[Federal Register Volume 69, Number 204 (Friday, October 22, 2004)]
[Notices]
[Pages 62047-62049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-23461]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 04-3209]


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. John 
Dotson'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. Dotson, 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.

[[Page 62048]]


DATES: Opposition requests must be received by November 22, 2004. 
However, an opposition request by the party to be suspended must be 
received 30 days from the receipt of suspension letter or November 22, 
2004, 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 4-A265, 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 04-3209, which was 
mailed to Mr. Dotson and released on October 7, 2004. 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, Best Copy & Printing, Inc., Portals II, 445 12th Street, 
SW., Room CY-B402, Washington, DC 20554, telephone 202-488-5300, 
facsimile 202-488-5563, or via e-mail [email protected].

Federal Communications Commission.
William H. Davenport,
Chief, Investigations and Hearings Division, Enforcement Bureau.

    The suspension letter follows:

Federal Communications Commission

Enforcement Bureau, Investigations and Hearings Division, 445 12th 
Street, SW., Suite 4-C330, Washington, DC 20554, October 7, 2004.
John Dotson, 2850 Webb Avenue, Apt. 4H, Bronx, NY 10468.

Re: Notice of Suspension and of Proposed Debarment File No. EB-04-
IH-0460.

    Dear Mr. Dotson: The Federal Communications Commission (``FCC'' 
or ``Commission'') has received notice of your conviction on or 
about May 17, 2004 pursuant to 18 U.S.C. Sec.  371 for conspiracy to 
defraud the United States.\1\ Specifically, you were convicted of 
conspiracy to violate the following laws of the United States: (1) 
18 U.S.C. Sec.  287 (false, fictitious, and fraudulent claims); (2) 
18 U.S.C. Sec.  1001 (false statements and entries generally); and 
(3) 18 U.S.C. Sec.  1343 (fraud by wire, radio, or television). 
Consequently, pursuant to 47 C.F.R. Sec.  54.521, this letter 
constitutes official notice of your suspension from the schools and 
libraries universal service support mechanism, also known as 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\ Any further reference in this letter to ``your conviction'' 
refers to your conviction on or about May 17, 2004 of this count 
based on your participation in a fraudulent scheme to obtain schools 
and libraries E-Rate program funds. See United States v. Dotson, 
Docket No. 1:03cr01113BSJ, Indictment (S.D.N.Y. filed September 17, 
2003) (``Dotson Indictment''); United States v. Dotson, Docket No. 
1:03cr01113BSJ, Judgment (S.D.N.Y. May 17, 2004) (``Dotson 
Judgment'').
    \2\ 47 C.F.R. Sec.  54.521; 47 C.F.R. Sec.  0.111(a)(14) 
(delegating to the Enforcement Bureau authority to resolve universal 
service suspension and debarment proceedings pursuant to 47 C.F.R. 
Sec.  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 C.F.R. Sec.  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. 
Sec.  254; 47 C.F.R Sec. Sec.  54.502-54.503; 47 C.F.R. Sec.  
54.521(a)(4).
    \5\ Second Report and Order, 18 FCC Rcd at 9226, ] 69; 47 C.F.R. 
Sec.  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.\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 C.F.R. 
Sec.  54.521(e)(4).
    \7\ Second Report and Order, 18 FCC Rcd at 9226, ] 70.
    \8\ 47 C.F.R. Sec.  54.521(f).
    \9\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
C.F.R. Sec. Sec.  54.521(e)(5), 54.521(f).
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II. Notice of Proposed Debarment

A. Reasons for and Cause of Debarment

    Commission 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\ Based on your February 13, 2004 guilty plea, you were 
convicted on or about May 17, 2004 of conspiracy to defraud the 
Government by selling E-Rate services through Connect2Internet 
Networks, Inc. (``Connect2'') to certain schools participating in 
the E-Rate program but charging 100 percent of the costs to the 
program rather than requiring the schools to pay ten percent of the 
costs as required by the program rules.\11\ In particular, you 
admitted to combining, conspiring and carrying out, with other co-
conspirators, the following acts: (1) falsely representing to 
certain schools that they could participate in the E-Rate program at 
no cost to them, and that their share of the costs would be covered 
by outside sources donated to Connect2 for that purpose; (2) 
requesting certain school officials to write checks payable to 
Connect2 while agreeing either not to cash them or to return those 
monies to the schools or their designees; and (3) creating back-
dated phony billing documents that give the false appearance that 
Connect2 had billed the schools for their costs.\12\ 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

[[Page 62049]]

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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    \10\ Second Report and Order, 18 FCC Rcd at 9225, ] 66.
    \11\ See Dotson Indictment at 2, 3; Dotson Judgment.
    \12\ Dotson Indictment at 4-5.
    \13\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
C.F.R. Sec.  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 C.F.R. 
Sec.  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.] Sec.  54.500 et seq.).'' 47 
C.F.R. Sec.  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 
C.F.R. Sec. Sec.  54.521(e)(2)(i), 54.521(e)(3).
    \16\ Second Report and Order, 18 FCC Rcd at 9227, ] 74.
    \17\ See id., 18 FCC Rcd at 9226, ] 70; 47 C.F.R. Sec.  
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 C.F.R. Sec.  
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 
C.F.R. Sec. Sec.  54.521(d), 54.521(g).
    \20\ Id.
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    Please direct any responses to the following address: Diana Lee, 
Esq., Federal Communications Commission, Enforcement Bureau, 
Investigations and Hearings Division, Room 4-A265, 445 12th Street, 
S.W., Washington, D.C. 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 Eric Bash by telephone at 
(202) 418-1420 and by e-mail at [email protected].
    Sincerely yours,
William H. Davenport,
Chief, Investigations and Hearings Division, Enforcement Bureau.
[FR Doc. 04-23461 Filed 10-21-04; 8:45 am]
BILLING CODE 6712-01-P