[Federal Register Volume 74, Number 104 (Tuesday, June 2, 2009)]
[Notices]
[Pages 26400-26402]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-12820]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 09-1115]


Notice of Debarment

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Enforcement Bureau (the ``Bureau'') debars Ms. Cynthia K. 
Ayer 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 Ms. Cynthia K. Ayer receives the 
debarment letter or June 2, 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#5f0d3a3d3a343e37711d36313e1f393c3c71383029"><span class="__cf_email__" data-cfemail="184a7d7a7d737970365a717679587e7b7b367f776e">[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#47312e242c2e22693528252e293428290721242469202831"><span class="__cf_email__" data-cfemail="b0c6d9d3dbd9d59ec2dfd2d9dec3dfdef0d6d3d39ed7dfc6">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: The Bureau debarred Ms. Cynthia K. Ayer 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 09-1115, which was mailed to Ms. 
Cynthia K. Ayer and released on May 21, 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.
Irene Flannery,
Assistant Chief, Investigations and Hearings Division, Enforcement 
Bureau.
    The debarment letter, which attached the suspension letter, 
follows:

May 21, 2009

Via Certified Mail Return Receipt Requested and Facsimile (803) 252-
8290

Ms. Cynthia K. Ayer, c/o James Edward Holler, Holler Dennis Corbett

[[Page 26401]]

Ormond Plante and Garner, P.O. Box 11006, Columbia, SC 29211.

Re: Notice of Debarment, File No. EB-09-IH-0002

    Dear Ms. Ayer: 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 Ms. Cynthia K. Ayer, Notice of Suspension and 
Initiation of Debarment Proceedings, 24 FCC Rcd 2470 (Inv. & 
Hearings Div., Enf. Bur. 2009) (Attachment 1).
    \3\ 74 Fed. Reg. 11726-01 (Mar. 19, 2009).
    \4\ See Notice of Suspension, 24 FCC Rcd at 2470-71.
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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, you pled guilty to mail 
fraud in connection with your participation in the E-Rate program.\6\ 
You admitted to, among other things, submitting applications containing 
false information to the E-Rate program and subsequently receiving 
funds to which you were not entitled.\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\

    \6\ See Notice of Suspension, 24 FCC Rcd at 2470.
    \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 2471.
    \10\ See 47 CFR 54.8(a)(1), 54.8(a)(5), 54.8(d); Notice of 
Suspension, 24 FCC Rcd at 2470.

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

cc: Kristy Carroll, Esq., Universal Service Administrative Company 
(via e-mail).
    Beth Drake, Assistant United States Attorney, United States 
Department of Justice (via e-mail).

February 26, 2009

DA 09-476

Via Certified Mail

Return Receipt Requested and E-Mail

Ms. Cynthia K. Ayer, c/o James Edward Holler, Holler Dennis Corbett 
Ormond Plante and Garner, P.O. Box 11006, Columbia, SC 29211.

Re: Notice of Suspension and Initiation of Debarment Proceedings, File 
No. EB-09-IH-0002

