[Federal Register Volume 72, Number 214 (Tuesday, November 6, 2007)]
[Notices]
[Pages 62647-62648]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-21750]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 07-4336]


Notice of Suspension and Initiation of Debarment Proceedings; 
Schools and Libraries Universal Service Support Mechanism

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Enforcement Bureau (the ``Bureau'') gives notice of Mr. 
Arthur R. Scott's suspension from the schools and libraries universal 
service support mechanism (or ``E-Rate Program''). Additionally, the 
Bureau gives notice that debarment proceedings are commencing against 
him. Mr. Scott, 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 to Diana Lee, Federal Communications 
Commission, Enforcement Bureau, Investigations and Hearings Division, 
Room 4-C330, 445 12th Street, SW., Washington, DC 20554.

DATES: Opposition requests must be received by December 6, 2007. 
However, an opposition request by the party to be suspended must be 
received 30 days from the receipt of the suspension letter or December 
6, 2007, 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-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 Ms. Vickie Robinson, 
Assistant Chief, Investigations and Hearings Division, by telephone at 
(202) 418-1420 and by e-mail at [email protected].

SUPPLEMENTARY INFORMATION: The Bureau has suspension and debarment 
authority pursuant to 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, DA 07-4336, 
which was mailed to Mr. Scott and released on October 18, 2007. The 
complete text of the notice of debarment is available for public 
inspection 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 inspection and copying 
during regular business hours at the contractor, Best Copy and 
Printing, Inc., Portal II, 445 12th Street, SW., Room CY-B420, 
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.
Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.
    The suspension letter follows:

October 18, 2007
DA 07-4336
VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED AND FACSIMILE (404-872-
1622)

Mr. Arthur R. Scott, c/o Seth D. Kirschenbaum, Esq., Davis Zipperman 
Kirschenbaum & Lotito, 918 Ponce de Leon Avenue, NE., Atlanta, GA 
30306-4212, E-Mail: [email protected].

Re: Notice of Suspension and Initiation of Debarment Proceedings, 
File No. EB-07-IH-7304

Dear Mr. Scott:

    The Federal Communications Commission (``FCC'' or 
``Commission'') has received notice of your conviction for 
conspiracy to defraud the United States and bribery in violation of 
18 U.S.C. 371 and 666(a)(1)(B) in connection with your participation 
in the schools and libraries universal service support mechanism 
(``E-Rate program'').\1\ Consequently, pursuant to 47 CFR 54.521, 
this letter constitutes official notice of your suspension from 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 May 2, 2007 guilty plea and subsequent conviction of 
one count of conspiracy to defraud the United States and one count 
of bribery. United States v. Arthur R. Scott, Criminal Docket No. 
1:07-CR-139-CC-01, Plea Agreement (N.D.Ga. filed May 2, 2007 and 
entered May 7, 2007) (``Scott Plea Agreement''); United States v. 
Arthur R. Scott, 1:07-CR-139-CC-01, Judgment (N.D.Ga. filed and 
entered Oct. 2, 2007) (``Scott Judgment'').
    \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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I. Notice of Suspension

    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.\3\ You pled guilty to conspiracy to defraud the United 
States and bribery for activities in connection with your 
participation in the E-Rate program.\4\ You admitted that while 
employed

[[Page 62648]]

