[Federal Register Volume 77, Number 78 (Monday, April 23, 2012)]
[Notices]
[Pages 24202-24204]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-9626]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 12-425]


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 Ms. 
Gloria F. Harper'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 
her. Ms. Harper, or any person who has an existing contract with or 
intends to contract with her 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 30 days from the receipt 
of the suspension letter or May 23, 2012, 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.

ADDRESSES: Federal Communications Commission, Enforcement Bureau, 
Investigations and Hearings Division, Room 4-C330, 445 12th Street SW., 
Washington, DC 20554.

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. Theresa 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 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 12-452, 
which was mailed to Ms. Harper and released on March 22, 2012. 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.
March 22, 2012
DA 12-452

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED AND EMAIL

Ms. Gloria F. Harper, c/o Ms. Cynthia Marie Cimino, Federal Public 
Defender, Hale Boggs Federal Building, 500 Poydras St., Room 318, New 
Orleans, LA 70130

Re: Notice of Suspension and Initiation of Debarment Proceeding File 
No. EB-12-IH-0400

    Dear Ms. Harper: The Federal Communications Commission (Commission 
or FCC) has received notice of your guilty plea for 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\

[[Page 24203]]

Consequently, pursuant to 47 C.F.R. Sec.  54.8, this letter constitutes 
official notice of your suspension from the E-Rate program.\2\ In 
addition, the Enforcement Bureau (Bureau) hereby notifies you that the 
Bureau will commence debarment proceedings against you.\3\
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    \1\ Any further reference in this letter to ``your conviction'' 
refers to your guilty plea and subsequent sentencing for conspiracy 
to defraud the United States in United States v. Gloria F. Harper, 
Criminal Docket No. 2:10-cr-00326-CJB-ALC, Plea Agreement (E.D. La. 
filed June 2, 2011 and entered June 6, 2011) (Plea Agreement).
    \2\ 47 CFR 54.8.
    \3\ Id. 0.111 (delegating to the Enforcement Bureau authority to 
resolve universal service suspension and debarment proceedings). The 
Commission adopted debarment rules for the E-Rate program 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) (renumbering Section 54.521 of the 
universal service debarment rules as Section 54.8 and amending 
subsections (a)(1), (a)(5), (c), (d), (e)(2)(i), (e)(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 [E-Rate program]'' from 
receiving the benefits associated with that program.\4\ Schools may 
receive E-Rate program funding for eligible goods and services by 
filing application forms, seeking competitive bids, and selecting the 
most cost-effective vendor.\5\ The E-Rate program rules require school 
applicants to pay a percentage of the total cost of eligible goods and 
services requested for funding.\6\ The E-Rate program rules prohibit an 
E-Rate vendor or anyone associated with an E-Rate vendor from 
participating in the application process or vendor selection.\7\
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    \4\ Second Report and Order, 118 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).
    \5\ 47 CFR 54.504, 54.511(c).
    \6\ Id. 54.505, 54.523.
    \7\ See Request for Review by Mastermind Internet Services, 
Inc., Federal-State Joint Board on Universal Service, Changes to the 
Board of Directors of the National Exchange Carrier Association, 
Inc., CC Docket No. 96-45, Order, 16 FCC Rcd 4028, 4032-33 paras. 
10-12 (2000) (Mastermind Order) (finding that when an applicant 
surrenders control of the bidding process to an employee of an 
entity that will also participate in the bidding process as a 
prospective service provider, the applicant irreparably impairs its 
ability to hold a fair and open competitive bidding process); see 
also Universal Service Administrative Company's description of an 
Open and Fair Competitive Bidding Process at http://www.universalservice.org/sl/applicants/step03/run-open-fair-competition.aspx.
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    On June 6, 2011, you pled guilty to knowingly and willfully 
orchestrating multiple fraudulent schemes and conspiring with others to 
defraud the E-Rate program through the submission of materially false 
and fraudulent documents, concealment of material facts, and 
obstruction and manipulation of the competitive bidding process 
involving schools and school districts located in six states.\8\ You 
participated in the conspiracy as the owner of Computer Training and 
Associates (CTA) and co-owner of Global Networking Technologies, Inc. 
(GNT).\9\ Specifically, from approximately December 2001 through 
September 2005, you and a co-conspirator violated E-Rate program rules 
by completing, submitting, and fraudulently signing E-Rate program 
applications (FCC Forms 470, 471, and 486) on behalf of school 
applicants.\10\ You also conspired to bribe school officials in 
exchange for their ceding control of the schools' competitive bidding 
processes to your companies.\11\ In further violation of the E-Rate 
rules, you promised school applicants that their required payments 
would be waived if they chose CTA or GNT as the schools' E-Rate service 
provider.\12\ You also did not disclose your involvement in the 
application process or the promised waivers to the Universal Service 
Administrative Company.\13\ CTA and GNT directly benefited from your 
fraudulent schemes by receiving approximately $4.5 million in E-Rate 
contracts.\14\ These actions constitute the conduct or transactions 
upon which this suspension notice and proposed debarment are based.\15\
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    \8\ Plea Agreement at 4-5. The conspiracy involved schools and 
school districts located throughout Arkansas, Florida, Illinois, 
Louisiana, North Dakota, and Texas. See Appendix.
    \9\ See United States v. Gloria F. Harper, Criminal Docket No. 
2:10-cr-00326-CJB-ALC, Factual Basis at 2, 4 (E.D. La. filed June 2, 
2011) (Factual Basis).
    \10\ Id.
    \11\ Id. at 3. These bribes included $28,500 in payments to 
school officials in Louisiana and Arkansas; a $79,382 payment to a 
school agent in Florida; and a $10,000 payment to a school agent in 
Illinois. Id. at 3-4.
    \12\ Factual Basis at 4; see also United States v. Gloria F. 
Harper, Criminal Docket No. 2:10-cr-00326-CJB-ALC, Information at 7 
(E.D. La. filed Nov. 18, 2011).
    \13\ Factual Basis at 4.
    \14\ Id.
    \15\ Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47 
C.F.R. Sec.  54.8(e)(2)(i). The Bureau has already debarred two co-
conspirators, Tyrone Pipkin and Barrett C. White, from participating 
in the E-Rate program. See Tyrone Pipkin, File No. EB-11-IH-1071, 
Notice of Debarment, 26 FCC Rcd 16822 (Enf. Bur. 2011); Barrett C. 
White, Notice of Debarment, 26 FCC Rcd 16047 (Enf. Bur. 2011); see 
also Justice News, Dep't of Justice, Former Owner of Illinois 
Technology Company Sentenced to Serve 30 Months in Prison for Role 
in Multi-State Scheme to Defraud Federal E-Rate Program, February 9, 
2012, athttp://www.justice.gov/opa/pr/2012/February/12-at-189.html.
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    On February 9, 2012, the United States District Court for the 
Eastern District of Louisiana sentenced you to serve 30 months in 
prison followed by three years of supervised release for conspiring to 
defraud the federal E-Rate program in multiple states.\16\ The court 
also ordered you to pay a $100 special assessment.\17\
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    \16\ United States v.  Gloria F. Harper, Criminal Docket No. 
2:10-cr-00326-CJB-ALC, after, Judgment at 2-3 (filed Feb. 9, 2012). 
The prison term will run concurrent with any sentence imposed in the 
Northern District of Illinois, Criminal Docket No. 11-479. Id. at 2.
    \17\ Id. at 5.
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    Pursuant to Section 54.8(b) of the Commission's rules,\18\ upon 
your conviction the Bureau is required to suspend you 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.\19\ Your 
suspension becomes effective upon receipt of this letter or publication 
of notice of the letter in the Federal Register, whichever comes 
first.\20\
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    \18\ 47 CFR 54.8(b); see Second Report and Order, 18 FCC Rcd at 
9225-27, paras. 67-74.
    \19\ 47 CFR 54.8(a)(1), (d).
    \20\ Second Report and Order, 18 FCC Rcd at 9226, para. 69; 47 
CFR 54.8(e)(1).
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    In accordance with the Commission's suspension and debarment rules, 
you may contest this suspension or the scope of this suspension by 
filing arguments, with any relevant documents, within thirty (30) 
calendar days after receipt of this letter or after publication of 
notice of it in the Federal Register, whichever comes first.\21\ Such 
requests, however, will not ordinarily be granted.\22\ The Bureau may 
reverse or limit the scope of suspension only upon a finding of 
extraordinary circumstances.\23\ The Bureau will decide any request to 
reverse or modify a suspension within ninety (90)

