[Federal Register Volume 74, Number 52 (Thursday, March 19, 2009)]
[Notices]
[Pages 11726-11728]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-6019]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 09-476]


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 Ms. 
Cynthia K. Ayer'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. Ayer, 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, 
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 09-476, 
which was mailed to Ms. Ayer and released on February 26, 2009. The 
complete text of the notice of suspension and initiation of 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 09-476]

Via Certified Mail, Return Receipt Requested and E-Mail

Ms. Cynthia K. Ayer, c/o James Edward Holler, Holler Dennis Corbett 
Ormond Plante and Garner, P.O. Box 11006, Columbia, SC 29211.

Re: Notice of Suspension and Initiation of Debarment Proceedings, File 
No. EB-09-IH-0002

Dear Ms. Ayer:
    The Federal Communications Commission (``FCC'' or ``Commission'') 
has received notice of your conviction of mail fraud, in violation of 
18 U.S.C. 2 and 1341, in connection with your participation in the 
schools and libraries universal service support mechanism (``E-Rate 
program'').\1\ Consequently,

[[Page 11727]]

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 guilty plea and subsequent conviction of one count of 
mail fraud. United States v. Cynthia K. Ayer, Criminal Docket No. 
5:06-453 (001 MBS), Plea Agreement (D. S.C. filed and entered Apr. 
30, 2008) (``Ayer Plea Agreement''); United States v. Cynthia K. 
Ayer, 5:06-453 (001 MBS), Judgment (D. S.C. filed and entered Dec. 
11, 2008) (``Ayer Judgment''). See also United States v. Cynthia K. 
Ayer, Criminal Docket No. 5:06-453 (001 MBS), Indictment (D. S.C. 
filed Apr. 19, 2006 and entered Apr. 20, 2006) (``Ayer 
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 April 30, 2008, you plead guilty to mail fraud in 
connection with your participation in the E-Rate program.\4\ While 
employed as a technology director for Bamberg County School District 
One in Bamberg, South Carolina, you admitted to submitting applications 
containing false information to the E-Rate program.\5\ You subsequently 
requested funds that you were not entitled to and caused the Universal 
Service Administrative Company (``USAC'') to send you a check in the 
amount of $25,243 made payable to your company, Go Between 
Communications a/k/a Go Between Telecommunications.\6\ As a result of 
your conviction, you have been sentenced to serve two years in prison 
and ordered to pay $468,496 in restitution to USAC for using the mail 
to submit fraudulent applications for E-Rate funding on behalf of 
Bamberg County School District One.\7\
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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 Ayer Plea Agreement. See also Department of Justice 
Press Release (Dec. 11, 2008), available at http://www.usdoj.gov/atr/public/press_releases/2008/240283.pdf (DOJ Press Release).
    \5\ DOJ Press Release at 1.
    \6\ See Ayer Indictment at 13-15; DOJ Press Release at 1.
    \7\ Ayer Judgment at 2-4; DOJ 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 9225-27, ]] 67-74.
    \9\ 47 CFR 54.8(a)(1)(d).
    \10\ 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.\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, ] 70; 47 
CFR 54.8(e)(5),(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.\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.'' 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.\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 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, ] 70; 47 
CFR 54.8(e)(3).
    \17\ Second Report and Order, 18 FCC Rcd at 9227, ] 74.
    \18\ See id., 18 FCC Rcd at 9226, ] 70; 47 CFR 54.8(e)(5).
    \19\ 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.\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, ] 67; 47 CFR 
54.8(d),(g).
    \21\ 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,

[[Page 11728]]

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: Beth Drake, Assistant United States Attorney (via e-mail),
Kristy Carroll, Esq., Universal Service Administrative Company (via e-
mail).

[FR Doc. E9-6019 Filed 3-18-09; 8:45 am]
BILLING CODE 6712-01-P