# February 26, 2009

# **DA 09-471**

# 

# **[VIA CERTIFIED MAIL]{.underline}** 

## [RETURN RECEIPT REQUESTED AND FACSIMILE (510-452-8405)]{.underline}

Mr. Ruben B. Bohuchot

c/o Richard Alan Anderson\
Federal Public Defender - Dallas\
525 Griffin Street\
Suite 629\
Dallas, TX 75202

> **Re: Notice of Suspension and Initiation of Debarment Proceedings,**
>
> **File No. EB-08-IH-5312**

Dear Mr. Bohuchot:

The Federal Communications Commission ("FCC" or "Commission") has
received notice of your conviction of federal crimes, including
conspiracy to commit bribery, conspiracy to launder monetary
instruments, multiple counts of bribery concerning programs receiving
federal funds, obstruction of justice and making false statements on tax
returns, in connection with your participation in the schools and
libraries universal service support mechanism ("E-Rate program").[^1]
Consequently, pursuant to 47 C.F.R. § 54.8, this letter constitutes
official notice of your suspension from the E-Rate program. In addition,
the Enforcement Bureau ("Bureau") hereby notifies you that we are
commencing debarment proceedings against you.[^2]

I.  **Notice of Suspension**

The Commission has established procedures to prevent persons who have
"defrauded the government or engaged in similar acts through activities
associated with or related to the schools and libraries support
mechanism" from receiving the benefits associated with that program.[^3]
On November 12, 2008, the United States District Court in Texas
sentenced you to serve eleven years in prison following your conviction
of federal crimes, including conspiracy to commit bribery involving
federal funds, conspiracy to launder monetary instruments, multiple
counts of bribery involving federal funds, and other related offenses in
connection with your participation the E-Rate program.[^4] In addition,
you and a co-conspirator will have to forfeit approximately \$1 million
as a result of your conviction.[^5]

As the former Chief Technology Officer of the Dallas Independent School
District ("DISD"), you were in charge of procuring technology contracts
for DISD. In this position, you participated in a bribery and money
laundering scheme involving DISD technology projects, including a
contract that involved E-Rate funds for Funding Year 2002 ("E-Rate FY
2002 Contract").[^6] Specifically, you provided assistance to the
efforts of your co-defendant, Frankie Logyang Wong ("Mr. Wong"), former
co-owner and president of Micro Systems Engineering, Inc. ("MSE"),[^7]
which enabled MSE to obtain a contract to provide E-Rate services to
DISD.[^8] In exchange for your role in helping MSE obtain the E-Rate FY
2002 Contract, you received bribes that included extensive access to and
control of large sports-fishing vessels, payment for numerous vacations
and various entertainment services, and cash that you attempted to
disguise as repayments from another individual for living expenses.[^9]
MSE received at least \$35 million in aggregate revenue from DISD and
the Universal Service Administrative Company as a result of its
participation in the DISD E-Rate FY 2002 Contract.[^10]

Pursuant to section 54.8(a)(4) of the Commission's rules,[^11] your
conviction requires the Bureau to suspend you from participating in any
activities associated with or related to the schools and libraries fund
mechanism, including the receipt of funds or discounted services through
the schools and libraries fund mechanism, or consulting with, assisting,
or advising applicants or service providers regarding the schools and
libraries support mechanism.[^12] Your suspension becomes effective upon
the earlier of your receipt of this letter or publication of notice in
the Federal Register.[^13]

Suspension is immediate pending the Bureau's final debarment
determination. In accordance with the Commission's debarment rules, you
may contest this suspension or the scope of this suspension by filing
arguments in opposition to the suspension, with any relevant
documentation. Your request must be received within 30 days after you
receive this letter or after notice is published in the Federal
Register, whichever comes first.[^14] Such requests, however, will not
ordinarily be granted.[^15] The Bureau may reverse or limit the scope of
suspension only upon a finding of extraordinary circumstances.[^16]
Absent extraordinary circumstances, the Bureau will decide any request
for reversal or modification of suspension within 90 days of its receipt
of such request.[^17]

II. **Initiation of Debarment Proceedings**

Your conviction of criminal conduct in connection with the E-Rate
program, in addition to serving as a basis for immediate suspension from
the program, also serves as a basis for the initiation of debarment
proceedings against you. Your conviction falls within the categories of
causes for debarment defined in section 54.8(c) of the Commission's
rules.[^18] Therefore, pursuant to section 54.8(a)(4) of the
Commission's rules, your conviction requires the Bureau to commence
debarment proceedings against you.

