[Federal Register Volume 79, Number 179 (Tuesday, September 16, 2014)]
[Notices]
[Pages 55486-55488]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22035]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 14-1231]


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 Donna 
P. English'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. Ms. English, 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.

DATES: Opposition requests must be received by 30 days from the receipt 
of the suspension letter or September 16, 2014, 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, 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

[[Page 55487]]

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 14-1231, which was mailed to Ms. English and 
released on August 26, 2014. 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,
Chief, Investigations and Hearings Division, Enforcement Bureau.
August 26, 2014
DA 14-1231

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

Ms. Donna P. English, 225 Warren Road, Michigan City, IN 46360

Re: Notice of Suspension and Initiation of Debarment Proceeding File 
No. EB-IHD-14-00015686

    Dear Ms. English: The Federal Communications Commission 
(Commission) has received notice of your conviction for several 
offenses, including mail and wire fraud in violation of 18 U.S.C. 1341 
and 1343, arising out of activities associated with 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.\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 in United 
States v. English, Case No. 2:10cr75-001, Plea Agreement (N.D. Ind., 
filed Dec. 6, 2010) (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\ The statutory 
provisions and Commission rules relating to the E-Rate program are 
designed to ensure E-Rate funds are used for their intended purpose.\5\ 
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.\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\ NEC-Business Network Solutions, Inc., Notice of Debarment 
and Order Denying Waiver Petition, 21 FCC Rcd 7491, 7493, para. 7 
(2006).
    \6\ 47 CFR 54.503, 54.504(a), 54.511(a).
    \7\ 47 CFR 54.503(a); 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 Administration Company's 
(USAC's) Web site description of an Open and Fair Competitive 
Bidding Process, Step 2 available at http://www.universalservice.org/sl/applicants/step02/competitive-bidding.aspx (last visited May 6, 2014).
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    In December 2010, you pled guilty to knowingly devising a scheme to 
fraudulently obtain money from the E-Rate program.\8\ You perpetrated 
this scheme as the owner of Project Managers, Inc. (PMI), a self-styled 
information technology consulting company in Michigan City, Indiana, 
that purported to provide technological services to and assist the 
River Forest Community School Corporation (RFCSC) in its efforts to 
qualify for E-Rate funding.\9\ Specifically, from 2002 through 2007, 
you violated the E-Rate program rules by completing, submitting, and 
fraudulently certifying E-Rate program applications (FCC Forms 470, 
471, 474, and 486) on behalf of RFCSC.\10\ In addition, you submitted 
false invoices to and received payment from RFCSC and USAC for a Cisco 
SMARTnet network maintenance agreement, Watchguard Internet Security 
Program Renewal, and technical service hours that you never provided to 
RFCSC.\11\ You also sought cash advances from RFCSC for your purported 
E-Rate services, but never repaid the advances once the E-Rate program 
paid you.\12\
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    \8\ Plea Agreement at 5. Mrs. English also served as RFCSC's 
interim technology director between June 2005 and March 2007.
    \9\ United States v. English Case No. 2:10cr75-001, Indictment 
at 1 (N.D. Ind., filed May 6, 2010) (Indictment). The RFCSC school 
district consists of two (2) K-5 elementary schools, one (1) K-6 
elementary school, and the River Forest Junior-Senior High School. 
Id. at 1-2.
    \10\ Id. at 6-7, 10.
    \11\ Id. at 7-8.
    \12\ Plea Agreement at 6.
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    In October 2011, the United States District Court for the Northern 
District of Indiana sentenced you to 27 months imprisonment followed by 
three years supervised release.\13\ The court also ordered you to pay 
$213,064 in restitution and a $400 special assessment.\14\
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    \13\ United States v. English Case No. 2:10cr75-001, Judgment at 
6 (N.D. Ind., May 11, 2011) (Judgment). The prison term consists of 
27 months for each of counts 4, 16, 22, and 23 and will run 
concurrently. The supervised release period is for 3 years for each 
of counts 4, 16, 22, and 23, and will run concurrently.
    \14\ Id. at 6. This restitution order includes $87,983.14 
payable to USAC.
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    Pursuant to section 54.8(b) of the Commission's rules,\15\ your 
conviction requires the Bureau 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.\16\ Your suspension becomes 
effective upon either your receipt of this

[[Page 55488]]

letter or its publication in the Federal Register, whichever comes 
first.\17\
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    \15\ 47 CFR 54.8(a)(4); see Second Report and Order, 18 FCC Rcd 
at 9225-27, paras. 67-74.
    \16\ 47 CFR 54.8(a)(1), (d).
    \17\ 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 of your receipt of this letter or its publication in the 
Federal Register, whichever comes first.\18\ Such requests, however, 
will not ordinarily be granted.\19\ The Bureau may reverse or limit the 
scope of a suspension only upon a finding of extraordinary 
circumstances.\20\ The Bureau will decide any request to reverse or 
modify a suspension within ninety (90) calendar days of its receipt of 
such request.\21\
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    \18\ 47 CFR 54.8(e)(4).
    \19\ Id.
    \20\ 47 CFR 54.8(f).
    \21\ Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47 
CFR 54.8(e)(5), (f).
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II. Initiation of Debarment Proceedings

    In addition to requiring your immediate suspension from the E-Rate 
program, your conviction is cause for debarment as defined in section 
54.8(c) of the Commission's rules.\22\ Therefore, pursuant to section 
54.8(b) of the Commission's rules, your conviction requires the Bureau 
to commence debarment proceedings against you.\23\
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    \22\ ``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).
    \23\ 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 its publication in the Federal Register, 
whichever comes first.\24\ 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.\25\ 
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.\26\
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    \24\ Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47 
CFR 54.8(e)(3).
    \25\ Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47 
CFR 54.8(e)(5).
    \26\ 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. 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.\27\ 
The Bureau may set a longer debarment period or extend an existing 
debarment period if necessary to protect the public interest.\28\
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    \27\ Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47 
CFR 54.8(d), (g).
    \28\ 47 CFR 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 and to the 
attention of Joy M. Ragsdale, Attorney Advisor, Investigations and 
Hearings Division, Enforcement Bureau, Room 4-C330, Federal 
Communications Commission, 445 12th Street SW., Washington, DC 20554 
with a copy to Theresa Z. Cavanaugh, Division Chief, Investigations and 
Hearings Division, Enforcement Bureau, Room 4-C330, Federal 
Communications Commission, 445 12th Street SW., Washington, DC 20554. 
All messenger or hand delivery filings must be submitted without 
envelopes.\29\ 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-C330, Washington, DC 20554, with a copy to 
Theresa Z. Cavanaugh, 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 your response via email to Joy M. Ragsdale, [email protected] and 
to Theresa Z. Cavanaugh, [email protected].
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    \29\ 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
Chief, Investigations and Hearings Division, Enforcement Bureau

cc: Johnnay Schrieber, Universal Service Administrative Company (via 
email); Rashann Duvall, Universal Service Administrative Company 
(via email); Jonathan M. Minkus, Law Offices of Jonathan Minkus (via 
email); Toi Denise Houston, United States Attorney's Office, 
Hammond, IN (via email); Jennifer Dixton, United States Department 
of Justice, Antitrust Division (via email)

[FR Doc. 2014-22035 Filed 9-15-14; 8:45 am]
BILLING CODE 6712-01-P