[Federal Register Volume 71, Number 55 (Wednesday, March 22, 2006)]
[Notices]
[Pages 14527-14529]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-4138]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 06-489]


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 (``FCC'' or 
``Commission'') has received notice of the conviction of Premio, Inc., 
f/k/a Premio Computers, Inc. (``Premio'') for conspiracy to suppress 
and eliminate competition in violation of the Sherman Antitrust Act, 15 
U.S.C. 1, and for mail fraud and aiding and abetting in violation of 18 
U.S.C. 1341 and 2. Consequently, pursuant to 47 CFR 54.521, this letter 
constitutes official notice of Premio's suspension from the schools and 
libraries universal service support mechanism (``E-rate program''). In 
addition, the Enforcement Bureau (``Bureau'') hereby notifies Premio 
that we are commencing debarment proceedings against it.

DATES: Within 90 days of receipt of any opposition to Premio's 
suspension and proposed debarment, the Bureau, in the absence of 
extraordinary circumstances, will provide Premio with notice of its 
decision to debar. If the Bureau decides to debar Premio, its decision 
will become effective upon the earlier of Premio's receipt of a 
debarment notice or publication of the decision in the Federal 
Register. March 22, 2006, Premio's request must be received within 30 
days after it receives this letter or after notice is published in the 
Federal Register, whichever comes first.

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) 418-0843 or e-mail at [email protected]. 
If Ms. Lee is unavailable, you may contact Eric Bash by phone at (202) 
418-1188 or e-mail at [email protected].

SUPPLEMENTARY INFORMATION: These actions constitute the conduct or 
transactions upon which this debarment proceeding is based. Moreover, 
Premio's 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. Therefore, pursuant to Sec.  54.521(a)(4) of the 
Commission's rules, Premio's conviction requires the Bureau to commence 
debarment proceedings against it. The complete text of the suspension 
letter is available for public inspections and copying during regular 
business hours at the FCC Reference Information Center, Portal II, 445 
12th Street, SW., Room CY-A257, Washington, DC 20554. In addition, the 
complete text is available on the FCC's Web site at http://www.fcc.gov. 
The text may also be purchased from the Commission's duplicating 
contractor, Best Copy and Printing, Inc., Portals II, 445 12th Street, 
SW., Room CY-B402,

[[Page 14528]]

Washington, DC 20554, telephone (202) 488-5300 or (800) 378-3160, 
facsimile (202) 488-5563, or via e-mail http://www.bcpiweb.com.

Federal Communications Commission.
William H. Davenport,
Chief, Investigations and Hearings Division, Enforcement Bureau.
    The notice of suspension and of proposed debarment letter follows:

    February 28, 2006.

    [DA 06-489]

Via Certified Mail

Return Receipt Requested

Mr. Tom Tsao, Vice President, Premio, Inc., 918 Radecki Court, City 
of Industry, CA 91748.
    Re: Notice of Suspension and of Proposed Debarment, File No. EB-
06-IH-0853
    Dear Mr. Tsao: The Federal Communications Commission (``FCC'' or 
``Commission'') has received notice of the conviction of Premio, 
Inc., f/k/a Premio Computers, Inc. (``Premio'') for conspiracy to 
suppress and eliminate competition in violation of the Sherman 
Antitrust Act, 15 U.S.C. 1, and for mail fraud and aiding and 
abetting in violation of 18 U.S.C. 1341 and 2.\1\ Consequently, 
pursuant to 47 CFR 54.521, this letter constitutes official notice 
of Premio's suspension from the schools and libraries universal 
service support mechanism (``E-rate program''). In addition, the 
Enforcement Bureau (``Bureau'') hereby notifies Premio that we are 
commencing debarment proceedings against it.\2\
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    \1\ Any further reference in this letter to ``your conviction'' 
refers to Premio's February 22, 2006 guilty plea and conviction of 
these counts. United States v. Premio, Inc., Criminal Docket No. 
3:06-CR-06-0086 MMC, Plea Agreement (N.D.Cal. filed Feb. 22, 2006) 
(``Premio Plea Agreement''). The Order accepting this plea agreement 
was signed by the Court on February 22, 2006 and entered on February 
23, 2006, and the Plea Agreement was entered on February 24, 2006.
    \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).
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Notice of Suspension

