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                Federal Communications Commission
                     Washington, D.C. 20554


                       September 11, 2003
                                                       DA 03-2882

VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED

Mr. Duane Maynard
Howe Electric, Inc.
4682 E. Olive Ave.
Fresno, CA 93702


     Re:  Notice of Suspension and of Proposed Debarment, 
          File No. EB-03-IHD-0387.

Dear Mr. Maynard:

     The Federal Communications Commission (``FCC'' or 
``Commission'') has received notice of your August 26, 2003 
conviction pursuant to 15 U.S.C. § 1 for bid rigging.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 August 26, 2003, you admitted 
to participating in a combination and conspiracy with West Fresno 
Elementary School District representatives, a consultant and 
others representing potential competitors, on behalf of your 
employer, Howe Electric, Inc.11   Specifically, you admitted that 
you and the other co-conspirators combined, conspired, and agreed 
that: (1) Howe Electric, Inc. would be the successful bidder to 
provide goods and services for the schools and libraries E-Rate 
project in the district, while no other co-conspirator companies 
would bid for the project; (2) certain co-conspirator companies 
would be Howe Electric's subcontractors; and (3) any competing 
bids would be disqualified as nonresponsive.12  These actions 
constitute the conduct or transactions upon which this debarment 
proceeding is based.13  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.14  
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.15  Absent 
extraordinary circumstances, the Bureau will debar you.16  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.17  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.18  

     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.19  The Bureau may, 
if necessary to protect the public interest, extend the debarment 
period.20 
     
     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:  Kenneth Alan Reed, Law Office of Kenneth Alan Reed
     Kristy Carroll, USAC
_________________________

1 Any further reference in this letter to ``your conviction'' 
refers to your August 26, 2003 guilty plea and conviction of this 
count based on your participation, on behalf of your employer, 
Howe Electric, Inc., in a ``combination and conspiracy to 
suppress bidding for the West Fresno Elementary School District 
E-Rate project and to allocate among conspirators the 
responsibility for supplying goods and services for that 
project.'' See United States v. Maynard, Criminal Docket No. 
1:03cr5325, Information at 2-3 (E.D.Cal. filed August 19, 2003) 
(``Maynard Felony Information''); United States v. Maynard, 
Criminal Docket No. 1:03cr5325, Plea Agreement at 6-7 (E.D.Cal.  
filed August 26, 2003) (``Maynard Plea Agreement'').  
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); Schools and Libraries Universal 
Service Support Mechanism, Second Report and Order and Further 
Notice of Proposed Rulemaking, 18 FCC Rcd 9202, 9225-27, ¶¶ 67-74 
(2003) (``Second Report and Order''); id. at Appendix B, 18 FCC 
Rcd at 9263-65. 
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.
11   See United States v. Maynard, Criminal Docket No. 
1:03cr5325, Docket Proceedings (E.D.Cal. filed August 26, 2003).
12See Maynard Felony Information at 3; Maynard Plea Agreement at 
6-7.  The conspiracy violated the Commission's competitive bid 
requirements for telecommunications services supported by the 
schools and libraries E-Rate program.  47 C.F.R. § 54.504.  
13Second 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).
15See Second Report and Order, 18 FCC Rcd at 9226, ¶ 70; 47 
C.F.R. §§ 54.521(e)(2(i), 54.521(e)(3). 
16Second Report and Order, 18 FCC Rcd at 9227, ¶ 74.
17See Second Report and Order, 18 FCC Rcd at 9226, ¶ 70; 47 
C.F.R. § 54.521(e)(5).
18Id.  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).
19Second Report and Order, 18 FCC Rcd at 9225, ¶ 67; 47 C.F.R. 
§§ 54.521(d), 54.521(g).
20Id.