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                Federal Communications Commission
                     Washington, D.C. 20554


                         August 21, 2003
                                                       DA 03-2706

VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED

Mr. Oscar Alvarez
Connect2 Internet Networks, Inc.
26 Bay Street
Staten Island, NY 10301

     Re:  Notice of Suspension and of Proposed Debarment, 
          File No. EB-03-IHD-0377.

Dear Mr. Alvarez:

     The Federal Communications Commission (``FCC'' or 
``Commission'') has received notice of your May 20, 2003 
conviction pursuant to 18 U.S.C.  1512 for misleading conduct 
toward another person: (1) to influence, delay, or prevent the 
testimony of any person in an official proceeding; and (2) with 
the intent to cause and induce another person to alter, destroy, 
mutilate and conceal objects with the intent to impair the 
objects' integrity and availability for use in an official 
proceeding.1  Consequently, pursuant to 47 C.F.R. 54.521, this 
letter constitutes official notice of your suspension from the 
schools and libraries universal service support mechanism.  In 
addition, the Enforcement Bureau (``Bureau'') hereby notifies you 
that we are commencing debarment proceedings against you.2

I.   Notice of Suspension

     Pursuant to section 54.521(a)(4) of the Commission's rules,3 
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.4  Your suspension becomes effective 
upon the earlier of your receipt of this letter or publication of 
notice in the Federal Register.5  

     Suspension is immediate pending the Bureau's final debarment 
determination.  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.6  Such requests, however, will not ordinarily be granted.7  
The Bureau may reverse or limit the scope of suspension only upon 
a finding of extraordinary circumstances.8  Absent extraordinary 
circumstances, the Bureau will decide any request for reversal or 
modification of suspension within 90 days of its receipt of such 
request.9  

II.  Notice of Proposed Debarment

     II.A.     Reasons for and Cause of Debarment 

     The Commission's rules establish 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.10  On May 20, 2003, you pleaded 
guilty to attempting to persuade two school administrators not to 
show to FCC auditors a letter signed by your employer that 
falsely represented that the school could participate in the E-
Rate program at ``absolutely no cost to the school.''11  These 
actions constitute the conduct or transactions upon which this 
debarment proceeding is based.12  Moreover, your conviction on 
the basis of these acts falls within the categories of causes for 
debarment defined in section 54.521(c) of the Commission's 
rules.13  Therefore, pursuant to section 54.521(a)(4) of the 
Commission's rules, your conviction requires the Bureau to 
commence debarment proceedings against you.  

     II.B.     Debarment Procedures

       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 its decision in the Federal Register.17  

     II.C.     Effect of Debarment

     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 at 
least three years from the date of debarment.18  The Bureau may, 
if necessary to protect the public interest, extend the debarment 
period.19 
     
     Please direct any responses to the following address:

Diana Lee
Federal Communications Commission
Enforcement Bureau
Investigations and Hearings Division
Room 6-C326
445 12th Street, S.W.
Washington, D.C.  20554

If you submit your response via hand-delivery or non-United 
States Postal Service delivery (e.g., Federal Express, DHL, 
etc.), please send your response to Ms. Lee at the following 
address:

Federal Communications Commission
9300 East Hampton Drive
Capitol Heights, MD  20743

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 William Davenport by telephone at (202) 418-1420 and 
by e-mail at william.davenport@fcc.gov.
     
                                   Sincerely yours,


                                   Maureen F. Del Duca
                                   Chief
                                   Investigations and Hearings 
Division
                                   Enforcement Bureau
 
cc:  Joel M. Cohen, Greenberg Traurig, LLP
     Kristy Carroll, USAC
_________________________

1 Any further reference in this letter to ``your conviction'' 
refers to your May 20, 2003 guilty plea and conviction of this 
count based on your attempt to persuade two school administrators 
not to reveal evidence to FCC auditors conducting an official 
investigation into violations by your employer, Connect2 Internet 
Networks, Inc. (``Connect2'') of the FCC rules governing the E-
Rate schools and libraries internet funding program (``E-Rate 
program'').  See United States v. Alvarez, Criminal Docket No. 
1:03cr634, Felony Information at 1-2 (S.D.N.Y. filed May 20, 
2003) (``Alvarez Felony Information'').  
2 47 C.F.R.  54.521; 47 C.F.R.  0.111(a)(14) (delegating to 
the Enforcement Bureau authority to resolve universal service 
suspension and debarment proceedings pursuant to 47 C.F.R.  
54.521).
3 47 C.F.R.  54.521(a)(4).  See Schools and Libraries Universal 
Service Support Mechanism, Second Report and Order and Further 
Notice of Proposed Rulemaking, 18 FCC Rcd 9202, 9225-9227,  67-
74 (2003) (``Second Report and Order'').
4 Second Report and Order, 18 FCC Rcd at 9225,  67; 47 U.S.C.  
254; 47 C.F.R  54.502-54.503; 47 C.F.R. 54.521(a)(4).
5 Second Report and Order, 18 FCC Rcd at 9226,  69; 47 C.F.R.  
54.521(e)(1).
6 Second Report and Order, 18 FCC Rcd at 9226,  70; 47 C.F.R.  
54.521(e)(4).
7 Second Report and Order, 18 FCC Rcd at 9226,  70.
8 47 C.F.R.  54.521(f).
9 See Second Report and Order, 18 FCC Rcd at 9226,  70; 47 
C.F.R.  54.521(e)(5), 54.521(f).
10Second Report and Order, 18 FCC Rcd at 9225,  66.
11See United States v. John Angelides, John Dotson, Oscar 
Alvarez, and Gary Blum, U.S. District Court, Southern District of 
New York, Complaint at 29 (S.D.N.Y. filed Dec. 17, 2003).  The 
incriminating letter was signed by John Angelides, owner and CEO 
of Connect2.  Id.  Further, the conduct for which you were 
convicted served to conceal and further a fraudulent scheme 
unlawfully to obtain E-Rate program funds.  See generally id.
12Second Report and Order, 18 FCC Rcd at 9226,  70; 47 C.F.R.  
54.521(e)(2)(i).
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.''  
47 C.F.R. 54.521(c).  Such activities ``include 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 schools and libraries 
support mechanism described in this section ([47 C.F. R.]  
54.500 et seq.).''  47 C.F.R.  54.521(a)(1).
14See Second Report and Order, 18 FCC Rcd at 9226,  70; 47 
C.F.R.  54.521(e)(2(i), 54.521(e)(3). 
15Second Report and Order, 18 FCC Rcd at 9227,  74.
16See Second Report and Order, 18 FCC Rcd at 9226,  70; 47 
C.F.R.  54.521(e)(5).
17Id.  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 C.F.R.  
54.521(f).
18Second Report and Order, 18 FCC Rcd at 9225,  67; 47 C.F.R. 
 54.521(d), 54.521(g).
19Id.