[Federal Register Volume 68, Number 191 (Thursday, October 2, 2003)]
[Notices]
[Pages 56839-56840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-24936]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 03-2882]


Notice of Suspension and of Proposed Debarment Proceedings; 
Schools and Libraries Universal Service Support Mechanism

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Enforcement Bureau (``Bureau'') gives notice of Mr. Duane 
Maynard's suspension from the schools and libraries universal service 
support mechanism. In addition, the Bureau gives notice that debarment 
proceedings are commencing against him. Mr. Maynard, 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.

DATES: Opposition requests must be received by November 3, 2003. 
However, an opposition request by the party to be suspended must be 
received 30 days from the receipt of the suspension letter or November 
3, 2003, 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: Diana Lee, Federal Communications 
Commission, Enforcement Bureau, Investigations and Hearings Division, 
Room 6-C326, 445 12th Street, SW., Washington, DC 20554. Diana Lee may 
be contacted by phone at (202) 418-1420 or e-mail at [email protected].

SUPPLEMENTARY INFORMATION: The Bureau has suspension and debarment 
authority under 47 CFR 54.521 and 47 CFR 0.111(a)(14). 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, Notice of 
Suspension and of Proposed Debarment Proceedings, DA 03-2882, which was 
mailed to Mr. Maynard and released on August 21, 2003. The letter (1) 
gives notice of the suspension and proposed debarment; (2) gives the 
reasons for the proposed debarment; (3) explains the debarment 
procedures, and (4) describes the potential effect of debarment. The 
complete text of the suspension letter is available for public 
inspection and copying during regular business hours at the FCC 
Reference Information Center, Portals II, 445 12th Street, SW., Room 
CY-A257, Washington, DC 20554. In addition, the complete text of this 
letter may be retrieved from the FCC's Web site at http://www.fcc.gov. 
The text may also be purchased from the Commission's duplicating 
contractor, Qualex International, Portals II, 445 12th Street, SW., 
Room CY-B402, Washington, DC 20554, telephone (202) 863-2893, facsimile 
(202) 863-2898, or via e-mail [email protected].

    Federal Communications Commission.
Maureen F. Del Duca,
Chief, Investigations and Hearings Division, Enforcement Bureau.
    The suspension letter follows:

Federal Communications Commission, Washington, DC 20554

[DA 03-2882]

September 11, 2003.
Via Certified Mail Return Receipt Requested

Mr. Duane Maynard
Howe Electric, Inc., 4682 E. Olive Ave., Fresno, CA 93702
Re: Notice of Suspension and of Proposed Debarment, File No. EB-03-
IHD-0387.

    Dear Mr. Maynard: The Federal Communications Commission (``FCC'' 
or ``Commission'') has received notice of your August 26, 2003 
conviction pursuant to 15 U.S.C. 1 for bid rigging.\1\ Consequently, 
pursuant to 47 CFR 54.521, this letter constitutes official notice 
of your suspension from the schools and libraries universal service 
support mechanism. In addition, the Enforcement Bureau (``Bureau'') 
hereby notifies you that we are commencing debarment proceedings 
against you.\2\
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    \1\ Any further reference in this letter to ``your conviction'' 
refers to your August 26, 2003 guilty plea and conviction of this 
count based on your participation, on behalf of your employer, Howe 
Electric, Inc., in a ``combination and conspiracy to suppress 
bidding for the West Fresno Elementary School District E-Rate 
project and to allocate among conspirators the responsibility for 
supplying goods and services for that project.'' See United States 
v. Maynard, Criminal Docket No. 1:03cr5325, Information at 2-3 
(E.D.Cal. filed August 19, 2003) (``Maynard Felony Information''); 
United States v. Maynard, Criminal Docket No. 1:03cr5325, Plea 
Agreement at 6-7 (E.D.Cal. filed August 26, 2003) (``Maynard Plea 
Agreement'').
    \2\ 47 CFR 54.521; 47 CFR 0.111(a)(14) (delegating to the 
Enforcement Bureau authority to resolve universal service suspension 
and debarment proceedings pursuant to 47 CFR 54.521).
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I. Notice of Suspension

    Pursuant to section 54.521(a)(4) of the Commission's rules,\3\ 
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.\4\ Your suspension becomes effective upon the earlier of 
your receipt of this letter or publication of notice in the Federal 
Register.\5\
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    \3\ 47 CFR 54.521(a)(4); Schools and Libraries Universal Service 
Support Mechanism, Second Report and Order and Further Notice of 
Proposed Rulemaking, 18 FCC Rcd 9202, 9225-27, ]] 67-74 (2003) 
(``Second Report and Order''); id. at Appendix B, 18 FCC Rcd at 
9263-65.
    \4\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 U.S.C. 
254; 47 CFR 54.502-54.503; 47 CFR 54.521(a)(4).
    \5\ Second Report and Order, 18 FCC Rcd at 9226, ] 69; 47 CFR 
54.521(e)(1).
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    Suspension is immediate pending the Bureau's final debarment 
determination. You