As with your suspension, you may contest debarment or the scope of the
proposed debarment by filing arguments and any relevant documentation
within 30 calendar days of the earlier of the receipt of this letter or
of publication in the Federal Register.[^19] Absent extraordinary
circumstances, the Bureau will debar you.[^20] Within 90 days of receipt
of any opposition to your suspension and proposed debarment, the Bureau,
in the absence of extraordinary circumstances, will provide you with
notice of its decision to debar.[^21] If the Bureau decides to debar
you, its decision will become effective upon the earlier of your receipt
of a debarment notice or publication of the decision in the Federal
Register.[^22]

If and when your debarment becomes effective, you will be prohibited
from participating in activities associated with or related to the
schools and libraries support mechanism for at least three years from
the date of debarment.[^23] The Bureau may, if necessary to protect the
public interest, extend the debarment period.[^24]

Please direct any response, if by messenger or hand delivery, to Marlene
H. Dortch, Secretary, Federal Communications Commission, 236
Massachusetts Avenue, N.E., Suite 110, Washington, D.C. 20002, to the
attention of Rebekah Bina, Attorney Advisor, Investigations and Hearings
Division, Enforcement Bureau, Room 4-C330, with a copy to Vickie
Robinson, Assistant Chief, Investigations and Hearings Division,
Enforcement Bureau, Room 4-C330, Federal Communications Commission. If
sent by commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail), the response should be sent to the
Federal Communications Commission, 9300 East Hampton Drive, Capitol
Heights, Maryland 20743. If sent by first-class, Express, or Priority
mail, the response should be sent to Rebekah Bina, Attorney Advisor,
Investigations and Hearings Division, Enforcement Bureau, Federal
Communications Commission, 445 12^th^ Street, S.W., Room 4-C330,
Washington, DC, 20554, with a copy to Vickie Robinson, Assistant Chief,
Investigations and Hearings Division, Enforcement Bureau, Federal
Communications Commission, 445 12^th^ Street, S.W., Room 4-C330,
Washington, DC, 20554. You shall also transmit a copy of the response
via email to Rebekah.Bina@fcc.gov and to Vickie.Robinson@fcc.gov.

If you have any questions, please contact Ms. Bina via mail, by
telephone at (202) 418-7931 or by e-mail at Rebekah.Bina@fcc.gov. If Ms.
Bina is unavailable, you may contact Ms. Vickie Robinson, Assistant
Chief, Investigations and Hearings Division, by telephone at (202)
418-1420 and by e-mail at Vickie.Robinson@fcc.gov.

> Sincerely yours,

Hillary S. DeNigro

Chief

Investigations and Hearings Division

Enforcement Bureau

cc: Kristy Carroll, Esq., Universal Service Administrative Company (via
e-mail)

> Dayle A. Elieson, U.S. Attorney's Office, United States Department of
>
> Justice (via mail)

[^1]: *See* 18 U.S.C. §§ 371 (conspiracy to bribery involving federal
    programs), 666(a)(1)(B) and 2 (bribery concerning programs receiving
    federal funds and aiding and abetting), 1512(c) (obstructing and
    impeding an official proceeding), and 1956(h) (conspiracy to lauder
    monetary instruments) and 26 U.S.C. § 7206(1) (false statements on a
    tax return). Any further reference in this letter to "your
    conviction" refers to your thirteen count conviction. *United States
    v. Ruben B. Bohuchot*, Criminal Docket No. 3:07-CR-00167-L -1,
    Judgment (N.D. Tex. filed Nov. 14, 2008 and entered Nov. 17, 2008;
    amended Nov. 25, 2008) ("*Ruben Bohuchot Judgment*").

[^2]: 47 C.F.R. § 54.8; 47 C.F.R. § 0.111 (delegating to the Enforcement
    Bureau authority to resolve universal service suspension and
    debarment proceedings). The Commission adopted debarment rules for
    the schools and libraries universal service support mechanism in
    2003. *See Schools and Libraries Universal Service Support
    Mechanism*, Second Report and Order and Further Notice of Proposed
    Rulemaking, 18 FCC Rcd 9202 (2003) ("*Second Report and Order*")
    (adopting section 54.521 to suspend and debar parties from the
    E-rate program). In 2007, the Commission extended the debarment
    rules to apply to all of the Federal universal service support
    mechanisms. *Comprehensive Review of the Universal Service Fund
    Management, Administration, and Oversight; Federal-State Joint Board
    on Universal Service; Schools and Libraries Universal Service
    Support Mechanism; Lifeline and Link Up; Changes to the Board of
    Directors for the National Exchange Carrier Association, Inc.*,
    Report and Order, 22 FCC Rcd 16372, 16410-12 (2007) (*Program
    Management Order*) (renumbering section 54.521 of the universal
    service debarment rules as section 54.8 and amending subsections
    (a)(1), (5), (c), (d), (e)(2)(i), (3), (e)(4), and (g)).

[^3]: *See* *Second Report and Order*, 18 FCC Rcd at 9225, ¶ 66;
    *Program Management Order*, 22 FCC Rcd at 16387, ¶ 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 C.F.R. § 54.8(a)(6).

