[Federal Register Volume 74, Number 183 (Wednesday, September 23, 2009)]
[Notices]
[Pages 48562-48564]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-22962]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 09-2029]


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 Andre J. 
Hornsby from the schools and libraries universal service support 
mechanism (or ``E-Rate Program'') for a period of three years based on 
his conviction of wire fraud, witness and evidence tampering, and 
obstruction of justice in connection with his participation in the 
program. The Bureau takes this action to protect the E-Rate Program 
from waste, fraud and abuse.

DATES: Debarment commences on the date Andre J. Hornsby receives the 
debarment letter or September 23, 2009, whichever date comes 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 
Michele Berlove, Acting Assistant Division Chief, Investigations and 
Hearings Division, by telephone at (202) 418-1420 and by e-mail at 
[email protected].

SUPPLEMENTARY INFORMATION: The Bureau debarred Andre J. Hornsby 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 09-2029, which was mailed to Andre 
J. Hornsby and released on September 11, 2009. 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.

Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau, 
Federal Communications Commission.
September 11, 2009
DA 09-2029

VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED

Andre J. Hornsby, Inmate No. 39456-037, FTC Oklahoma, Federal 
Transfer Center, Oklahoma City, Oklahoma 73189.

Re: Notice of Debarment File No. EB-09-IH-0408

    Dear Mr. Hornsby: 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\ 47 C.F.R. Sec.  54.8(g) (2008). See also 47 C.F.R. Sec.  
0.111(a)(14).
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    On July 14, 2009, 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 the Federal Register on July 22, 2009.\3\ The Notice of 
Suspension suspended you from participating in activities associated 
with or relating to 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. Andre J. Hornsby, Notice of Suspension and 
Initiation of Debarment Proceedings, 24 FCC Rcd 9093 (Inv. & 
Hearings Div., Enf. Bur. 2009) (Attachment 1)(``Notice of 
Suspension'').
    \3\ 74 Fed. Reg. 36223 (July 22, 2009).
    \4\ See Notice of Suspension, 24 FCC Rcd at 9094-96.
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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 C.F.R. Sec.  54.8 (e)(3),(4). That date occurred no 
later than Aug. 21, 2009. See supra note 3.
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    As discussed in the Notice of Suspension, the United States 
District Court for the District of Maryland sentenced you to six 
years in prison following your conviction for federal crimes, 
including honest services wire fraud, witness and evidence 
tampering, and obstruction of justice, in connection with your 
activities related to the E-Rate program for Prince George's County 
Public School System (``PGCPS'').\6\ While employed as Chief 
Executive Officer, Secretary and Treasurer for the Board of 
Education for Prince George's County, you devised and participated 
in schemes to defraud PGCPS for your personal financial gain by 
steering contracts, making materially false representations, 
destroying records, and otherwise hiding your associations to 
conceal your role in the fraudulent conduct.\7\ 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.\8\ 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.\9\ 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.\10\
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    \6\ See Notice of Suspension, 24 FCC Rcd at 9094-95. See also 
United States v. Andre Jose Hornsby, Criminal Docket No. 
8:06CR00376-PJM-1, Judgment (D. Md. filed and entered Dec. 5, 2008).
    \7\ See Notice of Suspension, 24 FCC Rcd at 9094-95. See also 
United States v. Andre Jose Hornsby, Criminal Docket No. 
8:06CR00376-PJM-1, Superseding Indictment (D. Md filed and entered 
Apr. 23, 2008).
    \8\ 47 C.F.R. Sec.  54.8(c). See also Sec.  54.8(a)(4),(b)-(e).
    \9\ See 47 C.F.R. Sec.  54.8(e)(5),(g). See also Notice of 
Suspension, 24 FCC Rcd at 9096.
    \10\ See 47 C.F.R. Sec.  54.8(a)(1),(a)(5),(d),(g); Notice of 
Suspension, 24 FCC Rcd at 9096.
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    Sincerely,

Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.

cc: Michael R. Pauz[eacute], Assistant United States Attorney, 
Department of Justice (via e-mail) Kristy Carroll, Esq., Universal 
Service Administrative Company (via e-mail)

[[Page 48563]]

Attachment 1

July 14, 2009
DA 09-1528

VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED AND E-MAIL 
([email protected]) AND FACSIMILE (301) 441-3003
Andre J. Hornsby, c/o Robert C. Bonsib, Marcus and Bonsib, 6411 Ivy 
Lane, Suite 116, Greenbelt, MD 20770.