[[Page 56840]]

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.\6\ Such requests, however, will not 
ordinarily be granted.\7\ The Bureau may reverse or limit the scope 
of suspension only upon a finding of extraordinary circumstances.\8\ 
Absent extraordinary circumstances, the Bureau will decide any 
request for reversal or modification of suspension within 90 days of 
its receipt of such request.\9\
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    \6\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR 
54.521(e)(4).
    \7\ Second Report and Order, 18 FCC Rcd at 9226, ] 70.
    \8\ 47 CFR 54.521(f).
    \9\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
CFR 54.521(e)(5), 54.521(f).
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II. Notice of Proposed Debarment

A. Reasons for and Cause of Debarment

    The Commission's rules establish 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.\10\ On August 26, 2003, you admitted to 
participating in a combination and conspiracy with West Fresno 
Elementary School District representatives, a consultant and others 
representing potential competitors, on behalf of your employer, Howe 
Electric, Inc.\11\ Specifically, you admitted that you and the other 
co-conspirators combined, conspired, and agreed that: (1) Howe 
Electric, Inc. would be the successful bidder to provide goods and 
services for the schools and libraries E-Rate project in the 
district, while no other co-conspirator companies would bid for the 
project; (2) certain co-conspirator companies would be Howe 
Electric's subcontractors; and (3) any competing bids would be 
disqualified as nonresponsive.\12\
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    \10\ Second Report and Order, 18 FCC Rcd at 9225, ] 66.
    \11\ See United States v. Maynard, Criminal Docket No. 
1:03cr5325, Docket Proceedings (E.D.Cal. filed August 26, 2003).
    \12\ See Maynard Felony Information at 3; Maynard Plea Agreement 
at 6-7. The conspiracy violated the Commission's competitive bid 
requirements for telecommunications services supported by the 
schools and libraries E-Rate program. 47 CFR 54.504.
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    These actions constitute the conduct or transactions upon which 
this debarment proceeding is based.\13\ Moreover, your conviction on 
the basis of these acts falls within the categories of causes for 
debarment defined in section 54.521(c) of the Commission's 
rules.\14\ Therefore, pursuant to section 54.521(a)(4) of the 
Commission's rules, your conviction requires the Bureau to commence 
debarment proceedings against you.
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    \13\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR 
54.521(e)(2)(i).
    \14\ ``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 
54.521(c). Such activities ``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 schools and libraries support mechanism 
described in this section ([47 C.F. R.] 54.500 et seq.).'' 47 CFR 
54.521(a)(1).
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B. Debarment Procedures

    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.\15\ Absent extraordinary 
circumstances, the Bureau will debar you.\16\ 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.\17\ 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 its 
decision in the Federal Register.\18\
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    \15\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
CFR 54.521(e)(2(i), 54.521(e)(3).
    \16\ Second Report and Order, 18 FCC Rcd at 9227, ] 74.
    \17\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
CFR 54.521(e)(5).
    \18\ 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 54.521(f).
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C. Effect of Debarment

    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 at least 
three years from the date of debarment.\19\ The Bureau may, if 
necessary to protect the public interest, extend the debarment 
period.\20\
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    \19\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR 
54.521(d), 54.521(g).
    \20\ Id.
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    Please direct any responses to the following address: Diana Lee, 
Federal Communications Commission, Enforcement Bureau, 
Investigations and Hearings Division, Room 6-C326, 445 12th Street, 
SW., Washington, DC 20554.
    If you submit your response via hand-delivery or non-United 
States Postal Service delivery (e.g., Federal Express, DHL, etc.), 
please send your response to Ms. Lee at the following address: 
Federal Communications Commission, 9300 East Hampton Drive, Capitol 
Heights, MD 20743.
    If you have any questions, please contact Ms. Lee via mail, by 
telephone at (202) 418-1420 or by e-mail at [email protected]. If 
Ms. Lee is unavailable, you may contact William Davenport by 
telephone at (202) 418-1420 and by e-mail at 
[email protected].

Sincerely yours,

Maureen F. Del Duca,

Chief, Investigations and Hearings Division, Enforcement Bureau.

    cc: Kenneth Alan Reed, Law Office of Kenneth Alan Reed Kristy 
Carroll, USAC.

[FR Doc. 03-24936 Filed 10-1-03; 8:45 am]
BILLING CODE 6712-01-P