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September 24, 2007
DA 07-4015
VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED AND E-MAIL
Mr. Scott A. Federowicz
c/o Paul H.D. Stoughton
Conway & Stoughton, LLP
818 Farmington Ave.
West Hartford, CT 06119
Re: Notice of Debarment, File No. EB-07-IH-5171
Dear Mr. Federowicz:
Pursuant to section 54.521 of the rules of the Federal Communications
Commission (the "Commission"), by this Notice of Debarment you are
debarred from the schools and libraries universal service support
mechanism (or "E-Rate program") for a period of three years.
On June 27, 2007, the Enforcement Bureau (the "Bureau") sent you a Notice
of Suspension and Initiation of Debarment Proceedings (the "Notice of
Suspension"). That Notice of Suspension was published in the Federal
Register on July 18, 2007. The Notice of Suspension suspended you from the
schools and libraries universal service support mechanism and described
the basis for initiation of debarment proceedings against you, the
applicable debarment procedures, and the effect of debarment.
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. The Commission did not
receive any such opposition.
As discussed in the Notice of Suspension, on May 9, 2007, you were
convicted based on your guilty plea to a felony information charging you
with mail fraud, in violation of 18 U.S.C. S: 1341. You pled guilty to
approving approximately $452,203 of fictitious expenses for non-existent
E-Rate work that ultimately were submitted to the Universal Service
Administrative Company for reimbursement from the E-Rate funds. 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. 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. 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."
Sincerely,
Hillary S. DeNigro
Chief
Investigations and Hearings Division
Enforcement Bureau
cc: Calvin B. Kurimai, Esq., Assistant United States Attorney
Kristy Carroll, Esq., Universal Service Administrative Company (via
e-mail)
June 27, 2007
DA 07-2845
VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED AND E-MAIL
Mr. Scott A. Federowicz
c/o Paul H.D. Stoughton
Conway & Stoughton, LLP
818 Farmington Ave.
West Hartford, CT 06119
Re: Notice of Suspension and Initiation of Debarment Proceedings,
File No. EB-07-IH-5171
Dear Mr. Federowicz:
The Federal Communications Commission ("FCC" or "Commission") has received
notice of your conviction for mail fraud in violation of 18 U.S.C. S: 1341
in connection with your participation in the schools and libraries
universal service support mechanism ("E-Rate program"). Consequently,
pursuant to 47 C.F.R. S: 54.521, this letter constitutes official notice
of your suspension from the E-Rate program. In addition, the Enforcement
Bureau ("Bureau") hereby notifies you that we are commencing debarment
proceedings against you.
I. Notice of Suspension
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. You pled guilty
to mail fraud for activities in connection with your participation in the
E-Rate program involving telecommunications upgrade projects in four
Connecticut school districts. Specifically, you admitted that, as manager
of an E-Rate first-tier subcontractor serving these school districts, you
approved for payment approximately $452,203 of fictitious invoices for
non-existent E-Rate work purportedly performed to upgrade the school
districts' telecommunications capabilities. These fictitious expenses
ultimately were submitted to the Universal Service Administrative Company
for reimbursement from E-Rate funds.
Pursuant to section 54.521(a)(4) of the Commission's rules, 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. Your suspension becomes effective upon the
earlier of your receipt of this letter or publication of notice in the
Federal Register.
Suspension is immediate pending the Bureau's final debarment
determination. In accordance with the Commission's debarment rules, 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. Such requests, however, will not ordinarily be
granted. The Bureau may reverse or limit the scope of suspension only upon
a finding of extraordinary circumstances. Absent extraordinary
circumstances, the Bureau will decide any request for reversal or
modification of suspension within 90 days of its receipt of such request.
II. Initiation of Debarment Proceedings
Your guilty plea to criminal conduct in connection with the E-Rate
program, in addition to serving as a basis for immediate suspension from
the program, also serves as a basis for the initiation of debarment
proceedings against you. Your conviction falls within the categories of
causes for debarment defined in section 54.521(c) of the Commission's
rules. Therefore, pursuant to section 54.521(a)(4) of the Commission's
rules, your conviction requires the Bureau to commence debarment
proceedings against you.
As with your suspension, 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. Absent extraordinary circumstances,
the Bureau will debar you. 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. 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 the decision in the Federal Register.
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 three years from the date of debarment.
The Bureau may, if necessary to protect the public interest, extend the
debarment period.
Please direct any response, if by messenger or hand delivery, to Marlene
H. Dortch, Secretary, Federal Communications Commission, 236 Massachusetts
Avenue, N.E., Suite 110, Washington, D.C. 20002, to the attention of Diana
Lee, Attorney Advisor, Investigations and Hearings Division, Enforcement
Bureau, Room 4-C330, with a copy to Vickie Robinson, Assistant Chief,
Investigations and Hearings Division, Enforcement Bureau, Room 4-C330,
Federal Communications Commission. If sent by commercial overnight mail
(other than U.S. Postal Service Express Mail and Priority Mail), the
response should be sent to the Federal Communications Commission, 9300
East Hampton Drive, Capitol Heights, Maryland 20743. If sent by
first-class, Express, or Priority mail, the response should be sent to
Diana Lee, Attorney Advisor, Investigations and Hearings Division,
Enforcement Bureau, Federal Communications Commission, 445 12th Street,
S.W., Room 4-C330, Washington, DC, 20554, with a copy to Vickie Robinson,
Assistant Chief, Investigations and Hearings Division, Enforcement Bureau,
Federal Communications Commission, 445 12th Street, S.W., Room 4-C330,
Washington, DC, 20554. You shall also transmit a copy of the response via
email to diana.lee@fcc.gov and to vickie.robinson@fcc.gov.
