Notice of Suspension and Commencement of Proposed Debarment Proceedings; Schools and Libraries Universal Service Support Mechanism, 56579-56581 [2014-22499]

Download as PDF asabaliauskas on DSK5VPTVN1PROD with NOTICES Federal Register / Vol. 79, No. 183 / Monday, September 22, 2014 / Notices Privacy Act Impact Assessment: No impact(s). Nature and Extent of Confidentiality: There is no assurance of confidentiality provided to respondents concerning this information collection. However, respondents may request materials or information submitted to the Commission or to the Administrator be withheld from public inspection under 47 CFR 0.459 of the FCC’s rules. Needs and Uses: The Commission seeks to revise OMB 3060–0806 to conform this information collection with changes implemented in the E-Rate Modernization Order (WC Docket No. 13–184, FCC 14–99; 79 FR 49160, August 19, 2014) which seeks to promote the Act’s universal service goals for schools and libraries. This submission proposes revisions to the FCC Form 470 and instructions and FCC Form 471 and instructions. Collection of the information on FCC Forms 470 and 471 is necessary so that the Commission and USAC have sufficient information to determine if entities are eligible for funding pursuant to the schools and libraries support mechanism, to determine if entities are complying with the Commission’s rules, and to prevent waste, fraud, and abuse. The changes to the collection required by the E-rate Modernization Order simplify the application process by moving FCC Forms 470 and 471 to a new electronic filing platform; enabling streamlined review of funding requests that involve multi-year contracts for eligible services; implementing exemptions in the competitive bidding rules for applicants seeking E-rate support to purchase certain commercially available, business-class Internet access services, and/or applicants that take services on a preferred master contract designated by the Bureau; and, implementing a simplified ‘‘district-wide’’ discount calculation mechanism. In addition, the revised collection is necessary in order to allow the Commission to evaluate the extent to which the E-rate program is meeting the statutory objectives specified in section 254(h) of the 1996 Act, and the Commission’s own performance goals established in the Erate Modernization Order. The revisions will enable the Commission to collect data to facilitate measurement of progress towards the adopted program goals and to establish budgets for schools and libraries, including more detailed data on the nature of the services requested. The supporting documents for this submission, including revised forms and instructions, may be accessed via this Web site by searching under ‘‘OMB VerDate Sep<11>2014 17:07 Sep 19, 2014 Jkt 232001 3060–0806’’: https://www.reginfo.gov/ public/do/PRASearch. Federal Communications Commission. Marlene H. Dortch, Secretary, Office of the Secretary, Office of the Managing Director. [FR Doc. 2014–22474 Filed 9–19–14; 8:45 am] BILLING CODE 6712–01–P FEDERAL COMMUNICATIONS COMMISSION [DA 14–1229] 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’’) gives notice of Gregory P. Styles’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. Styles, 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. SUMMARY: Opposition requests must be received by 30 days from the receipt of the suspension letter or September 22, 2014, 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. ADDRESSES: Federal Communications Commission, Enforcement Bureau, Investigations and Hearings Division, Room 4–C330, 445 12th Street SW., Washington, DC 20554. FOR FURTHER INFORMATION CONTACT: Joy Ragsdale, 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 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 Terry.Cavanaugh@fcc.gov. DATES: PO 00000 Frm 00025 Fmt 4703 Sfmt 4703 56579 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 14–1229, which was mailed to Mr. Styles and released on August 26, 2014. 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. SUPPLEMENTARY INFORMATION: Federal Communications Commission. Theresa Z. Cavanaugh, Chief, Investigations and Hearings Division, Enforcement Bureau. August 26, 2014 DA 14–1229 SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED Mr. Gregory Paul Styles, 15506 Banjo Court, Woodbridge, VA 22193 Re: Notice of Suspension and Initiation of Debarment Proceeding File No. EB–IHD–14–00013502 Dear Mr. Styles: The Federal Communications Commission (Commission) has received notice of your conviction for conspiracy to commit mail fraud in violation of 18 U.S.C 371,1 a conviction that arose out of activities associated with the federal schools and libraries universal service support mechanism (E-Rate program). Consequently, pursuant to 47 CFR 54.8, this letter constitutes official notice of your suspension from the E-Rate program.2 In addition, the Enforcement Bureau (Bureau) hereby notifies you that 1 Any further reference in this letter to ‘‘your conviction’’ refers to your guilty plea and subsequent sentencing for conspiring to defraud the United States in United States v. Styles, Criminal Docket No. 1:06–CR–00013–LJO–1, Plea Agreement (E.D. Cal. filed Oct. 22, 2010) (Plea Agreement). 2 47 CFR 54.8. E:\FR\FM\22SEN1.SGM 22SEN1 56580 Federal Register / Vol. 79, No. 183 / Monday, September 22, 2014 / Notices the Bureau will commence debarment proceedings against you.3 asabaliauskas on DSK5VPTVN1PROD with NOTICES 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.4 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.5 Sections 54.503 and 54.511 of the Commission’s rules require that solicitations for E-Rate services be based on a fair and open competitive bidding process that is free from conflicts of interest.6 On November 1, 2010, you pled guilty to conspiring with others to defraud the E-Rate program. During the course of that conspiracy, you used your position as the Management Information Systems Director (MIS Director) for the 3 Id. 0.111 (delegating to the Enforcement 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, 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)). 4 Second Report and Order, 118 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). 5 NEC-Business Network Solutions, Inc., Notice of Debarment and Order Denying Waiver Petition, 21 FCC Rcd 7491, 7493, para. 7 (2006). 