[Federal Register Volume 69, Number 5 (Thursday, January 8, 2004)]
[Notices]
[Pages 1285-1287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-366]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 03-4088]


Notice of Debarment; Schools and Libraries Universal Service 
Support Mechanism

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Federal Communications Commission (the ``Commission'') 
debars Mr. John Angelides from the schools and libraries universal 
service support mechanism for a period of three years.

DATES: Debarment commences on the date of Mr. Angelides' receipt of the 
debarment letter or January 8, 2004, whichever date comes first, for a 
period of three years.

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 Commission debarred Mr. John Angelides 
from the schools and libraries universal service support mechanism for 
a period of three years pursuant to 47 CFR 54.521 and 47 CFR 
0.111(a)(14). The Commission previously suspended Mr. Angelides from 
the schools and libraries mechanism, pending debarment proceedings. See 
68 FR 56837, October 2, 2003. Attached is the debarment letter, Notice 
of Debarment, DA 03-4088, which was mailed to Mr. Angelides and 
released on December 23, 2003, that in turn attached the suspension 
letter, Notice of Suspension and of Proposed Debarment Proceedings, DA 
03-2707. The complete text of the debarment letter, including 
attachment 1, 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 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.
William H. Davenport,
Deputy Chief, Investigations and Hearings Division, Enforcement Bureau.

    The debarment letter, which attached the suspension letter, 
follows:

December 23, 2003.

[DA 03-4088]

Via Certified Mail, Return Receipt Requested.

Mr. John Angelides,
Chief Executive Officer, Connect2 Internet Networks, Inc., 26 Bay 
Street, Staten Island, NY 10301.

Re: Notice of Debarment, File No. EB-03-IHD-0376.

    Dear Mr. Angelides: Pursuant to section 54.521 of the rules of 
the Federal Communications Commission (the ``Commission''), by this 
Notice of Debarment you are hereby debarred from the schools and 
libraries universal service support mechanism for a period of three 
years.\1\
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    \1\ See 47 CFR 0.111(a)(14), 54.521.
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    On August 21, 2003, the Enforcement Bureau (the ``Bureau'') sent 
you a Notice of Suspension and Proposed Debarment (the ``Notice of 
Suspension'').\2\ That Notice of Suspension was published in the 
Federal Register on October 2, 2003.\3\ The Notice of Suspension 
suspended you from the schools and libraries universal service 
support mechanism \4\ and described the basis for your proposed 
debarment,\5\ the applicable debarment procedures,\6\ and the effect 
of debarment.\7\
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    \2\ Letter from Maureen F. Del Duca, Chief, Investigations and 
Hearings Division, Enforcement Bureau, Federal Communications 
Commission, to John Angelides, Notice of Suspension and Proposed 
Debarment, 18 FCC Rcd 16672 (2003) (Attachment 1).
    \3\ 68 FR 56837 (Oct. 2, 2003).
    \4\ See Notice of Suspension, 18 FCC Rcd at 16672-73 (imposing 
suspension pending the Bureau's final debarment determination).
    \5\ See id., 18 FCC Rcd at 16673 (describing the basis for your 
proposed debarment).
    \6\ See id., 18 FCC Rcd at 16674 (describing procedures to 
contest proposed debarment).
    \7\ See id., 18 FCC Rcd at 16674 (describing effect of proposed 
debarment).
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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 your receipt of the Notice of Suspension or 
publication of the Notice of Suspension in the Federal Register, 
whichever came first.\8\ On or about September 22, 2003, the Bureau 
granted your request to extend the time to contest issues raised in 
the Notice of Suspension until October 14, 2003.\9\ The Bureau 
received your response on that date.\10\ Your Response explicitly 
states that you do not challenge your debarment.\11\ The Response 
merely ``emphasizes'' that this proceeding is directed ``only 
against Mr. Angelides.'' \12\ The Bureau notes that the Notice of 
Suspension and the Notice of Debarment are addressed to and 
applicable to you, Mr. Angelides, individually, and not to any other 
person or entity. Such limitation does not bar the Commission from 
taking additional enforcement action, subject to its rules, against 
such other persons or entities.
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    \8\ See 47 CFR 54.521(e)(3) and (4).
    \9\ Letter from Karen H. Broomberg, Cohen & Gresser LLP, to 
Diana Lee, Investigations and Hearings Division, Enforcement Bureau, 
Federal Communications Commission, dated Sep. 22, 2003.
    \10\ Letter from Mark S. Cohen, Cohen & Gresser LLP, to Diana 
Lee, Investigations and Hearings Division, Enforcement Bureau, 
Federal Communications Commission, dated Oct. 14, 2003 (the 
``Response'').
    \11\ Response at 1 (stating, ``Mr. Angelides does not challenge 
his individual debarment.'').
    \12\ Id.
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    As discussed in the Notice of Suspension, on May 22, 2003, you 
pled guilty to charges of falsely representing to schools that they 
could participate in the E-Rate program at no cost, falsely 
representing to fund administrators and Government investigators 
that the schools would pay or had paid their unsubsidized share, 
falsifying documents, and attempting to persuade school 
administrators not to reveal evidence to Government investigators in 
order to conceal the scheme.\13\ Such conduct constitutes the basis 
for your debarment, and your conviction falls within the categories 
of causes for debarment under section 54.521(c) of the Commission's 
rules.\14\ 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 
in the Federal Register.\15\ 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

