[Federal Register Volume 74, Number 139 (Wednesday, July 22, 2009)]
[Notices]
[Pages 36223-36225]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17410]


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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.

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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 
<a href="/cdn-cgi/l/email-protection#9bc9fef9fef0faf3b5d9f2f5fadbfdf8f8b5fcf4ed"><span class="__cf_email__" data-cfemail="0f5d6a6d6a646e67214d66616e4f696c6c21686079">[email protected]</span></a>. 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 
<a href="/cdn-cgi/l/email-protection#abe6c2c8c3cec7ce85e9ced9c7c4ddceebcdc8c885ccc4dd"><span class="__cf_email__" data-cfemail="bdf0d4ded5d8d1d893ffd8cfd1d2cbd8fddbdede93dad2cb">[email protected]</span></a>.

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 
(<a href="/cdn-cgi/l/email-protection#d6a4b9b4b3a4a2b4b9b8a5bfb496bbb7a4b5a3a5b4b9b8a5bfb4f8b5b9bb"><span class="__cf_email__" data-cfemail="f2809d90978086909d9c819b90b29f9380918781909d9c819b90dc919d9f">[email protected]</span></a>) 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,

[[Page 36224]]

witness and evidence tampering, and obstruction of justice, in 
connection with your participation in the schools and libraries 
universal service support mechanism (``E-Rate program'').\1\ 
Consequently, pursuant to 47 CFR section 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. 1343, 1346 (honest services wire fraud), 
1512(b) (attempted evidence tampering), and 1503 (obstruction of 
justice). Any further reference in this letter to ``your 
conviction'' refers to your six count conviction. United States v. 
Andre Jose Hornsby, Criminal Docket No. 8:06CR00376-PJM-1, Judgment 
(D. Md. filed and entered Dec. 5, 2008) (``Hornsby Judgment''). See 
also United States v. Andre Jose Hornsby, Criminal Docket No. 
8:06CR00376-PJM-1, Superseding Indictment (D. Md. filed and entered 
Apr. 23, 2008) (``Hornsby 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)).
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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.\3\ On November 25, 2008, the United States District Court for 
the District of Maryland sentenced you to six years in prison, to be 
followed by three years of supervised release, following your 
conviction on federal crimes, including honest services wire fraud, 
witness and evidence tampering, and obstruction of justice, in 
connection with your activities related to the E-Rate program.\4\ In 
addition, you were ordered to pay a $20,000 fine and $70,000 in 
restitution to the Prince George's County Public School System 
(``PGCPS'').\5\
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    \3\ 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).
    \4\ Hornsby Judgment at 1-5. See also Hornsby Indictment at 1-
21, 24-27, 29-30. (Discussion of your convictions in this notice is 
limited to those activities related to the E-Rate program).
    \5\ Hornsby Judgment at 6-7. PGCPS was one of the 20 largest 
school districts in the nation in 2004, with a budget of more than 
$1 billion. See Department of Justice Press Release (Nov. 25, 2008), 
available at http://baltimore.fbi.gov/dojpressrel/pressrel08/ba112508.htm (DOJ November 2008 Press Release).
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    You were employed as Chief Executive Officer, Secretary and 
Treasurer for the Board of Education for Prince Georges County 
(``Board'').\6\ As Chief Executive Officer of the Board, you were 
responsible for overall administration of PGCPS from June 2003 until 
June 2005.\7\ Beginning in November 2003, you devised schemes to 
defraud PGCPS for your personal financial gain.\8\ You directed PGCPS 
employees to seek proposals from outside E-Rate consulting companies 
for assistance with PGCPS' E-Rate applications.\9\ Despite late filings 
and other disqualifications, you ultimately steered the bidding process 
and directed contracts be awarded for E-Rate consulting services to 
Erate Managers, LLC (``Erate Managers''), a non-existent company 
purportedly operated by an individual who had worked for you in other 
school districts (``Former Employee'').\10\ You, in turn, were to 
receive more than $100,000 from the Former Employee for your role in 
securing the E-Rate consulting contracts with PGCPS, and accepted 
$1,000 in cash as a down payment.\11\ Further, you made materially 
false representations, destroyed records and otherwise hid your 
associations with the Former Employee to conceal your role in the 
fraudulent conduct at issue.\12\
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    \6\ Hornsby Indictment at 2. See also DOJ November 2008 Press 
Release at 1. The Board was responsible for oversight of PGCPS. See 
Hornsby Indictment at 1. Responsibility for the overall 
administration of PGCPS was entrusted to the Chief Executive 
Officer, who reported to the Board. See Hornsby Indictment at 2.
    \7\ Hornsby Indictment at 2.
    \8\ Id. at 14-19. See also DOJ November 2008 Press Release at 1.
    \9\ Hornsby Indictment at 6, 15.
    \10\ Id. at 4-8. You directed PGCPS personnel not to award 
contracts to the company with the highest overall score, and stalled 
the bidding process past the deadline in favor of waiting for a 
proposal from Erate Managers. Hornsby Indictment at 6-7. See also 
DOJ November 2008 Press Release at 1-2.
    \11\ Hornsby Indictment at 8, 14-15. See also DOJ November 2008 
Press Release at 1-2.
    \12\ Hornsby Indictment at 14-18, 24-27, 29-30. See also DOJ 
November 2008 Press Release at 3.
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    Pursuant to section 54.8 of the Commission's rules, your conviction 
on criminal offenses arising out of consulting 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.\13\ 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.\14\
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    \13\ 47 CFR 54.8(b)-(e); see also 54.8(a)(4).
    \14\ 47 CFR 54.8(a)(1); see also 54.8(a)(3).
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    Your suspension becomes immediately 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.\15\ 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.\16\ 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.\17\ Such requests, however, will not ordinarily be granted.\18\ 
The Bureau may reverse or limit the scope of suspension only upon a 
finding of extraordinary circumstances.\19\ The Bureau will decide any 
request for the reversal or modification of suspension within 90 days 
of its receipt of such request.\20\
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    \15\ 47 CFR 54.8(a)(7), (e)(1); see also Second Report and 
Order, 18 FCC Rcd at 9226, para. 69.
    \16\ 47 CFR 54.8(e)(4).
    \17\ Id.
    \18\ Id.
    \19\ 47 CFR 54.8(f); see also Second Report and Order, 18 FCC 
Rcd at 9226, para. 70.
    \20\ 47 CFR 54.8(e)(5), (f); see also Second Report and Order, 
18 Fcc Rcd at 9226, para. 70.
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II. Initiation of Debarment Proceedings

