19, 2013) (Information); see also United States Attorney’s Office, District of Massachusetts, News, Former Lawrence IT Director Pleads Guilty to Fraud and Theft, Aug. 14, 2013, at http://www.justice.gov/ usao/ma/news/2013/August/ CahoonBryanPleaPR.html (Press Release). 8 Information at 2. 9 Id. at 3. 10 Id. at 3–5. 11 Id. at 2–3, 13–16. 12 Id. at 5. 13 Id. at 13–14. E:\FR\FM\19MRN1.SGM 19MRN1 Federal Register / Vol. 79, No. 53 / Wednesday, March 19, 2014 / Notices On December 17, 2013, the United States District Court for the District of Massachusetts sentenced you to serve 12 months and a day in prison followed by a one-year period of supervised release.14 In addition, the court ordered you to pay $465,000 in restitution and a $100 special assessment.15 Pursuant to section 54.8(b) of the Commission’s rules,16 upon your conviction for theft of E-Rate funds, 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 ERate program, or consulting with, assisting, or advising applicants or service providers regarding the E-Rate program.17 Your suspension becomes effective upon either your receipt of this letter or its publication in the Federal Register, whichever comes first.18 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 your receipt of this letter or its publication in the Federal Register, whichever comes first.19 Such requests, however, will not ordinarily be granted.20 The Bureau may reverse or limit the scope of a suspension only upon a finding of extraordinary circumstances.21 The Bureau will decide any request to reverse or modify a suspension within ninety (90) calendar days of its receipt of such request.22 sroberts on DSK5TPTVN1PROD with NOTICES 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 section 54.8(c) of the Commission’s rules.23 Therefore, pursuant to section 54.8(b) 14 United States v. Cahoon, Criminal Docket No. 1:13–cr–10188–RWZ–1, Judgment at 2–3 (D. Mass. filed Dec. 17, 2013). 15 United States v. Cahoon, Criminal Docket No. 1:13–cr–10188–RWZ–1, Order of Restitution (D. Mass. filed Dec. 17, 2013). This restitution order includes $333,306.49 payable to USAC. 16 47 CFR 54.8(a)(4); see Second Report and Order, 18 FCC Rcd at 9225–27, paras. 67–74. 17 47 CFR 54.8(a)(1), (d). 18 Second Report and Order, 18 FCC Rcd at 9226, para. 69; 47 CFR 54.8(e)(1). 19 47 CFR 54.8(e)(4). 20 Id. 21 47 CFR 54.8(f). 22 Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47 CFR 54.8(e)(5), (f). 23 ‘‘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). VerDate Mar<15>2010 18:28 Mar 18, 2014 Jkt 232001 of the Commission’s rules, your conviction requires the Bureau to commence debarment proceedings against you.24 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.25 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.26 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.27 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.28 The Bureau may set a longer debarment period or extend an existing debarment period if necessary to protect the public interest.29 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 and to the attention of Joy M. Ragsdale, Attorney Advisor, Investigations and Hearings Division, Enforcement Bureau, Room 4– C330, Federal Communications Commission, 445 12th Street, SW., Washington, DC 20554 with a copy to Theresa Z. Cavanaugh, Division Chief, Investigations and Hearings Division, Enforcement Bureau, Room 4– C330, Federal Communications Commission, 445 12th Street, SW., Washington, DC 20554. All messenger or hand delivery filings must be submitted without envelopes.30 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–C330, Washington, DC 20554, with a copy to Theresa Z. Cavanaugh, Chief, Investigations and Hearings Division, Enforcement Bureau, Federal Communications Commission, 445 24 Id. 54.8(b). Report and Order, 18 FCC Rcd at 9226, para. 70; 47 CFR 54.8(e)(3). 26 Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47 CFR 54.8(e)(5). 27 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). 28 Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47 CFR 54.8(d), (g). 29 47 CFR 54.8(g). 30 See FCC Public Notice, DA 09–2529 for further filing instructions (rel. Dec. 3, 2009). 25 Second PO 00000 Frm 00039 Fmt 4703 Sfmt 4703 15341 12th Street, SW., Room 4–C330, 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, 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) William F. Bloomer, United States Attorney’s Office, District of Massachusetts (via email) [FR Doc. 2014–06082 Filed 3–18–14; 8:45 am] BILLING CODE 6712–01–P FEDERAL ELECTION COMMISSION [Notice 2014–06] Filing Dates for the New Jersey Special Elections in the 1st Congressional District Federal Election Commission. Notice of filing dates for special elections. AGENCY: ACTION: New Jersey has scheduled special elections on June 3, 2014, and November 4, 2014, to fill the U.S. House of Representatives seat vacated by Representative Robert E. Andrews. Committees required to file reports in connection with the Special Primary Election on June 3, 2014, shall file a 12day Pre-Primary Report. Committees required to file reports in connection with both the Special Primary and the Special General Election on November 4, 2014, shall file a 12-day Pre-Primary Report, 12-day Pre-General Report and a Post-General Report. FOR FURTHER INFORMATION CONTACT: Ms. Elizabeth S. Kurland, Information Division, 999 E Street NW., Washington, DC 20463; Telephone: (202) 694–1100; Toll Free (800) 424–9530. SUPPLEMENTARY INFORMATION: SUMMARY: Principal Campaign Committees All principal campaign committees of candidates who participate in the New Jersey Special Primary and Special General Elections shall file a 12-day PrePrimary Report on May 22, 2014; a 12day Pre-General Report on October 23, 2014; and a Post-General Report on December 4, 2014. (See charts below for the closing date for each report.) E:\FR\FM\19MRN1.SGM 19MRN1

