[Federal Register Volume 69, Number 241 (Thursday, December 16, 2004)]
[Notices]
[Pages 75312-75314]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-27587]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 04-3828]


Notice of Debarment; Schools and Libraries Universal Service 
Support Mechanism

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Enforcement Bureau (``Bureau'') debars Mr. John Dotson 
from the schools and libraries universal service support mechanism for 
a period of three years.

DATES: Debarment commences on the date Mr. Dotson receives the 
debarment letter or 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 4-C330, 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 debarred Mr. John Dotson 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. John Dotson from 
the schools and libraries mechanism, pending debarment proceedings. See 
69 FR 62047, October 22, 2004. Attached is the debarment letter, Notice 
of Debarment; Schools and Libraries Universal Service Support 
Mechanism, DA 04-3828, which was mailed to Mr. John Dotson and released 
on December 6, 2004, in turn attached the suspension letter, Notice Of 
Suspension and of Proposed Debarment Proceedings, DA 04-3209. The 
complete text of the debarment letter with attachment 1 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 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,
Chief, Investigations and Hearings Division, Enforcement Bureau.
    The debarment letter, with attached suspension letter, follows:

VIA Certified Mail Return Receipt Requested

John Dotson, 2850 Webb Avenue, Apt. 4H, Bronx, NY 10468.
Re: Notice of Debarment, File No. EB-04-IH-0460.

    Dear Mr. Dotson: 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 October 7, 2004, 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 22, 2004.\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 William H. Davenport, Chief, Investigations and 
Hearings Division, Enforcement Bureau, Federal Communications 
Commission, to John Dotson, Notice of Suspension and Proposed 
Debarment, 19 FCC Rcd 19662 (2004).
    \3\ 69 FR 62047 (Oct. 22, 2004).
    \4\ See Notice of Suspension, 19 FCC Rcd at 19662-63 (imposing 
suspension pending the Bureau's final debarment determination) 
(Attachment 1).
    \5\ See id., 18 FCC Rcd at 19663-64 (describing the basis for 
your proposed debarment).
    \6\ See id., 18 FCC Rcd at 19664 (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 21, 2004. See supra note 3.
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    As discussed in the Notice of Suspension, on or about May 17, 
2004, you were convicted of conspiracy to charge the E-Rate program 
100 percent of the cost of E-Rate services provided through 
Connect2Interne Networks, Inc. (``Connect2'') to certain schools 
participating in the program, rather than requiring the schools to 
pay their designated ten percent of those costs, by: (1) Falsely 
representing to the schools that they

[[Page 75313]]

could participate in the 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 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.\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) 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, 19 FCC Rcd at 19663-64.
    \10\ Notice of Suspension, 19 FCC Rcd at 19664; 47 CFR 
54.521(c).
    \11\ See Notice of Suspension, 19 FCC Rcd at 19664.
    \12\ See 47 CFR 54.521(a)(1), 54.521(a)(5), 54.521(d); Notice of 
Suspension, 19 FCC Rcd at 19664.
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 Sincerely yours,

William H. Davenport,

Chief, Investigations and Hearings Division, Enforcement Bureau.

cc: Philip L. Weinstein, Federal Defender Division Legal Aid Society
Kristy Carroll, USAC (Via Email)
David M. Siegal, Assistant United States Attorney, Southern District 
of New York (Via Email)

Attachment 1

VIA Certified Mail Return Receipt Requested

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. 371 for conspiracy to 
defraud the United States.\13\ 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). Consequently, 
pursuant to 47 CFR 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.\14\
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    \13\ 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'').
    \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

    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.\22\ 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.\23\ 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.\24\ These actions 
constitute the conduct or transactions upon which this debarment 
proceeding is based.\25\ 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.\26\ 
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 Dotson Indictment at 2, 3; Dotson Judgment.
    \24\ Dotson Indictment at 4-5.
    \25\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR 
54.521(e)(2)(i).
    \26\ ``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.\27\ Absent extraordinary 
circumstances, the Bureau will debar you.\28\ 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.\29\ If the Bureau

[[Page 75314]]

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.\30\
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    \27\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
CFR 54.521(e)(2)(i), 54.521(e)(3).
    \28\ Second Report and Order, 18 FCC Rcd at 9227, ] 74.
    \29\ See id., 18 FCC Rcd at 9226, ] 70; 47 CFR 54.521(e)(5).
    \30\ 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.\31\ The Bureau may, if 
necessary to protect the public interest, extend the debarment 
period.\32\
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    \31\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR 
54.521(d), 54.521(g).
    \32\ 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, 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 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.

cc: Philip L. Weinstein, Federal Defender Division Legal Aid Society
Kristy Carroll, USAC (Via E-mail)
David M. Siegal, Assistant United States Attorney, Southern District 
of New York (Via E-mail)

[FR Doc. 04-27587 Filed 12-15-04; 8:45 am]
BILLING CODE 6712-01-U