[Federal Register Volume 74, Number 184 (Thursday, September 24, 2009)]
[Notices]
[Pages 48739-48741]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-22961]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 09-1917]


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. Frankie 
Logyang Wong 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. Frankie Logyang Wong 
receives the debarment letter or September 24, 2009, 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. 
Michele Berlove, Acting 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. Frankie Logyang Wong 
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 09-473, which was mailed to Mr. 
Frankie Logyang Wong and released on February 26, 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.

Federal Communications Commission.
Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.
August 27, 2009

DA 09-1917

VIA CERTIFIED MAIL

RETURN RECEIPT REQUESTED AND FACSIMILE (713) 224-5153

Mr. Frankie Logyang Wong, c/o David Gerger, 1001 Fannin, Suite 1950, 
Houston, TX 77002.

Re: Notice of Debarment, File No. EB-08-IH-5313

    Dear Mr. Wong: 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 February 26, 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 March 19, 
2009.\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. Frankie Logyang Wong, Notice of Suspension and 
Initiation of Debarment Proceedings, 24 FCC Rcd 2456 (Inv. & 
Hearings Div., Enf. Bur. 2009) (Attachment 1) (``Notice of 
Suspension''). In the Notice of Suspension, the Bureau referred to 
your frauds as being associated with E-Rate Funding Year 2002. See 
Notice of Suspension at 2456. The proper funding year associated 
with your fraud is E-Rate Program 6 and should be noted as Funding 
Year 2003. See United States v. Ruben B. Bohuchot. et al., Criminal 
Docket No. 3:07-CR-167-L-2, Indictment at 5 (N.D.Tex. filed May 22, 
2007, and entered May. 24, 2007, under seal; unsealed May 29, 2007). 
(``DISD Indictment'').
    \3\ 74 FR 11728, Mar. 19, 2009.
    \4\  See Notice of Suspension, 24 FCC Rcd at 2456-57.
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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

[[Page 48740]]

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 April 20, 2009. See supra note 3.
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    As discussed in the Notice of Suspension, the United States 
District Court in Texas sentenced you to serve ten years in prison 
following your conviction of Federal crimes, including conspiracy to 
commit bribery, conspiracy to launder monetary instruments, and 
multiple counts of bribery concerning programs receiving Federal 
funds, in connection with your participation in the E-Rate 
program.\6\ Evidence at trial demonstrated that, as the co-owner and 
president of Micro Systems Engineering, Inc., you participated in a 
bribery and money laundering scheme involving technology projects 
for the Dallas Independent School District, including a contract 
that involved E-Rate funds.\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 2456.
    \7\ See id.
    \8\ 47 CFR 54.8(c).
    \9\ See 47 CFR 54.8(g). See also Notice of Suspension, 24 FCC 
Rcd at 2457.
    \10\ See 47 CFR 54.8(a)(1), 54.8(a)(5), 54.8(d); Notice of 
Suspension, 24 FCC Rcd at 2457.
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    Sincerely,
Hillary S. DeNigro
Chief, Investigations and Hearings Division Enforcement Bureau.
cc: Kristy Carroll, Esq., Universal Service Administrative Company 
(via e-mail)
Dayle A. Elieson, U.S. Attorney's Office, United States Department 
of Justice (via e-mail)
Attachment 1
February 26, 2009

DA 09-473

VIA CERTIFIED MAIL

RETURN RECEIPT REQUESTED AND FACSIMILE (510-452-8405)

Mr. Frankie Logyang Wong, c/o David Gerger, 1001 Fannin, Suite 1950, 
Houston, TX 77002.

Re: Notice of Suspension and Initiation of Debarment Proceedings, File 
No. EB-08-IH-5313

