[Federal Register Volume 77, Number 44 (Tuesday, March 6, 2012)]
[Notices]
[Pages 13321-13322]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-5409]


-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

[DA 12-212]


Notice of Debarment

AGENCY: Federal Communications Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Enforcement Bureau (the ``Bureau'') debars Mr. Jeremy R. 
Sheets 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. Jeremy R. Sheets receives 
the debarment letter or April 5, 2012, whichever date comes first, for 
a period of three years.

FOR FURTHER INFORMATION CONTACT: Joy M. Ragsdale, Federal 
Communications Commission, Enforcement Bureau, Investigations and 
Hearings Division, Room 4-A236, 445 12th Street SW., Washington, DC 
20554. Joy Ragsdale may be contacted by phone at (202) 418-1697 or by 
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 debarred Mr. Jeremy R. Sheets 
from the schools and libraries universal service support mechanism for 
a period of three years pursuant to 47 CFR 54.8. Attached is the 
debarment letter, DA 12-212, which was mailed to Mr. Jeremy R. Sheets 
and released on February 14, 2012. 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

[[Page 13322]]

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 debarment letter follows:
February 14, 2012
DA 12-212

VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED AND E-MAIL

Mr. Jeremy R. Sheets
c/o Mr. Martin E. Crandall
Clark Hill PLC
500 Woodward Ave., Suite 3500
Detroit, MI 48226-3435

Re: Notice of Debarment

File No. EB-11-IH-1122

Dear Mr. Sheets:

    The Federal Communications Commission (Commission) hereby notifies 
you that, pursuant to Section 54.8 of its rules, you are prohibited 
from participating in the schools and libraries universal service 
support mechanism (E-Rate program) for three years from either the date 
of your receipt of this Notice of Debarment, or of its publication in 
the Federal Register, whichever is earlier in time (Debarment Date).\1\
---------------------------------------------------------------------------

    \1\ 47 CFR 54.8(g) (2010). See also 47 CFR 0.111 (delegating 
authority to the Enforcement Bureau to resolve universal service 
suspension and debarment proceedings).
---------------------------------------------------------------------------

    On October 18, 2011, the Commission's Enforcement Bureau (Bureau) 
sent you a Notice of Suspension and Initiation of Debarment Proceeding 
(Notice of Suspension) \2\ that was published in the Federal Register 
on November 7, 2011.\3\ The Notice of Suspension suspended you from 
participating in activities associated with or relating to the E-Rate 
program and described the basis for initiating debarment proceedings 
against you, the applicable debarment procedures, and the effect of 
debarment.
---------------------------------------------------------------------------

    \2\ Letter from Theresa Z. Cavanaugh, Acting Chief, 
Investigations and Hearings Division, Enforcement Bureau, Federal 
Communications Commission, to Jeremy R. Sheets, Notice of Suspension 
and Initiation of Debarment Proceeding, DA 11-1733, 26 FCC Rcd 14408 
(Inv. & Hearings Div., Enf. Bur. 2011) (Attachment 1).
    \3\ 76 Fed. Reg. 68760 (Nov. 7, 2011).
---------------------------------------------------------------------------

    As discussed in the Notice of Suspension, as president and co-owner 
of CMS Internet LLC (CMS), you devised and participated in a scheme to 
defraud the E-Rate program, which resulted in a loss to the program of 
up to $70,000.\4\ Specifically, you made materially false 
representations that induced two school districts to steer E-rate 
contracts to CMS; and you paid the school applicants' share of E-Rate 
expenses with purported ``donations'' and ``leasing payments.'' \5\ 
Furthermore, you failed to disclose that you purchased ineligible goods 
and services with E-Rate funds.\6\ Finally, you obstructed a 2007 
federal grand jury investigation by instructing a CMS employee to 
testify falsely about receiving gifts and to destroy computer 
records.\7\ As a result of your conviction for wire fraud, the United 
States District Court for the Western District of Michigan sentenced 
you to serve 15 months in federal prison, followed by two years of 
supervised release for defrauding the E-Rate program.\8\ The court also 
prohibited you from ``having any involvement with any government-backed 
or federally-regulated programs during the course of supervision.'' \9\ 
The court ordered you to pay a $12,000 criminal fine in addition to 
paying Universal Service Administration Company (USAC) $115,534 in 
restitution.\10\ Pursuant to Section 54.8(c) of the Commission's rules, 
your conviction of criminal conduct in connection with the E-Rate 
program serves as a basis for your debarment.\11\
---------------------------------------------------------------------------

    \4\ Notice of Suspension, 26 FCC Rcd at 14409.
    \5\ Id.
    \6\ Id.
    \7\ Id.
    \8\ See United States v. Jeremy R. Sheets, Criminal Case No. 
1:10-cr-380, Judgment (W.D. Mi. 2011).
    \9\ Id. A condition of your supervised release includes 
forfeiting all monetary claims pending under contract with other E-
Rate school applicants. Telephone Conversation with Jason Turner, 
Lead Counsel, Dep't of Justice, Antitrust Division (Aug. 10, 2011).
    \10\ Supra note 5.
    \11\ 47 CFR 54.8(c).
---------------------------------------------------------------------------

    In accordance with the Commission's debarment rules, you were 
required to file with the Commission any opposition to your suspension 
or its scope, or to your proposed debarment or its scope, no later than 
30 calendar days from either the date of your receipt of the Notice of 
Suspension or of its publication in the Federal Register, whichever 
date occurred first.\12\ The Commission did not receive any such 
opposition.
---------------------------------------------------------------------------

    \12\ Id. Sec.  54.8(e)(3), (4). Any opposition had to be filed 
no later than November 17, 2011.
---------------------------------------------------------------------------

    For the foregoing reasons, you are debarred from participating in 
the E-Rate program for three years from the Debarment Date.\13\ During 
this debarment period, you are excluded from participating in any 
activities associated with or related to the E-Rate program, including 
the receipt of funds or discounted services through the E-Rate program, 
or consulting with, assisting, or advising applicants or service 
providers regarding the E-Rate program.\14\
---------------------------------------------------------------------------

    \13\ Id. Sec.  54.8(e)(5), (g).
    \14\ 47 CFR Sec.  54.8(a)(1), (5), (d).

---------------------------------------------------------------------------
Sincerely,

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) Jason C. Turner, Antitrust Division, United States Department of 
Justice (via email) Jennifer M. Dixton, Antitrust Division, United 
States Department of Justice (via email) Meagan D. Johnson, Antitrust 
Division, United States Department of Justice (via email)

[FR Doc. 2012-5409 Filed 3-5-12; 8:45 am]
BILLING CODE 6712-01-P