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
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.
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 https://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]
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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 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.
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)).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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
https://www.justice.gov/usao/ma/news/2013/August/CahoonBryanPleaPR.html (Press Release).
\8\ Information at 2.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\9\ Id. at 3.
\10\ Id. at 3-5.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\11\ Id. at 2-3, 13-16.
\12\ Id. at 5.
\13\ Id. at 13-14.
---------------------------------------------------------------------------
[[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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\28\ Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47
CFR 54.8(d), (g).
\29\ 47 CFR 54.8(g).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\30\ See FCC Public Notice, DA 09-2529 for further filing
instructions (rel. Dec. 3, 2009).
---------------------------------------------------------------------------
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