Re: Notice of Suspension and Initiation of Debarment Proceedings, 
File No. EB-09-IH-0408

    Dear Mr. Hornsby: The Federal Communications Commission (``FCC'' 
or ``Commission'') has received notice of your conviction of federal 
crimes, including honest services wire fraud, witness and evidence 
tampering, and obstruction of justice, in connection with your 
participation in the schools and libraries universal service support 
mechanism (``E-Rate program'').\11\ 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 notifies you that we are commencing 
debarment proceedings against you.\12\
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    \11\ See 18 U.S.C. Sec. Sec.  1343, 1346 (honest services wire 
fraud), 1512(b) (attempted evidence tampering), and 1503 
(obstruction of Justice). Any further reference in this letter to 
``your conviction'' refers to your six count conviction. United 
States v. Andre Jose Hornsby, Criminal Docket No. 8:06CR00376-PJM-1, 
Judgment (D. Md. filed and entered Dec. 5, 2008) (``Hornsby 
Judgment''). See also United States v. Andre Jose Hornsby, Criminal 
Docket No. 8:06CR00376-PJM-1, Superseding Indictment (D. Md filed 
and entered Apr. 23, 2008) (``Hornsby Indictment'').
    \12\ 47 C.F.R. Sec.  54.8 (2008). See also 47 C.F.R. Sec.  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 of the 
Commission's rules 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.\13\ On November 25, 2008, the United States District Court 
for the District of Maryland sentenced you to six years in prison, 
to be followed by three years of supervised release, following your 
conviction on federal crimes, including honest services wire fraud, 
witness and evidence tampering, and obstruction of justice, in 
connection with your activities related to the E-Rate program.\14\ 
In addition, you were ordered to pay a $20,000 fine and $70,000 in 
restitution to the Prince George's County Public School System 
(``PGCPS'').\15\
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    \13\ 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 C.F.R. Sec.  54.8(a)(6).
    \14\ Hornsby Judgment at 1-5. See also Hornsby Indictment at 1-
21, 24-27, 29-30. (Discussion of your convictions in this notice is 
limited to those activities related to the E-Rate program).
    \15\ Hornsby Judgment at 6-7. PGCPS was one of the 20 largest 
school districts in the nation in 2004, with a budget of more than 
$1 billion. See Department of Justice Press Release (Nov. 25, 2008), 
available at http://baltimore.fbi.gov/dojpressrel/pressrel08/ba112508.htm (DOJ November 2008 Press Release).
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    You were employed as Chief Executive Officer, Secretary and 
Treasurer for the Board of Education for Prince Georges County 
(``Board'').\16\ As Chief Executive Officer of the Board, you were 
responsible for overall administration of PGCPS from June 2003 until 
June 2005.\17\ Beginning in November 2003, you devised schemes to 
defraud PGCPS for your personal financial gain.\18\ You directed 
PGCPS employees to seek proposals from outside E-Rate consulting 
companies for assistance with PGCPS' E-Rate applications.\19\ 
Despite late filings and other disqualifications, you ultimately 
steered the bidding process and directed contracts be awarded for E-
Rate consulting services to Erate Managers, LLC (``Erate 
Managers''), a non-existent company purportedly operated by an 
individual who had worked for you in other school districts 
(``Former Employee'').\20\ You, in turn, were to receive more than 
$100,000 from the Former Employee for your role in securing the E-
Rate consulting contracts with PGCPS, and accepted $1,000 in cash as 
a down payment.\21\ Further, you made materially false 
representations, destroyed records and otherwise hid your 
associations with the Former Employee to conceal your role in the 
fraudulent conduct at issue.\22\
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    \16\ Hornsby Indictment at 2. See also DOJ November 2008 Press 
Release at 1. The Board was responsible for oversight of PGCPS. See 
Hornsby Indictment at 1. Responsibility for the overall 
administration of PGCPS was entrusted to the Chief Executive 
Officer, who reported to the Board. See Hornsby Indictment at 2.
    \17\ Hornsby Indictment at 2.
    \18\ Id. at 14-19. See also DOJ November 2008 Press Release at 
1.
    \19\ Hornsby Indictment at 6, 15.
    \20\ Id. at 4-8. You directed PGCPS personnel not to award 
contracts to the company with the highest overall score, and stalled 
the bidding process past the deadline in favor of waiting for a 
proposal from Erate Managers. Hornsby Indictment at 6-7. See also 
DOJ November 2008 Press Release at 1-2.
    \21\ Hornsby Indictment at 8, 14-15. See also DOJ November 2008 
Press Release at 1-2.
    \22\ Hornsby Indictment at 14-18, 24-27, 29-30. See also DOJ 
November 2008 Press Release at 3.
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    Pursuant to section 54.8 of the Commission's rules, your 
conviction on criminal offenses arising out of consulting activities 
associated with or related to the schools and libraries support 
mechanism requires the Bureau to suspend you from continuing to 
participate in any activities associated with or related to the 
schools and libraries support mechanism.\23\ Activities arising out 
of or related to the schools and libraries support mechanism include 
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.\24\
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    \23\ 47 C.F.R. Sec.  54.8(b)-(e); see also Sec.  54.8(a)(4).
    \24\ 47 C.F.R. Sec.  54.8(a)(1); see also Sec.  54.8(a)(3).
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    Your suspension becomes immediately effective upon the earlier 
of your receipt of this letter or publication of notice in the 
Federal Register, pending the Bureau's final debarment 
determination.\25\ 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.\26\ 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.\27\ Such requests, 
however, will not ordinarily be granted.\28\ The Bureau may reverse 
or limit the scope of suspension only upon a finding of 
extraordinary circumstances.\29\ The Bureau will decide any request 
for the reversal or modification of suspension within 90 days of its 
receipt of such request.\30\
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    \25\ 47 C.F.R. Sec.  54.8(a)(7), (e)(1); see also Second Report 
and Order, 18 FCC Rcd at 9226, ] 69.
    \26\ 47 C.F.R. Sec.  54.8(e)(4).
    \27\ Id.
    \28\ Id.
    \29\ 47 C.F.R. Sec.  54.8(f); see also Second Report and Order, 
18 FCC Rcd at 9226, ] 70.
    \30\ 47 C.F.R. Sec.  54.8(e)(5), (f); see also Second Report and 
Order, 18 Fcc Rcd at 9226, ] 70.
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II. Initiation of Debarment Proceedings

