[Federal Register Volume 73, Number 230 (Friday, November 28, 2008)]
[Notices]
[Pages 72480-72482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-28373]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 08-2523]


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. Joseph E. 
Mello from the schools and libraries universal service support 
mechanism (or ``E-Rate Program'') for a period of three years. The 
Bureau takes this action to protect the E-Rate Program from waste, 
fraud and abuse.

DATES: Debarment commences on the date Mr. Joseph E. Mello receives the 
debarment letter or November 28, 2008, whichever date come first, for a 
period of three years.

FOR FURTHER INFORMATION CONTACT: Rebekah Bina, Federal Communications 
Commission, Enforcement Bureau, Investigations and Hearings Division, 
Room 4-C330, 445 12th Street, SW., Washington, DC 20554. Rebekah Bina 
may be contacted by phone at (202) 418-7931 or e-mail at 
[email protected]. If Ms. Bina 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. Joseph E. Mello from 
the schools and libraries universal service support mechanism for a 
period of three years pursuant to 47 CFR 54.8 and 47 CFR 0.111. 
Attached is the debarment letter, DA 08-2523, which was mailed to Mr. 
Joseph E. Mello and released on November 18, 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 Harkrader,
Deputy Chief, Investigations and Hearings Division, Enforcement Bureau.
    The debarment letter, which attached the suspension letter, 
follows:

November 18, 2008.

VIA CERTIFIED MAIL--RETURN RECEIPT REQUESTED AND VIA FACSIMILE (203) 
787-9031

Mr. Joseph E. Mello, c/o Michael O. Sheehan, Esq., Sheehan & Reeve, 
139 Orange St., Suite 301, New Haven, CT 06510.

Re: Notice of Debarment; File No. EB-08-IH-1615

    Dear Mr. Mello: Pursuant to section 54.8 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), 54.8.
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    On September 4, 2008, 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

[[Page 72481]]

the Federal Register on September 17, 2008.\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. Joseph Mello, Notice of Suspension and Initiation 
of Debarment Proceedings, DA 08-2041 (Inv. & Hearings Div., Enf. 
Bur., rel. Sept. 4, 2008) (Attachment 1).
    \3\ 73 FR 53868 (Sept. 17, 2008).
    \4\ See Notice of Suspension, 73 FR at 53869-70.
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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 54.8(e)(3) and (4). That date occurred no later 
than October 17, 2008. See supra note 3.
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    As discussed in the Notice of Suspension, you pled guilty to 
mail fraud and income tax fraud, in violation of 18 U.S.C. 1341, in 
connection with your participation in the E-Rate program involving 
telecommunications upgrade projects in four Connecticut school 
districts.\6\ You admitted to participating in a scheme to defraud 
the E-Rate program whereby you agreed, in your capacity as Vice 
President of Operations for Innovative Network Solutions (``INS''), 
to accept invoices submitted by fictitious companies for work 
allegedly performed in the Connecticut school districts.\7\ As a 
result of your actions, INS made payments totaling $608,505 on those 
fictitious invoices that were ultimately submitted to the Universal 
Service Administrative Company as legitimately reimbursable services 
under the E-Rate program.\8\ Such conduct constitutes the basis for 
your debarment, and your conviction falls within the categories of 
causes for debarment under section 54.8(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\

    \6\ 73 FR at 53869.
    \7\ Id.
    \8\ Id.
    \9\ 47 CFR 54.8(c).
    \10\ See 47 CFR 54.8(g). See also Notice of Suspension, 73 FR at 
53870.
    \11\ See 47 CFR 54.8(a)(1), 54.8(a)(5), 54.8(d); Notice of 
Suspension, 73 FR at 53869.
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    Sincerely,

Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.
cc: Calvin B. Kurimai, Esq., Assistant United States Attorney, 
Department of Justice (via e-mail)
Kristy Carroll, Esq., Universal Service Administrative Company (via 
e-mail)

September 4, 2008.

DA 08-2041

VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED AND E-MAIL

Mr. Joseph E. Mello, c/o Michael O. Sheehan, Esq., Sheehan & Reeve, 
139 Orange St., Suite 301, New Haven, CT 06510.

Re: Notice of Suspension and Initiation of Debarment Proceedings, 
File No. EB-08-IH-1615

