[Federal Register Volume 74, Number 52 (Thursday, March 19, 2009)]
[Notices]
[Pages 11728-11730]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-6020]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 09-473]


Notice of Suspension and Initiation of 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 Mr. 
Frankie Logyang Wong'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. Wong, 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 to Rebekah Bina, Federal 
Communications Commission, Enforcement Bureau, Investigations and 
Hearings Division, Room 4-C330, 445 12th Street, SW., Washington, DC 
20554.

DATES: Opposition requests must be received by April 20, 2009. However, 
an opposition request by the party to be suspended must be received 30 
days from the receipt of the suspension letter or April 20, 2009, 
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.

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#8edcebecebe5efe6a0cce7e0efcee8ededa0e9e1f8"><span class="__cf_email__" data-cfemail="b2e0d7d0d7d9d3da9cf0dbdcd3f2d4d1d19cd5ddc4">[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#16407f757d7f73384479747f786579785670757538717960"><span class="__cf_email__" data-cfemail="24724d474f4d410a764b464d4a574b4a644247470a434b52">[email protected]</span></a>.

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 09-473, 
which was mailed to Mr. Wong and released on February 26, 2009. 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 
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.

Federal Communications Commission.
Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.
    The suspension letter follows:

February 26, 2009.

DA 09-473

VIA CERTIFIED MAIL

RETURN RECEIPT REQUESTED AND FACSIMILE (510-452-8405)

Mr. Frankie Logyang Wong
c/o David Gerger
1001 Fannin, Suite 1950
Houston, TX 77002
Re: Notice of Suspension and Initiation of Debarment Proceedings, File 
No. EB-08-IH-5313
Dear Mr. Wong:

    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, and multiple counts of bribery concerning programs 
receiving federal funds, in connection with your participation in the 
schools and libraries universal service support mechanism (``E-Rate 
program'').\1\ Consequently, pursuant to 47 CFR 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\
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    \1\ See 18 U.S.C. 371 (conspiracy to bribery involving federal 
programs), 666(a) (bribery concerning programs receiving federal 
funds and aiding and abetting), and 1956(h) (conspiracy to lauder 
monetary instruments). Any further reference in this letter to 
``your conviction'' refers to your ten count conviction. United 
States v. Frankie Logyang Wong, Criminal Docket No. 3:07-CR-00167-L-
2, Judgment (N.D. Tex. filed Nov. 14, 2008 and entered Nov. 17, 
2008) (``Frankie Wong Judgment'').
    \2\ 47 CFR 54.8; 47 CFR 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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[[Page 11729]]

