[Federal Register: August 27, 2008 (Volume 73, Number 167)]
[Notices]               
[Page 50618-50620]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27au08-42]                         

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FEDERAL COMMUNICATIONS COMMISSION

[DA 08-1865]

 
Notice of Debarment; Schools and Libraries Universal Service 
Support Mechanism

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Enforcement Bureau (the ``Bureau'') debars Mr. William 
Holman from the schools and libraries universal service support 
mechanism (or ``E-Rate Program'') for a period of three years based on 
his conviction of bid rigging in connection with his participation in 
the program. The Bureau takes this action to protect the E-Rate Program 
from waste, fraud and abuse.

DATES: Debarment commences on the date Mr. William Holman receives the 
debarment letter or August 27, 2008, whichever date come first, for a 
period of three years.

FOR FURTHER INFORMATION CONTACT: Rebekah Bina, Federal Communications 
Commission, Enforcement Bureau, Investigations and Hearings Division, 
Room 4-C330, 445 12th Street, SW., Washington, DC 20554. Rebekah Bina 
may be contacted by phone at (202) 418-7931 or e-mail at 
Rebekah.Bina@fcc.gov. If Ms. Bina is unavailable, you may contact Ms. 
Vickie Robinson, Assistant Chief, Investigations and Hearings Division, 
by telephone at (202) 418-1420 and by e-mail at 
vickie.robinson@fcc.gov.

SUPPLEMENTARY INFORMATION: The Bureau debarred Mr. William Holman from 
the schools and libraries universal service support mechanism for a 
period of three years pursuant to 47 CFR 54.8 and 47 CFR 0.111. 
Attached is the debarment letter, DA 08-1865, which was mailed to Mr. 
William Holman and released on August 7, 2008. 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 20554, telephone (202) 
488-5300 or (800) 378-3160, facsimile (202) 488-5563, or via e-mail 
http://www.bcpiweb.com.

Federal Communications Commission.
Vickie Robinson,
Assistant Chief, Investigations and Hearings Division, Enforcement 
Bureau.
    The debarment letter, which attached the suspension letter, 
follows:

August 7, 2008.
DA 08-1865

VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED AND FACSIMILE (415-773-
5759)

Mr. William Holman, c/o Walter F. Brown, Jr., Esq., Orrick, Herrington 
& Sutcliffe, LLP, The Orrick Building, 405 Howard Street, San 
Francisco, CA 94105-2669

