[Federal Register Volume 76, Number 230 (Wednesday, November 30, 2011)]
[Notices]
[Pages 74058-74060]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-30784]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 11-1912]


Notice of Suspension and Initiation of Debarment Proceedings

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: In this document, the Commission gives notice of Dr. Dennis L. 
Bruno'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. Dr. 
Bruno, 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.

DATES: Opposition requests must be received by December 30, 2011. 
However, an opposition request by the party to be suspended must be 
received 30 days from the receipt of the suspension letter or December 
30, 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.

ADDRESS: Federal Communications Commission, Enforcement Bureau, 
Investigations and Hearings Division, Room 4-A236, 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 December 30, 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 email 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 email at 
[email protected].

SUPPLEMENTARY INFORMATION: The Bureau has suspension and debarment 
authority pursuant to 47 CFR 54.8. 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 11-1912, which was mailed to Dr. 
Bruno and released on November 18, 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 email http://www.bcpiweb.com.

Federal Communications Commission.
Theresa Z. Cavanaugh,
Acting Chief, Investigations and Hearings Division, Enforcement Bureau.
    The suspension letter follows:
November 18, 2011

DA 11-1912

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED AND EMAIL

Dr. Dennis L. Bruno
c/o Mr. Arthur T. McQuillan
McQuillan Law Offices
206 Main Street
Johnstown, PA 15901

[[Page 74059]]

Re: Notice of Suspension and Initiation of Debarment Proceedings FCC 
File No. EB-11-IH-1582
Dear Dr. Bruno:

    The Federal Communications Commission (``Commission'') has received 
notice of your conviction of misappropriating federal education funds 
in violation of 18 U.S.C Sec.  666(a)(1)(A), as well as your admission 
to committing an offense related to the federal schools and libraries 
universal service support mechanism (``E-Rate program'').\1\ 
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 
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 in United States v. Dennis L. Bruno, 
Criminal Docket No. 11-15 J, Information (W.D. Pa. 2011).
    \2\ 47 C.F.R. 54.8; 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 to suspend and debar parties from the E-rate 
program). In 2007 the Commission extended the debarment rules to 
apply to all 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 App. C 
at 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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I. Notice of Suspension

    The Commission 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 May 9, 2011, you pled guilty to intentionally 
misappropriating $49,600 from the Department of Education's Fund for 
the Improvement of Education program from October 2005 to July 2006 in 
your capacity as Superintendent of the Glendale School District.\4\ In 
connection with your guilty plea, you admitted and stipulated in a plea 
agreement that you were involved in a conspiracy to commit an offense 
against the United States related to the E-Rate program.\5\ 
Specifically, you conspired with others to obtain $414,421.92 from the 
E-Rate program.\6\ Your stipulation to conspiring to commit an offense 
related to the E-Rate program constitutes the conduct or transaction 
upon which this suspension notice and debarment proceeding are 
based.\7\
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    \3\ Second Report and Order, 18 FCC Rcd at 9225, ] 66; Program 
Management Order, 22 FCC Rcd at 16387, ] 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 C.F.R. 
54.8(a)(6).
    \4\ United States v. Dennis L. Bruno, Criminal Docket No. 11-15 
J, Arraignment Plea. See also United States Attorney's Office, 
Western District of Pennsylvania, News, Former Superintendent Pleads 
Guilty to Federal Program Theft, May 9, 2011, at http://www.justice.gov/usao/paw/news/2011/2011_may/2011_05_09_05.html 
(``Press Release'').
    \5\ Press Release at 1.
    \6\ Id.
    \7\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 C.F.R. 
54.8(e)(2)(i).
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    Pursuant to section 54.8(b) of the Commission's rules,\8\ 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 support mechanism, or consulting 
with, assisting, or advising applicants or service providers regarding 
the schools and libraries support mechanism.\9\ Your suspension becomes 
effective upon either the date of your receipt of this notice or of its 
publication in the Federal Register, whichever date occurs first.\10\
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    \8\ 47 C.F.R. 54.8(a)(4). See Second Report and Order, 18 FCC 
Rcd at 9225-9227, ]] 67-74.
    \9\ 47 C.F.R. 54.8(a)(1), (d).
    \10\ Second Report and Order, 18 FCC Rcd at 9226, ] 69; 47 
C.F.R. 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, with any relevant documents, within 30 calendar days after 
receipt of this letter or after a 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 
to reverse or modify a suspension within 90 calendar days of its 
receipt of such request.\14\
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    \11\ 47 C.F.R. 54.8(e)(4).
    \12\ Id.
    \13\ 47 C.F.R. 54.8(f).
    \14\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
C.F.R. 54.8(e)(5), (f).
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II. Initiation of Debarment Proceedings

    As discussed above, your guilty plea and stipulation to 
participating in a conspiracy 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. Your stipulation 
to conspiracy is cause for debarment as defined in section 54.8(c) of 
the Commission's rules.\15\ Therefore, pursuant to section 54.8(b) of 
the rules, the Bureau is required to commence debarment proceedings 
against you.\16\
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    \15\ ``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 C.F.R. 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 C.F.R. 
54.8(a)(1).
    \16\ 47 C.F.R. 54.8(b).
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    As with the suspension process, you may contest the proposed 
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.\17\ 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.\18\ 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.\19\
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    \17\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 
C.F.R. 54.8(e)(3).
    \18\ Id., 18 FCC Rcd at 9226, ] 70; 47 C.F.R. 54.8(e)(5).
    \19\ 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 C.F.R. 
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 set a longer debarment period or 
extend an existing debarment

[[Page 74060]]

period if necessary to protect the public interest.\21\
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    \20\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 
C.F.R. 54.8(d), (g).
    \21\ Id.
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    Please direct any response, if sent by messenger or hand delivery, 
to Marlene H. Dortch, Secretary, Federal Communications Commission, 445 
12th Street SW., Room TW-A325, Washington, DC 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.\22\ 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 and Hearings 
Division, Enforcement Bureau, Federal Communications Commission, 445 
12th Street SW., Room 4-A236, Washington, DC 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, DC 20554. You 
shall also transmit a copy of your response via email to Joy M. 
Ragsdale, [email protected] and to Theresa Z. Cavanaugh, 
[email protected].
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    \22\ 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, email, or by telephone at (202) 418-1697. You may contact 
me at (202) 418-1553 or at the email address 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 
email) Rashann Duvall, Universal Service Administrative Company (via 
email) Stephanie L. Haines, United States Attorney's Office, Western 
Pennsylvania (via email)
[FR Doc. 2011-30784 Filed 11-29-11; 8:45 am]
BILLING CODE 6712-01-P