Agencies

[Federal Register Volume 79, Number 53 (Wednesday, March 19, 2014)]
[Notices]
[Pages 15339-15341]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-06082]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 14-249]


Notice of Suspension and Commencement of Proposed Debarment 
Proceedings; Schools and Libraries Universal Service Support Mechanism

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Enforcement Bureau (the ``Bureau'') debars Bryan J. Cahoon 
from the schools and libraries universal service support mechanism (or 
``E-Rate Program'') for a period of three years.

[[Page 15340]]

The Bureau takes this action to protect the E-Rate Program from waste, 
fraud, and abuse.

DATES: Debarment commences on the date Mr. Bryan J. Cahoon receives the 
debarment letter or March 19, 2014, whichever date comes first, for a 
period of three years.

FOR FURTHER INFORMATION CONTACT: Joy M. Ragsdale, Attorney Advisor, 
Federal Communications Commission, Enforcement Bureau, Investigations 
and Hearings Division, Room 4-C330, 445 12th Street SW., Washington, DC 
20554. Joy Ragsdale may be contacted by telephone at (202) 418-1697 or 
by 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 
Terry.Cavanaugh@fcc.gov.

SUPPLEMENTARY INFORMATION: The Bureau debarred Mr. Bryan J. Cahoon from 
the schools and libraries service support mechanism for a period of 
three years pursuant to 47 CFR 54.8. Attached is the debarment letter, 
DA 14-249, which was mailed to Mr. Cahoon and released on February 24, 
2014. 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 http://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 http://www.bcpiweb.com.


Federal Communications Commission.
Theresa Z. Cavanaugh,
Chief, Investigations and Hearings Division, Enforcement Bureau.
February 24, 2014

DA 14-249

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED AND EMAIL

    Mr. Bryan J. Cahoon
Register Number 95443-038
FMC Devens
Federal Medical Center
P.O. Box 879
Ayer, MA 01432

Re: Notice of Suspension and Initiation of Debarment Proceedings FCC 
Case No. EB-IHD-13-00010969

    Dear Mr. Cahoon:
    The Federal Communications Commission (Commission) has received 
notice of your conviction for fraud and theft of federal funds in 
violation of 18 U.S.C. 666(a)(1)(A) in connection with 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 participating in 
activities associated with the E-Rate program. In addition, the 
Enforcement Bureau (Bureau) hereby notifies you that the Bureau will 
commence E-Rate program debarment proceedings against you.\2\
---------------------------------------------------------------------------

