[Federal Register Volume 80, Number 117 (Thursday, June 18, 2015)]
[Notices]
[Pages 34906-34908]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15065]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 15-630]


Notice of Suspension and Commencement of Proposed Debarment 
Proceedings; Federal Lifeline Universal Service Support Mechanism

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Enforcement Bureau (Bureau) gives notice of Wes Yui Chew's 
suspension from the federal Lifeline universal service support 
mechanism (Lifeline program) and the commencement of debarment 
proceedings against him. Suspension immediately excludes Mr. Chew from 
activities associated with or related to the Lifeline program pending 
completion of the debarment process. Mr. Chew, 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 Lifeline program, may contest this suspension or its 
scope by filing an opposition and any relevant documentation.

DATES: Any opposition must be received within 30 days from the receipt 
of the suspension letter or June 18, 2015, whichever comes first. The 
Bureau will decide any opposition within 90 days of its receipt.

ADDRESSES: Federal Communications Commission, Enforcement Bureau, 
Investigations and Hearings Division, Room 4-A422, 445 12th Street SW., 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Celia Lewis, Paralegal Specialist, 
Federal Communications Commission, Enforcement Bureau, Investigations 
and Hearings Division, Room 4-A422, 445 12th Street SW., Washington, DC 
20554. Celia Lewis may be contacted by phone at (202) 418-7456 or email 
at [email protected]. If Ms. Lewis is unavailable, you may contact 
Mr. Kalun Lee, Deputy Chief, Investigations and Hearings Division, by 
telephone at (202) 418-0796 and by email at [email protected].

SUPPLEMENTARY INFORMATION: The Bureau has suspension and debarment 
authority pursuant to 47 CFR 54.8 and 0.111(a)(14). Mr. Chew's 
conviction for money laundering in violation of 18 U.S.C. 1957(a), in 
connection with fraudulent claims against the Lifeline program, 
requires the Bureau to suspend him from participating in activities 
associated with the Lifeline program. Attached is the notice of 
suspension and initiation of debarment proceeding (Notice of 
Suspension), DA 15-630, which was mailed to Mr. Chew and released on 
May 26, 2015. The complete text of the Notice of Suspension 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.

Jeffrey J. Gee,
Chief, Investigations and Hearings Division, Enforcement Bureau, 
Federal Communications Commission.
    May 26, 2015

DA 15-630

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

Mr. Wes Yui Chew, c/o Daniel G. Webber, Jr., Ryan Whaley Coldiron 
Shandy PLLC, 119 N. Robinson Avenue, Suite 900, Oklahoma City, OK 
73102.

Re: Notice of suspension and initiation of debarment proceeding, File 
No. EB-IHD-15-00019046.

    Dear Mr. Chew:
    The Federal Communications Commission (Commission) has received 
notice of your conviction for money laundering in violation of 18 
U.S.C. 1957(a), in connection with fraudulent claims against the 
federal Lifeline telephone program (Lifeline program).\1\ Pursuant to 
its rules, the Enforcement Bureau (Bureau) hereby suspends you from 
participating in activities associated with the Lifeline program.\2\ 
The Bureau is also commencing a proceeding to debar you from future 
participation in the Lifeline program.\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. Chew, Criminal Docket No. 5:14-cr-00170-D, Plea Agreement 
(W.D. Okla. filed June 12, 2014) (Plea Agreement). See also Lifeline 
& Link Up Reform & Modernization, WC Docket No. 11-42, CC Docket No. 
96-45, WC Docket No. 03-109, Report and Order and Further Notice of 
Proposed Rulemaking, 27 FCC Rcd 6656 (2012) (Lifeline Reform Order).
    \2\ 47 CFR 54.8.
    \3\ Id.; 47 CFR 0.111 (delegating to the Bureau authority to 
resolve universal service suspension and debarment proceedings). In 
2007, the Commission extended the debarment rules to apply to all 
federal universal service support mechanisms, including Lifeline. 
See Comprehensive Review of the Universal Service Fund Management, 
Administration, & Oversight, Report and Order, 22 FCC Rcd 16372, 
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

    Any person who has ``defrauded the government or engaged in similar 
acts through activities associated with or related to the [Lifeline 
program]'' may be prohibited from receiving the benefits associated 
with that program.\4\

[[Page 34907]]

