Federal Register / Vol. 74, No. 139 / Wednesday, July 22, 2009 / Notices 36221 

1Any further reference in this letter to ‘‘your 

conviction’’ refers to your guilty plea and 

subsequent two count conviction on wire fraud, 

collusion, and aiding and abetting. See United 

Continued 

Estimated Time Per Response: 1.5 

hours. 

Frequency of Response: Annual 

reporting requirement and third party 

disclosure requirement. 

Obligation to Respond: Required to 

obtain or retain benefits. Statutory 

authority for this information collection 

is contained in 47 U.S.C. 254 of the 

Telecommunications Act of 1996. 

Total Annual Burden: 906 hours. 

Total Annual Cost: N/A. 

Privacy Act Impact Assessment: N/A. 

Nature and Extent of Confidentiality: 

The Commission is not requesting 

respondents to submit confidential 

information to the Commission or to the 

Universal Service Administrative 

Company (USAC). If the Commission 

requests respondents to submit 

information to the Commission or to 

USAC that the respondents believe is 

confidential, the respondents may 

request confidential treatment of such 

information pursuant to 47 CFR section 

0.459 of the Commission’s rules. 

Needs and Uses: The Commission 

will submit this information collection 

to the Office of Management and Budget 

(OMB) after this 60 day comment period 

in order to obtain the full three year 

clearance from them. The Commission 

is requesting an extension (no change in 

the reporting and/or third party 

disclosure requirements) of this 

information collection. There is a slight 

adjustment in the Commission’s burden 

estimates. The Commission is reporting 

an increase in the number of 

respondents/responses since the 2006 

submission to the OMB. Therefore, the 

total annual burden hours have 

increased by 48 hours. 

Section 254(e) of the 

Telecommunications Act of 1996 

provides that a carrier receiving 

universal service support must use that 

support ‘‘only for the provision, 

maintenance, and upgrading of facilities 

and service for which the support is 

intended.’’ Accordingly, Section 54.809 

requires each price cap carrier or 

competitive ETC that wishes to receive 

interstate access universal service 

support to file an annual certification 

with Universal Service Administrative 

Company (USAC) and the Commission. 

The certification must state that the 

carrier will use its interstate access 

universal service support only for the 

provision, maintenance and upgrading 

of facilities and service for which the 

support is intended. 

The Commission and USAC use the 

certifications to ensure that carriers 

comply with section 254(e) of the 

Telecommunications Act by using the 

interstate access universal service 

support on for which the support is 

intended. 

Federal Communications Commission. 

Marlene H. Dortch, 

Secretary. 

[FR Doc. E9–17405 Filed 7–21–09; 8:45 am] 

BILLING CODE 6712–01–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

[DA 09–1529] 

Notice of Suspension and Initiation of 

Debarment Proceedings; Schools and 

Libraries Universal Service Support 

Mechanism 

AGENCY: Federal Communications 

Commission. 

ACTION: Notice. 

SUMMARY: The Enforcement Bureau (the 

‘‘Bureau’’) gives notice of Mr. Steven 

Newton’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. Newton, 

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 August 21, 2009. However, 

an opposition request by the party to be 

suspended must be received 30 days 

from the receipt of the suspension letter 

or August 21, 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 

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

unavailable, you may contact Ms. 

Michele Levy Berlove, Acting Assistant 

Chief, Investigations and Hearings 

Division, by telephone at (202) 418– 

1477 and by e-mail at 

Michele.Berlove@fcc.gov. 

SUPPLEMENTARY INFORMATION: The 

Bureau has suspension and debarment 

authority pursuant to 47 CFR 54.8. 

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 09–1529, which 

was mailed to Mr. Newton and released 

on July 14, 2009. The complete text of 

the notice of suspension 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. 

The attached is the Suspension and 

Initiation of Debarment Letter to Mr. 

Steven Newton. 

Federal Communications Commission. 

Hillary DeNigro, 

Chief, Investigations and Hearings Division, 

Enforcement Bureau. 

July 14, 2009 

DA 09–1529 

VIA CERTIFIED MAIL 

RETURN RECEIPT REQUESTED AND 

FACSIMILE (415–522–1506) 

AND EMAIL (gsl@defendergroup.com) 

Mr. Steven Newton, c/o Law Office of 

Garrick S. Lew, Attn: Garrick 

Sherman Lew, 600 Townsend 

Street, Suite 329E, San Francisco, 

California 94102 

Re: Notice of Suspension and Initiation 

of Debarment Proceedings, File No. 