[^4]: *See supra* note 1. *See also*
    http://dallas.fbi.gov/dojpressrel/pressrel08/dl111208.htm (accessed
    Dec. 8, 2008) ("*DOJ November 12, 2008 Ruben Bohuchot Press
    Release*"); *Ruben Bohuchot Judgment* at 1-2.

[^5]: *See DOJ November 12, 2008 Ruben Bohuchot Press Release*; *Ruben
    Bohuchot Judgment* at 2 and 8.

[^6]: *See United States v. Ruben B. Bohuchot. et al*., Criminal Docket
    No. 3:07-CR-167-L-2, Indictment at 1,5-6,15 (N.D.Tex. filed May 22,
    2007, and entered May. 24, 2007, under seal; unsealed May 29, 2007).
    ("*DISD Indictment*"); *see also DOJ November 12, 2008 Ruben
    Bohuchot Press Release*.

[^7]: In a separate letter, we also serve notice of suspension and
    initiation of debarment proceedings to Frankie Logyang Wong for his
    role in the DISD bribery and money laundering scheme, pursuant to
    his conviction. *See* Letter from Hillary S. DeNigro, Chief
    Investigations and Hearings Division, Enforcement Bureau, to Frankie
    Logyang Wong, Notice of Suspension and Initiation of Debarment
    Proceedings, DA 09-473 (Inv. & Hearings Div., Enf. Bur. Feb. 26,
    2009). MSE operated as a computer reseller firm providing computer
    products and services to large corporations and school districts.
    *See* *DISD Indictment* at 2.

[^8]: *See DISD Indictment* at 5-6; *DOJ November 12, 2008 Ruben
    Bohuchot Press Release*. MSE was able to obtain two contracts with
    DISD worth approximately \$120 million as a result of information
    that Mr. Wong received from Mr. Bohuchot. *DISD Indictment* at 2-4.
    In this proceeding, we only address the contract involving E-Rate
    services.

[^9]: *DISD Indictment* at 4-5, 7-21; *DOJ November 12, 2008 Ruben
    Bohuchot Press Release*.

[^10]: *DISD Indictment* at 6. Based on a winning bid proposal prepared
    utilizing information that Mr. Wong received from Mr. Bohuchot, MSE
    received at least \$4 million as a subcontractor under another
    contract with DISD. *See DISD Indictment* at 4; *DOJ November 12,
    2008 Ruben Bohuchot Press Release* at 2.

[^11]: 47 C.F.R. § 54.8(a)(4). *See* *Second Report and Order*, 18 FCC
    Rcd at 9225-9227, ¶¶ 67-74.

[^12]: 47 C.F.R. § 54.8(a)(1), (d).

[^13]: *Second Report and Order*, 18 FCC Rcd at 9226, ¶ 69; 47 C.F.R. §
    54.8(e)(1).

[^14]: 47 C.F.R. § 54.8(e)(4).

[^15]: *Id*.

[^16]: 47 C.F.R. § 54.8(e)(5).

[^17]: *See Second Report and Order*, 18 FCC Rcd at 9226, ¶ 70; 47
    C.F.R. §§ 54.8(e)(5), 54.8(f).

[^18]: "Causes for suspension and debarment are the conviction of or
    civil judgment for attempt or commission of criminal fraud, theft,
    embezzlement, forgery, bribery, falsification or destruction of
    records, making false statements, receiving stolen property, making
    false claims, obstruction of justice and other fraud or criminal
    offense arising out of activities associated with or related to the
    schools and libraries support mechanism, the high-cost support
    mechanism, the rural healthcare support mechanism, and the
    low-income support mechanism." 47 C.F.R. § 54.8(c). Such activities
    "include the receipt of funds or discounted services through \[the
    Federal universal service\] support mechanisms, or consulting with,
    assisting, or advising applicants or service providers regarding
    \[the Federal universal service\] support mechanisms." 47 C.F.R.
    § 54.8(a)(1).

[^19]: *See Second Report and Order,* 18 FCC Rcd at 9226, ¶ 70; 47
    C.F.R. § 54.8(e)(3).

[^20]: *Second Report and Order,* 18 FCC Rcd at 9227, ¶ 74.

[^21]: *See id.,* 18 FCC Rcd at 9226, ¶ 70; 47 C.F.R. § 54.8(e)(5).

[^22]: 47 C.F.R. § 54.8(e)(5). The Commission may reverse a debarment,
    or may limit the scope or period of debarment upon a finding of
    extraordinary circumstances, following the filing of a petition by
    you or an interested party or upon motion by the Commission. 47
    C.F.R. § 54.8(f).

[^23]: *Second Report and Order*, 18 FCC Rcd at 9225, ¶ 67; 47 C.F.R. §§
    54.8(d), 54.8(g).

[^24]: 47 C.F.R. § 54.8(g).