[Federal Register Volume 68, Number 191 (Thursday, October 2, 2003)]
[Notices]
[Pages 56836-56837]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-24938]


-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

[DA 03-2706]


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

AGENCY: Federal Communications Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Enforcement Bureau (``Bureau'') gives notice of Mr. Oscar 
Alvarez'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. Alvarez, 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 03-2706, which was 
mailed to Mr. Alvarez 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 03-2706]

August 21, 2003.
Via Certified Mail
Return Receipt Requested

Mr. Oscar Alvarez
Connect2 Internet Networks, Inc.
26 Bay Street
Staten Island, NY 10301

Re: Notice of Suspension and of Proposed Debarment, File No. EB-03-
IHD-0377.

    Dear Mr. Alvarez: The Federal Communications Commission (``FCC'' 
or ``Commission'') has received notice of your May 20, 2003 
conviction pursuant to 18 U.S.C. 1512 for misleading conduct toward 
another person: (1) to influence, delay, or prevent the testimony of 
any person in an official proceeding; and (2) with the intent to 
cause and induce another person to alter, destroy, mutilate and 
conceal objects with the intent to impair the objects' integrity and 
availability for use in an official proceeding.\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'')

[[Page 56837]]

hereby notifies you that we are commencing debarment proceedings 
against you.\2\
---------------------------------------------------------------------------

    \1\ Any further reference in this letter to ``your conviction'' 
refers to your May 20, 2003 guilty plea and conviction of this count 
based on your attempt to persuade two school administrators not to 
reveal evidence to FCC auditors conducting an official investigation 
into violations by your employer, Connect2 Internet Networks, Inc. 
(``Connect2'') of the FCC rules governing the E-Rate schools and 
libraries internet funding program (``E-Rate program''). See United 
States v. Alvarez, Criminal Docket No. 1:03cr634, Felony Information 
at 1-2 (S.D.N.Y. filed May 20, 2003) (``Alvarez Felony 
Information'').
    \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).
---------------------------------------------------------------------------

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\
---------------------------------------------------------------------------

    \3\ 47 CFR 54.521(a)(4). See Schools and Libraries Universal 
Service Support Mechanism, Second Report and Order and Further 
Notice of Proposed Rulemaking, 18 FCC Rcd 9202, 9225-9227, ]] 67-74 
(2003) (``Second Report and Order'').
    \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).
---------------------------------------------------------------------------

    Suspension is immediate pending the Bureau's final debarment 
determination. 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.\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\
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

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 May 20, 2003, you pleaded guilty to 
attempting to persuade two school administrators not to show to FCC 
auditors a letter signed by your employer that falsely represented 
that the school could participate in the E-Rate program at 
``absolutely no cost to the school.''\11\ These actions constitute 
the conduct or transactions upon which this debarment proceeding is 
based.\12\ 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.\13\ Therefore, pursuant 
to section 54.521(a)(4) of the Commission's rules, your conviction 
requires the Bureau to commence debarment proceedings against you.
---------------------------------------------------------------------------

    \10\ Second Report and Order, 18 FCC Rcd at 9225, ] 66.
    \11\ See United States v. John Angelides, John Dotson, Oscar 
Alvarez, and Gary Blum, U.S. District Court, Southern District of 
New York, Complaint at 29 (S.D.N.Y. filed Dec. 17, 2003). The 
incriminating letter was signed by John Angelides, owner and CEO of 
Connect2. Id. Further, the conduct for which you were convicted 
served to conceal and further a fraudulent scheme unlawfully to 
obtain E-Rate program funds. See generally id.
    \12\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR 
54.521(e)(2)(i).
    \13\ ``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 CFR 54.500 et seq.).'' 47 CFR 
54.521(a)(1).
---------------------------------------------------------------------------

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.\14\ Absent extraordinary 
circumstances, the Bureau will debar you.\15\ 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.\16\ 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.\17\
---------------------------------------------------------------------------

    \14\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
CFR 54.521(e)(2(i), 54.521(e)(3).
    \15\ Second Report and Order, 18 FCC Rcd at 9227, ] 74.
    \16\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
CFR 54.521(e)(5).
    \17\ 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).
---------------------------------------------------------------------------

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.\18\ The Bureau may, if 
necessary to protect the public interest, extend the debarment 
period.\19\
---------------------------------------------------------------------------

    \18\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR 
54.521(d), 54.521(g).
    \19\ Id.
---------------------------------------------------------------------------

    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: Joel M. Cohen, Greenberg Traurig, LLP
     Kristy Carroll, USAC

[FR Doc. 03-24938 Filed 10-1-03; 8:45 am]
BILLING CODE 6712-01-P