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 Ms. Vickie Robinson, Assistant Chief,
Investigations and Hearings Division, by telephone at (202) 418-1420 and
by e-mail at vickie.robinson@fcc.gov.
Sincerely yours,
Hillary S. DeNigro
Chief
Investigations and Hearings Division
Enforcement Bureau
cc: Calvin B. Kurimai, Esq., Assistant United States Attorney
Kristy Carroll, Esq., Universal Service Administrative Company (via
e-mail)
See 47 C.F.R. S:S: 0.111(a)(14), 54.521.
Letter from Hillary S. DeNigro, Chief, Investigations and Hearings
Division, Enforcement Bureau, Federal Communications Commission, to Mr.
Scott A. Federowicz, Notice of Suspension and Initiation of Debarment
Proceedings, 22 FCC Rcd 11569 (Inv. & Hearings Div., Enf. Bur. 2007)
(Attachment 1).
72 Fed. Reg. 39425 (Jul. 18, 2007).
See Notice of Suspension, 22 FCC Rcd at 11571.
See 47 C.F.R. S: 54.521(e)(3) and (4). That date occurred no later than
August 17, 2007. See supra note 3.
Notice of Suspension, 22 FCC Rcd at 11570.
Notice of Suspension, 22 FCC Rcd at 11570.
Id. at 11571; 47 C.F.R. S: 54.521(c).
See Notice of Suspension, 22 FCC Rcd at 11571.
See 47 C.F.R. S:S: 54.521(a)(1), 54.521(a)(5), 54.521(d); Notice of
Suspension, 22 FCC Rcd at 11571.
Any further reference in this letter to "your conviction" refers to your
July 28, 2006 guilty plea and subsequent conviction of two counts of mail
fraud. United States v. Scott A. Federowicz, Criminal Docket No.
3:06-CR-06-222 (RNC), Plea Agreement (D.Conn. filed and entered Jul. 28,
2006); United States v. Scott A. Federowicz, 3:06-CR-06-222 (RNC),
Judgment (D.Conn. filed and entered May 9, 2007) ("Federowicz Judgment").
47 C.F.R. S: 54.521; 47 C.F.R. S: 0.111(a)(14) (delegating to the
Enforcement Bureau authority to resolve universal service suspension and
debarment proceedings pursuant to 47 C.F.R. S: 54.521).
Second Report and Order, 18 FCC Rcd at 9225, P: 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. S: 54.521(a)(6).
See United States v. Scott A. Federowicz, Criminal Docket No.
3:06-CR-06-222 (RNC), Information, 2-3 (D.Conn. filed and entered Jul. 28,
2006) ("Information"); Federowicz Judgment at 1.
See Information at 3.
See http://newhaven.fbi.gov/dojpressrel/2006/nh072806a.htm (Department of
Justice Press Release dated July 28, 2006) (last accessed May 15, 2007).
47 C.F.R. S: 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, P:P: 67-74 (2003) ("Second Report
and Order").
Second Report and Order, 18 FCC Rcd at 9225, P: 67; 47 U.S.C. S: 254; 47
C.F.R S:S: 54.502-54.503; 47 C.F.R. S: 54.521(a)(4).
Second Report and Order, 18 FCC Rcd at 9226, P: 69; 47 C.F.R. S:
54.521(e)(1).
Second Report and Order, 18 FCC Rcd at 9226, P: 70; 47 C.F.R. S:
54.521(e)(4).
Second Report and Order, 18 FCC Rcd at 9226, P: 70.
47 C.F.R. S: 54.521(e)(5).
See Second Report and Order, 18 FCC Rcd at 9226, P: 70; 47 C.F.R. S:S:
54.521(e)(5), 54.521(f).
"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. S: 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.] S: 54.500 et seq.)." 47 C.F.R. S:
54.521(a)(1).
See Second Report and Order, 18 FCC Rcd at 9226, P: 70; 47 C.F.R. S:S:
54.521(e)(2)(i), 54.521(e)(3).
Second Report and Order, 18 FCC Rcd at 9227, P: 74.
See id., 18 FCC Rcd at 9226, P: 70; 47 C.F.R. S: 54.521(e)(5).
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. S: 54.521(f).
Second Report and Order, 18 FCC Rcd at 9225, P: 67; 47 C.F.R. S:S:
54.521(d), 54.521(g).
Id.
Scott Federowicz
September 24, 2007
Page 2 of 2
Federal Communications Commission
Enforcement Bureau
Investigations and Hearings Division
445 12th Street, SW, Suite 4-C330
Washington, D.C. 20554
Scott Federowicz
June 27, 2007
Page 2 of 1
Attachment 1
Federal Communications Commission
Enforcement Bureau
Investigations and Hearings Division
445 12th Street, SW, Suite 4-C330
Washington, D.C. 20554