[Federal Register Volume 74, Number 101 (Thursday, May 28, 2009)]
[Notices]
[Pages 25534-25537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-12420]


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FEDERAL COMMUNICATIONS COMMISSION

[FCC 09-37]


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

DATES: Debarment commences on the date Ms. Judy Green receives the 
debarment letter or May 28, 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#623007000709030a4c200b0c03220401014c050d14"><span class="__cf_email__" data-cfemail="f5a79097909e949ddbb79c9b94b5939696db929a83">[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#16607f757d7f73386479747f786579785670757538717960"><span class="__cf_email__" data-cfemail="43352a20282a266d312c212a2d302c2d032520206d242c35">[email protected]</span></a>.

[[Page 25535]]


SUPPLEMENTARY INFORMATION: The Bureau debarred Ms. Judy Green from the 
schools and libraries universal service support mechanism for a period 
of ten years pursuant to 47 CFR 54.8 and 47 CFR 0.111. Attached is the 
debarment letter, FCC 09-37, which was mailed to Ms. Judy Green and 
released on May 12, 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) 378-3160, 
facsimile (202) 488-5563, or via e-mail http://www.bcpiweb.com.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
    The debarment letter, which attached the suspension letter, 
follows: May 12, 2009.
Via Certified Mail--Return Receipt Requested and Via Facsimile (510) 
452-8405.

Ms. Judy Green, c/o Eric G. Babcock, Esq., Law Offices of Erick 
Babcock, 1212 Broadway, Suite 726, Oakland, CA 94612.
Re: Notice of Debarment; File No. EB-08-IH-1139

    Dear Ms. Green: 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 ten 
years.\1\
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    \1\  See 47 CFR 0.111(a), 54.8.
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    On September 4, 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 September 17, 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\
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    \2\ Letter from Hillary S. DeNigro, Chief, Investigations and 
Hearings Division, Enforcement Bureau, Federal Communications 
Commission, to Mr. Joseph Mello, Notice of Suspension and Initiation 
of Debarment Proceedings, DA 08-2041 (Inv. & Hearings Div., Enf. 
Bur., rel. Sept. 4, 2008) (Attachment 1).
    \3\ 73 FR 53868 (Sept. 17, 2008).
    \4\  See Notice of Suspension, 73 FR at 53869-70.
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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 October 17, 2008. See supra note 3.
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    As discussed in the Notice of Suspension, you pled guilty to mail 
fraud and income tax fraud, in violation of 18 U.S.C. 1341, in 
connection with your participation in the E-Rate program involving 
telecommunications upgrade projects in four Connecticut school 
districts.\6\ You admitted to participating in a scheme to defraud the 
E-Rate program whereby you agreed, in your capacity as Vice President 
of Operations for Innovative Network Solutions (``INS''), to accept 
invoices submitted by fictitious companies for work allegedly performed 
in the Connecticut school districts.\7\ As a result of your actions, 
INS made payments totaling $608,505 on those fictitious invoices that 
were ultimately submitted to the Universal Service Administrative 
Company as legitimately reimbursable services under the E-Rate 
program.\8\ 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.\9\ For the foregoing 
reasons, you are hereby debarred for a period of ten 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.\10\ 
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.'' \11\
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    \6\ 73 FR at 53869.
    \7\ Id.
    \8\ Id.
    \9\  47 CFR 54.8(c).
    \10\  See 47 CFR 54.8(g). See also Notice of Suspension, 73 FR 
at 53870.
    \11\  See 47 CFR 54.8(a)(1), 54.8(a)(5), 54.8(d); Notice of 
Suspension, 73 FR at 53869.
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Sincerely,
Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.

cc: Calvin B. Kurimai, Esq., Assistant United States Attorney, 
Department of Justice (via e-mail)
    Kristy Carroll, Esq., Universal Service Administrative Company (via 
e-mail) September 4, 2008.

FCC 09-37.

    Via Certified Mail--Return Receipt Requested and E-Mail.
Ms. Judy Green, c/o Erik G. Babcock, Esq., Law Offices of Erik Babcock, 
1212 Broadway, Suite 726, Oakland, CA 94612.
Re: Notice of Suspension and Initiation of Debarment Proceedings, File 
No. EB-08-IH-1139

    Dear Ms. Green: The Federal Communications Commission (``FCC'' or 
``Commission'') has received notice of your conviction of mail fraud, 
in violation of 18 U.S.C. 1341, and subscribing a false tax return, in 
violation of 26 U.S.C. 7206(1), in connection with your participation 
in the schools and libraries universal service support mechanism (``E-
Rate program'').\12\ 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.\13\
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    \12\ Any further reference in this letter to ``your conviction'' 
refers to your guilty plea and subsequent conviction of one count of 
mail fraud and one count of subscribing a false tax Return. United 
States v. Joseph E. Mello, Criminal Docket No. 3:07-CR-00224 (RNC-
1), Plea Agreement (D.Conn. filed and entered Oct. 9, 2007) (``Mello 
Plea Agreement''); United States v. Joseph E. Mello, 3:07-CR-00224 
(RNC-1), Judgment (D.Conn. filed June 26, 2008 and entered June 30, 
2008) (``Mello Judgment''). See also United States v. Joseph E. 
Mello, Criminal Docket No. 3:07-CR-00224 (RNC-1), Information (D. 
Conn. filed and entered Oct. 9, 2007) (``Mello Information'').
    \13\ 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 25536]]