    Dear Ms. Ayer: The Federal Communications Commission (``FCC'' or 
``Commission'') has received notice of your conviction of mail fraud, 
in violation of 18 U.S.C. 2 and 1341, 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\
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    \11\ Any further reference in this letter to ``your conviction'' 
refers to your guilty plea and subsequent conviction of one count of 
mail fraud. United States v. Cynthia K. Ayer, Criminal Docket No. 
5:06-453 (001 MBS), Plea Agreement (D. S.C. filed and entered Apr. 
30, 2008) (``Ayer Plea Agreement''); United States v. Cynthia K. 
Ayer, 5:06-453 (001 MBS), Judgment (D. S.C. filed and entered Dec. 
11, 2008) (``Ayer Judgment''). See also United States v. Cynthia K. 
Ayer, Criminal Docket No. 5:06-453 (001 MBS), Indictment (D. S.C. 
filed Apr. 19, 2006 and entered Apr. 20, 2006) (``Ayer 
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)).
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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 April 30, 2008, you pled guilty to mail fraud in 
connection with your participation in the E-Rate program.\14\ While 
employed as a technology director for Bamberg County School District 
One in Bamberg, South Carolina, you admitted to submitting applications 
containing false information to the E-Rate program.\15\ You 
subsequently requested funds that you were not entitled to and caused 
the Universal Service Administrative Company (``USAC'') to send you a 
check in the amount of $25,243 made payable to your company, Go Between 
Communications a/k/a Go Between Telecommunications.\16\ As a result of 
your conviction, you have been sentenced to serve two years in prison 
and ordered to pay $468,496 in restitution to USAC for using the mail 
to submit fraudulent applications for E-Rate funding on behalf of 
Bamberg County School District One.\17\
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    \13\ Second Report and Order, 18 FCC Rcd at 9225, ] 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).
    \14\ See Ayer Plea Agreement. See also Department of Justice 
Press Release (Dec. 11, 2008), available at http://www.usdoj.gov/atr/public/press_releases/2008/240283.pdf (DOJ Press Release).
    \15\ DOJ Press Release at 1.
    \16\ See Ayer Indictment at 13-15; DOJ Press Release at 1.
    \17\ Ayer Judgment at 2-4; DOJ Press Release at 1.
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    Pursuant to section 54.8(a)(4) of the Commission's rules,\18\ your 
conviction requires the Bureau to suspend you

[[Page 26402]]

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.\19\ 
Your suspension becomes effective upon the earlier of your receipt of 
this letter or publication of notice in the Federal Register.\20\
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    \18\ 47 CFR 54.8(a)(4). See Second Report and Order, 18 FCC Rcd 
at 9225-27, ]] 67-74.
    \19\ 47 CFR 54.8(a)(1)(d).
    \20\ 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.\21\ Such requests, however, will not 
ordinarily be granted.\22\ The Bureau may reverse or limit the scope of 
suspension only upon a finding of extraordinary circumstances.\23\ 
Absent extraordinary circumstances, the Bureau will decide any request 
for reversal or modification of suspension within 90 days of its 
receipt of such request.\24\
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    \21\ 47 CFR 54.8(e)(4).
    \22\ Id.
    \23\ 47 CFR 54.8(e)(5).
    \24\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
CFR 54.8(e)(5), (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.\25\ 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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    \25\ ``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.\26\ Absent 
extraordinary circumstances, the Bureau will debar you.\27\ 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.\28\ 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.\29\
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    \26\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
CFR 54.8(e)(3).
    \27\ Second Report and Order, 18 FCC Rcd at 9227, ] 74.
    \28\ See id., 18 FCC Rcd at 9226, ] 70; 47 CFR 54.8(e)(5).
    \29\ 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 three years from the 
date of debarment.\30\ The Bureau may, if necessary to protect the 
public interest, extend the debarment period.\31\
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    \30\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR 
54.8(d),(g).
    \31\ 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#491b2c2b2c222821670b202728092f2a2a672e263f"><span class="__cf_email__" data-cfemail="26744344434d474e08644f48476640454508414950">[email protected]</span></a> and to <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="095f606a62606c275b666b60677a6667496f6a6a276e667f">[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#ce9cabacaba5afa6e08ca7a0af8ea8adade0a9a1b8"><span class="__cf_email__" data-cfemail="1e4c7b7c7b757f76305c77707f5e787d7d30797168">[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="54023d373f3d317a063b363d3a273b3a143237377a333b22">[email protected]</a>.


Sincerely yours,

Hillary S. DeNigro,

Chief, Investigations and Hearings Division, Enforcement Bureau.
cc: Beth Drake, Assistant United States Attorney (via e-mail).
    Kristy Carroll, Esq., Universal Service Administrative Company 
(via e-mail).

[FR Doc. E9-12820 Filed 6-1-09; 8:45 am]
BILLING CODE 6712-01-P


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