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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.