The Lifeline program is a government program that provides support to 
eligible telecommunications carriers (ETCs) that in turn offer 
discounts on telephone service for eligible low-income consumers.\5\ An 
ETC may receive reimbursement in connection with the Lifeline program 
only if it certifies as part of its reimbursement request that it is in 
compliance with the Lifeline rules.\6\
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    \4\ 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\ See Lifeline Reform Order, 27 FCC Rcd at 6662-67, paras. 11-
18; see also 47 CFR 54.400-54.422.
    \6\ See 47 CFR 54.407(d).
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    Icon Telecom, Inc. (Icon) participated in the Lifeline program from 
July 2011 until September 2013.\7\ During that time period, you were 
the sole owner and president of Icon.\8\ On June 12, 2014, you pled 
guilty to one count of money laundering for transferring $20,455,829.10 
from an Icon bank account to a personal bank account, despite knowing 
that Icon had thousands fewer customers than it had reported to the 
Commission.\9\
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    \7\ United States v. Chew, Criminal Docket No. 5:14-cr-00170-D, 
Information at 4 (W.D. Okla. filed June 3, 2014).
    \8\ Id. at 1.
    \9\ Id. at 7-8; Plea Agreement at 2; see also United States 
Attorney's Office, Western District of Oklahoma, Press Release, Icon 
Telecom and Its Owner Plead Guilty And Agree To Forfeit More Than 
$27 Million In Connection With Federal Wireless Telephone Subsidy 
Program, June 12, 2014, available at http://www.justice.gov/usao-wdok/pr/icon-telecom-and-its-owner-plead-guilty-and-agree-forfeit-more-27-million-connection.
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    Pursuant to Section 54.8(b) of the Commission's rules,\10\ your 
conviction requires the Bureau to suspend you from participating in any 
activities associated with or related to the Lifeline program, 
including receiving funds or discounted services through the Lifeline 
program, or consulting with, assisting, or advising applicants or 
service providers regarding the Lifeline program.\11\ Your suspension 
becomes effective upon either your receipt of this letter or its 
publication in the Federal Register, whichever comes first.\12\
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    \10\ 47 CFR 54.8(a)(4); see Program Management Order, 22 FCC Rcd 
at 16387, para. 32.
    \11\ 47 CFR 54.8(a)(1), (d).
    \12\ Id. Sec.  54.8(e)(1).
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    In accordance with the Commission's suspension and debarment rules, 
you may contest this suspension or its scope 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.\13\ Such requests, however, will not ordinarily 
be granted.\14\ The Bureau may reverse or limit the scope of a 
suspension only upon a finding of extraordinary circumstances.\15\ The 
Bureau will decide any request to reverse or modify a suspension within 
ninety (90) calendar days of its receipt of such request.\16\
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    \13\ Id. Sec.  54.8(e)(4).
    \14\ Id.
    \15\ Id. Sec.  54.8(f).
    \16\ Id. Sec. Sec.  54.8(e)(5), (f).
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II. Initiation of Debarment Proceedings

    In addition to your immediate suspension from the Lifeline program, 
your conviction is cause for debarment as defined in Section 54.8(c) of 
the Commission's rules.\17\ Therefore, pursuant to Section 54.8(b) of 
the Commission's rules, your conviction requires the Bureau to commence 
debarment proceedings against you.\18\
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    \17\ ``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 health care 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. Sec.  
54.8(a)(1).
    \18\ Id. Sec.  54.8(b).
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    As with the suspension process, you may contest the proposed 
debarment or its scope 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.\19\ 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.\20\ 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.\21\
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    \19\ Id. Sec.  54.8(e)(3).
    \20\ Id. Sec.  54.8(e)(5).
    \21\ 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. Sec.  
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 Lifeline program for three years from the date of debarment.\22\ 
The Bureau may set a longer debarment period or extend an existing 
debarment period if necessary to protect the public interest.\23\
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    \22\ Id. Sec.  54.8(d), (g).
    \23\ Id. Sec.  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 Celia Lewis, Paralegal Specialist, Investigations and 
Hearings Division, Enforcement Bureau, Room 4-A422, Federal 
Communications Commission, 445 12th Street SW., Washington, DC 20554 
with a copy to Kalun Lee, Deputy Chief, Investigations and Hearings 
Division, Enforcement Bureau, Room 4-C237, Federal Communications 
Commission, 445 12th Street SW., Washington, DC 20554. All messenger or 
hand delivery filings must be submitted without envelopes.\24\ 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 Celia Lewis, 
Paralegal Specialist, Investigations and Hearings Division, Enforcement 
Bureau, Federal Communications Commission, 445 12th Street SW., Room 4-
A422, Washington, DC 20554, with a copy to Kalun Lee, Deputy Chief, 
Investigations and Hearings Division, Enforcement Bureau, Federal 
Communications Commission, 445 12th Street SW., Room 4-C237, 
Washington, DC 20554. You shall also transmit a copy of your response 
via email to Celia Lewis, [email protected], and Kalun Lee, 
[email protected].
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    \24\ 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. Lewis via U.S. postal 
mail, email, or by telephone at (202) 418-7456. If Ms. Lewis is 
unavailable, you may contact Kalun Lee, Deputy Chief, Investigations 
and Hearings Division, by telephone at (202) 418-0796 or at the email 
address noted above.
Sincerely yours,

Jeffrey J. Gee, Chief, Investigations and Hearings Division, 
Enforcement Bureau.
cc: Johnnay Schrieber, Universal Service Administrative Company (via 
email), Rashann Duvall, Universal Service Administrative Company (via 
email), Chris M. Stevens, United States Attorney's Office, Western 
District of Oklahoma (via email), Scott E. Williams, United States 
Attorney's

[[Page 34908]]

Office, Western District of Oklahoma (via email).

[FR Doc. 2015-15065 Filed 6-17-15; 8:45 am]
BILLING CODE 6712-01-P