    Dear Mr. Wong: The Federal Communications Commission (``FCC'' or 
``Commission'') has received notice of your conviction of Federal 
crimes, including conspiracy to commit bribery, conspiracy to 
launder monetary instruments, and multiple counts of bribery 
concerning programs receiving Federal funds, 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.  371 (conspiracy to bribery 
involving Federal programs), 666(a) (bribery concerning programs 
receiving Federal funds and aiding and abetting), and 1956(h) 
(conspiracy to lauder monetary instruments). Any further reference 
in this letter to ``your conviction'' refers to your ten count 
conviction. United States v. Frankie Logyang Wong, Criminal Docket 
No. 3:07-CR-00167-L-2, Judgment (N.D. Tex. filed Nov. 14, 2008 and 
entered Nov. 17, 2008) (``Frankie Wong Judgment'').
    \12\ 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.\13\ On November 13, 2008, the United States District Court 
in Texas sentenced you to serve ten years in prison following your 
conviction of Federal crimes, including conspiracy to commit 
bribery, conspiracy to launder monetary instruments, and multiple 
counts of bribery concerning programs receiving Federal funds, in 
connection with your participation the E-Rate program.\14\ In 
addition, you and a co-conspirator were ordered to forfeit 
approximately $1 million as a result of your conviction.\15\
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    \13\ See Second Report and Order, 18 FCC Rcd at 9225, para. 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).
    \14\ See supra note 1. See also http://dallas.fbi.gov/dojpressrel/pressrel08/dl111308.htm (accessed Dec. 8, 2008) (``DOJ 
November 13, 2008 Frankie Wong Press Release''); Frankie Wong 
Judgment at 1-2.
    \15\ See DOJ November 13, 2008 Frankie Wong Press Release; 
Frankie Wong Judgment at 2 and 8.
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    As the co-owner and president of Micro Systems Engineering, 
Inc., (``MSE''), you participated in a bribery and money laundering 
scheme involving technology projects for the Dallas Independent 
School District (``DISD''), including a contract that involved E-
Rate funds for Funding Year 2002 (``E-Rate FY 2002 Contract'').\16\ 
Beginning in November 2002, MSE and other companies formed a 
consortium (``Consortium'') for the purpose of submitting a bid 
proposal relating to E-Rate services for the DISD. While your co-
defendant Ruben B. Bohuchot (``Mr. Bohuchot'') was Chief Technology 
Officer of the Dallas Independent School District,\17\ the 
Consortium submitted a bid proposal for E-Rate services after Mr. 
Bohuchot adjusted the requirements of DISD's request for proposals 
to benefit you and your companies. Ultimately, the Consortium's bid 
was approved by DISD.\18\ During the same time period, you and MSE 
provided things of value to Mr. Bohuchot, including extensive access 
to and control of large sports-fishing vessels, payment for numerous 
vacations and various entertainment services and cash.\19\ A Federal 
jury ultimately determined that you and Mr. Bohuchot engaged in a 
conspiracy to commit bribery and money laundering. As a result of 
your criminal activity, MSE received at least $35 million in 
aggregate revenue from DISD and the Universal Service Administrative 
Company as a result of its participation in the DISD E-Rate FY 2002 
Contract.\20\
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    \16\ See United States v. Ruben B. Bohuchot. et al., Criminal 
Docket No. 3:07-CR-167-L-1, Indictment at 1,5-6,15 (N.D.Tex. filed 
May 22, 2007, and entered May 24, 2007, under seal; unsealed May 29, 
2007). (``DISD Indictment''); MSE was a computer reseller firm 
providing computer products and services to large corporations and 
school districts, principally in the state of Texas. See DISD 
Indictment at 2; DOJ November 13, 2008 Frankie Wong Press Release at 
1.
    \17\ In a separate letter, we also serve notice of suspension 
and initiation of debarment proceedings to Ruben B. Bohuchot for his 
role in the DISD bribery and money laundering scheme, pursuant to 
his conviction. See Letter from Hillary S. DeNigro, Chief 
Investigations and Hearings Division, Enforcement Bureau, to Ruben 
B. Bohuchot, Notice of Suspension and Initiation of Debarment 
Proceedings, DA 09-471 (Inv. & Hearings Div., Enf. Bur. Feb. 26, 
2009).
    \18\ See DISD Indictment at 5-6; DOJ November 13, 2008 Frankie 
Wong Press Release. MSE was able to obtain two contracts with DISD 
as a result of information that Mr. Wong received from Mr. Bohuchot. 
DISD Indictment at 2-6. In this proceeding, we only address the 
contract involving E-Rate services.
    \19\ DISD Indictment at 4-5, 7-21; DOJ November 13, 2008 Frankie 
Wong Press Release.
    \20\ DISD Indictment at 6. Based on a winning bid proposal 
prepared utilizing information that Mr. Wong received from Mr. 
Bohuchot, MSE received at least $4 million as a subcontractor under 
another contract with DISD. See DISD Indictment at 4; DOJ November 
13, 2008 Frankie Wong Press Release at 2.
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    Pursuant to section 54.8(a)(4) of the Commission's rules,\21\ 
your conviction

[[Page 48741]]

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.\22\ 
Your suspension becomes effective upon the earlier of your receipt 
of this letter or publication of notice in the Federal Register.\23\
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    \21\ 47 CFR 54.8(a)(4). See Second Report and Order, 18 FCC Rcd 
at 9225-9227, paras. 67-74.
    \22\ 47 CFR 54.8(a)(1), (d).
    \23\ 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.\24\ Such requests, however, will 
not ordinarily be granted.\25\ The Bureau may reverse or limit the 
scope of suspension only upon a finding of extraordinary 
circumstances.\26\ Absent extraordinary circumstances, the Bureau 
will decide any request for reversal or modification of suspension 
within 90 days of its receipt of such request.\27\
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    \24\ 47 CFR 54.8(e)(4).
    \25\ Id.
    \26\ 47 CFR 54.8(e)(5).
    \27\ 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.\28\ 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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    \28\ ``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.\29\ Absent 
extraordinary circumstances, the Bureau will debar you.\30\ 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.\31\ 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.\32\
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    \29\ See Second Report and Order, 18 FCC Rcd at 9226, para. 70; 
47 CFR 54.8(e)(3).
    \30\ Second Report and Order, 18 FCC Rcd at 9227, 74.
    \31\ See id., 18 FCC Rcd at 9226, para. 70; 47 CFR 54.8(e)(5).
    \32\ 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 at least 
three years from the date of debarment.\33\ The Bureau may, if 
necessary to protect the public interest, extend the debarment 
period.\34\
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    \33\ Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47 
CFR 54.8(d), 54.8(g).
    \34\ 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 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: Kristy Carroll, Esq., Universal Service Administrative Company 
(via e-mail)
Dayle A. Elieson, U.S. Attorney's Office, United States Department 
of Justice (via mail)

[FR Doc. E9-22961 Filed 9-23-09; 8:45 am]
BILLING CODE 6712-01-P