6 47 CFR 54.503, 54.511(a); 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); Lazo Technologies, Inc., Order on Reconsideration, 26 FCC Rcd 16661, 16664, para. 7 (2011) (explaining that a service provider may not be involved in the competitive bidding process other than as a bidder) (Lazo Recon. Order); see also USAC’s Web site description of an Open and Fair Competitive Bidding Process, Step 2 available at https:// www.universalservice.org/sl/applicants/step02/ competitive-bidding.aspx (last visited June 9, 2014). VerDate Sep<11>2014 17:07 Sep 19, 2014 Jkt 232001 Chowchilla Elementary School District (CESD) to circumvent the E-Rate program’s competitive bidding rules.7 As the MIS Director, you were responsible for CESD’s E-Rate procurement process, which included reviewing bids, selecting service providers, awarding contracts, and billing the Universal Service Administrative Company (USAC) for ERate work.8 Those responsibilities made you ineligible to bid on CESD E-Rate projects or receive funds for those projects from USAC.9 To circumvent these prohibitions, you conspired with Marvin Freeman to have his silk screening business, Twisted Head Design, bid on CESD E-Rate contracts.10 You then selected Twisted Head Design’s bids knowing that the company was unqualified to perform E-Rate work, performed the work yourself or had it performed through subcontractors, and billed USAC for the work.11 As a result of your fraudulent scheme, USAC disbursed $787,950 to Mr. Freeman, a substantial portion of which Mr. Freeman forwarded to you and which you deposited in your bank account.12 On March 17, 2011, the United States District Court for the Eastern District of California sentenced you to serve 30 days in prison followed by three years of supervised release.13 The court also ordered you to pay $40,000 in restitution to CESD 14 and a $100 special assessment, and to forfeit certain personal property.15 Pursuant to § 54.8(b) of the Commission’s rules,16 your conviction requires the Bureau to suspend you from participating in any activities 7 Plea Agreement at 10–12; see also United States Attorney’s Office, Eastern District of California, Press Releases, Two Plead Guilty in Scheme to Defraud the Chowchilla Elementary School District, Nov. 1, 2010, available at https://www.fbi.gov/ sacramento/press-releases/2010/sc110110.html. 8 United States v. Styles, Criminal Docket No. 1:06–CR–00013–001, Indictment at 2 (E.D. Cal. filed Jan. 19, 2006) (Indictment). 9 See Lazo Recon. Order, 26 FCC Rcd at 16664, para. 7. 10 Plea Agreement at 11; see Indictment at 6. The Bureau is also serving a notice of suspension and initiation of debarment proceedings on Mr. Freeman. See Letter from Theresa Z. Cavanaugh, Chief, Investigations and Hearings Division, FCC Enforcement Bureau, to Marvin Mitchell Freeman, Notice of Suspension and Initiation of Debarment Proceedings, DA 14–1230 (Enf. Bur. Aug. 26, 2014). 11 Plea Agreement at 11; see Indictment at 6. 12 Plea Agreement at 12; see Indictment at 9, 12. 13 United States v. Styles, Criminal Docket No. 1:06–CR–00013–001, Judgment at 1¥5 (E.D. Cal. filed Mar. 17, 2011, amended June 15, 2011) (Judgment). 14 Id. at 5. The court ordered Messrs. Styles and Freeman to pay this restitution joint and severally. Id. at 6. 15 Id. 16 47 CFR 54.8(a)(4); see Second Report and Order, 18 FCC Rcd at 9225–27, paras. 67–74. PO 00000 Frm 00026 Fmt 4703 Sfmt 4703 associated with or related to the E-Rate program, including receiving 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 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 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.23 Therefore, pursuant to § 54.8(b) 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 17 47 CFR 54.8(a)(1), (d). 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). 24 Id. 54.8(b). 18 Second E:\FR\FM\22SEN1.SGM 22SEN1 Federal Register / Vol. 79, No. 183 / Monday, September 22, 2014 / Notices asabaliauskas on DSK5VPTVN1PROD with NOTICES 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, 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). 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). VerDate Sep<11>2014 17:07 Sep 19, 2014 Jkt 232001 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 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); Mark J. McKeon, United States Attorney’s Office, Eastern District of California (via email) [FR Doc. 2014–22499 Filed 9–19–14; 8:45 am] BILLING CODE 6712–01–P FEDERAL MARITIME COMMISSION Sunshine Act Meetings AGENCY: Federal Maritime Commission. TIME AND DATE: September 25, 2014; 10 a.m. 800 N. Capitol Street NW., First Floor Hearing Room, Washington, DC. PLACE: The meeting will be held in Open Session. STATUS: MATTERS TO BE CONSIDERED: Open Session 1. Briefing by Chairman Cordero on Public Forum held September 15th at the Port of Los Angeles Concerning Causes and Implications of Congestion at U.S. Ports 2. Briefing on Publication of Ocean Transportation Intermediary Licensing Information on Commission’s Web site 3. Docket No. 13–05, Amendments to Regulations Governing Ocean Transportation Intermediary Licensing and Financial Responsibility Requirements, and General Duties PO 00000 Frm 00027 Fmt 4703 Sfmt 4703 56581 CONTACT PERSON FOR MORE INFORMATION: Karen V. Gregory, Secretary (202) 523 5725. Karen V. Gregory, Secretary. [FR Doc. 2014–22565 Filed 9–18–14; 4:15 pm] BILLING CODE 6730–01–P FEDERAL RESERVE SYSTEM Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB Board of Governors of the Federal Reserve System. SUMMARY: Notice is hereby given of the final approval of a proposed information collection by the Board of Governors of the Federal Reserve System (Board) under OMB delegated authority, as per 5 CFR 1320.16 (OMB Regulations on Controlling Paperwork Burdens on the Public). Board-approved collections of information are incorporated into the official OMB inventory of currently approved collections of information. Copies of the Paperwork Reduction Act Submission, supporting statements and approved collection of information instrument(s) are placed into OMB’s public docket files. The Federal Reserve may not conduct or sponsor, and the respondent is not required to respond to, an information collection that has been extended, revised, or implemented on or after October 1, 1995, unless it displays a currently valid OMB control number. FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Acting Clearance Officer—John Schmidt—Office of the Chief Data Officer, Board of Governors of the Federal Reserve System, Washington, DC 20551 (202) 452–3829. Telecommunications Device for the Deaf (TDD) users may contact (202) 263– 4869, Board of Governors of the Federal Reserve System, Washington, DC 20551. OMB Desk Officer—Shagufta Ahmed—Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Room 10235, 725 17th Street NW., Washington, DC 20503. Final approval under OMB delegated authority of the extension for three years, without revision, of the following report: Report title: Disclosure Requirements in Connection with Regulation CC (Expedited Funds Availability Act (EFAA)). Agency form number: Reg CC. OMB control number: 7100–0235. AGENCY: E:\FR\FM\22SEN1.SGM 22SEN1

