[Federal Register Volume 74, Number 184 (Thursday, September 24, 2009)]
[Notices]
[Pages 48741-48744]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-22968]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 09-1916]


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. Ruben B. 
Bohuchot from the schools and libraries universal service support 
mechanism (or ``E-Rate Program'') for a period of three years. The 
Bureau takes this action to protect the E-Rate Program from waste, 
fraud and abuse.

DATES: Debarment commences on the date Mr. Ruben B. Bohuchot receives 
the debarment letter or September 24, 2009, whichever date come 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#cb99aea9aea0aaa3e589a2a5aa8bada8a8e5aca4bd"><span class="__cf_email__" data-cfemail="88daedeaede3e9e0a6cae1e6e9c8eeebeba6efe7fe">[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) 418-1420 and by e-mail at 
<a href="/cdn-cgi/l/email-protection#503d393338353c357e3235223c3f2635103633337e373f26"><span class="__cf_email__" data-cfemail="8ce1e5efe4e9e0e9a2eee9fee0e3fae9cceaefefa2ebe3fa">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: The Bureau debarred Mr. Ruben B. Bohuchot 
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 09-471, which was mailed to Mr. 
Ruben B. Bohuchot and released on February 26, 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

[[Page 48742]]

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) 378-3160, 
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.
August 27, 2009
DA 09-1916

VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED AND FACSIMILE (214) 767-2886

Mr. Ruben B. Bohuchot, c/o Richard Alan Anderson, Federal Public 
Defender--Dallas, 525 Griffin Street, Suite 629, Dallas, TX 75202.
Re: Notice of Debarment, File No. EB-08-IH-5312

    Dear Mr. Bohuchot: 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.\1\
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    \1\ See 47 CFR 0.111(a), 54.8.
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    On February 26, 2009, the Enforcement Bureau (the ``Bureau'') 
sent you a Notice of Suspension and Initiation of Debarment 
Proceedings (the ``Notice of Suspension'').\2\ That Notice of 
Suspension was published in the Federal Register on March 19, 
2009.\3\ The Notice of Suspension suspended you from 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.\4\
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    \2\ Letter from Hillary S. DeNigro, Chief, Investigations and 
Hearings Division, Enforcement Bureau, Federal Communications 
Commission, to Mr. Ruben B. Bohuchot, Notice of Suspension and 
Initiation of Debarment Proceedings, 24 FCC Rcd 2448 (Inv. & 
Hearings Div., Enf. Bur. 2009) (Attachment 1) (``Notice of 
Suspension''). In the Notice of Suspension, the Bureau referred to 
your frauds as being associated with E-Rate Funding Year 2002. See 
Notice of Suspension at 2448. The proper funding year associated 
with your fraud is E-Rate Program 6 and should be noted as Funding 
Year 2003. See United States v. Ruben B. Bohuchot. et al., Criminal 
Docket No. 3:07-CR-167-L-2, Indictment at 5 (N.D.Tex. filed May 22, 
2007, and entered May. 24, 2007, under seal; unsealed May 29, 2007). 
(``DISD Indictment'').
    \3\ 74 FR 11722 Mar. 19, 2009.
    \4\ See Notice of Suspension, 24 FCC Rcd at 2448-49.
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    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.\5\ The Commission did not receive any such opposition.
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    \5\ See 47 CFR 54.8 (e)(3) and (4). That date occurred no later 
than April 20, 2009. See supra note 3.
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    As discussed in the Notice of Suspension, 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 in the E-Rate program.\6\ Evidence at trial 
demonstrated that, in your position as the former Chief Technology 
Officer of the Dallas Independent School District (``DISD''), you 
participated in a bribery and money laundering scheme involving DISD 
technology projects, including a contract that involved E-Rate 
funds.\7\ 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.\8\ 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.\9\ 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.'' \10\
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    \6\ See Notice of Suspension, 24 FCC Rcd at 2448.
    \7\ See id.
    \8\ 47 CFR 54.8(c).
    \9\ See 47 CFR 54.8(g). See also Notice of Suspension, 24 FCC 
Rcd at 2449.
    \10\ See 47 CFR 54.8(a)(1), 54.8(a)(5), 54.8(d); Notice of 
Suspension, 24 FCC Rcd at 2449.
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    Sincerely,

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)

Attachment 1

February 26, 2009
DA 09-471

VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED AND FACSIMILE (510-452-8405)

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'').\11\ Consequently, 
pursuant to 47 CFR 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.\12\
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    \11\ See 18 U.S.C. Sec. Sec.  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 launder monetary instruments) and 26 U.S.C. Sec.  
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'').
    \12\ 47 CFR Sec.  54.8; 47 CFR Sec.  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)).
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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 schools and libraries 
support mechanism'' from receiving the benefits associated with that 
program.\13\ 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 in the 
E-Rate program.\14\ In addition, you and a co-