as Director of Operational Technology of the Atlanta Public Schools 
(``APS''), you conspired with others, including your wife Evelyn 
Myers Scott (``Myers Scott''), to enter into an E-Rate contract on 
behalf of APS in return for payments to the consulting firm owned by 
you and Myers Scott from the vendor.\5\ In addition, you admitted 
that you, as agent of APS, corruptly solicited, demanded, accepted 
and agreed to accept $37,917 in order to be influenced and rewarded 
in connection with APS's participation in the E-Rate program. The 
loss and the restitution that you owed to the E-Rate program 
resulting from the criminal offenses was $300,176.10.\6\
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    \3\ See Schools and Libraries Universal Service Support 
Mechanism, Second Report and Order and Further Notice of Proposed 
Rulemaking, 18 FCC Rcd 9202, 9225, ] 66 (2003) (``Second Report and 
Order''). 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).
    \4\ See generally United States v. Arthur R. Scott and Evelyn 
Myers Scott a/k/a Evelyn M. Myers, Criminal Docket No. 1:07-CR-139, 
Information (N.D.Ga.. filed Apr. 30, 2007 and entered May 3, 2007) 
(`` Scott and Myers Scott Information''); Scott Plea Agreement at 1.
    \5\ Scott and Myers Scott Information at 1-9. See also Letter 
from Hillary S. DeNigro, Chief, Investigations and Hearings 
Division, Enforcement Bureau, to Evelyn M. Scott, DA 07-4335, dated 
October 18, 2007.
    \6\ See Scott Judgment at 5; see also Scott Plea Agreement at 4.
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    Pursuant to section 54.521(a)(4) of the Commission's rules,\7\ 
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.\8\ Your suspension becomes effective upon the earlier of 
your receipt of this letter or publication of notice in the Federal 
Register.\9\
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    \7\ 47 CFR 54.521(a)(4). See Second Report and Order, 18 FCC Rcd 
at 9225-9227, ] ] 67-74 (2003).
    \8\ 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).
    \9\ 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. In accordance with the Commission's debarment rules, 
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.\10\ Such requests, however, will 
not ordinarily be granted.\11\ The Bureau may reverse or limit the 
scope of suspension only upon a finding of extraordinary 
circumstances.\12\ Absent extraordinary circumstances, the Bureau 
will decide any request for reversal or modification of suspension 
within 90 days of its receipt of such request.\13\
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    \10\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR 
54.521(e)(4).
    \11\ Second Report and Order, 18 FCC Rcd at 9226, ] 70.
    \12\ 47 CFR 54.521(e)(5).
    \13\ 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. Initiation of Debarment Proceedings

    Your guilty plea to criminal conduct in connection with the E-
Rate program, in addition to serving as a basis for immediate 
suspension from the program, also serves as a basis for the 
initiation of debarment proceedings against you. Your conviction 
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, your conviction 
requires the Bureau to commence debarment proceedings against you.
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    \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] 54.500 et seq.).'' 47 CFR 
54.521(a)(1).
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    As with your suspension, 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 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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    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 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 CFR 
54.521(d), 54.521(g).
    \20\ Id.
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    Please direct any response, if by messenger or hand delivery, to 
Marlene H. Dortch, Secretary, Federal Communications Commission, 236 
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002, to the 
attention of Diana Lee, Attorney Advisor, Investigations and 
Hearings Division, Enforcement Bureau, Room 4-C330, with a copy to 
Vickie Robinson, Assistant Chief, Investigations and Hearings 
Division, Enforcement Bureau, Room 4-C330, Federal Communications 
Commission. If sent by commercial overnight mail (other than U.S. 
Postal Service Express Mail and Priority Mail), the response should 
be sent to the Federal Communications Commission, 9300 East Hampton 
Drive, Capitol Heights, Maryland 20743. If sent by first-class, 
Express, or Priority mail, the response should be sent to Diana Lee, 
Attorney Advisor, Investigations and Hearings Division, Enforcement 
Bureau, Federal Communications Commission, 445 12th Street, SW., 
Room 4-C330, Washington, DC 20554, with a copy to Vickie Robinson, 
Assistant Chief, Investigations and Hearings Division, Enforcement 
Bureau, Federal Communications Commission, 445 12th Street, SW., 
Room 4-C330, Washington, DC 20554. You shall also transmit a copy of 
the response via e-mail to [email protected] and to 
[email protected].
    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 Ms. Vickie Robinson, 
Assistant Chief, Investigations and Hearings Division, by telephone 
at (202) 418-1420 and by e-mail at [email protected].

    Sincerely yours,

Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.

cc: Kristy Carroll, Esq., Universal Service Administrative Company 
(via e-mail) Aaron M. Danzig, Esq., Assistant United States Attorney

[FR Doc. E7-21750 Filed 11-5-07; 8:45 am]
BILLING CODE 6712-01-P