[Federal Register Volume 80, Number 131 (Thursday, July 9, 2015)]
[Notices]
[Pages 39430-39432]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-16778]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 15-669]


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 Oscar Enrique 
Perez-Zumaeta's suspension from the federal Lifeline universal service 
support mechanism (Lifeline program) and the commencement of debarment 
proceedings against him. Suspension immediately excludes Mr. Perez-
Zumaeta from activities associated with or related to the Lifeline 
program pending completion of the debarment process. Mr. Perez-Zumaeta, 
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

[[Page 39431]]

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 July 9, 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: Ms. 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 telephone 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 or 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. Perez-Zumaeta's 
conviction for money laundering in violation of 18 U.S.C. 1957(a) and 
18 U.S.C. 2, 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 15-669, which was mailed to Mr. Perez-Zumaeta and 
released on June 8, 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.

Federal Communications Commission.
Jeffrey J. Gee,
Chief, Investigations and Hearings Division, Enforcement Bureau.
June 08, 2015
DA 15-669

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

Mr. Oscar Enrique Perez-Zumaeta, c/o William P. Earley, Federal Public 
Defender-OKC, 215 Dean A McGee Ave., Suite 109, Oklahoma City, OK 73102

Re: Notice of suspension and initiation of debarment proceeding, File 
No. EB-IHD-15-00019209

    Dear Mr. Perez-Zumaeta: The Federal Communications Commission 
(Commission) has received notice of your conviction for money 
laundering in violation of 18 U.S.C. 1957(a) and 18 U.S.C. 2, in 
connection with fraudulent claims against the federal Lifeline 
universal service support mechanism (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. Perez-Zumaeta, Criminal Docket No. 5:14-cr-00165-D-1, Plea 
Agreement (W.D. Okla. filed Nov. 07, 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 Serv. Fund Mgmt., Admin., 
& 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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    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\ 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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    You owned and managed PSPS Sales LLC (PSPS), a California entity 
that recruited low-income individuals to apply for Lifeline telephone 
service through Icon Telecom, Inc. (Icon).\7\ On June 12, 2014, Icon 
pled guilty to knowingly making a false statement to the Universal 
Service Administrative Company in connection with fraudulent claims 
against the Lifeline program.\8\ According to court records, you were 
charged with directing PSPS workers to enroll fictitious customers and 
falsify Lifeline recertification forms for use in Icon's fraudulent 
scheme.\9\ On November 7, 2014, you pled guilty to one count of money 
laundering for depositing a $52,390.00 check from Icon into a PSPS bank 
account, despite knowing that more than $10,000.00 of those funds was 
the result of criminal fraud against the Commission.\10\
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    \7\ United States v. Perez-Zumaeta, Criminal Docket No. 5:14-cr-
00165-D-1, Indictment at 1-2 (W.D. Okla. filed June 03, 2014) 
(Indictment).
    \8\ United States v. Icon Telecom, Inc., Criminal Docket No. 
5:14-cr-00170-D, Plea Agreement (W.D. Okla. filed June 12, 2014).
    \9\ Indictment at 8-10.
    \10\ Plea Agreement at 2; Indictment at 16-17; see also United 
States Attorney's Office, western District of oklahoma, Press 
Release, Final Defendant Sentenced to Serve 42 Months in Prison for 
Money Laundering in Connection with Federal Wireless Telephone 
Program Subsidies, Apr. 23, 2015, available at http://www.justice.gov/usao-wdok/pr/final-defendant-sentenced-serve-42-months-prison-money-laundering-connection-federal.
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    Pursuant to section 54.8(b) of the Commission's rules,\11\ 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.\12\ Your suspension 
becomes effective upon either your receipt of this letter or its 
publication in the Federal Register, whichever comes first.\13\
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    \11\ 47 CFR 54.8(a)(4); see Program Management Order, 22 FCC Rcd 
at 16387, para. 32.
    \12\ 47 CFR 54.8(a)(1), (d).
    \13\ 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.\14\ Such requests, however, will not ordinarily 
be granted.\15\ The Bureau may reverse or limit the scope of a 
suspension only upon a finding of extraordinary circumstances.\16\ The 
Bureau will decide any request to reverse or modify a suspension within 
ninety (90)

[[Page 39432]]

calendar days of its receipt of such request.\17\
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    \14\ Id. Sec.  54.8(e)(4).
    \15\ Id.
    \16\ Id. Sec.  54.8(f).
    \17\ Id. Sec. Sec.  54.8(e)(5), (f).
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I. 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.\18\ Therefore, pursuant to section 54.8(b) of 
the Commission's rules, your conviction requires the Bureau to commence 
debarment proceedings against you.\19\
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    \18\ ``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).
    \19\ 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.\20\ 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.\21\ 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.\22\
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    \20\ Id. Sec.  54.8(e)(3).
    \21\ Id. Sec.  54.8(e)(5).
    \22\ 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.\23\ 
The Bureau may set a longer debarment period or extend an existing 
debarment period if necessary to protect the public interest.\24\
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    \23\ Id. Sec.  54.8(d), (g).
    \24\ 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.\25\ 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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    \25\ 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 Office, Western District of Oklahoma (via email)

[FR Doc. 2015-16778 Filed 7-8-15; 8:45 am]
 BILLING CODE 6712-01-P