    Your conviction for 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.\21\ Therefore, pursuant to section

[[Page 36225]]

54.8 of the Commission's rules, your conviction requires the Bureau to 
commence debarment proceedings against you.\22\
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    \21\ ``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). You were convicted for obstruction of justice, attempted 
evidence tampering for falsification or destruction of records, and 
wire fraud. See supra note 4.
    \22\ See 47 CFR 54.8(b), (c).
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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.\23\ Absent 
extraordinary circumstances, the Bureau will debar you.\24\ The Bureau 
will decide any request for reversal or limitation of debarment within 
90 days of receipt of such request.\25\ 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.\26\
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    \23\ 47 CFR 54.8(e)(3), (5); see also Second Report and Order, 
18 FCC Rcd at 9226, para. 70.
    \24\ 47 CFR 54.8(e)(5); see also Second Report and Order, 18 FCC 
Rcd at 9227, para. 74.
    \25\ 47 CFR 54.8(e)(5), (f); see also Second Report and Order, 
18 FCC Rcd at 9226, para. 70.
    \26\ 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.\27\ The Bureau may, if necessary to protect the 
public interest, extend the debarment period.\28\
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    \27\ 47 CFR 54.8(a)(1), (d), (g); see also Second Report and 
Order, 18 FCC Rcd at 9225, para. 67.
    \28\ 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 
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 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 Michele Levy 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 <a href="/cdn-cgi/l/email-protection#45172027202e242d6b072c2b24052326266b222a33"><span class="__cf_email__" data-cfemail="e6b48384838d878ec8a48f8887a6808585c8818990">[email protected]</span></a> and to 
<a href="/cdn-cgi/l/email-protection#115c787279747d743f5374637d7e6774517772723f767e67"><span class="__cf_email__" data-cfemail="2f62464c474a434a016d4a5d4340594a6f494c4c01484059">[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#83d1e6e1e6e8e2ebadc1eaede2c3e5e0e0ade4ecf5"><span class="__cf_email__" data-cfemail="e2b087808789838acca08b8c83a2848181cc858d94">[email protected]</span></a>. 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 <a href="/cdn-cgi/l/email-protection#0d40646e65686168234f687f61627b684d6b6e6e236a627b"><span class="__cf_email__" data-cfemail="04496d676c6168612a466176686b7261446267672a636b72">[email protected]</span></a>.

 Sincerely yours,

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

cc: Michael R. Pauz[eacute], Assistant United States Attorney, 
Department of Justice (via e-mail) Kristy Carroll, Esq., Universal 
Service Administrative Company (via e-mail)

[FR Doc. E9-17410 Filed 7-21-09; 8:45 am]
BILLING CODE 6712-01-P


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