Agencies

[Federal Register Volume 79, Number 183 (Monday, September 22, 2014)]
[Notices]
[Pages 56579-56581]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-22499]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 14-1229]


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'') gives notice of 
Gregory P. Styles'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. Styles, 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 September 22, 2014, 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.

ADDRESSES: Federal Communications Commission, Enforcement Bureau, 
Investigations and Hearings Division, Room 4-C330, 445 12th Street SW., 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Joy Ragsdale, 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 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 Terry.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 14-1229, 
which was mailed to Mr. Styles and released on August 26, 2014. 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.

August 26, 2014
DA 14-1229

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

Mr. Gregory Paul Styles, 15506 Banjo Court, Woodbridge, VA 22193

Re: Notice of Suspension and Initiation of Debarment Proceeding File 
No. EB-IHD-14-00013502

    Dear Mr. Styles: The Federal Communications Commission (Commission) 
has received notice of your conviction for conspiracy to commit mail 
fraud in violation of 18 U.S.C 371,\1\ a conviction that arose out of 
activities associated with the federal schools and libraries universal 
service support mechanism (E-Rate program). Consequently, pursuant to 
47 CFR 54.8, this letter constitutes official notice of your suspension 
from the E-Rate program.\2\ In addition, the Enforcement Bureau 
(Bureau) hereby notifies you that