    Pursuant to section 54.521(a)(4) of the Commission's rules,\3\ 
Premio's conviction requires the Bureau to suspend it 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\ Premio's suspension becomes effective upon the earlier 
of its receipt of this letter or publication of notice in the 
Federal Register.\5\
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    \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).
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    Suspension is immediate pending the Bureau's final debarment 
determination. Premio may contest this suspension or the scope of 
this suspension by filing arguments in opposition to the suspension, 
with any relevant documentation. Premio's request must be received 
within 30 days after it receives 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 CFR 
54.521(e)(4).
    \7\ Second Report and Order, 18 FCC Rcd at 9226, ] 70.
    \8\ 47 CFR 54.521(e)(5).
    \9\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
CFR 54.521(e)(5), 54.521(f).
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I. Notice of Proposed Debarment

A. Reasons for and Cause of Debarment

    The Commission has established 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\ Premio pled guilty to antitrust, mail fraud and aiding 
and abetting charges for activities in connection with its 
participation in the E-rate program with two school districts in 
California.
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    \10\ Second Report and Order, 18 FCC Rcd at 9225, ] 66. The 
Commission's debarment rules define a ``person'' as ``[a]ny 
individual, group of individuals, corporation, partnership, 
association, unit of government or legal entity, however, 
organized.'' 47 CFR 54.521(a)(6).
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    In connection with the antitrust crime charged against Premio, 
the company admitted that it conspired with one or more vendors of 
equipment and services related to telecommunications, Internet 
access and/or internal connections to suppress and eliminate 
competition for E-rate projects in the West Fresno Elementary School 
District by allocating contracts and submitting fraudulent and non-
competitive bids. More specifically, the company discussed 
prospective bids for the E-rate project with its co-conspirators, 
agreed with them who would serve as lead contractor and 
subcontractor on the project, and worked with consultants who 
awarded, or influenced the award of, contracts to the conspirators, 
and disqualified bids from non-conspirators.\11\ In connection with 
the mail fraud charged against Premio, the company admitted that it 
sought payment of more than $1 million in E-rate funding for 
telecommunications servers and related installation and maintenance 
it was purportedly going to provide to the Highland Park School 
District in California, when in fact it actually delivered 
ineligible video conferencing equipment.\12\
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    \11\ See Premio Plea Agreement at 5.
    \12\ See Premio Plea Agreement at 5-7.
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    These actions constitute the conduct or transactions upon which 
this debarment proceeding is based.\13\ Moreover, Premio's 
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 section 54.521(a)(4) 
of the Commission's rules, Premio's conviction requires the Bureau 
to commence debarment proceedings against it.
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    \13\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR 
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 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

    Premio 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 Premio.\16\ Within 90 days of 
receipt of any opposition to Premio's suspension and proposed 
debarment, the Bureau, in the absence of extraordinary 
circumstances, will provide Premio with notice of its decision to 
debar.\17\ If the Bureau decides to debar Premio, its decision will 
become effective upon the earlier of Premio's receipt of a debarment 
notice or publication of the decision in the Federal Register.\18\
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    \15\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
CFR 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 CFR 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 CFR 54.521(f).
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C. Effect of Debarment

    If and when Premio's debarment becomes effective, it will be 
prohibited from participating in activities associated with or 
related to the schools and libraries support mechanism for some 
period of time.\19\
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    \19\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR 
54.521(d), 54.521(g).
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    Please direct any responses to the following address: Diana Lee, 
Federal Communications Commission, Enforcement Bureau, 
Investigations and Hearings Division, Room 4-C443, 445 12th Street, 
SW., Washington, DC 20554.

[[Page 14529]]

    If Premio submits its response via hand-delivery or non-United 
States Postal Service delivery (e.g., Federal Express, DHL, etc.), 
please send the response to Ms. Lee at the following address: 
Federal Communications Commission, 9300 East Hampton Drive, Capitol 
Heights, MD 20743.
    If Premio has 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) 418-1188 and by e-mail at [email protected].

 Sincerely yours,

William H. Davenport,

Chief, Investigations and Hearings Division, Enforcement Bureau.

cc: Paul J. Loh, Esq., Willenken Wilson Loh & Lieb, LLP.
Michael F. Wood, Esq., United States Department of Justice, 
Antitrust Division.
Sara Winslow, Esq., Assistant United States Attorney.
Alicia Bentley, Esq., United States Department of Justice, Civil 
Division.
Kristy Carroll, Esq., USAC.

 [FR Doc. E6-4138 Filed 3-21-06; 8:45 am]
BILLING CODE 6712-01-P