[Federal Register Volume 73, Number 31 (Thursday, February 14, 2008)]
[Notices]
[Pages 8694-8696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-2812]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 08-50]


Notice of Debarment; Schools and Libraries Universal Service 
Support Mechanism

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Enforcement Bureau (the ``Bureau'') debars Mr. Arthur R. 
Scott from the schools and libraries universal service support 
mechanism (or ``E-Rate Program'') for a period of three years based on 
his conviction of conspiracy to defraud the United States and bribery 
in connection with his participation in the program. The Bureau takes 
this action to protect the E-Rate Program from waste, fraud and abuse.

DATES: Debarment commences on the date Mr. Arthur R. Scott receives the 
debarment letter or February 14, 2008, whichever date come 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) 418-0843 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 debarred Mr. Arthur R. Scott 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). Attached is the debarment letter, DA 08-50, which was 
mailed to Mrs./Mr. Arthur R. Scott and released on January 9, 2008. 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.
Trent B. Harkrader,
Deputy Chief, Investigations and Hearings Division, Enforcement Bureau.
    The debarment letter, which attached the suspension letter, 
follows:

January 9, 2008

DA 08-50

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 Debarment, File No. EB-07-IH-7304

Dear Mr. Scott:

    Pursuant to section 54.521 of the rules of the Federal 
Communications Commission (the ``Commission''), by this Notice of 
Debarment you are debarred from the schools and libraries universal 
service support mechanism (or ``E-Rate program'') 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 18, 2007, the Enforcement Bureau (the ``Bureau'') 
sent you a Notice of Suspension and Initiation of Debarment 
Proceedings (the ``Notice of Suspension'').\2\ That Notice of 
Suspension was published in the Federal Register on November 6, 
2007.\3\ The Notice of Suspension suspended you from the schools and 
libraries universal service support mechanism and described the 
basis for initiation of debarment proceedings against you, the 
applicable debarment procedures, and the effect of debarment.\4\
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    \2\ Letter from Hillary S. DeNigro, Chief, Investigations and 
Hearings Division, Enforcement Bureau, Federal Communications 
Commission, to Mr. Arthur R. Scott, Notice of Suspension and 
Initiation of Debarment Proceedings, 22 FCC Rcd 18617 (Inv. & 
Hearings Div., Enf. Bur. 2007) (Attachment 1).
    \3\ 72 FR 62647 (November 6, 2007).
    \4\ See Notice of Suspension, 22 FCC Rcd at 18618-19.
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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.\5 \The Commission did not receive any such opposition.
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    \5\ See 47 CFR 54.521(e)(3) and (4). That date occurred no later 
than December 6, 2007. See supra note 3.
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    As discussed in the Notice of Suspension, you pled guilty to and 
were convicted of conspiracy to defraud the United States and 
bribery, in violation of 18 U.S.C. 371 and 666(a)(1)(B), for 
activities in connection with your participation in the E-Rate 
program involving the Atlanta Public Schools (``APS'').\6\ You 
conspired with others,

[[Page 8695]]

including your wife Evelyn Myers Scott, to enter into an E-Rate 
contract on behalf of APS in return for personal payoffs.\7\ In 
addition, you admitted to taking bribes intending to be influenced 
and rewarded in connection with the APS E-Rate project.\8\ 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.\9\ 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.\10\ 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.'' 
\11\
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    \6\ See Notice of Suspension, 22 FCC Rcd at 18618.
    \7\ See id. The Bureau also debars Mrs. Evelyn Myers Scott from 
the E-Rate program. See Letter from Hillary S. DeNigro, Chief, 
Investigations and Hearings Division, Enforcement Bureau, Federal 
Communications Commission, to Mrs. Evelyn Myers Scott, Notice of 
Debarment, DA 08-49 (Inv. & Hearings Div., Enf. Bur. rel. Jan. 9, 
2008).
    \8\ See id.
    \9\ Id. at 18618; 47 CFR 54.521(c).
    \10\ See Notice of Suspension, 22 FCC Rcd at 18619.
    \11\ See 47 CFR 54.521(a)(1), 54.521(a)(5), 54.521(d); Notice of 
Suspension, 22 FCC Rcd at 18619.
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Sincerely,

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

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

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 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\

[[Page 8696]]

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 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. E8-2812 Filed 2-13-08; 8:45 am]
BILLING CODE 6712-01-P