[Federal Register Volume 74, Number 177 (Tuesday, September 15, 2009)]
[Notices]
[Pages 47249-47251]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-22029]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 09-1960]


Notice of Debarment; Schools and Libraries Universal Service 
Support Mechanism

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Enforcement Bureau (the ``Bureau'') debars Mr. Douglas A. 
Benit from the schools and libraries universal service support 
mechanism (or ``-Rate Program'') for a period of three years based on 
his conviction of mail fraud in connection with his participation in 
the program. The Bureau takes this action to protect the E-Rate Program 
from waste, fraud and abuse.

DATES: Debarment commences on the date Mr. Douglas A. Benit receives 
the debarment letter or September 15, 2009, whichever comes first, for 
a period of three years.

FOR FURTHER INFORMATION CONTACT: Rebekah Bina, Federal Communications 
Commission, Enforcement Bureau, Investigations and Hearings Division, 
Room 4-C330, 445 12th Street, SW., Washington, DC 20554. Rebekah Bina 
may be contacted by phone at (202) 418-7931 or e-mail at 
<a href="/cdn-cgi/l/email-protection#792b1c1b1c121811573b101718391f1a1a571e160f"><span class="__cf_email__" data-cfemail="41132423242a20296f03282f20012722226f262e37">[email protected]</span></a>. If Ms. Bina is unavailable, you may contact 
Michele Berlove, Acting Assistant Division Chief, Investigations and 
Hearings Division, by telephone at (202) 418-1420 and by e-mail at 
<a href="/cdn-cgi/l/email-protection#d3bebab0bbb6bfb6fdb1b6a1bfbca5b693b5b0b0fdb4bca5"><span class="__cf_email__" data-cfemail="dab7b3b9b2bfb6bff4b8bfa8b6b5acbf9abcb9b9f4bdb5ac">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: The Bureau debarred Mr. Douglas A. Benit 
from the schools and libraries universal service support mechanism for 
a period of three years pursuant to 47 CFR 54.8 and 47 CFR 0.111. 
Attached is the debarment letter, DA 09-1960, which was mailed to Mr. 
Douglas A. Benit and released on September 1, 2009. The complete text 
of the notice of debarment is available for public inspection and 
copying during regular business hours at the FCC Reference Information 
Center, Portal II, 445 12th Street, SW., Room CY-A257, Washington, DC 
20554. In addition, the complete text is available on the FCC's Web 
site at http://www.fcc.gov. The text may also be purchased from the 
Commission's duplicating inspection and copying during regular business 
hours at the contractor, Best Copy and Printing, Inc., Portal II, 445 
12th Street, SW., Room CY-B420, Washington, DC 20554, telephone (202) 
488-5300 or (800) 378-

[[Page 47250]]

3160, facsimile (202) 488-5563, or via e-mail http://www.bcpiweb.com.

Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau, 
Federal Communications Commission.
September 1, 2009
DA 09-1960
VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED
AND E-MAIL (<a href="/cdn-cgi/l/email-protection#fb9e9f8c92889395948cbb9a9497d5989496"><span class="__cf_email__" data-cfemail="ea8f8e9d83998284859daa8b8586c4898587">[email protected]</span></a>) AND FACSIMILE (248) 258-6007
Mr. Douglas A. Benit
c/o Edward C. Wishnow
240 Daines
Birmingham, MI 48009
Re: Notice of Debarment, File No. EB-09-IH-0402
Dear Mr. Benit:
    Pursuant to section 54.8 of the rules of the Federal Communications 
Commission (the ``Commission''), by this Notice of Debarment you are 
debarred from the schools and libraries universal service support 
mechanism (or ``E-Rate program'') for a period of three years.
    On June 17, 2009, the Enforcement Bureau (the ``Bureau'') sent you 
a Notice of Suspension and Initiation of Debarment Proceedings (the 
``Notice of Suspension''). That Notice of Suspension was published in 
the Federal Register on July 6, 2009. The Notice of Suspension 
suspended you from participating in activities associated with or 
relating to the schools and libraries universal service support 
mechanism and described the basis for initiation of debarment 
proceedings against you, the applicable debarment procedures, and the 
effect of debarment.
    Pursuant to the Commission's rules, any opposition to your 
suspension or its scope or to your proposed debarment or its scope had 
to be filed with the Commission no later than thirty (30) calendar days 
from the earlier date of your receipt of the Notice of Suspension or 
publication of the Notice of Suspension in the Federal Register. The 
Commission did not receive any such opposition.
    As discussed in the Notice of Suspension, the United States 
District Court for the Eastern District of Michigan sentenced you to 
serve forty-six months in prison following your guilty plea and 
conviction for the federal crime of mail fraud in connection with your 
role in a scheme to defraud the Ecorse Public Schools District 
(``EPS'') and the E-Rate program. While employed by EPS, you devised 
and participated in a fraudulent scheme to steer contracts to various 
companies that directly or indirectly benefited you and your companies, 
including contracts involving E-Rate funds. Such conduct constitutes 
the basis for your debarment, and your conviction falls within the 
categories of causes for debarment under section 54.8(c) of the 
Commission's rules. For the foregoing reasons, you are hereby debarred 
for a period of three years from the debarment date, i.e., the earlier 
date of your receipt of this Notice of Debarment or its publication 
date in the Federal Register. Debarment excludes you, for the debarment 
period, from activities associated with or related to the schools and 
libraries support mechanism, including 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 the schools and libraries support 
mechanism.

