[Federal Register Volume 73, Number 86 (Friday, May 2, 2008)]
[Notices]
[Pages 24287-24289]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-9731]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 08-770]


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. 
Rafael G. Adame'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. Adame, 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 June 2, 2008. However, 
an opposition request by the party to be suspended must be received 30 
days from the receipt of the suspension letter or June 2, 2008, 
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 54.8 and 47 CFR 0.111. 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 08-770, 
which was mailed to Mr. Adame and released on April 2, 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 attached is the Suspension and Initiation of Debarment Letter 
to Mr. Rafael G. Adame.
Federal Communications Commission
Enforcement Bureau
Investigations and Hearings Division
445 12th Street, SW., Suite 4-C330
Washington, D.C. 20554
April 2, 2008
DA 08-770

VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED AND FACSIMILE (956-664-2703)

Mr. Rafael G. Adame, c/o Eric Samuel Jarvis, Esq., Alvarez & Jarvis, 
PC, 6521 N. 10th Street, Suite A, McAllen, TX 78504, E-Mail: 
[email protected]
Re: Notice of Suspension and Initiation of Debarment Proceedings, File 
No. EB-07-IH-9547

    Dear Mr. Adame: The Federal Communications Commission (``FCC'' or 
``Commission'') has received notice of your conviction for wire fraud 
in violation of 18 U.S.C. Sec.  1343 in connection with your 
participation in the schools and libraries universal service support 
mechanism (``E-Rate program'').\1\ Consequently, pursuant to 47 C.F.R. 
Sec.  54.8, this letter constitutes official notice of your suspension 
from the E-Rate program. In addition, the Enforcement Bureau 
(``Bureau'') hereby

[[Page 24288]]

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 of seven counts of wire fraud. United 
States v. Rafael Gongora Adame, Criminal Docket No. 7:06-CR-1082, 
CRIMINAL NO. M-06-1082, Judgment (S.D. Tex. filed Mar. 3, 2008 and 
entered Mar. 11, 2008) (``Adame Judgment'').
    \2\ 47 C.F.R. 54.8; 47 C.F.R. 0.111 (delegating to the 
Enforcement Bureau authority to resolve universal service suspension 
and debarment proceedings). The Commission adopted debarment rules 
for the schools and libraries universal service support mechanism in 
2003. See Schools and Libraries Universal Service Support Mechanism, 
Second Report and Order and Further Notice of Proposed Rulemaking, 
18 FCC Rcd 9202 (2003) (``Second Report and Order'') (adopting 
section 54.521 to suspend and debar parties from the E-rate 
program). In 2007, the Commission extended the debarment rules to 
apply to all of the Federal universal service support mechanisms. 
See Comprehensive Review of the Universal Service Fund Management, 
Administration, and Oversight; Federal-State Joint Board on 
Universal Service; Schools and Libraries Universal Service Support 
Mechanism; Lifeline and Link Up; Changes to the Board of Directors 
for the National Exchange Carrier Association, Inc., Report and 
Order, 22 FCC Rcd 16372, 16410-12 (``Program Management Order'') 
(renumbering section 54.521 of the universal service debarment rules 
as section 54.8 and amending subsections (a)(1), (5), (c), (d), 
(e)(2)(i), (3), (e)(4), and (g)).
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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\ On November 19, 2007, the United States District Court of 
Texas sentenced you to serve three years in prison following your 
conviction on seven counts of wire fraud in connection with your 
participation in the E-Rate program.\4\ As the owner of ATE Tel, a 
vendor that provided computer-related goods and services to various 
school districts, including the Weslaco Independent School District in 
South Texas, you submitted fraudulent invoices via wire communications 
to the Universal Service Administrative Company (``USAC'') for 
reimbursement from the E-Rate program.\5\ By making false 
representations on invoices filed with USAC, you fraudulently obtained 
more than $106,000 in illegitimate payments from the federal E-Rate 
program.\6\
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    \3\ See Second Report and Order, 18 FCC Rcd at 9225, para. 66; 
Program Management Order 22 FCC Rcd at 16387, para. 32. 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 54.8(a)(6).
    \4\ See generally Adame Judgment at 1.
    \5\ United States v. Rafael Gongora Adame, Criminal Docket No. 
7:06-CR-1082, CRIMINAL NO. M-06-1082, Indictment, 3 (S.D. Tex. filed 
Dec. 6, 2006, and entered Dec. 12, 2006) (``Adame Indictment''). See 
United States v. Rafael Gongora Adame, Criminal Docket No. 7:06-CR-
1082, CRIMINAL NO. M-06-1082, Verdict (S.D. Tex. filed Feb. 9, 2007, 
and entered Mar. 20, 2007) (``Adame Verdict''); Adame Judgment??; 
Department of Justice Press Release: Former Telecom Owner Sentenced 
to Three Years in Prison for Scheme to Defraud Federal E-Rate 
Program, 1 (``DOJ November 20 Press Release'') .
    \6\ See Adame Judgment; see also DOJ November 20 Press Release 
at 1.
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    Pursuant to section 54.8(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 54.8(a)(4). See Second Report and Order, 18 FCC Rcd 
at 9225-9227, paras. 67-74.
    \8\ 47 CFR 54.8(a)(1), (d).
    \9\ Second Report and Order, 18 FCC Rcd at 9226, para. 69; 47 
CFR 54.8(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\ 47 CFR 54.8(e)(4).
    \11\ Id.
    \12\ 47 CFR 54.8(f).
    \13\ See Second Report and Order, 18 FCC Rcd at 9226, para. 70; 
47 CFR 54.8(e)(5), 54.8(f).
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II. Initiation of Debarment Proceedings

    Your conviction 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 54.8(c) of the Commission's rules.\14\ 
Therefore, pursuant to section 54.8(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, the high-
cost support mechanism, the rural healthcare support mechanism, and 
the low-income support mechanism.'' 47 CFR 54.8(c). Such activities 
``include the receipt of funds or discounted services through [the 
federal universal service] support mechanisms, or consulting with, 
assisting, or advising applicants or service providers regarding 
[the federal universal service] support mechanisms.'' 47 CFR 
54.8(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, para. 70; 
47 CFR 54.8(e)(3).
    \16\ Second Report and Order, 18 FCC Rcd at 9227, para. 74.
    \17\ See id., 18 FCC Rcd at 9226, para. 70; 47 CFR 54.8(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 54.8(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, para. 67; 47 
CFR 54.8(d), 54.8(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, N.E., 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),

[[Page 24289]]

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, 
S.W., 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, 
S.W., Room 4-C330, Washington, DC, 20554. You shall also transmit a 
copy of the response via email 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,

Trent Harkrader
Deputy Chief, Investigations and Hearings Division, Enforcement 
Bureau

cc: Kristy Carroll, Esq., Universal Service Administrative Company (via 
e-mail); Duncan S. Currie, Esq., Chief, Dallas Field Office, Antitrust 
Division, Department of Justice
 [FR Doc. E8-9731 Filed 5-1-08; 8:45 am]
BILLING CODE 6712-01-P