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                      February 28, 2006

                                                  DA 06-489

VIA CERTIFIED MAIL                                
RETURN RECEIPT REQUESTED

Mr. Tom Tsao, Vice President
Premio, Inc.
918 Radecki Court 
City of Industry, CA 91748

     Re:  Notice of Suspension and of Proposed 
          Debarment,
          File No. EB-06-IH-0853

Dear Mr. Tsao:

     The Federal Communications Commission (``FCC'' or 
``Commission'') has received notice of the conviction of 
Premio, Inc., f/k/a Premio Computers, Inc. (``Premio'') for 
conspiracy to suppress and eliminate competition in 
violation of the Sherman Antitrust Act, 15 U.S.C.  1, and 
for mail fraud and aiding and abetting in violation of 18 
U.S.C.  1341 and 2.1  Consequently, pursuant to 47 C.F.R. 
54.521, this letter constitutes official notice of 
Premio's suspension from the schools and libraries universal 
service support mechanism (``E-rate program'').  In 
addition, the Enforcement Bureau (``Bureau'') hereby 
notifies Premio that we are commencing debarment proceedings 
against it.2

I.   Notice of Suspension

     Pursuant to section 54.521(a)(4) of the Commission's 
rules,3 Premio's conviction requires the Bureau to suspend 
it 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  Premio's suspension becomes effective 
upon the earlier of its receipt of this letter or 
publication of notice in the Federal Register.5  

     Suspension is immediate pending the Bureau's final 
debarment determination.  Premio may contest this suspension 
or the scope of this suspension by filing arguments in 
opposition to the suspension, with any relevant 
documentation.  Premio's request must be received within 30 
days after it receives 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 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.10  
Premio pled guilty to antitrust, mail fraud and aiding and 
abetting charges for activities in connection with its 
participation in the E-rate program with two school 
districts in California.  

     In connection with the antitrust crime charged against 
Premio, the company admitted that it conspired with one or 
more vendors of equipment and services related to 
telecommunications, Internet access and/or internal 
connections to suppress and eliminate competition for E-rate 
projects in the West Fresno Elementary School District by 
allocating contracts and submitting fraudulent and non-
competitive bids.  More specifically, the company discussed 
prospective bids for the E-rate project with its co-
conspirators, agreed with them who would serve as lead 
contractor and subcontractor on the project, and worked with 
consultants who awarded, or influenced the award of, 
contracts to the conspirators, and disqualified bids from 
non-conspirators.11  In connection with the mail fraud 
charged against Premio, the company admitted that it sought 
payment of more than $1 million in E-rate funding for 
telecommunications servers and related installation and 
maintenance it was purportedly going to provide to the 
Highland Park School District in California, when in fact it 
actually delivered ineligible video conferencing 
equipment.12  

     These actions constitute the conduct or transactions 
upon which this debarment proceeding is based.13  Moreover, 
Premio's 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.14  Therefore, pursuant 
to section 54.521(a)(4) of the Commission's rules, Premio's 
conviction requires the Bureau to commence debarment 
proceedings against it.  

     II.B.     Debarment Procedures

     Premio 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.15  Absent extraordinary circumstances, the Bureau 
will debar Premio.16  Within 90 days of receipt of any 
opposition to Premio's suspension and proposed debarment, 
the Bureau, in the absence of extraordinary circumstances, 
will provide Premio with notice of its decision to debar.17  
If the Bureau decides to debar Premio, its decision will 
become effective upon the earlier of Premio's receipt of a 
debarment notice or publication of the decision in the 
Federal Register.18  

     II.C.     Effect of Debarment

     If and when Premio's debarment becomes effective, it 
will be prohibited from participating in activities 
associated with or related to the schools and libraries 
support mechanism for some period of time.19
     
     Please direct any responses to the following address:

Diana Lee
Federal Communications Commission
Enforcement Bureau
Investigations and Hearings Division
Room 4-C443
445 12th Street, S.W.
Washington, D.C. 20554

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

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

     If Premio has 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 Eric Bash by telephone at (202) 418-1188 and by e-
mail at eric.bash@fcc.gov.
                                   
                                   Sincerely yours,



                                   William H. Davenport
                                   Chief
                                   Investigations and 
Hearings Division
                                   Enforcement Bureau

cc:  Paul J. Loh, Esq., Willenken Wilson Loh & Lieb, LLP
     Michael F. Wood, Esq., United States Department of 
Justice, Antitrust Division
     Sara Winslow, Esq., Assistant United States Attorney 
     Alicia Bentley, Esq., United States Department of 
Justice, Civil Division
     Kristy Carroll, Esq., USAC
_________________________

1 Any further reference in this letter to ``your 
conviction'' refers to Premio's February 22, 2006 guilty 
plea and conviction of these counts. United States v. 
Premio, Inc., Criminal Docket No. 3:06-CR-06-0086 MMC, Plea 
Agreement (N.D.Cal. filed Feb. 22, 2006) (``Premio Plea 
Agreement'').  The Order accepting this plea agreement was 
signed by the Court on February 22, 2006 and entered on 
February 23, 2006, and the Plea Agreement was entered on 
February 24, 2006.
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(e)(5).
9 See Second Report and Order, 18 FCC Rcd at 9226,  70; 47 
C.F.R.  54.521(e)(5), 54.521(f).
10 Second Report and Order, 18 FCC Rcd at 9225,  66.  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 C.F.R.  54.521(a)(6).
11 See Premio Plea Agreement at 5.
12 See Premio Plea Agreement at 5-7.
13 Second Report and Order, 18 FCC Rcd at 9226,  70; 47 
C.F.R.  54.521(e)(2)(i).
14 ``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).
15 See Second Report and Order, 18 FCC Rcd at 9226,  70; 47 
C.F.R.  54.521(e)(2)(i), 54.521(e)(3). 
16 Second Report and Order, 18 FCC Rcd at 9227,  74.
17 See id., 18 FCC Rcd at 9226,  70; 47 C.F.R.  
54.521(e)(5).
18 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 C.F.R.  54.521(f).
19 Second Report and Order, 18 FCC Rcd at 9225,  67; 47 
C.F.R.  54.521(d), 54.521(g).