[[Page 1286]]

consulting with, assisting, or advising applicants or service 
providers regarding the schools and libraries support mechanism.'' 
\16\
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    \13\ Notice of Suspension, 18 FCC Rcd at 16673.
    \14\ Notice of Suspension, 18 FCC Rcd at 16674; 47 CFR 
54.521(c).
    \15\ See Notice of Suspension, 18 FCC Rcd at 16674.
    \16\ See 47 CFR 54.521(a)(1), 54.521(a)(5), 54.521(d); Notice of 
Suspension, 18 FCC Rcd at 16674.
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    Sincerely yours,
William H. Davenport,
Deputy Chief, Investigations and Hearings Division, Enforcement 
Bureau.

cc: Mark S. Cohen, Cohen & Gressler, LLP (Via E-mail and United 
States Mail), Kristy Carroll, USAC (Via E-mail).

 August 21, 2003.Attachment 1

August 21, 2003.

[DA 03-2707]

Via Certified Mail, Return Receipt Requested.

Mr. John Angelides,
Chief Executive Officer, Connect2 Internet Networks, Inc., 26 Bay 
Street, Staten Island, NY 10301.

Re: Notice of Suspension and of Proposed Debarment, File No. EB-03-
IHD-0376.

    Dear Mr. Angelides: The Federal Communications Commission 
(``FCC'' or ``Commission'') has received notice of your May 22, 2003 
conviction under 18 U.S.C. 371 for conspiracy to commit an offense 
against or to defraud the United States. Specifically, you were 
convicted of conspiracy to violate the following laws of the United 
States: (1) 18 U.S.C. 287 (false, fictitious, and fraudulent 
claims); (2) 18 U.S.C. 1001 (false statements and entries 
generally); and (3) 18 U.S.C. 1343 (fraud by wire, radio, or 
television).\17\ 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.\18\
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    \17\ Any further reference in this letter to ``your conviction'' 
refers to your May 22, 2003 guilty plea and conviction on this count 
based on your fraudulent scheme to obtain schools and libraries E-
Rate program funds. See United States v. Angelides, Docket No. 
1:03cr635, Felony Information (S.D.N.Y. filed May 20, 2003) 
(``Angelides Felony Information'').
    \18\ 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,\19\ 
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.\20\ Your suspension becomes effective upon the earlier of 
your receipt of this letter or publication of notice in the Federal 
Register.\21\
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    \19\ 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'').
    \20\ 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).
    \21\ 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 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.\22\ Such requests, 
however, will not ordinarily be granted.\23\ The Bureau may reverse 
or limit the scope of suspension only upon a finding of 
extraordinary circumstances.\24\ Absent extraordinary circumstances, 
the Bureau will decide any request for reversal or modification of 
suspension within 90 days of its receipt of such request.\25\
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    \22\ Second Report and Order, 18 FCC Rcd at 9226, ]70; 47 CFR 
54.521(e)(4).
    \23\ Second Report and Order, 18 FCC Rcd at 9226, ]70.
    \24\ 47 CFR 54.521(f).
    \25\ 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.\26\ On May 22, 2003, you admitted, among other 
things, to selling eligible services to certain participating 
schools through your company Connect2, imposing 100 percent of the 
cost on the E-Rate program. You admitted to each of the following 
acts: (1) Falsely representing to the schools that they could 
participate in the program at no cost to them; (2) falsely 
representing to fund administrators and Government investigators 
that the schools would pay or had paid their unsubsidized share; and 
(3) falsifying documents, as well as attempting to persuade school 
administrators not to reveal evidence to Government investigators, 
in order to conceal the scheme.\27\ These actions constitute the 
conduct or transactions upon which this debarment proceeding is 
based.\28\
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    \26\ Second Report and Order, 18 FCC Rcd at 9225, ]66.
    \27\ See Angelides Felony Information at 3-11.
    \28\ Second Report and Order, 18 FCC Rcd at 9226, ]70; 47 CFR 
54.521(e)(2)(i).
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    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.\29\ 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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    \29\ ``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] Sec.  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.\30\ Absent extraordinary 
circumstances, the Bureau will debar you.\31\ 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.\32\ If the Bureau 
decides to debar you, its decision will become effective upon the 
earlier of your receipt of a debarment notice or the publication of 
its decision in the Federal Register.\33\
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    \30\ Second Report and Order, 18 FCC Rcd at 9226, ]70; 47 CFR 
54.521(e)(2)(i), 54.521(e)(3).
    \31\ Second Report and Order, 18 FCC Rcd at 9227, ]74.
    \32\ Second Report and Order, 18 FCC Rcd at 9226, ]70; 47 CFR 
54.521(e)(5).
    \33\ 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.\34\ The Bureau may, if 
necessary to protect the public interest, extend the debarment 
period.\35\
    Please direct any responses to the following address:
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    \34\ Second Report and Order, 18 FCC Rcd at 9225, ]67; 47 CFR 
54.521(d), 54.521(g).
    \35\ Id.

Diana Lee, Federal Communications Commission, Enforcement Bureau, 
Investigations and Hearings Division, Room 6-C326, 445 12th Street, 
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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.

[[Page 1287]]

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: Mark S. Cohen, Cohen & Gressler, LLP, Kristy Carroll, USAC.

[FR Doc. 04-366 Filed 1-7-04; 8:45 am]
BILLING CODE 6712-01-P