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.\14\ You pled guilty to mail fraud and income tax fraud in 
connection with your participation in the E-Rate program involving 
telecommunications upgrade projects in four Connecticut school 
districts.\15\ While employed as Vice President of Operations for 
Innovative Network Solutions (``INS''), a first-tier subcontractor of 
Southwestern Bell Communications (``SBC'') for performing E-Rate funded 
telecommunications upgrades, you and former SBC employees Richard E. 
Brown and Keith J. Madeiros participated in a scheme to defraud the E-
Rate program.\16\ In your position at INS, you agreed to accept 
invoices submitted by fictitious companies created by Mr. Madeiros and 
Mr. Brown for work allegedly performed in the Connecticut school 
districts.\17\ INS made payments totaling $608,505 on those fictitious 
invoices and then passed the costs on to SBC as legitimately 
reimbursable services under the E-Rate program.\18\
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    \14\ Second Report and Order, 18 FCC Rcd at 9225, para. 66. 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).
    \15\ See Mello Information at 2; Mello Plea Agreement at 1-2, 5; 
Mello Judgment at 1.
    \16\ Mello Information at 3. The Bureau has debarred Richard E. 
Brown and Keith Madeiros from the E-Rate Program. See Letter from 
Hillary S. DeNigro, Chief, Investigations and Hearings Division, 
Enforcement Bureau, to Richard E. Brown, Notice of Debarment, 22 FCC 
Rcd 20569 (Inv. & Hearings Div., Enf. Bur. 2007); Letter from 
Hillary S. DeNigro, Chief, Investigations and Hearings Division, 
Enforcement Bureau, to Keith J. Madeiros, Notice of Debarment, 23 
FCC Rcd 7959 (Inv. & Hearings Div., Enf. Bur. 2008).
    \17\ Mello Information at 2-4. See also Department of Justice, 
Press Release (Oct. 9, 2007)(available at http://www.usdoj.gov/usao/ct/Press2007/20071009.html)(last accessed Feb. 5, 2008)(``DOJ 
October 9 Press Release'').
    \18\ Mello Information at 4.
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    Pursuant to section 54.8(a)(4) of the Commission's rules,\19\ 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.\20\ Your suspension becomes 
effective upon the earlier of your receipt of this letter or 
publication of notice in the Federal Register.\21\
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    \19\ 47 CFR 54.8(a)(4). See Second Report and Order, 18 FCC Rcd 
at 9225-27, paras. 67-74.
    \20\ Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47 
U.S.C. 254; 47 CFR 54.502-54.503; 47 CFR 54.521(a)(4).
    \21\ 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.\22\ Such requests, however, will not 
ordinarily be granted.\23\ The Bureau may reverse or limit the scope of 
suspension only upon a finding of extraordinary circumstances.\24\ 
Absent extraordinary circumstances, the Bureau will decide any request 
for reversal or modification of suspension within 90 days of its 
receipt of such request.\25\
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    \22\ 47 CFR 54.8(e)(4).
    \23\ Id.
    \24\ 47 CFR 54.8(e)(5).
    \25\ 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 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.\26\ 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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    \26\ ``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 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 
mechanism.'' 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.\27\ Absent 
extraordinary circumstances, the Bureau will debar you.\28\ 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.\29\ 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.\30\
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    \27\ See Second Report and Order, 18 FCC Rcd at 9226, para. 70; 
47 CFR 54.8(e)(3).
    \28\ Second Report and Order, 18 FCC Rcd at 9227, para. 74.
    \29\ See id., 18 FCC Rcd at 9226, para. 70; 47 CFR 54.8(e)(5).
    \30\ 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).
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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 three years from the 
date of debarment.\31\ The Bureau may, if necessary to protect the 
public interest, extend the debarment period.\32\
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    \31\ Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47 
CFR 54.8(d), 54.8(g).
    \32\ Id.
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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.,

[[Page 25537]]

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#64360106010f050c4a260d0a05240207074a030b12"><span class="__cf_email__" data-cfemail="df8dbabdbab4beb7f19db6b1be9fb9bcbcf1b8b0a9">[email protected]</span></a> and to 
<a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="500639333b39357e023f32393e233f3e103633337e373f26">[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#0f5d6a6d6a646e67214d66616e4f696c6c21686079"><span class="__cf_email__" data-cfemail="f8aa9d9a9d939990d6ba919699b89e9b9bd69f978e">[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" class="__cf_email__" data-cfemail="66300f050d0f03483409040f081509082600050548010910">[email protected]</a>.

Sincerely yours,

Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.

cc: Calvin B. Kurimai, Esq., Assistant United States Attorney.
    Kristy Carroll, Esq., Universal Service Administrative Company (via 
e-mail).

[FR Doc. E9-12420 Filed 5-27-09; 8:45 am]
BILLING CODE 6712-01-P


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