[[Page 24204]]

calendar days of its receipt of such request.\24\
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    \21\ 47 CFR 54.8(e)(4).
    \22\ Id.
    \23\ Id. 54.8(f).
    \24\ See Second Report and Order, 18 FCC Rcd at 9226, para. 70; 
47 CFR 54.8(e)(5).
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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 is the basis for your 
immediate suspension from the program as well as a basis to commence 
debarment proceedings against you. Conviction of criminal fraud is 
cause for debarment as defined in Section 54.8(c) of the Commission's 
rules.\25\ Therefore, pursuant to Section 54.8(b) of the rules, your 
conviction requires the Bureau to commence debarment proceedings 
against you.\26\
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    \25\ ``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.'' Id. 
54.8(a)(1).
    \26\ Id. 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 thirty (30) calendar days of 
receipt of this letter or publication of notice of it in the Federal 
Register, whichever comes first.\27\ The Bureau, in the absence of 
extraordinary circumstances, will notify you of its decision to debar 
within ninety (90) calendar days of receiving any information you may 
have filed.\28\ 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.\29\
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    \27\ Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47 
CFR 54.8(e)(3).
    \28\ Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47 
CFR 54.8(e)(5).
    \29\ 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. Id. 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 E-Rate program for three years from the date of debarment.\30\ 
The Bureau may set a longer debarment period or extend an existing 
debarment period if necessary to protect the public interest.\31\
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    \30\ Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47 
CFR 54.8(d), (g).
    \31\ Id. 54.8(g).
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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.\32\ 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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    \32\ See FCC Announces Change in Filing Location for Paper 
Documents, Public Notice, 24 FCC Rcd 14312 (2009) for further filing 
instructions.
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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) Juan Rodriguez, Antitrust Division, United States Department of 
Justice (via email); Stephanie Toussaint, Antitrust Division, United 
States Department of Justice (via email)

[FR Doc. 2012-9626 Filed 4-20-12; 8:45 am]
BILLING CODE 6712-01-P