[Federal Register Volume 76, Number 165 (Thursday, August 25, 2011)]
[Notices]
[Pages 53127-53129]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-21733]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 11-1270]


Notice of Suspension and Commencement of Proposed 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. 
Barrett C. White'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. White, 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 Joy Ragsdale, 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 September 26, 2011.

ADDRESSES: Federal Communications Commission, Enforcement Bureau, 
Investigations and Hearings Division, Room 4-C330, 445 12th Street, 
SW., Washington, DC 20554.
    However, an opposition request by the party to be suspended must be 
received 30 days from the receipt of the suspension letter or September 
26, 2011, 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: Joy Ragsdale, Federal Communications 
Commission, Enforcement Bureau, Investigations and Hearings Division, 
Room 4-C330, 445 12th Street, SW., Washington, DC 20554. Joy Ragsdale 
may be contacted by phone at (202) 418-1697 or e-mail at 
[email protected]. If Ms. Ragsdale is unavailable, you may contact 
Ms. Terry Cavanaugh, Acting 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 11-1070, 
which was mailed to Mr. White and released on July 27, 2011. 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.

Federal Communications Commission.
Theresa Z. Cavanaugh,
Acting Chief, Investigations and Hearings Division, Enforcement Bureau.
    The suspension letter follows:

July 27, 2011

DA 11-1270

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED AND FACSIMILE

Mr. Barrett C. White
c/o Mr. H. Thomas Murphy III
H. Thomas Murphy, LLC
1029 Milan Street
New Orleans, LA 70115

Re: Notice of Suspension and Initiation of Debarment Proceedings, File 
No. EB-11-IH-1075

Dear Mr. White:
    The Federal Communications Commission (``FCC'' or 
``Commission'') has received notice of your conviction of conspiracy 
to defraud the United States in violation of 18 U.S.C Sec.  371 in 
connection with your participation in the federal schools and 
libraries universal service support mechanism (``E-Rate 
program'').\1\ 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 the Bureau will commence debarment proceedings 
against you.\2\
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    \1\ Any further reference in this letter to ``your conviction'' 
refers to your conviction of count one in Case No. 10-324-L. United 
States v. Barrett C. White, Criminal Docket No. 10-324-L, Judgment 
(E.D.LA. filed June 9, 2011) (``Judgment'').
    \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; Rural Health Care 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'') (section 54.521 of 
the universal service debarment rules was renumbered as section 54.8 
and subsections (a)(1), (5), (c), (d), (e)(2)(i), (3), (e)(4), and 
(g) were amended.)

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[[Page 53128]]

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 March 3, 2011, you entered a plea agreement and 
pleaded guilty to intentionally conspiring with others to defraud 
and obtain money from the federal E-Rate Program.\4\ Specifically, 
on behalf of your co-conspirators' \5\ company, Global Network 
Technologies, Inc. (``GNT''), beginning approximately February 2004 
through August 2005 you offered and delivered $28,500 in bribes and 
kickbacks to various school officials in exchange for ceding control 
of the schools' E-Rate program to GNT and CTA.\6\ You also accepted 
fraudulent billing invoices from a school employee for services 
never provided by the employee,\7\ and concealed the source of your 
payments to school officials by paying them from a bank account not 
readily associated with your co-conspirators or their companies.\8\ 
These actions constitute the conduct or transactions upon which this 
suspension notice and proposed debarment proceeding is based.\9\
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    \3\ Second Report and Order, 18 FCC Rcd at 9225, paragraph 66; 
Program Management Order, 22 FCC Rcd at 16387, paragraph 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).
    \4\ United States v. Barrett C. White, Criminal Case No. 10-324-
L, Judgment at 2 (E.D.LA. filed June 9, 2011).
    \5\ By letter, the Bureau will serve notice of suspension and 
initiation of debarment proceedings to Tyrone D. Pipkin, a partner 
in CTA, who pleaded guilty and was convicted on June 21, 2011 for 
his role in the conspiracy. The Bureau will also serve notice of 
suspension and initiation of debarment proceedings to Gloria F. 
Harper, who pleaded guilty to conspiracy on June 2, 2011, and awaits 
sentencing. See Justice News, Dep't of Justice, Owner of Illinois 
Technology Company Sentenced to Serve 12 Months and a Day in Prison 
for Role in Conspiracy to Defraud the Federal E-Rate Program, June 
9, 2011, at http://www.justice.gov/opa/pr/2011/June/11-at-755.html 
(``Press Release'').
    \6\ United States v. Barrett C. White, Criminal Case No. 10-324-
L, Factual Basis at 2 (E.D.LA. filed Mar. 3, 2011) (``Factual 
Basis''). CTA and GNT marketed and provided E-Rate services to 
schools in Arkansas and Louisiana. Id.; United States v. Barrett C. 
White, Criminal Case No. 10-324-L, Information at 2 (E.D.LA. filed 
Nov. 18, 2011) (``Information'').
    \7\ Information at 4.
    \8\ Factual Basis at 2-3.
    \9\ Second Report and Order, 18 FCC Rcd at 9226, paragraph. 70; 
47 CFR 54.8(e)(2)(i).
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    On June 9, 2011, you were sentenced to serve one year and one 
day in prison, followed by a two year period of supervised release, 
for conspiring to defraud the federal E-Rate program in multiple 
states.\10\ You also were ordered to pay a $4,000 fine for your role 
in the conspiracy scheme.\11\
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    \10\ Press Release at 1; Judgment at 3.
    \11\ Judgment at 5. You were also ordered to immediately pay a 
Special Assessment of $100. Id.
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    Pursuant to Sec.  54.8(b) of the Commission's rules,\12\ upon 
your conviction, the Bureau is required to suspend you from 
participating in any 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 fund 
mechanism, or consulting with, assisting, or advising applicants or 
service providers regarding the schools and libraries support 
mechanism.\13\ Your suspension becomes effective upon receipt of 
this letter, or publication of the notice in the Federal Register, 
whichever comes first.\14\
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    \12\ 47 CFR 54.8(b). See Second Report and Order, 18 FCC Rcd at 
9225-9227, paragraphs 67-74.
    \13\ 47 CFR 54.8(a)(1), (d).
    \14\ Second Report and Order, 18 FCC Rcd at 9226, paragraph 69; 
47 CFR 54.8(e)(1).
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    In accordance with the Commission's debarment rules, you may 
contest this suspension or the scope of this suspension by filing 
arguments, along with any relevant documents, within 30 calendar 
days after receipt of this letter, or after notice is published in 
the Federal Register, whichever comes first.\15\ Such requests, 
however, will not ordinarily be granted.\16\ The Bureau may reverse 
or limit the scope of suspension only upon a finding of 
extraordinary circumstances.\17\ Absent extraordinary circumstances, 
the Bureau will decide any request to reverse or modify a suspension 
within 90 calendar days of its receipt of such request.\18\
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    \15\ 47 CFR 54.8(e)(4).
    \16\ Id.
    \17\ 47 CFR 54.8(f).
    \18\ Second Report and Order, 18 FCC Rcd at 9226, paragraph 70; 
47 CFR 54.8(e)(5), (f).
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II. Initiation of Debarment Proceedings