    \1\ Any further reference in this letter to ``your conviction'' 
refers to your guilty plea in United States v. Cahoon, Criminal 
Docket No. 1:13-cr-10188-RWZ-1, Plea Agreement (D. Mass. filed June 
28, 2013) (Plea Agreement).
    \2\ 47 CFR. 54.8; 47 CFR 0.111 (delegating to the Bureau 
authority 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 Section 54.521 to suspend and debar parties from the E-
Rate program). In 2007, the Commission extended the debarment rules 
to apply to all 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, 
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), (a)(5), (c), (d), (e)(2)(i), (e)(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 [E-Rate program]'' from 
receiving the benefits associated with that program.\3\ The 
statutory provisions and Commission rules relating to the E-Rate 
program are designed to ensure that all E-Rate funds are used for 
their intended purpose.\4\ Sections 54.503 and 54.504 of the 
Commission's rules provide that an eligible entity must seek 
competitive bids for all services eligible for support and must 
comply with all applicable state and local competitive bidding 
requirements.\5\ Furthermore, the E-Rate program requires applicants 
to solicit services based on a fair and open competitive bidding 
process.\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\ NEC-Business Network Solutions, Inc., Notice of Debarment 
and Order Denying Waiver Petition, 21 FCC Rcd 7491, 7493, para. 7 
(2006).
    \5\ 47 CFR 54.503, 54.504(a)(1)(vi); see Federal-State Joint 
Board on Universal Service, CC Docket No. 96-45, Report and Order, 
12 FCC Rcd 8776, 9078-80, paras. 480-81 (1997) (subsequent history 
omitted) (finding that without competitive bidding requirements, the 
applicant may not receive the most cost-effective services); see 
also Lazo Technologies, Inc., Order on Reconsideration, 26 FCC Rcd 
16661, 16664, para. 7 (2011).
    \6\ 47 CFR 54.503(a). The Commission has upheld Universal 
Service Administrative Company (USAC) decisions that found 
applicants and service providers violated the Commission's fair and 
open competitive bidding requirements and E-Rate program rules. See 
Request for Review of the Decision of the Universal Service 
Administrator by Ysleta Independent School District, El Paso, Texas, 
Federal-State Joint Board on Universal Service, Changes to the Board 
of Directors of the National Exchange Carrier Association, Inc., SLD 
Nos. 321479, CC Docket Nos. 96-45, 97-21, Order, 18 FCC Rcd 26407, 
26408-09, paras. 1-4 (2003); see also Request for Review of 
Decisions of the Universal Service Administrator by MasterMind 
Internet Services, Inc., Federal-State Joint Board on Universal 
Service, Order, 16 FCC Rcd 4028, 4032-33, para. 10 (2000).
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    On June 28, 2013, you pleaded guilty to one count of fraud and 
theft of federal funds in connection with the E-Rate program while 
employed both as the Director of the Information Technology 
Department (IT Department) for the City of Lawrence, Massachusetts 
and also as a city subcontractor through your company, 
Networks@Home, LLC (Networks@Home).\7\ As head of the IT Department, 
your responsibilities included preparing requests for proposals, 
reviewing and identifying the lowest qualified bids submitted in 
response to requests for proposal, as well as submitting final 
proposals to the City of Lawrence's IT Purchasing Department to 
certify compliance with Massachusetts's procurement laws.\8\
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    \7\ See Plea Agreement at 1, 17; United States v. Cahoon, 
Criminal Docket No. 1:13-cr-10188-RWZ-1, Information at 1 (D. Mass. 
filed June 19, 2013) (Information); see also United States 
Attorney's Office, District of Massachusetts, News, Former Lawrence 
IT Director Pleads Guilty to Fraud and Theft, Aug. 14, 2013, at 
http://www.justice.gov/usao/ma/news/2013/August/CahoonBryanPleaPR.html (Press Release).
    \8\ Information at 2.
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    From early 2008 through December 2009, the City of Lawrence 
received federal grants of over $76 million, including approximately 
$2.3 million in E-Rate funds, to improve the network and 
technological infrastructure of the city's schools and libraries.\9\ 
During that same period, you orchestrated a scheme to circumvent the 
state's procurement requirements that provided bidding information 
and instructions to your friends and business associates, who were 
awarded at least eight contracts with the city totaling 
$178,555.\10\
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    \9\ Id. at 3.
    \10\ Id. at 3-5.
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    You also hired friends and associates to perform cabling and 
rewiring work for the city as interns for the IT Department and 
then, through Networks@Home and another company for which 
Networks@Home was a subcontractor, billed the City of Lawrence for 
that work at inflated rates.\11\ As a result, the city was double-
billed for the same work.\12\ At least a portion of the funds that 
your friends and business associates and Networks@Home received as a 
result of these schemes were E-Rate program funds.\13\
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    \11\ Id. at 2-3, 13-16.
    \12\ Id. at 5.
    \13\ Id. at 13-14.

