[Federal Register Volume 73, Number 123 (Wednesday, June 25, 2008)]
[Notices]
[Pages 36084-36086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-14360]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 08-1182]


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 gives notice of Ms. Judy Green'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 her. Ms. 
Green, or any person who has an existing contract with or intends to 
contract with her 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.

DATES: Opposition requests must be received by July 25, 2008. However, 
an opposition request by the party to be suspended must be received 30 
days from the receipt of the suspension letter or July 25, 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 Enforcement 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 08-1182, which was mailed to Ms. Green and released on May 19, 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.
Hillary DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.

    The attached is the Suspension and Initiation of Debarment 
Letter to Ms. Judy Green.

May 19, 2008.

[[Page 36085]]

DA 08-1182

Via certified mail.
Return receipt requested and facsimile (510-452-8405).

Ms. Judy Green, c/o Erik G. Babcock, Law Offices of Erik Babcock, 
1212 Broadway, Suite 726, Oakland, CA 94612.

Re: Notice of Suspension and Initiation of Debarment Proceedings, File 
No. EB-08-IH-1139

    Dear Ms. Green: The Federal Communications Commission (``FCC'' 
or ``Commission'') has received notice of your conviction on 
multiple counts of fraud, collusion, aiding and abetting, and 
conspiracy to commit wire and mail fraud, in violation of 15 U.S.C. 
1 and 18 U.S.C. 2, 371, and 1343, in connection with your 
participation in the schools and libraries universal service support 
mechanism (``E-Rate program'').\1\ Consequently, pursuant to 47 CFR 
54.8, this letter constitutes official notice of your suspension 
from the E-Rate program. In addition, the Enforcement 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 twenty-two count conviction. United States v. Judy 
Green, Criminal Docket No. 3:05-CR-00208-WHA-007, Judgment (N.D.Cal. 
filed and entered March 19, 2008) (``Judy Green Judgment'').
    \2\ 47 CFR 54.8; 47 CFR 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. 
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 (2007) (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 March 19, 2008, the United States District Court in 
San Francisco sentenced you to serve seven and a half years in 
prison following your conviction of twenty-two counts of fraud, 
collusion, aiding and abetting, and conspiracy in connection with 
your leadership of multiple schemes to defraud the E-Rate 
program.\4\ As a former education consultant and sales 
representative for the companies Video Network Communications, Inc. 
(``VNCI'') and ADJ Consultants, Inc. (``ADJ''), you orchestrated 
multiple fraudulent schemes and conspiracies involving more than 
twenty-five separate E-Rate projects in school districts throughout 
seven states from 1998 to 2003.\5\ The fraudulent schemes involved 
conspiring with various individuals and businesses for the purpose 
of engaging in conduct in restraint of competition by submitting 
collusive, noncompetitive, or rigged bids for telecommunications 
services eligible for E-Rate subsidies and ensuring 
telecommunications services contracts were awarded to conspirators 
and bids from non-conspirators were disqualified.\6\ The schemes 
also involved inflating the costs of eligible equipment and services 
in applications for funding submitted to Universal Service 
Administrative Company (``USAC'') in order to pay for ineligible 
equipment and services and by misrepresenting schools' ability and 
willingness to pay for their portion of the school projects.\7\
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    \3\ See Second Report and Order, 18 FCC Rcd at 9225, 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 http://www.usdoj.gov/opa/pr/2008/March/08_at_219.html 
(accessed Apr. 22, 2008) (``DOJ March 19, 2008 Judy Green Press 
Release''); Judy Green Judgment at 1.
    \5\ See United States v. Video Network Communications, Inc. et 
al., Criminal Docket No. 3:05-CR-00208-CRB, Superseding Indictment 
at 5, 15 (N.D.Cal.filed Dec. 8, 2005 and entered Dec. 12, 2005) also 
available at http://www.usdoj.gov/atr/cases/f213600/213626.htm 
(accessed May 1, 2008) (``VNCI Superseding Indictment''); see also 
DOJ March 19, 2008 Judy Green Press Release. The following four 
individuals, who were also charged in the VNCI Superseding 
Indictment, have pled guilty and subsequently have been sentenced: 
Earl Nelson, George Marchelos, William Holman and Allan Green. We 
are sending separate notices of suspension and initiation of 
debarment proceedings to these individuals. VNCI and ADJ are now 
defunct; charges against these companies have been dropped.
    \6\ See VNCI Superceding Indictment at paras. 79-151; DOJ March 
19, 2008 Judy Green Press Release at 1.
    \7\ See VNCI Superceding Indictment at 12-78; DOJ March 19, 2008 
Judy Green Press Release at 1.
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    Pursuant to section 54.8(a)(4) of the Commission's rules,\8\ 
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.\9\ Your suspension becomes effective upon the earlier of 
your receipt of this letter or publication of notice in the Federal 
Register.\10\
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    \8\ 47 CFR 54.8(a)(4). See Second Report and Order, 18 FCC Rcd 
at 9225-9227, paras. 67-74.
    \9\ 47 CFR 54.8(a)(1), (d).
    \10\ 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.\11\ Such requests, however, will 
not ordinarily be granted.\12\ The Bureau may reverse or limit the 
scope of suspension only upon a finding of extraordinary 
circumstances.\13\ Absent extraordinary circumstances, the Bureau 
will decide any request for reversal or modification of suspension 
within 90 days of its receipt of such request.\14\
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    \11\ 47 CFR 54.8(e)(4).
    \12\ Id.
    \13\ 47 CFR 54.8(e)(5).
    \14\ 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 of 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 54.8(c) of the Commission's rules.\15\ 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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    \15\ ``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.\16\ Absent 
extraordinary circumstances, the Bureau will debar you.\17\ 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.\18\ If the Bureau decides to debar you, its decision will 
become effective upon the earlier of your receipt of a debarment 
notice

[[Page 36086]]

or publication of the decision in the Federal Register.\19 \
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    \16\ See Second Report and Order, 18 FCC Rcd at 9226, paras. 70; 
47 CFR 54.8(e)(3).
    \17\ Second Report and Order, 18 FCC Rcd at 9227, para. 74.
    \18\ See id., 18 FCC Rcd at 9226, para. 70; 47 CFR 54.8(e)(5).
    \19\ 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 at least 
three years from the date of debarment.\20\ The Bureau may, if 
necessary to protect the public interest, extend the debarment 
period.\21\
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    \20\ Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47 
CFR 54.8(d), 54.8(g).
    \21\ 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).
Michael Wood, Antitrust Division, United States Department of 
Justice (via mail).

 [FR Doc. E8-14360 Filed 6-24-08; 8:45 am]
BILLING CODE 6712-01-P