    As discussed above, your guilty plea and conviction of criminal 
conduct in connection with the E-Rate program serves as a basis for 
immediate suspension from the program, as well as a basis to 
commence debarment proceedings against you. Conviction of criminal 
fraud is a cause for debarment as defined in Sec.  54.8(c) of the 
Commission's rules.\19\ Therefore, pursuant to Sec.  54.8(b) of the 
rules, your conviction requires the Bureau to commence debarment 
proceedings against you.
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    \19\ ``Causes for suspension and debarment are 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). Associated 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 the suspension process, you may contest the debarment or 
the scope of the proposed debarment by filing arguments and any 
relevant documentation within 30 calendar days of receipt of this 
letter or publication in the Federal Register, whichever comes 
first.\20\ The Bureau, in the absence of extraordinary 
circumstances, will notify you of its decision to debar within 90 
calendar days of receiving any information you may have filed.\21\ 
If the Bureau decides to debar you, its decision will become 
effective upon either your receipt of a debarment notice or 
publication of the decision in the Federal Register, whichever comes 
first.\22\
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    \20\ Second Report and Order, 18 FCC Rcd at 9226, paragraph 70; 
47 CFR 54.8(e)(3).
    \21\ Id., 18 FCC Rcd at 9226, paragraph 70; 47 CFR 54.8(e)(5).
    \22\ 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.\23\ The Bureau may set a longer 
debarment period if necessary to protect the public interest.\24\
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    \23\ Second Report and Order, 18 FCC Rcd at 9225, paragraph 67; 
47 CFR 54.8(d), (g).
    \24\ Id.
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    Please direct any response, if by messenger or hand delivery, to 
Marlene H. Dortch, Secretary, Federal Communications Commission, 445 
12th Street, S.W., Room TW-A325, Washington, D.C. 20554, to the 
attention of Joy M. Ragsdale, Attorney Advisor, Investigations and 
Hearings Division, Enforcement Bureau, Room 4-A236, with a copy to 
Theresa Z. Cavanaugh, Acting Division Chief, Investigations and 
Hearings Division, Enforcement Bureau, Room 4-C322, Federal 
Communications Commission. All messenger or hand-delivery filings 
must be submitted without envelopes.\25\ If sent by commercial 
overnight mail (other than U.S. Postal Service (USPS) Express Mail 
and Priority Mail), the response must be sent to the Federal 
Communications Commission, 9300 East Hampton Drive, Capitol Heights, 
Maryland 20743. If sent by USPS First Class, Express Mail, or 
Priority Mail, the response should be addressed to Joy Ragsdale, 
Attorney Advisor, Investigations

[[Page 53129]]

and Hearings Division, Enforcement Bureau, Federal Communications 
Commission, 445 12th Street, S.W., Room 4-A236, Washington, D.C. 
20554, with a copy to Theresa Z. Cavanaugh, Acting Division Chief, 
Investigations and Hearings Division, Enforcement Bureau, Federal 
Communications Commission, 445 12th Street, SW., Room 4-C322, 
Washington, D.C. 20554. You shall also, to the extent practicable, 
transmit a copy of the response via email to Joy M. Ragsdale, 
[email protected] and to Theresa Z. Cavanaugh, 
[email protected].
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    \25\ See FCC Public Notice, DA 09-2529 for further filing 
instructions (rel. Dec. 3, 2009).
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    If you have any questions, please contact Ms. Ragsdale via U.S. 
postal mail, e-mail, or telephone at (202) 418-7931. You may contact 
me at (202) 418-1420 or at the email addressed noted above if Ms. 
Ragsdale is unavailable.

    Sincerely yours,

Theresa Z. Cavanaugh,
Acting Chief, Investigations and Hearings Division Enforcement 
Bureau.

cc: Johnnay Schrieber, Universal Service Administrative Company (via 
e-mail) Rashann Duvall, Universal Service Administrative Company 
(via email) Juan Rodriguez, Antitrust Division, United States 
Department of Justice (via e-mail) Stephanie Toussaint, Antitrust 
Division, United States Department of Justice (via e-mail)

[FR Doc. 2011-21733 Filed 8-24-11; 8:45 am]
BILLING CODE 6712-01-P