EB–08–IH–1928 

Dear Mr. Newton: The Federal 

Communications Commission (‘‘FCC’’ 

or ‘‘Commission’’) has received notice of 

your conviction of Wire Fraud, Aiding 

and Abetting, and Collusion, in 

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

15 U.S.C. 1, in connection with your 

participation in the schools and libraries 

universal service support mechanism 

(‘‘E-Rate program’’).1 Consequently, 


jlentini on DSKJ8SOYB1PROD with NOTICES
36222 Federal Register / Vol. 74, No. 139 / Wednesday, July 22, 2009 / Notices 

States v. Steven Newton, Criminal Docket No. 3:05– 

CR–00208–CRB–10, Plea Agreement (N.D. Cal. filed 

and entered Apr. 20, 2007) (‘‘Newton Plea’’). See 

also United States v. Steven Newton, Criminal 

Docket No. 3:05–CR–00208–CRB–10, Judgment 

(N.D. Cal. filed and entered Mar. 31, 2009) 

(Convicted on Counts 11 and 22) (‘‘Newton 

Judgment’’). See also generally United States v. 

Video Network Communications, Inc. et al., 

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

Superseding Indictment (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’’). 

2 47 CFR 54.8 (2008). See also 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 of the Commission’s rules 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)). 

3Second 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). 

4Newton Judgment at 1–2. See also VNCI 

Superseding Indictment at paras. 4–6, 8–11, 15, 19, 

22–24, 72–78, 133–137, 145–151. 

5Premio Computers, Inc. manufactures 

computers, software and peripheral equipment, and 

sells them to wholesale, commercial, and 

government entities. See In the Matter of Premio, 

Inc., Notice of Debarment, 22 FCC Rcd 1019, 1021 

(Jan. 22, 2007). Premio Computers, Inc. was 

debarred from the E-Rate program for its 

involvement in E-Rate related fraud. See generally 

id. 

6SEMA4 is a California company that provided 

equipment and services for a project funded by the 

E-Rate program. See VNCI Superseding Indictment 

at paras. 74–75. The charges against SEMA4 were 

dismissed. See United States v. SEMA4, Inc., 

Criminal Docket No. 3:05–CR–00208–CRB–3 (N.D. 

Cal. terminated June 12, 2007). 

7 Digital Connect Communications, Inc. was a 

California company that provided 

telecommunication and Internet access equipment 

and services to schools participating in the E-Rate 

program. See VNCI Superseding Indictment at 

paras. 134–135. The charges against this company 

were dismissed. See United States v. Digital 

Connect Communications, Inc., Criminal Docket 

No. 3:05–CR–00208–CRB–4 (N.D. Cal. terminated 

June 12, 2007). 

8See VNCI Superseding Indictment at paras. 4– 

6, 8–11, 15–16, 19, 22–24, 72–78, 133–137, 145– 

151. 

9 Id. 

10These misrepresentations included inflating 

the costs of eligible telecommunications equipment 

and services in applications to cover the cost of 

ineligible equipment and services. See VNCI 

Superseding Indictment at paras. 8–11, 22–24, 78, 

145–151. 

11 47 CFR 54.8(b)–(e); see also 54.8(a)(4). 

12 47 CFR 54.8(a)(1); see also 54.8(a)(3). 

13 47 CFR 54.8(a)(7), (e)(1); see also Second 

Report and Order, 18 FCC Rcd at 9226, para. 69. 

14 47 CFR 54.8(e)(4). 

15 Id. 

16 Id. 

17 47 CFR 54.8(f); see also Second Report and 

Order, 18 FCC Rcd at 9226, para. 70. 

18 47 CFR 54.8(e)(5), (f); see also Second Report 

and Order, 18 FCC Rcd at 9226, para. 70. 

19 ‘‘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). You were convicted 

on various fraud charges. See supra note 4. 

20See 47 CFR 54.8(b), (c). 

21 47 CFR 54.8(e)(3), (5); see also Second Report 

and Order, 18 FCC Rcd at 9226, para. 70. 

22 47 CFR 54.8(e)(5); see also Second Report and 

Order, 18 FCC Rcd at 9227, para. 74. 

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

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 You pleaded guilty and 

were sentenced to six months in prison 

in connection with your participation in 

two schemes to defraud the E-Rate 

program.4 Specifically, you admitted 

that as former Vice President at Premio 

Computers, Inc.5 and principal manager 

of SEMA4, Inc.6 and Digital Connect 

Communications, Inc.7 you participated 

in schemes to defraud the E-Rate 

program of money and property through 

materially false and fraudulent 

pretenses for your own enrichment.8

You did this, with the help of other coconspirators or defendants, by 

controlling the bidding, application, and 

implementation and invoicing process 

of the E-Rate program.9 You submitted 

materially false information to USAC 

regarding the cost and eligibility of 

equipment services and intentionally 

misrepresented the school district’s 

ability and willingness to pay their 

portion of the E-Rate projects.10

Pursuant to section 54.8 of the 

Commission’s rules, your conviction on 

criminal offenses arising out of activities 

associated with or related to the schools 

and libraries support mechanism 

requires the Bureau to suspend you 

from continuing to participate in any 

activities associated with or related to 

the schools and libraries support 

mechanism.11 Activities arising out of 

or related to the schools and libraries 

support mechanism include 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.12

