50620 Federal Register / Vol. 73, No. 167 / Wednesday, August 27, 2008 / Notices 

[the Federal universal service] support 

mechanisms.’’ 47 CFR 54.8(a)(1). 

14See Second Report and Order, 18 FCC Rcd at 

9226, para. 70; 47 CFR 54.8(e)(3). 

15Second Report and Order, 18 FCC Rcd at 9227, 

para. 74. 

16See id., 18 FCC Rcd at 9226, para. 70; 47 CFR 

54.8(e)(5). 

17 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 CFR 54.8(f). 

18Second Report and Order, 18 FCC Rcd at 9225, 

para. 67; 47 CFR 54.8(d), 54.8(g). 

19 Id. 

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.14 Absent 

extraordinary circumstances, the Bureau 

will debar you.15 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.16 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.17

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.18 The 

Bureau may, if necessary to protect the 

public interest, extend the debarment 

period.19

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 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 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 

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. 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 email 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) Michael Wood, 

Antitrust Division, United States 

Department of Justice 

[FR Doc. E8–19876 Filed 8–26–08; 8:45 am] 

BILLING CODE 6712–01–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

[DA 08–1864] 

Notice of Debarment; Schools and 

Libraries Universal Service Support 

Mechanism 

AGENCY: Federal Communications 

Commission. 

ACTION: Notice. 

SUMMARY: The Enforcement Bureau (the 

‘‘Bureau’’) debars Mr. George Marchelos 

from the schools and libraries universal 

service support mechanism (or ‘‘E-Rate 

Program’’) for a period of three years 

based on his conviction of wire fraud 

and aiding and abetting, as well as 

collusion and siding and abetting 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. George Marchelos receives the 

debarment letter or August 27, 2008, 

whichever date 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 

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 email at vickie.robinson@fcc.gov. 

SUPPLEMENTARY INFORMATION: The 

Bureau debarred Mr. George Marchelos 

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 08–1864, which 

was mailed to Mr. George Marchelos 

and released on August 7, 2008. 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–

3160, facsimile (202) 488–5563, or via email http://www.bcpiweb.com. 

Federal Communications Commission. 

Vickie Robinson, 

Assistant Chief, Investigations and Hearings 

Division, Enforcement Bureau. 

The debarment letter, which attached 

the suspension letter, follows: 

August 7, 2008 

DA 08–1864 

VIA CERTIFIED MAIL RETURN 

RECEIPT REQUESTED AND 

FACSIMILE (415–436–7706) 

Mr. George Marchelos, 

c/o Geoffrey A. Hanson, Esq., 

Federal Public Defender, 

19th Floor Federal Building—Box 

36106, 

450 Golden Gate Avenue, 

San Francisco, CA 94102. 

Re: Notice of Debarment, File No. EB–

08–IH–1140 

Dear Mr. Marchelos: 

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 


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 73, No. 167 / Wednesday, August 27, 2008 / Notices 50621 

1See 47 CFR 0.111(a), 54.8. 

2Letter from Hillary S. DeNigro, Chief, 

Investigations and Hearings Division, Enforcement 

Bureau, Federal Communications Commission, to 

Mr. George Marchelos, Notice of Suspension and 

Initiation of Debarment Proceedings, 23 FCC Rcd 

8219 (Inv. & Hearings Div., Enf. Bur. 2008) 

(Attachment 1). 

3 73 FR 32577 (June 9, 2008). 

4See Notice of Suspension, 23 FCC Rcd at 8220–

22. 

5See 47 CFR 54.8 (e)(3) and (4). That date 

occurred no later than July 9, 2008. See supra note 

3. 

6See Notice of Suspension, 23 FCC Rcd at 8219–

20. 

7See id. at 8220. 

8 47 CFR 54.8(c). 

9See 47 CFR 54.8(g). See also Notice of 

Suspension, 23 FCC Rcd at 8221. 

10See 47 CFR 54.8(a)(1), 54.8(a)(5), 54.8(d); 

Notice of Suspension, 23 FCC Rcd at 8221–22. 

11Any further reference in this letter to ‘‘your 

conviction’’ refers to your guilty plea and 

subsequent conviction. United States v. George 

Marchelos, Criminal Docket No. 3:05–CR–00208–

CRB–009, Judgment (N.D.Cal. filed and entered 

Apr. 10, 2008) (‘‘George Marchelos Judgment’’). See 

United States v. Video Network Communications, 

Inc., et al., Criminal Docket No. 3:05–CR–00208–

CRB, Superseding Indictment at paras. 72–88 

(N.D.Cal. filed Dec. 8, 2005 and entered Dec. 12, 

2005), http://www.usdoj.gov/atr/cases/f213600/ 

213626.htm (accessed May 1, 2008) (‘‘VNCI 

Superseding Indictment’’). 

12 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)). 

13See 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). 

14See George Marchelos Judgment at 1. 

15See VNCI Superseding Indictment at paras. 6, 

72–88. The following four individuals, who were 

also charged in the VNCI Superseding Indictment, 

have pled guilty or been found guilty and 

subsequently sentenced: Judy Green, Earl Nelson, 

William Holman, and Allan Green. We are sending 

separate notices of suspension and initiation of 

debarment proceedings to these individuals. VNCI 

is now defunct and charges against the company 

have been dropped. 

16 47 CFR 54.8(a)(4). See Second Report and 

Order, 18 FCC Rcd at 9225–9227, paras. 67–74. 

(or ‘‘E-Rate program’’) for a period of 

three years.1

On May 19, 2008, 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 June 9, 2008.3 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

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. 

