[Federal Register Volume 74, Number 52 (Thursday, March 19, 2009)]
[Notices]
[Pages 11724-11726]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-6017]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 09-477]


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. R. 
Clay Harris'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. Harris, 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 Rebekah Bina, 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 April 20, 2009. However, 
an opposition request by the party to be suspended must be received 30 
days from the receipt of the suspension letter or April 20, 2009, 
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: 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 has suspension and debarment 
authority pursuant to 47 CFR 54.8 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 09-477, 
which was mailed to Mr. Harris and released on February 26, 2009. The 
complete text of the notice of suspension and debarment proceedings 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.

Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau, 
Federal Communications Commission.
    The suspension letter follows:

February 26, 2009.

DA 09-477

VIA CERTIFIED MAIL

RETURN RECEIPT REQUESTED AND FACSIMILE (404-872-1622)

Mr. R. Clay Harris
c/o Allison Cobham Dawson
Federal Defender Program, Inc.
Suite 1700, The Equitable Building
100 Peachtree Street, NW
Atlanta, GA 30303.
E-Mail: [email protected]
Re: Notice of Suspension and Initiation of Debarment Proceedings, File 
No. EB-09-IH-0003
Dear Mr. Harris:

    The Federal Communications Commission (``FCC'' or ``Commission'') 
has received notice of your conviction of conspiracy to defraud the 
United States and bribery, in violation of 18 U.S.C. 371 and 666(a)(2), 
in connection with your participation in the schools and libraries 
universal service support mechanism (``E-Rate program'').\1\

[[Page 11725]]

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.\2\
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    \1\ Any further reference in this letter to ``your conviction'' 
refers to your conviction by a federal jury of conspiracy to defraud 
the United States and bribery. United States v. R. Clay Harris, 
Criminal Docket No. 1:07-CR-00287-CC, Verdict (N.D.Ga. filed July 
31, 2008 and entered Aug. 1, 2008) (``Harris Jury Verdict''); 
Department of Justice Press Release (July 31, 2008), available at 
http://atlanta.fbi.gov/dojpressrel/pressrel08/bribery073108.htm (DOJ 
July 31, 2008 Press Release). See also United States v. R. Clay 
Harris, 1:07-CR-00287-CC, Judgment (N.D.Ga. filed and entered Dec. 
24, 2008) (finalizing conviction and imposing sentence) (``Harris 
Judgment''); United States v. R. Clay Harris, 1:07-CR-00287-CC, 
Criminal Indictment (N.D.Ga. filed on Aug. 28, 2007 and entered Aug. 
30, 2007) (``Harris Indictment'').
    \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 July 31, 2008, a federal jury found you guilty of 
bribery and conspiracy to defraud the United States in connection with 
your participation in the E-Rate program.\4\ Evidence provided at trial 
demonstrated that, as President and majority owner of Multimedia 
Communications Services Corporation (``MCSC''), you provided bribes to 
co-conspirators Arthur Scott and Evelyn Myers Scott (``co-
conspirators''), former employees of Atlanta Public Schools (``APS'') 
and co-owners of M&S Consulting,\5\ in order for the co-conspirators to 
support your efforts in securing MCSC's performance of E-Rate and other 
technology-related work for APS.\6\ As part of this conspiracy, you 
provided the co-conspirators and M&S Consulting over $230,000 between 
November 2000 and November 2002.\7\ During the same period of time, 
Arthur Scott and other APS employees allocated E-Rate work to MCSC 
without requiring MCSC to submit competitive bids. Arthur Scott and 
MCSC also submitted defective applications and bills to USAC resulting 
in overpayments from the E-Rate program to MCSC.\8\ As a result of your 
conviction, you were sentenced to five years in federal prison to be 
followed by three years of supervised released. You were also ordered 
to pay, along with the co-conspirators, restitution totaling over 
$234,000.\9\
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    \3\ Second Report and Order, 18 FCC Rcd at 9225, ] 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).
    \4\ See Harris Jury Verdict; DOJ July 31, 2008 Press Release.
    \5\ Arthur Scott and Evelyn Myers Scott were convicted in 
connection with their roles in this scheme, and each was 
subsequently debarred 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, 23 FCC Rcd 137 (Inv. & 
Hearings Div., Enf. Bur. 2008); Letter from Hillary S. DeNigro, 
Chief, Investigations and Hearings Division, Enforcement Bureau, 
Federal Communications Commission, to Mr. Arthur Scott, Notice of 
Debarment, 23 FCC Rcd 143 (Inv. & Hearings Div., Enf. Bur. 2008). 
Evelyn Myers Scott and Arthur Scott both testified at trial against 
Mr. Harris. See Department of Justice Press Release (Dec. 22, 2008) 
available at http://www.usdoj.gov/usao/gan/press/2008/12-22-08b.pdf 
(DOJ Dec. 22, 2008 Press Release).
    \6\ DOJ Dec. 22, 2008 Press Release; Harris Indictment at 8-18.
    \7\ DOJ Dec. 22, 2008 Press Release; Harris Indictment at 8-10.
    \8\ DOJ Dec. 22, 2008 Press Release; Harris Indictment at 5-8.
    \9\ DOJ Dec. 22, 2008 Press Release; Harris Judgment at 2-5.
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    Pursuant to section 54.8(a)(4) of the Commission's rules,\10\ 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.\11\ Your suspension becomes 
effective upon the earlier of your receipt of this letter or 
publication of notice in the Federal Register.\12\
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    \10\ 47 CFR 54.8(a)(4). See Second Report and Order, 18 FCC Rcd 
at 9225-27, ]] 67-74.
    \11\ 47 CFR 54.8(a)(1),(d).
    \12\ Second Report and Order, 18 FCC Rcd at 9226, ] 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.\13\ Such requests, however, will not 
ordinarily be granted.\14\ The Bureau may reverse or limit the scope of 
suspension only upon a finding of extraordinary circumstances.\15\ 
Absent extraordinary circumstances, the Bureau will decide any request 
for reversal or modification of suspension within 90 days of its 
receipt of such request.\16\
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    \13\ 47 CFR 54.8(e)(4).
    \14\ Id.
    \15\ 47 CFR 54.8(e)(5).
    \16\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
CFR 54.8(e)(5), 54.8(f).
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II. Initiation of Debarment Proceedings

    Your conviction of bribery and conspiracy to defraud the United 
States 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.\17\ 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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    \17\ ``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.\18\ Absent 
extraordinary circumstances, the Bureau will debar you.\19\ Within 90 
days of receipt of any opposition to your suspension and proposed 
debarment, the Bureau, in the absence of

[[Page 11726]]

extraordinary circumstances, will provide you with notice of its 
decision to debar.\20\ 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.\21\
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    \18\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
CFR 54.8(e)(3).
    \19\ Second Report and Order, 18 FCC Rcd at 9227, ] 74.
    \20\ See id., 18 FCC Rcd at 9226, ] 70; 47 CFR 54.8(e)(5).
    \21\ 47 CFR 54.8(e)(5). 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.\22\ The Bureau may, if necessary to protect the 
public interest, extend the debarment period.\23\
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    \22\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR 
54.8(d),(g).
    \23\ 47 CFR 54.8(g).
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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 email 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: Glenn D. Baker, Assistant United States Attorney, Department of 
Justice (via e-mail)
Kristy Carroll, Esq., Universal Service Administrative Company (via e-
mail)
[FR Doc. E9-6017 Filed 3-18-09; 8:45 am]
BILLING CODE 6712-01-P