Your suspension becomes effective 

upon the earlier of your receipt of this 

letter or publication of notice in the 

Federal Register, pending the Bureau’s 

final debarment determination.13 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.14 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.15 Such requests, 

however, will not ordinarily be 

granted.16 The Bureau may reverse or 

limit the scope of suspension only upon 

a finding of extraordinary 

circumstances.17 The Bureau will 

decide any request for reversal or 

modification of suspension within 90 

days of its receipt of such request.18

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 suspension and debarment 

defined in section 54.8(c) of the 

Commission’s rules.19 Therefore, 

pursuant to section 54.8 of the 

Commission’s rules, your conviction 

requires the Bureau to commence 

debarment proceedings against you.20

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.21 Absent 

extraordinary circumstances, the Bureau 

will debar you.22 The Bureau will 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 74, No. 139 / Wednesday, July 22, 2009 / Notices 36223 

23 47 CFR 54.8(e)(5), (f); see also Second Report 

and Order, 18 FCC Rcd at 9226, para. 70. 

24 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). 

25 47 CFR 54.8(a)(1), (d), (g); see also Second 

Report and Order, 18 FCC Rcd at 9225, para. 67. 

26 47 CFR 54.8(g). 

decide any request for reversal or 

limitation of debarment within 90 days 

of receipt of such request.23 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.24

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.25 The 

Bureau may, if necessary to protect the 

public interest, extend the debarment 

period.26

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 L. Bina, Attorney Advisor, 

Investigations and Hearings Division, 

Enforcement Bureau, Room 4–C330, 

with a copy to Michele Levy Berlove, 

Acting 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 

L. Bina, Attorney Advisor, 

Investigations and Hearings Division, 

Enforcement Bureau, Federal 

Communications Commission, 445 12th 

Street, SW., Room 4–C327, Washington, 

DC, 20554, with a copy to Michele 

Berlove, Acting 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 

Rebekah.Bina@fcc.gov and to 

Michele.Berlove@fcc.gov. 

If you have any questions, please 

contact Ms. Bina via mail, by telephone 

at (202) 418–7931 or by e-mail at 

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

unavailable, you may contact Ms. 

Michele Levy Berlove, Acting Assistant 

Chief, Investigations and Hearings 

Division, by telephone at (202) 418– 

1477 and by e-mail at 

Michele.Berlove@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 

(via e-mail) 

[FR Doc. E9–17407 Filed 7–21–09; 8:45 am] 

BILLING CODE 6712–01–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

[DA 09–1528] 

Notice of Suspension and Initiation of 

Debarment Proceedings; Schools and 

Libraries Universal Service Support 

Mechanism 

AGENCY: Federal Communications 

Commission. 

ACTION: Notice. 

SUMMARY: The Enforcement Bureau (the 

‘‘Bureau’’) gives notice of Mr. Andre J. 

Hornsby’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. Hornsby, 

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 August 21, 2009. However, 

an opposition request by the party to be 

suspended must be received 30 days 

from the receipt of the suspension letter 

or August 21, 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 

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

unavailable, you may contact Ms. 

Michele Levy Berlove, Acting Assistant 

Chief, Investigations and Hearings 

Division, by telephone at (202) 418– 

1477 and by e-mail at 

Michele.Berlove@fcc.gov. 

SUPPLEMENTARY INFORMATION: The 

Bureau has suspension and debarment 

authority pursuant to 47 CFR 54.8. 

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 09–1528, which 

was mailed to Mr. Hornsby and released 

on July 14, 2009. The complete text of 

the notice of suspension 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. 

The attached is the Suspension and 

Initiation of Debarment Letter to Mr. 

Andre J. Hornsby. 

Federal Communications Commission. 

Dated: July 14, 2009. 

Hillary DeNigro, 

Chief, Investigations and Hearings Division, 

Enforcement Bureau. 

VIA CERTIFIED MAIL RETURN 

RECEIPT REQUESTED AND E– 

MAIL 

(robertbonsib@marcusbonsib.com) 

AND FACSIMILE (301) 441–3003. 

Andre J. Hornsby, c/o Robert C. Bonsib, 

Marcus and Bonsib, 6411 Ivy Lane, 

Suite 116, Greenbelt, MD 20770. 

Re: Notice of Suspension and 

Initiation of Debarment 

Proceedings, File No. EB–09–IH– 

0408. 

Dear Mr. Hornsby: The Federal 

Communications Commission (‘‘FCC’’ 

or ‘‘Commission’’) has received notice of 

your conviction of federal crimes, 

including honest services wire fraud, 


jlentini on DSKJ8SOYB1PROD with NOTICES