# October 18, 2007

# **DA 07-4335**

# 

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

## [RETURN RECEIPT REQUESTED AND FACSIMILE (404-261-2842)]{.underline}

Mrs. Evelyn Myers Scott

c/o Charles M. Abbott, Esq.

C. Michael Abbott, P.C.

3127 Maple Drive, N.E.

Atlanta, GA 30305-2503

E-Mail: michael@michaelabbottlaw.com

> **Re: Notice of Suspension and Initiation of Debarment Proceedings,**
>
> **File No. EB-07-IH-7305**

Dear Mrs. Scott:

The Federal Communications Commission ("FCC" or "Commission") has
received notice of your conviction for conspiracy to defraud the United
States in violation of 18 U.S.C. § 371 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.
§ 54.521, 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]
You pled guilty to engaging in a conspiracy to defraud the United States
in connection with your participation in the E-Rate program.[^4] You
admitted that while employed by the Atlanta Public Schools ("APS")
Information Services Department, you conspired with others, including
your husband Arthur R. Scott ("Scott"), to enter into an E-Rate contract
with a vendor on behalf of APS. In return for entering into the E-Rate
contract, the vendor agreed to pay money to the consulting firm owned by
you and Scott.[^5] The loss and the restitution that you owed to the
E-Rate program resulting from the criminal offense was \$300,176.10.[^6]

Pursuant to section 54.521(a)(4) of the Commission's rules,[^7] 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.[^8] Your suspension becomes effective upon
the earlier of your receipt of this letter or publication of notice in
the Federal Register.[^9]

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.[^10] Such requests, however, will not
ordinarily be granted.[^11] The Bureau may reverse or limit the scope of
suspension only upon a finding of extraordinary circumstances.[^12]
Absent extraordinary circumstances, the Bureau will decide any request
for reversal or modification of suspension within 90 days of its receipt
of such request.[^13]

II. **Initiation of Debarment Proceedings**

Your guilty plea to 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 54.521(c) of the Commission's
rules.[^14] Therefore, pursuant to section 54.521(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.[^15] Absent extraordinary
circumstances, the Bureau will debar you.[^16] 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.[^17] 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.[^18]

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 three years from the date of
debarment.[^19] The Bureau may, if necessary to protect the public
interest, extend the debarment period.[^20]

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 Diana Lee, 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 Diana Lee, 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 diana.lee@fcc.gov and to vickie.robinson@fcc.gov.

If you have any questions, please contact Ms. Lee via mail, by telephone
at (202) 418-1420 or by e-mail at [diana.lee@fcc.gov]{.underline}. If
Ms. Lee 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)

Aaron M. Danzig, Esq., Assistant United States Attorney

[^1]: Any further reference in this letter to "your conviction" refers
    to your May 2, 2007 guilty plea and subsequent conviction of
    conspiracy to defraud the United States. *United States v. Evelyn
    Myers Scott*, Criminal Docket No. 1:07-CR-139-CC-02, Plea Agreement
    (N.D.Ga. filed May 2, 2007 and entered May 7, 2007) ("*Myers Scott
    Plea Agreement*"); *United States v. Evelyn Myers Scott*,
    1:07-CR-139-CC-02, Judgment (N.D.Ga. filed and entered Oct. 2, 2007)
    ("*Myers Scott Judgment*").

[^2]: 47 C.F.R. § 54.521; 47 C.F.R. § 0.111(a)(14) (delegating to the
    Enforcement Bureau authority to resolve universal service suspension
    and debarment proceedings pursuant to 47 C.F.R. § 54.521).

[^3]: *See* *Schools and Libraries Universal Service Support Mechanism*,
    Second Report and Order and Further Notice of Proposed Rulemaking,
    18 FCC Rcd 9202, 9225, ¶ 66 (2003) ("*Second Report and Order*").
    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. § 54.521(a)(6).

[^4]: *See generally United States v. Arthur R. Scott and Evelyn Myers
    Scott a/k/a Evelyn M. Myers*, Criminal Docket No. 1:07-CR-139,
    Information (N.D.Ga. filed Apr. 30, 2007 and entered May 3, 2007)
    ("*Scott and Myers Scott Information*"); *Myers Scott Plea
    Agreement* at 1.

[^5]: *Scott and Myers Scott Information* at 1-9. *See also* Letter from
    Hillary S. DeNigro, Chief, Investigations and Hearings Division,
    Enforcement Bureau, to Arthur R. Scott, DA 07-4336, dated October
    18, 2007.

[^6]: *See Myers Scott Judgment* at 5; *see also Myers Scott Plea
    Agreement* at 4.

[^7]: 47 C.F.R. § 54.521(a)(4). *See* *Second Report and Order*, 18 FCC
    Rcd at 9225-9227, ¶¶ 67-74 (2003).

[^8]: *Second Report and Order*, 18 FCC Rcd at 9225, ¶ 67; 47 U.S.C. §
    254; 47 C.F.R §§ 54.502-54.503; 47 C.F.R. § 54.521(a)(4).

[^9]: *Second Report and Order*, 18 FCC Rcd at 9226, ¶ 69; 47 C.F.R. §
    54.521(e)(1).

[^10]: *Second Report and Order*, 18 FCC Rcd at 9226, ¶ 70; 47 C.F.R. §
    54.521(e)(4).

[^11]: *Second Report and Order*, 18 FCC Rcd at 9226, ¶ 70.

[^12]: 47 C.F.R. § 54.521(e)(5).

[^13]: *See Second Report and Order*, 18 FCC Rcd at 9226, ¶ 70; 47
    C.F.R. §§ 54.521(e)(5), 54.521(f).

[^14]: "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." 47 C.F.R. § 54.521(c).
    Such activities "include the receipt of funds or discounted services
    through the schools and libraries support mechanism, or consulting
    with, assisting, or advising applicants or service providers
    regarding schools and libraries support mechanism described in this
    section (\[47 C.F. R.\] § 54.500 *et seq*.)." 47 C.F.R. §
    54.521(a)(1).

[^15]: *See Second Report and Order,* 18 FCC Rcd at 9226, ¶ 70; 47
    C.F.R. §§ 54.521(e)(2)(i), 54.521(e)(3).

[^16]: *Second Report and Order,* 18 FCC Rcd at 9227, ¶ 74.

[^17]: *See id.,* 18 FCC Rcd at 9226, ¶ 70; 47 C.F.R. § 54.521(e)(5).

[^18]: *Id*. 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. §
    54.521(f).

[^19]: *Second Report and Order*, 18 FCC Rcd at 9225, ¶ 67; 47 C.F.R. §§
    54.521(d), 54.521(g).

[^20]: *Id*.