[[Page 48743]]

conspirator will have to forfeit approximately $1 million as a 
result of your conviction.\15\
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    \13\ See 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).
    \14\ 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.
    \15\ See DOJ November 12, 2008 Ruben Bohuchot Press Release; 
Ruben Bohuchot Judgment at 2 and 8.
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    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'').\16\ 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''),\17\ which enabled MSE to obtain 
a contract to provide E-Rate services to DISD.\18\ 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.\19\ 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.\20\
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    \16\ 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.
    \17\ 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.
    \18\ 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.
    \19\ DISD Indictment at 4-5, 7-21; DOJ November 12, 2008 Ruben 
Bohuchot Press Release.
    \20\ 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.
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    Pursuant to section 54.8(a)(4) of the Commission's rules,\21\ 
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.\22\ Your suspension becomes effective upon the earlier of 
your receipt of this letter or publication of notice in the Federal 
Register.\23\
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    \21\ 47 CFR 54.8(a)(4). See Second Report and Order, 18 FCC Rcd 
at 9225-9227, paras. 67-74.
    \22\ 47 CFR 54.8(a)(1), (d).
    \23\ Second Report and Order, 18 FCC Rcd at 9226, para. 69; 47 
CFR 54.8(e)(1).
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    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.\24\ Such requests, however, will 
not ordinarily be granted.\25\ The Bureau may reverse or limit the 
scope of suspension only upon a finding of extraordinary 
circumstances.\26\ Absent extraordinary circumstances, the Bureau 
will decide any request for reversal or modification of suspension 
within 90 days of its receipt of such request.\27\
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    \24\ 47 CFR 54.8(e)(4).
    \25\ Id.
    \26\ 47 CFR 54.8(e)(5).
    \27\ See Second Report and Order, 18 FCC Rcd at 9226, para. 70; 
47 CFR 54.8(e)(5), 54.8(f).
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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.\28\ Therefore, pursuant 
to section 54.8(a)(4) of the Commission's rules, your conviction 
requires the Bureau to commence debarment proceedings against you.
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    \28\ ``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 CFR 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 CFR 
54.8(a)(1).
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    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.\29\ Absent 
extraordinary circumstances, the Bureau will debar you.\30\ 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.\31\ 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.\32\
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    \29\ See Second Report and Order, 18 FCC Rcd at 9226, para. 70; 
47 CFR 54.8(e)(3).
    \30\ Second Report and Order, 18 FCC Rcd at 9227, para. 74.
    \31\ See id., 18 FCC Rcd at 9226, para. 70; 47 CFR 54.8(e)(5).
    \32\ 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. 47 CFR 
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 schools and libraries support mechanism for at least 
three years from the date of debarment.\33\ The Bureau may, if 
necessary to protect the public interest, extend the debarment 
period.\34\
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    \33\ Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47 
CFR 54.8(d), 54.8(g).
    \34\ 47 CFR 54.8(g).
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    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 
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 12th 
Street, SW., Room 4-C330, Washington, DC 20554, with a copy to 
Vickie Robinson, 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 e-mail to <a href="/cdn-cgi/l/email-protection#df8dbabdbab4beb7f19db6b1be9fb9bcbcf1b8b0a9"><span class="__cf_email__" data-cfemail="a6f4c3c4c3cdc7ce88e4cfc8c7e6c0c5c588c1c9d0">[email protected]</span></a> 
and to <a href="/cdn-cgi/l/email-protection#db8db2b8b0b2bef589b4b9b2b5a8b4b59bbdb8b8f5bcb4ad"><span class="__cf_email__" data-cfemail="9accf3f9f1f3ffb4c8f5f8f3f4e9f5f4dafcf9f9b4fdf5ec">[email protected]</span></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#8fddeaedeae4eee7a1cde6e1eecfe9ececa1e8e0f9"><span class="__cf_email__" data-cfemail="feac9b9c9b959f96d0bc97909fbe989d9dd0999188">[email protected]</span></a>. 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 <a href="/cdn-cgi/l/email-protection#7d2b141e161418532f121f14130e12133d1b1e1e531a120b"><span class="__cf_email__" data-cfemail="702619131b19155e221f12191e031f1e301613135e171f06">[email protected]</span></a>.

    Sincerely yours,

    Hillary S. DeNigro,

Chief, Investigations and Hearings Division, Enforcement Bureau.


[[Page 48744]]


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).

[FR Doc. E9-22968 Filed 9-23-09; 8:45 am]
BILLING CODE 6712-01-P


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