Sincerely,

Hillary S. DeNigro

Chief, Investigations and Hearings Division Enforcement Bureau

cc: Taurus N. Ziedas, United States Attorney's Office, Department of 
Justice (via e-mail)
Kristy Carroll, Esq., Universal Service Administrative Company (via 
e-mail)
Attachment 1
June 17, 2009
DA 09-1345
VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED
AND E-MAIL (<a href="/cdn-cgi/l/email-protection#a8cdccdfc1dbc0c6c7dfe8c9c7c486cbc7c5"><span class="__cf_email__" data-cfemail="751011021c061d1b1a0235141a195b161a18">[email protected]</span></a>) AND FACSIMILE (248) 258-6007
Mr. Douglas A. Benit
c/o Edward C. Wishnow
240 Daines
Birmingham, MI 48009
Re: Notice of Suspension and Initiation of Debarment Proceedings, File 
No. EB-09-IH-0402
Dear Mr. Benit:
    The Federal Communications Commission (``FCC'' or ``Commission'') 
has received notice of your conviction of mail fraud, in violation of 
18 U.S.C. Sec. Sec.  2, 1341, and 1346 in connection with your 
participation in the schools and libraries universal service support 
mechanism (``E-Rate program''). Consequently, pursuant to 47 C.F.R. 
Sec.  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.
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. On November 24, 2008, you, Douglas A. Benit, plead guilty to 
mail fraud in connection with your participation in the E-Rate program. 
Specifically, you were employed as a school official in the Ecorse 
Public Schools District (``EPS'' or ``District'') from 1997 to 2003, 
serving first as the Director of Facility Development and subsequently 
as the Assistant Superintendent. While employed at EPS, you were also 
an owner, employee, agent or subcontractor of Coral Technology, Inc. 
(``Coral''). During your tenure at EPS, you were responsible for 
approving the construction of new facilities in the District using 
funds from several sources, including the E-Rate program. You admitted 
that while employed at EPS and while concealing your associations with 
Coral from EPS, you and others devised a scheme to defraud the District 
and the E-Rate program by steering contracts for EPS to various 
companies that directly or indirectly benefited you and your companies, 
primarily Coral. In furtherance of the scheme, you submitted to the 
Universal Service Administrative Company (``USAC'') documents 
supporting Coral's application for federal E-Rate funding, while 
employed at EPS and within the scope of your official responsibilities. 
As a result of these contracts, which were paid in part from the E-Rate 
program, you and your company personally benefited from the fraudulent 
scheme by at least $2.276 million.
    On March 31, 2009, you were sentenced to serve forty-six months in 
federal prison, to be followed by thirty-six months of supervised 
release for your role in the scheme to defraud EPS and the E-Rate 
program. You were also ordered to pay $1.34 million in restitution for 
your role in the scheme.
    Pursuant to section 54.8(a)(4) of the Commission's rules, 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. Your suspension

[[Page 47251]]

becomes effective upon the earlier of your receipt of this letter or 
publication of notice in the Federal Register.
    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. Such requests, however, will not 
ordinarily be granted. The Bureau may reverse or limit the scope of 
suspension only upon a finding of extraordinary circumstances. Absent 
extraordinary circumstances, the Bureau will decide any request for 
reversal or modification of suspension within 90 days of its receipt of 
such request.
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 54.8(c) of the 
Commission's rules. 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. Absent 
extraordinary circumstances, the Bureau will debar you. 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. 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.
    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. The Bureau may, if necessary to protect the public 
interest, extend the debarment period.
    Please direct any response, if by messenger or hand delivery, to 
Marlene H. Dortch, Secretary, Federal Communications Commission, 236 
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002, to the 
attention of Rebekah Bina, Attorney Advisor, Investigations and 
Hearings Division, Enforcement Bureau, Room 4-C330, with a copy to 
Michele Berlove, Acting 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 12th Street, SW., Room 4-C330, 
Washington, DC, 20554, with a copy to Michele Berlove, Acting Assistant 
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 the response 
via email to <a href="/cdn-cgi/l/email-protection#fcae999e99979d94d2be95929dbc9a9f9fd29b938a"><span class="__cf_email__" data-cfemail="ce9cabacaba5afa6e08ca7a0af8ea8adade0a9a1b8">[email protected]</span></a> and to <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="3875515b505d545d167a5d4a54574e5d785e5b5b165f574e">[email protected]</a>.
    If you have any questions, please contact Ms. Bina via mail, by 
telephone at (202) 418-7931 or by e-mail at <a href="/cdn-cgi/l/email-protection#693b0c0b0c020801472b000708290f0a0a470e061f"><span class="__cf_email__" data-cfemail="75271017101e141d5b371c1b14351316165b121a03">[email protected]</span></a>. If 
Ms. Bina is unavailable, you may contact Ms. Michele Berlove, Acting 
Assistant Chief, Investigations and Hearings Division, by telephone at 
(202) 418-1477 and by e-mail at <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="4c01252f24292029620e293e20233a290c2a2f2f622b233a">[email protected]</a>.

Sincerely yours,

Hillary S. DeNigro

Chief, Investigations and Hearings Division Enforcement Bureau

cc: Taurus N. Ziedas, United States Attorney's Office, Department of 
Justice (via e-mail)
Kristy Carroll, Esq., Universal Service Administrative Company (via 
e-mail)

[FR Doc. E9-22029 Filed 9-14-09; 8:45 am]
BILLING CODE 6712-01-P


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