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                                                       DA 03-4087

VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED

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

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

Dear Mr. Alvarez:

     Pursuant to section 54.521 of the rules of the Federal 
Communications Commission (the ``Commission''), by this Notice of 
Debarment you are hereby debarred from the schools and libraries 
universal service support mechanism for a period of three years.1  

     On August 21, 2003, the Enforcement Bureau (the ``Bureau'') 
sent you a Notice of Suspension and Proposed Debarment (the 
``Notice of Suspension'').2  That Notice of Suspension was 
published in the Federal Register on October 2, 2003.3  The 
Notice of Suspension suspended you from the schools and libraries 
universal service support mechanism4 and described the basis for 
your proposed debarment,5 the applicable debarment procedures,6 
and the effect of debarment.7


     Pursuant to the Commission's rules, any opposition to your 
suspension or its scope or to your proposed debarment or its 
scope had to be filed with the Commission no later than thirty 
(30) calendar days from the earlier date of your receipt of the 
Notice of Suspension or publication of the Notice of Suspension 
in the Federal Register.8  The Commission did not receive any 
such opposition.    

     As discussed in the Notice of Suspension, on May 20, 2003, 
you pled guilty attempting to persuade two school administrators 
not to show to Commission auditors a letter signed by your 
employer that falsely represented that the school could 
participate in the E-Rate program at no cost.9  Such conduct 
constitutes the basis for your debarment, and your conviction 
falls within the categories of causes for debarment under section 
54.521(c) of the Commission's rules.10  For the foregoing 
reasons, you are hereby debarred for a period of three years from 
the debarment date, i.e., the earlier date of your receipt of 
this Notice of Debarment or its publication date in the Federal 
Register.11  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.''12  

                                   Sincerely yours,

     
                                   William H. Davenport
                                   Deputy Chief
                                   Investigations and Hearings 
Division
                                   Enforcement Bureau

cc:  Joel M. Cohen, Greenberg Traurig, LLP (Via Certified Mail, 
Return Receipt Requested)
     Kristy Carroll, USAC (Via E-mail)




                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.13  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.14

I.   Notice of Suspension

     Pursuant to section 54.521(a)(4) 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 
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.16  Your suspension becomes effective 
upon the earlier of your receipt of this letter or publication of 
notice in the Federal Register.17  

     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.18  Such requests, however, will not ordinarily be 
granted.19  The Bureau may reverse or limit the scope of 
suspension only upon a finding of extraordinary circumstances.20  
Absent extraordinary circumstances, the Bureau will decide any 
request for reversal or modification of suspension within 90 days 
of its receipt of such request.21  

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.22  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.''23  These 
actions constitute the conduct or transactions upon which this 
debarment proceeding is based.24  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.25  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.26  Absent 
extraordinary circumstances, the Bureau will debar you.27  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.28  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.29  

     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.30  The Bureau may, 
if necessary to protect the public interest, extend the debarment 
period.31 
     
     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 See 47 C.F.R.  0.111(a)(14), 54.521.     
2 Letter from Maureen F. Del Duca, Chief, Investigations 
and Hearings Division, Enforcement Bureau, Federal 
Communications Commission, to Oscar Alvarez, Notice of 
Suspension and Proposed Debarment, 18 FCC Rcd 16668 (2003).
3 68 Fed. Reg. 58836 (Oct. 2, 2003).
4 See Notice of Suspension, 18 FCC Rcd at 16668-69 
(imposing suspension pending the Bureau's final debarment 
determination) (Attachment 1).
5 See id., 18 FCC Rcd at 16669 (describing the basis for 
your proposed debarment).
6 See id., 18 FCC Rcd at 16670 (describing procedures to 
contest proposed debarment).
7 See id. (describing effect of proposed debarment).
8 See 47 C.F.R.  54.521(e)(3) and (4).  That date occurred 
no later than November 1, 2003.  See supra note 3.
9 Notice of Suspension, 18 FCC Rcd at 16669.
10   Notice of Suspension, 18 FCC Rcd at 16669-70; 47 C.F.R. 
 54.521(c).
11   See Notice of Suspension, 18 FCC Rcd at 16670.
12   See 47 C.F.R.  54.521(a)(1), 54.521(a)(5), 54.521(d); 
Notice of Suspension, 18 FCC Rcd at 16670.
13Any 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'').  
1447 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).
1547 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'').
16Second 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).
17Second Report and Order, 18 FCC Rcd at 9226,  69; 47 
C.F.R.  54.521(e)(1).
18Second Report and Order, 18 FCC Rcd at 9226,  70; 47 
C.F.R.  54.521(e)(4).
19Second Report and Order, 18 FCC Rcd at 9226,  70.
2047 C.F.R.  54.521(f).
21See Second Report and Order, 18 FCC Rcd at 9226,  70; 47 
C.F.R.  54.521(e)(5), 54.521(f).
22Second Report and Order, 18 FCC Rcd at 9225,  66.
23See 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.
24Second Report and Order, 18 FCC Rcd at 9226,  70; 47 
C.F.R.  54.521(e)(2)(i).
25``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).
26See Second Report and Order, 18 FCC Rcd at 9226,  70; 47 
C.F.R.  54.521(e)(2(i), 54.521(e)(3). 
27Second Report and Order, 18 FCC Rcd at 9227,  74.
28See Second Report and Order, 18 FCC Rcd at 9226,  70; 47 
C.F.R.  54.521(e)(5).
29Id.  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).
30Second Report and Order, 18 FCC Rcd at 9225,  67; 47 
C.F.R.  54.521(d), 54.521(g).
31Id.