[[Page 56580]]

the Bureau will commence debarment proceedings against you.\3\
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    \1\ Any further reference in this letter to ``your conviction'' 
refers to your guilty plea and subsequent sentencing for conspiring 
to defraud the United States in United States v. Styles, Criminal 
Docket No. 1:06-CR-00013-LJO-1, Plea Agreement (E.D. Cal. filed Oct. 
22, 2010) (Plea Agreement).
    \2\ 47 CFR 54.8.
    \3\ Id. 0.111 (delegating to the Enforcement 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, 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)).
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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.\4\ 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.\5\ Sections 54.503 and 54.511 of the Commission's rules 
require that solicitations for E-Rate services be based on a fair and 
open competitive bidding process that is free from conflicts of 
interest.\6\
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    \4\ Second Report and Order, 118 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).
    \5\ NEC-Business Network Solutions, Inc., Notice of Debarment 
and Order Denying Waiver Petition, 21 FCC Rcd 7491, 7493, para. 7 
(2006).
    \6\ 47 CFR 54.503, 54.511(a); 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); Lazo 
Technologies, Inc., Order on Reconsideration, 26 FCC Rcd 16661, 
16664, para. 7 (2011) (explaining that a service provider may not be 
involved in the competitive bidding process other than as a bidder) 
(Lazo Recon. Order); see also USAC's Web site description of an Open 
and Fair Competitive Bidding Process, Step 2 available at https://www.universalservice.org/sl/applicants/step02/competitive-bidding.aspx (last visited June 9, 2014).
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    On November 1, 2010, you pled guilty to conspiring with others to 
defraud the E-Rate program. During the course of that conspiracy, you 
used your position as the Management Information Systems Director (MIS 
Director) for the Chowchilla Elementary School District (CESD) to 
circumvent the E-Rate program's competitive bidding rules.\7\ As the 
MIS Director, you were responsible for CESD's E-Rate procurement 
process, which included reviewing bids, selecting service providers, 
awarding contracts, and billing the Universal Service Administrative 
Company (USAC) for E-Rate work.\8\ Those responsibilities made you 
ineligible to bid on CESD E-Rate projects or receive funds for those 
projects from USAC.\9\ To circumvent these prohibitions, you conspired 
with Marvin Freeman to have his silk screening business, Twisted Head 
Design, bid on CESD E-Rate contracts.\10\ You then selected Twisted 
Head Design's bids knowing that the company was unqualified to perform 
E-Rate work, performed the work yourself or had it performed through 
subcontractors, and billed USAC for the work.\11\ As a result of your 
fraudulent scheme, USAC disbursed $787,950 to Mr. Freeman, a 
substantial portion of which Mr. Freeman forwarded to you and which you 
deposited in your bank account.\12\
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    \7\ Plea Agreement at 10-12; see also United States Attorney's 
Office, Eastern District of California, Press Releases, Two Plead 
Guilty in Scheme to Defraud the Chowchilla Elementary School 
District, Nov. 1, 2010, available at https://www.fbi.gov/sacramento/press-releases/2010/sc110110.html.
    \8\ United States v. Styles, Criminal Docket No. 1:06-CR-00013-
001, Indictment at 2 (E.D. Cal. filed Jan. 19, 2006) (Indictment).
    \9\ See Lazo Recon. Order, 26 FCC Rcd at 16664, para. 7.
    \10\ Plea Agreement at 11; see Indictment at 6. The Bureau is 
also serving a notice of suspension and initiation of debarment 
proceedings on Mr. Freeman. See Letter from Theresa Z. Cavanaugh, 
Chief, Investigations and Hearings Division, FCC Enforcement Bureau, 
to Marvin Mitchell Freeman, Notice of Suspension and Initiation of 
Debarment Proceedings, DA 14-1230 (Enf. Bur. Aug. 26, 2014).
    \11\ Plea Agreement at 11; see Indictment at 6.
    \12\ Plea Agreement at 12; see Indictment at 9, 12.
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    On March 17, 2011, the United States District Court for the Eastern 
District of California sentenced you to serve 30 days in prison 
followed by three years of supervised release.\13\ The court also 
ordered you to pay $40,000 in restitution to CESD \14\ and a $100 
special assessment, and to forfeit certain personal property.\15\
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    \13\ United States v. Styles, Criminal Docket No. 1:06-CR-00013-
001, Judgment at 1-5 (E.D. Cal. filed Mar. 17, 2011, amended June 
15, 2011) (Judgment).
    \14\ Id. at 5. The court ordered Messrs. Styles and Freeman to 
pay this restitution joint and severally. Id. at 6.
    \15\ Id.
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    Pursuant to Sec.  54.8(b) of the Commission's rules,\16\ your 
conviction requires the Bureau to suspend you from participating in any 
activities associated with or related to the E-Rate program, including 
receiving 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 Sec.  
54.8(c) of the Commission's rules.\23\ Therefore, pursuant to Sec.  
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

[[Page 56581]]

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 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);
    Mark J. McKeon, United States Attorney's Office, Eastern District 
of California (via email)

[FR Doc. 2014-22499 Filed 9-19-14; 8:45 am]
BILLING CODE 6712-01-P
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