[Federal Register Volume 69, Number 5 (Thursday, January 8, 2004)]
[Notices]
[Pages 1283-1285]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-367]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 03-4087]


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. Oscar Alvarez from the schools and libraries universal 
service support mechanism for a period of three years.

DATES: Debarment commences on the date of Mr. Alvarez' 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. Oscar Alvarez 
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. Alvarez from the 
schools and libraries mechanism, pending debarment proceedings. See 68 
FR 56836, October 2, 2003. Attached is the debarment letter, Notice of 
Debarment, DA 03-4087, which was mailed to Mr. Alvarez and released on 
December 23, 2003, that in turn attached the suspension letter, Notice 
of Suspension and of Proposed Debarment Proceedings, DA 03-2706. 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 03-4087]

Via Certified Mail, Return Receipt Requested

Mr. Oscar Alvarez,
Connect2 Internet Networks, Inc., 26 Bay Street, Staten Island, NY 
10301.
Re: Notice of Debarment, File No. EB-03-IHD-0377.

    Dear Mr. Alvarez: Pursuant to section 54.521 of the rules of the 
FederalCommunications 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 Oscar Alvarez, Notice of Suspension and Proposed 
Debarment, 18 FCC Rcd 16668 (2003).
    \3\ 68 FR 58836 (Oct. 2, 2003).
    \4\ See Notice of Suspension, 18 FCC Rcd at 16668-69 (imposing 
suspension pending the Bureau's final debarment determination) 
(Attachment 1).
    \5\ See id., 18 FCC Rcd at 16669 (describing the basis for your 
proposed debarment).
    \6\ See id., 18 FCC Rcd at 16670 (describing procedures to 
contest proposed debarment).
    \7\ See id. (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 the earlier date of your receipt of the Notice of 
Suspension or publication of the Notice of Suspension in the Federal 
Register.\8\ The Commission did not receive any such opposition.
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    \8\ See 47 CFR 54.521(e)(3) and (4). That date occurred no later 
than November 1, 2003. See supra note 3.
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    As discussed in the Notice of Suspension, on May 20, 2003, you 
pled guilty attempting to persuade two school administrators not to 
show to Commission auditors a letter signed by your employer that 
falsely represented that the school could participate in the E-Rate 
program at no cost.\9\ Such conduct constitutes the basis for your 
debarment, and your conviction falls within the categories of causes 
for debarment under section 54.521(c)

[[Page 1284]]

of the Commission's rules.\10\ 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 date in the Federal Register.\11\ 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 consulting with, 
assisting, or advising applicants or service providers regarding the 
schools and libraries support mechanism.'' \12\
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    \9\ Notice of Suspension, 18 FCC Rcd at 16669.
    \10\ Notice of Suspension, 18 FCC Rcd at 16669-70; 47 CFR 
54.521(c).
    \11\ See Notice of Suspension, 18 FCC Rcd at 16670.
    \12\ See 47 CFR 54.521(a)(1), 54.521(a)(5), 54.521(d); Notice of 
Suspension, 18 FCC Rcd at 16670.
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    Sincerely yours,

William H. Davenport,
Deputy Chief, Investigations and Hearings Division, Enforcement 
Bureau.

cc: Joel M. Cohen, Greenberg Traurig, LLP (Via Certified Mail, 
Return Receipt Requested) Kristy Carroll, USAC (Via E-mail).

Attachment 1

August 21, 2003.

[DA 03-2706]

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.\13\ 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.\14\
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    \13\ 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'').
    \14\ 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,\15\ 
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.\16\ Your suspension becomes effective upon the earlier of 
your receipt of this letter or publication of notice in the Federal 
Register.\17\
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    \15\ 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'').
    \16\ 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).
    \17\ 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.\18\ Such requests, 
however, will not ordinarily be granted.\19\ The Bureau may reverse 
or limit the scope of suspension only upon a finding of 
extraordinary circumstances.\20\ Absent extraordinary circumstances, 
the Bureau will decide any request for reversal or modification of 
suspension within 90 days of its receipt of such request.\21\
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    \18\ Second Report and Order, 18 FCC Rcd at 9226, ]70; 47 CFR 
54.521(e)(4).
    \19\ Second Report and Order, 18 FCC Rcd at 9226, ]70.
    \20\ 47 CFR 54.521(f).
    \21\ 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.\22\ 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.'' \23\ These actions constitute 
the conduct or transactions upon which this debarment proceeding is 
based.\24\ 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.\25\ 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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    \22\ Second Report and Order, 18 FCC Rcd at 9225, ]66.
    \23\ 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.
    \24\ Second Report and Order, 18 FCC Rcd at 9226, ]70; 47 CFR 
54.521(e)(2)(i).
    \25\ ``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).
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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.\26\ Absent extraordinary 
circumstances, the Bureau will debar you.\27\ 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.\28\ 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.\29\
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    \26\ See Second Report and Order, 18 FCC Rcd at 9226, ]70; 47 
CFR 54.521(e)(2(i), 54.521(e)(3).
    \27\ Second Report and Order, 18 FCC Rcd at 9227, ]74.
    \28\ See Second Report and Order, 18 FCC Rcd at 9226, ]70; 47 
CFR 54.521(e)(5).
    \29\ 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.
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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.\30\ The Bureau may, if 
necessary to protect the public interest, extend the debarment 
period.\31\
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    \30\ Second Report and Order, 18 FCC Rcd at 9225, ]67; 47 CFR 
54.521(d), 54.521(g).
    \31\ 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.


[[Page 1285]]


    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. 04-367 Filed 1-7-04; 8:45 am]
BILLING CODE 6712-01-P