    Your conviction for 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 suspension and debarment 
defined in section 54.8(c) of the Commission's rules.\31\ Therefore, 
pursuant to section 54.8 of the Commission's rules, your conviction 
requires the Bureau to commence debarment proceedings against 
you.\32\
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    \31\ ``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 C.F.R. 
Sec.  54.8(c). You were convicted for obstruction of justice, 
attempted evidence tampering for falsification or destruction of 
records, and wire fraud. See supra note 4.
    \32\ See 47 C.F.R. Sec.  54.8(b), (c).

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[[Page 48564]]

    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.\33\ Absent 
extraordinary circumstances, the Bureau will debar you.\34\ The 
Bureau will decide any request for reversal or limitation of 
debarment within 90 days of receipt of such request.\35\ 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.\36\
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    \33\ 47 C.F.R. Sec.  54.8(e)(3), (5); see also Second Report and 
Order, 18 FCC Rcd at 9226, ] 70.
    \34\ 47 C.F.R. Sec.  54.8(e)(5); see also Second Report and 
Order, 18 FCC Rcd at 9227, ] 74.
    \35\ 47 C.F.R. Sec.  54.8(e)(5), (f); see also Second Report and 
Order, 18 FCC Rcd at 9226, ] 70.
    \36\ 47 C.F.R. Sec.  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 C.F.R. Sec.  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.\37\ The Bureau may, if necessary 
to protect the public interest, extend the debarment period.\38\
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    \37\ 47 C.F.R. Sec.  54.8(a)(1), (d), (g); see also Second 
Report and Order, 18 FCC Rcd at 9225, ] 67.
    \38\ 47 C.F.R. Sec.  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, N.E., Suite 110, Washington, D.C. 20002, to 
the attention of Rebekah Bina, Attorney Advisor, Investigations and 
Hearings Division, Enforcement Bureau, Room 4-C330, with a copy to 
Michele Levy Berlove, Acting 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, S.W., Room 4-C330, Washington, DC 20554, with a copy to 
Michele Levy Berlove, Acting 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. 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. Michele Levy Berlove, 
Acting Assistant Chief, Investigations and Hearings Division, by 
telephone at (202) 418-1477 and by e-mail at 
[email protected].

    Sincerely yours,

Hillary S. DeNigro,
Chief, Investigations and Hearings Division Enforcement Bureau.

cc: Michael R. Pauz[eacute], Assistant United States Attorney, 
Department of Justice (via e-mail) Kristy Carroll, Esq., Universal 
Service Administrative Company (via e-mail)

[FR Doc. E9-22962 Filed 9-22-09; 8:45 am]
BILLING CODE 6712-01-P