As discussed in the Notice of 

Suspension, you pled guilty to and were 

convicted of wire fraud and aiding and 

abetting, in violation of 18 U.S.C. 1343 

and 2, as well as collusion and aiding 

and abetting, in violation of 15 U.S.C. 1 

and 2, in connection with your 

participation in the E-Rate program.6

You admitted that you participated in 

schemes to defraud the E-Rate program 

and bid rigging on E-Rate projects for 

certain school districts.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

Sincerely, 

Hillary S. DeNigro, Chief, Investigations 

and Hearings Division, Enforcement 

Bureau. 

cc: Kristy Carroll, Esq., Universal 

Service Administrative Company 

(via e-mail) Michael Wood, 

Antitrust Division, United States 

Department of Justice (via mail) 

May 19, 2008 

DA 08–1181 

VIA CERTIFIED MAIL 

RETURN RECEIPT REQUESTED AND 

FACSIMILE (415–436–7706) 

Mr. George Marchelos, c/o Geoffrey A. 

Hanson, Esq., Federal Public 

Defender, 19th Floor Federal 

Building–Box 36106, 450 Golden 

Gate Avenue, San Francisco, CA 

94102. 

Re: Notice of Suspension and Initiation 

of Debarment Proceedings, File No. 

EB–08–IH–1140 

Dear Mr. Marchelos: 

The Federal Communications 

Commission (‘‘FCC’’ or ‘‘Commission’’) 

has received notice of your conviction 

of wire fraud and aiding and abetting, in 

violation of 18 U.S.C. 1343 and 2, as 

well as collusion and aiding and 

abetting, in violation of 15 U.S.C. 1 and 

2, in connection with your participation 

in the schools and libraries universal 

service support mechanism (‘‘E-Rate 

program’’).11 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.12

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 You pled guilty to wire 

fraud and collusion in connection with 

your participation in two schemes to 

defraud the E-Rate program.14

Specifically, you admitted that, as a 

former consultant for two school 

districts in California and sales 

representative of Video Network 

Communications, Inc. (‘‘VNCI’’), you 

participated in schemes to defraud the 

E-rate program and bid rigging on E-rate 

projects for certain school districts in 

favor of other co-conspirators or 

defendants.15

Pursuant to section 54.8(a)(4) of the 

Commission’s rules,16 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 


sroberts on PROD1PC70 with NOTICES
50622 Federal Register / Vol. 73, No. 167 / Wednesday, August 27, 2008 / Notices 

17 47 CFR 54.8(a)(1), (d). 

18Second Report and Order, 18 FCC Rcd at 9226, 

para. 69; 47 CFR 54.8(e)(1). 

19 47 CFR 54.8(e)(4). 

20 Id. 

21 47 CFR 54.8(e)(5). 

22See Second Report and Order, 18 FCC Rcd at 

9226, para. 70; 47 CFR 54.8(e)(5), 54.8(f). 

23 ‘‘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). 

24See Second Report and Order, 18 FCC Rcd at 

9226, para. 70; 47 CFR 54.8(e)(3). 

25Second Report and Order, 18 FCC Rcd at 9227, 

para. 74. 

26See id., 18 FCC Rcd at 9226, para. 70; 47 CFR 

54.8(e)(5). 

27 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 CFR 54.8(f). 

28Second Report and Order, 18 FCC Rcd at 9225, 

para. 67; 47 CFR 54.8(d), 54.8(g). 

29 Id. 

regarding the schools and libraries 

support mechanism.17 Your suspension 

becomes effective upon the earlier of 

your receipt of this letter or publication 

of notice in the Federal Register.18

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.19 Such requests, 

however, will not ordinarily be 

granted.20 The Bureau may reverse or 

limit the scope of suspension only upon 

a finding of extraordinary 

circumstances.21 Absent extraordinary 

circumstances, the Bureau will decide 

any request for reversal or modification 

of suspension within 90 days of its 

receipt of such request.22

II. Initiation of Debarment Proceedings 

Your guilty plea and 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.23

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.24 Absent 

extraordinary circumstances, the Bureau 

will debar you.25 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.26 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.27

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.28 The 

Bureau may, if necessary to protect the 

public interest, extend the debarment 

period.29

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 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 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 

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. 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 email at vickie.robinson@fcc.gov. 

Sincerely, 

Hillary S. DeNigro, Chief, Investigations 

and Hearings Division, Enforcement 

Bureau. 

cc: Kristy Carroll, Esq., Universal 

Service Administrative Company 

(via e-mail) Michael Wood, 

Antitrust Division, United States 

Department of Justice (via mail) 

[FR Doc. E8–19877 Filed 8–26–08; 8:45 am] 

BILLING CODE 6712–01–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

[DA 08–1863] 

Notice of Debarment; Schools and 

Libraries Universal Service Support 

Mechanism 

AGENCY: Federal Communications 

Commission. 

ACTION: Notice. 

SUMMARY: The Enforcement Bureau (the 

‘‘Bureau’’) debars Mr. Earl Nelson from 

the schools and libraries universal 

service support mechanism (or ‘‘E–Rate 

Program’’) for a period of three years 

based on his conviction of collusion and 

aiding and abetting 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. Earl Nelson receives the 

debarment letter or August 27, 2008, 

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 

Rebekah.Bina@fcc.gov. If Ms. Bina is 

unavailable, you may contact Ms. Vickie 

Robinson, Assistant Chief, 

Investigations and Hearings Division, by 


sroberts on PROD1PC70 with NOTICES