    Dear Mr. Mello: The Federal Communications Commission (``FCC'' 
or ``Commission'') has received notice of your conviction of mail 
fraud, in violation of 18 U.S.C. 1341, and subscribing a false tax 
return, in violation of 26 U.S.C. 7206(1), in connection with your 
participation in the schools and libraries universal service support 
mechanism (``E-Rate program'').\12\ 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 
(``Bureau'') hereby notifies you that we are commencing debarment 
proceedings against you.\13\
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    \12\ Any further reference in this letter to ``your conviction'' 
refers to your guilty plea and subsequent conviction of one count of 
mail fraud and one count of subscribing a false tax return. United 
States v. Joseph E. Mello, Criminal Docket No. 3:07-CR-00224 (RNC-
1), Plea Agreement (D. Conn. filed and entered Oct. 9, 2007) 
(``Mello Plea Agreement''); United States v. Joseph E. Mello, 3:07-
CR-00224 (RNC-1), Judgment (D.Conn. filed June 26, 2008 and entered 
June 30, 2008) (``Mello Judgment''). See also United States v. 
Joseph E. Mello, Criminal Docket No. 3:07-CR-00224 (RNC-1), 
Information (D. Conn. filed and entered Oct. 9, 2007) (``Mello 
Information'').
    \13\ 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.\14\ You pled guilty to mail fraud and income tax fraud in 
connection with your participation in the E-Rate program involving 
telecommunications upgrade projects in four Connecticut school 
districts.\15\ While employed as Vice President of Operations for 
Innovative Network Solutions (``INS''), a first-tier subcontractor 
of Southwestern Bell Communications (``SBC'') for performing E-Rate 
funded telecommunications upgrades, you and former SBC employees 
Richard E. Brown and Keith J. Madeiros participated in a scheme to 
defraud the E-Rate program.\16\ In your position at INS, you agreed 
to accept invoices submitted by fictitious companies created by Mr. 
Madeiros and Mr. Brown for work allegedly performed in the 
Connecticut school districts.\17\ INS made payments totaling 
$608,505 on those fictitious invoices and then passed the costs on 
to SBC as legitimately reimbursable services under the E-Rate 
program.\18\
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    \14\ Second Report and Order, 18 FCC Rcd at 9225, para. 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 54.8(a)(6).
    \15\ See Mello Information at 2; Mello Plea Agreement at 1-2, 5; 
Mello Judgment at 1.
    \16\ Mello Information at 3. The Bureau has debarred Richard E. 
Brown and Keith Madeiros from the E-Rate Program. See Letter from 
Hillary S. DeNigro, Chief, Investigations and Hearings Division, 
Enforcement Bureau, to Richard E. Brown, Notice of Debarment, 22 FCC 
Rcd 20569 (Inv. & Hearings Div., Enf. Bur. 2007); Letter from 
Hillary S. DeNigro, Chief, Investigations and Hearings Division, 
Enforcement Bureau, to Keith J. Madeiros, Notice of Debarment, 23 
FCC Rcd 7959 (Inv. & Hearings Div., Enf. Bur. 2008).
    \17\ Mello Information at 2-4. See also Department of Justice, 
Press Release (Oct. 9, 2007) (available at http://www.usdoj.gov/usao/ct/Press2007/20071009.html) (last accessed Feb. 5, 2008) (''DOJ 
October 9 Press Release'').
    \18\ Mello Information at 4.
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    Pursuant to section 54.8(a)(4) of the Commission's rules,\19\ 
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.\20\ Your suspension becomes effective upon the earlier of 
your receipt of this letter or publication of notice in the Federal 
Register.\21\
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    \19\ 47 CFR 54.8(a)(4). See Second Report and Order, 18 FCC Rcd 
at 9225-27, paras. 67-74.
    \20\ Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47 
U.S.C. 254; 47 CFR 54.502-54.503; 47 CFR 54.521(a)(4).
    \21\ 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

[[Page 72482]]

Federal Register, whichever comes first.\22\ Such requests, however, 
will not ordinarily be granted.\23\ The Bureau may reverse or limit 
the scope of suspension only upon a finding of extraordinary 
circumstances.\24\ Absent extraordinary circumstances, the Bureau 
will decide any request for reversal or modification of suspension 
within 90 days of its receipt of such request.\25\
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    \22\ 47 CFR 54.8(e)(4).
    \23\ Id.
    \24\ 47 CFR 54.8(e)(5).
    \25\ 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 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 54.8(c) of the Commission's rules.\26\ 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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    \26\ ``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 
54.8(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 
mechanism.'' 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.\27\ Absent 
extraordinary circumstances, the Bureau will debar you.\28\ 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.\29\ 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.\30\
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    \27\ See Second Report and Order, 18 FCC Rcd at 9226, para. 70; 
47 CFR 54.8(e)(3).
    \28\ Second Report and Order, 18 FCC Rcd at 9227, para. 74.
    \29\ See id., 18 FCC Rcd at 9226, para. 70; 47 CFR 54.8(e)(5).
    \30\ 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.\31\ The Bureau may, if necessary 
to protect the public interest, extend the debarment period.\32\
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    \31\ Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47 
CFR 54.8(d), 54.8(g).
    \32\ 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 Rebekah Bina, 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 Rebekah 
Bina, 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. Bina via mail, by 
telephone at (202) 418-7931 or by e-mail at [email protected]. If 
Ms. Bina 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: Calvin B. Kurimai, Esq., Assistant United States Attorney
Kristy Carroll, Esq., Universal Service Administrative Company (via 
e-mail)

[FR Doc. E8-28373 Filed 11-26-08; 8:45 am]
BILLING CODE 6712-01-P