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[[Page 15341]]

    On December 17, 2013, the United States District Court for the 
District of Massachusetts sentenced you to serve 12 months and a day 
in prison followed by a one-year period of supervised release.\14\ 
In addition, the court ordered you to pay $465,000 in restitution 
and a $100 special assessment.\15\
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    \14\ United States v. Cahoon, Criminal Docket No. 1:13-cr-10188-
RWZ-1, Judgment at 2-3 (D. Mass. filed Dec. 17, 2013).
    \15\ United States v. Cahoon, Criminal Docket No. 1:13-cr-10188-
RWZ-1, Order of Restitution (D. Mass. filed Dec. 17, 2013). This 
restitution order includes $333,306.49 payable to USAC.
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    Pursuant to section 54.8(b) of the Commission's rules,\16\ upon 
your conviction for theft of E-Rate funds, 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.\17\ Your suspension becomes effective upon either 
your receipt of this letter or its publication in the Federal 
Register, whichever comes first.\18\
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    \16\ 47 CFR 54.8(a)(4); see Second Report and Order, 18 FCC Rcd 
at 9225-27, paras. 67-74.
    \17\ 47 CFR 54.8(a)(1), (d).
    \18\ Second Report and Order, 18 FCC Rcd at 9226, para. 69; 47 
CFR 54.8(e)(1).
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    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 your receipt of this letter or its 
publication in the Federal Register, whichever comes first.\19\ Such 
requests, however, will not ordinarily be granted.\20\ The Bureau 
may reverse or limit the scope of a suspension only upon a finding 
of extraordinary circumstances.\21\ The Bureau will decide any 
request to reverse or modify a suspension within ninety (90) 
calendar days of its receipt of such request.\22\
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    \19\ 47 CFR 54.8(e)(4).
    \20\ Id.
    \21\ 47 CFR 54.8(f).
    \22\ Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47 
CFR 54.8(e)(5), (f).
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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 
section 54.8(c) of the Commission's rules.\23\ Therefore, pursuant 
to section 54.8(b) of the Commission's rules, your conviction 
requires the Bureau to commence debarment proceedings against 
you.\24\
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    \23\ ``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).
    \24\ 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.\25\ 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.\26\ 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.\27\
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    \25\ Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47 
CFR 54.8(e)(3).
    \26\ Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47 
CFR 54.8(e)(5).
    \27\ 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.\28\ The Bureau may set a longer debarment period or 
extend an existing debarment period if necessary to protect the 
public interest.\29\
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    \28\ Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47 
CFR 54.8(d), (g).
    \29\ 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 
and to the attention of Joy M. Ragsdale, Attorney Advisor, 
Investigations and Hearings Division, Enforcement Bureau, Room 4-
C330, Federal Communications Commission, 445 12th Street, SW., 
Washington, DC 20554 with a copy to Theresa Z. Cavanaugh, Division 
Chief, Investigations and Hearings Division, Enforcement Bureau, 
Room 4-C330, Federal Communications Commission, 445 12th Street, 
SW., Washington, DC 20554. All messenger or hand delivery filings 
must be submitted without envelopes.\30\ 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-C330, Washington, DC 20554, with a copy to Theresa Z. 
Cavanaugh, 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 
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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    \30\ See FCC Public Notice, DA 09-2529 for further filing 
instructions (rel. Dec. 3, 2009).
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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) William F. Bloomer, United States Attorney's Office, District 
of Massachusetts (via email)
[FR Doc. 2014-06082 Filed 3-18-14; 8:45 am]
BILLING CODE 6712-01-P