Re: Notice of Debarment, File No. EB-08-IH-1142

    Dear Mr. Holman: Pursuant to section 54.8 of the rules of the 
Federal Communications Commission (the ``Commission''), by this Notice 
of Debarment you are debarred from the schools and libraries universal 
service support mechanism (or ``E-Rate program'') for a period of three 
years.\1\
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    \1\ See 47 CFR 0.111(a)(14), 54.8.
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    On May 19, 2008, the Enforcement Bureau (the ``Bureau'') sent you a 
Notice of Suspension and Initiation of Debarment Proceedings (the 
``Notice of Suspension'') \2\ as a result of your guilty plea and 
subsequent conviction of bid-rigging, in violation of 15 U.S.C. 1, for 
your activities as former Vice President of NEC-Business Network 
Services (``NEC-BNS'') in connection with the Ceria Travis Academy E-
Rate project (``Project''). You responded through counsel on June 13, 
2008,\3\ contesting certain language in the Notice of Suspension, 
specifically, that you ``entered into and engaged in a conspiracy with 
NEC-BNS and other co-conspirators to suppress and eliminate competition 
by submitting non-competitive bids for the Project and taking steps to 
ensure the Project was awarded to NEC-BNS and co-conspirators.''\4\ 
Citing the Plea Agreement, you clarified that it was NEC-BNS employees 
other than yourself that submitted non-competitive bids and that 
employees of another company took steps to ensure the success of the 
conspiracy by discouraging and disqualifying bids from non-
conspirators.\5\ You further assert, among other things, that you 
entered into what you understood to be a lawful agreement, and that you 
``subsequently became aware of problems with NEC-BNS's participation in 
the E-Rate program and raised these concerns with [your] superiors.'' 
\6\ In the Response, you do not dispute that you pled guilty to a 
violation of 15 U.S.C. 1, but request that the Commission's record 
reflect the factual circumstances surrounding your offense.\7\
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    \2\ Letter from Hillary S. DeNigro, Chief, Investigations and 
Hearings Division, Enforcement Bureau, Federal Communications 
Commission, to Mr. William Holman, Notice of Suspension and 
Initiation of Debarment Proceedings, 23 FCC Rcd 8228 (Inv. & 
Hearings Div., Enf. Bur. 2008) (Attachment 1); see 73 Fed. Reg. 
36082 (Jun. 25, 2008).
    \3\ Letter from Walter F. Brown, Jr., Orrick, Herrington & 
Sutcliffe, LLP to Diana Lee, Attorney Advisor, Investigations and 
Hearings Division, Enforcement Bureau, Federal Communications 
Commission, dated June 13, 2008 (``Holman Response'' or 
``Response''), attaching United States v. William Holman, Criminal 
Docket No. 3:05-CR-00208-CRB-012, Plea Agreement (N.D.Cal. filed and 
entered Apr. 6, 2007) (``Plea Agreement'').
    \4\ Holman Response at 1; Notice of Suspension at 23 FCC Rcd at 
8229.
    \5\ Holman Response at 1, citing Plea Agreement, para. 4(f).
    \6\ Id. at 2, citing Plea Agreement, para. 4(g).
    \7\ Id. at 2.
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    We grant your request and incorporate the cited Plea Agreement 
language in the record for this debarment proceeding. Based on the 
evidence in the record, we conclude that your conduct, as described in 
the Plea Agreement, constitutes the basis for your debarment, and your 
conviction falls within the categories of causes for debarment under 
section 54.8(c) of the Commission's rules.\8\ For the foregoing 
reasons, you are hereby debarred for a period of three years from the 
debarment date, i.e., the earlier date of

[[Page 50619]]

your receipt of this Notice of Debarment or its publication date in the 
Federal Register.\9\ Debarment excludes you, for the debarment period, 
from activities ``associated with or related to the schools and 
libraries support mechanism,'' including ``the receipt of funds or 
discounted services through the schools and libraries support 
mechanism, or consulting with, assisting, or advising applicants or 
service providers regarding the schools and libraries support 
mechanism.'' \10\
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    \8\ 47 CFR 54.8(c).
    \9\ See Notice of Suspension, 23 FCC Rcd at 8230.
    \10\ See 47 CFR 54.8(a)(1), 54.8(a)(5), 54.8(d); Notice of 
Suspension, 23 FCC Rcd at 8231.

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 Sincerely,

Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.

cc: Kristy Carroll, Esq., Universal Service Administrative Company 
(via e-mail); Michael Wood, Antitrust Division, United States 
Department of Justice
May 19, 2008

DA 08-1183

VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED AND FACSIMILE (415-773-5759)

Mr. William Holman,
c/o Melinda Haag, Esq.,
Orrick, Herrington & Sutcliffe, LLP,
The Orrick Building,
405 Howard Street,
San Francisco, CA 94105-2669

Re: Notice of Suspension and Initiation of Debarment Proceedings, File 
No. EB-08-IH-1142