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 13, 2008, the United States District Court in 
Texas sentenced you to serve ten years in prison following your 
conviction of federal crimes, including conspiracy to commit bribery, 
conspiracy to launder monetary instruments, and multiple counts of 
bribery concerning programs receiving federal funds, in connection with 
your participation the E-Rate program.\4\ In addition, you and a co-
conspirator were ordered to forfeit approximately $1 million as a 
result of your conviction.\5\
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    \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 CFR Sec.  54.8(a)(6).
    \4\ See supra note 1. See also http://dallas.fbi.gov/dojpressrel/pressrel08/dl111308.htm (accessed Dec. 8, 2008) (``DOJ 
November 13, 2008 Frankie Wong Press Release''); Frankie Wong 
Judgment at 1-2.
    \5\ See DOJ November 13, 2008 Frankie Wong Press Release; 
Frankie Wong Judgment at 2 and 8.
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    As the co-owner and president of Micro Systems Engineering, Inc., 
(``MSE''), you participated in a bribery and money laundering scheme 
involving technology projects for the Dallas Independent School 
District (``DISD''), including a contract that involved E-Rate funds 
for Funding Year 2002 (``E-Rate FY 2002 Contract'').\6\ Beginning in 
November 2002, MSE and other companies formed a consortium 
(``Consortium'') for the purpose of submitting a bid proposal relating 
to E-Rate services for the DISD. While your co-defendant Ruben B. 
Bohuchot (``Mr. Bohuchot'') was Chief Technology Officer of the Dallas 
Independent School District,\7\ the Consortium submitted a bid proposal 
for E-Rate services after Mr. Bohuchot adjusted the requirements of 
DISD's request for proposals to benefit you and your companies. 
Ultimately, the Consortium's bid was approved by DISD.\8\ During the 
same time period, you and MSE provided things of value to Mr. Bohuchot, 
including extensive access to and control of large sports-fishing 
vessels, payment for numerous vacations and various entertainment 
services and cash.\9\ A federal jury ultimately determined that you and 
Mr. Bohuchot engaged in a conspiracy to commit bribery and money 
laundering. As a result of your criminal activity, 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\
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    \6\ See United States v. Ruben B. Bohuchot, et al., Criminal 
Docket No. 3:07-CR-167-L-1, 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''); MSE was a computer reseller firm 
providing computer products and services to large corporations and 
school districts, principally in the state of Texas. See DISD 
Indictment at 2; DOJ November 13, 2008 Frankie Wong Press Release at 
1.
    \7\ In a separate letter, we also serve notice of suspension and 
initiation of debarment proceedings to Ruben B. Bohuchot 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 Ruben 
B. Bohuchot, Notice of Suspension and Initiation of Debarment 
Proceedings, DA 09-471 (Inv. & Hearings Div., Enf. Bur. Feb. 26, 
2009).
    \8\ See DISD Indictment at 5-6; DOJ November 13, 2008 Frankie 
Wong Press Release. MSE was able to obtain two contracts with DISD 
as a result of information that Mr. Wong received from Mr. Bohuchot. 
DISD Indictment at 2-6. In this proceeding, we only address the 
contract involving E-Rate services.
    \9\ DISD Indictment at 4-5, 7-21; DOJ November 13, 2008 Frankie 
Wong 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 
13, 2008 Frankie Wong Press Release at 2.
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    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\
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    \11\ 47 CFR 54.8(a)(4). See Second Report and Order, 18 FCC Rcd 
at 9225-9227, ]] 67-74.
    \12\ 47 CFR 54.8(a)(1), (d).
    \13\ Second Report and Order, 18 FCC Rcd at 9226, ] 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.\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\
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    \14\ 47 CFR 54.8(e)(4).
    \15\ Id.
    \16\ 47 CFR 54.8(e)(5).
    \17\ See Second Report and Order, 18 FCC Rcd at 9226, ] 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.\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.
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    \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 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.\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

[[Page 11730]]

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\
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    \19\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
CFR 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 CFR 54.8(e)(5).
    \22\ 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.\23\ The Bureau may, if necessary to protect 
the public interest, extend the debarment period.\24\
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    \23\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR 
54.8(d), 54.8(g).
    \24\ 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#affdcacdcac4cec781edc6c1ceefc9cccc81c8c0d9"><span class="__cf_email__" data-cfemail="81d3e4e3e4eae0e9afc3e8efe0c1e7e2e2afe6eef7">[email protected]</span></a> and to <a href="/cdn-cgi/l/email-protection#3a6c535951535f1468555853544955547a5c5959145d554c"><span class="__cf_email__" data-cfemail="52043b31393b377c003d303b3c213d3c123431317c353d24">[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#326057505759535a1c705b5c53725451511c555d44"><span class="__cf_email__" data-cfemail="421027202729232a6c002b2c23022421216c252d34">[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#e7b18e848c8e82c9b588858e89948889a7818484c9808891"><span class="__cf_email__" data-cfemail="b5e3dcd6dedcd09be7dad7dcdbc6dadbf5d3d6d69bd2dac3">[email protected]</span></a>.

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)

[FR Doc. E9-6020 Filed 3-18-09; 8:45 am]
BILLING CODE 6712-01-P


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