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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.