    Dear Mr. Holman: The Federal Communications Commission (``FCC'' or 
``Commission'') has received notice of your conviction of bid rigging, 
in violation of 15 U.S.C. 1, in connection with your participation in 
the 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. 
In addition, the Enforcement Bureau (``Bureau'') hereby notifies you 
that we are commencing debarment proceedings against you.\2\
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    \1\ Any further reference in this letter to ``your conviction'' 
refers to your guilty plea and subsequent conviction of bid rigging. 
See United States v. William Holman, Criminal Docket No. 3:05-CR-
00208-CRB-012, Judgment (N.D. Cal. filed Apr. 9, 2008 and entered 
Apr. 9, 2008) (``Holman Judgment''), Substitute Information 
(N.D.Cal. filed and entered Apr. 5, 2007) (``Holman Substitute 
Information''). See also generally United States v. Video Network 
Communications, Inc. et al., Criminal Docket No. 3:05-CR-00208-CRB, 
Superseding Indictment (N.D. Cal. filed Dec. 8, 2005 and entered 
Dec. 12, 2005), http://www.usdoj.gov/atr/cases/f213600/213626.htm 
(accessed May 1, 2008) (``VNCI Superseding Indictment'').
    \2\ 47 CFR 54.8; 47 CFR 0.111 (delegating to the Enforcement 
Bureau authority to resolve universal service suspension and 
debarment proceedings). The Commission adopted debarment rules for 
the schools and libraries universal service support mechanism 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 of the 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; Lifeline and Link Up; Changes to the Board of Directors 
for the National Exchange Carrier Association, Inc., 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), (5), (c), (d), 
(e)(2)(i), (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 schools and libraries 
support mechanism'' from receiving the benefits associated with that 
program.\3\ You pled guilty to bid rigging in connection with your 
participation in the Ceria Travis Academy E-Rate project (the 
``Project'').\4\ Specifically, you admitted that, as former vice 
president of sales for NEC Business Networks, Inc. (``NEC-BNS''), you 
entered into and engaged in a conspiracy with NEC-BNS and other co-
conspirators to suppress and eliminate competition by submitting non-
competitive bids for the Project and taking steps to ensure that the 
Project was awarded to NEC-BNS and co-conspirators.\5\
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    \3\ See Second Report and Order, 18 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).
    \4\ See Holman Judgment at 1; Holman Substitute Information at 
para. 4.
    \5\ See id. The Commission debarred NEC-BNS in 2006 for the 
company's wire fraud and bid rigging conviction. See NEC Business 
Network Solutions, Inc., Notice to Debarment, 21 FCC Rcd 7491 
(2006); 71 FR 42398 (2006). The following four individuals, who were 
also charged in the VNCI Superseding Indictment, have pled guilty or 
been found guilty, and subsequently sentenced: Judy Green, Earl 
Nelson, George Marchelos, and Allan Green. We are sending separate 
notices of suspension and initiation of debarment proceedings to 
these individuals. VNCI is now defunct and charges against the 
company have been dropped.
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    Pursuant to section 54.8(a)(4) of the Commission's rules,\6\ your 
conviction requires the Bureau to suspend you from participating in any 
activities associated with or related to the schools and libraries fund 
mechanism, including the receipt of funds or discounted services 
through the schools and libraries fund mechanism, or consulting with, 
assisting, or advising applicants or service providers regarding the 
schools and libraries support mechanism.\7\ Your suspension becomes 
effective upon the earlier of your receipt of this letter or 
publication of notice in the Federal Register.\8\
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    \6\ 47 CFR 54.8(a)(4). See Second Report and Order, 18 FCC Rcd 
at 9225-9227, paras. 67-74.
    \7\ 47 CFR 54.8(a)(1), (d).
    \8\ Second Report and Order, 18 FCC Rcd at 9226, para. 69; 47 
CFR 54.8(e)(1).
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    Suspension is immediate pending the Bureau's final debarment 
determination. In accordance with the Commission's debarment rules, you 
may contest this suspension or the scope of this suspension by filing 
arguments in opposition to the suspension, with any relevant 
documentation. Your request must be received within 30 days after you 
receive this letter or after notice is published in the Federal 
Register, whichever comes first.\9\ Such requests, however, will not 
ordinarily be granted.\10\ The Bureau may reverse or limit the scope of 
suspension only upon a finding of extraordinary circumstances.\11\ 
Absent extraordinary circumstances, the Bureau will decide any request 
for reversal or modification of suspension within 90 days of its 
receipt of such request.\12\
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    \9\ 47 CFR 54.8(e)(4).
    \10\ Id.
    \11\ 47 CFR 54.8(e)(5).
    \12\ See Second Report and Order, 18 FCC Rcd at 9226, para. 70; 
47 CFR 54.8(e)(5), 54.8(f).
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II. Initiation of Debarment Proceedings

    Your guilty plea and conviction of criminal conduct in connection 
with the E-Rate program, in addition to serving as a basis for 
immediate suspension from the program, also serves as a basis for the 
initiation of debarment proceedings against you. Your conviction falls 
within the categories of causes for debarment defined in section 
54.8(c) of the Commission's rules.\13\

[[Page 50620]]

Therefore, pursuant to section 54.8(a)(4) of the Commission's rules, 
your conviction requires the Bureau to commence debarment proceedings 
against you.
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    \13\ ``Causes for suspension and debarment are the 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). Such 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.'' 47 CFR 
54.8(a)(1).
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    As with your suspension, you may contest debarment or the scope of 
the proposed debarment by filing arguments and any relevant 
documentation within 30 calendar days of the earlier of the receipt of 
this letter or of publication in the Federal Register.\14\ Absent 
extraordinary circumstances, the Bureau will debar you.\15\ Within 90 
days of receipt of any opposition to your suspension and proposed 
debarment, the Bureau, in the absence of extraordinary circumstances, 
will provide you with notice of its decision to debar.\16\ If the 
Bureau decides to debar you, its decision will become effective upon 
the earlier of your receipt of a debarment notice or publication of the 
decision in the Federal Register.\17\
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    \14\ See Second Report and Order, 18 FCC Rcd at 9226, para. 70; 
47 CFR 54.8(e)(3).
    \15\ Second Report and Order, 18 FCC Rcd at 9227, para. 74.
    \16\ See id., 18 FCC Rcd at 9226, para. 70; 47 CFR 54.8(e)(5).
    \17\ 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. 47 CFR 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 schools and libraries support mechanism for three years from the 
date of debarment.\18\ The Bureau may, if necessary to protect the 
public interest, extend the debarment period.\19\
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    \18\ Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47 
CFR 54.8(d), 54.8(g).
    \19\ Id.
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    Please direct any response, if by messenger or hand delivery, to 
Marlene H. Dortch, Secretary, Federal Communications Commission, 236 
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002, to the 
attention of Diana Lee, Attorney Advisor, Investigations and Hearings 
Division, Enforcement Bureau, Room 4-C330, with a copy to Vickie 
Robinson, Assistant Chief, Investigations and Hearings Division, 
Enforcement Bureau, Room 4-C330, Federal Communications Commission. If 
sent by commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail), the response should be sent to the 
Federal Communications Commission, 9300 East Hampton Drive, Capitol 
Heights, Maryland 20743. If sent by first-class, Express, or Priority 
mail, the response should be sent to Diana Lee, 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 Vickie Robinson, Assistant 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 the response 
via e-mail to diana.lee@fcc.gov and to vickie.robinson@fcc.gov.
    If you have any questions, please contact Ms. Lee via mail, by 
telephone at (202) 418-1420 or by e-mail at diana.lee@fcc.gov. If Ms. 
Lee is unavailable, you may contact Ms. Vickie Robinson, Assistant 
Chief, Investigations and Hearings Division, by telephone at (202) 418-
1420 and by e-mail at vickie.robinson@fcc.gov.

 Sincerely yours,

Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.

cc: Kristy Carroll, Esq., Universal Service Administrative Company (via 
e-mail) Michael Wood, Antitrust Division, United States Department of 
Justice
[FR Doc. E8-19876 Filed 8-26-08; 8:45 am]

BILLING CODE 6712-01-P