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                                  May 19, 2008

   DA 08-1180

   VIA CERTIFIED MAIL

   RETURN RECEIPT REQUESTED AND FACSIMILE (415-621-4111)

   Mr. Earl Nelson

   c/o Richard B. Mazer, Esq.

   Law Offices of Richard Mazer

   99 Divisadero Street

   San Francisco, CA 94117

   richardbmazer@yahoo.com

   Re: Notice of Suspension and Initiation of Debarment Proceedings,

   File No. EB-08-IH-1138

   Dear Mr. Nelson:

   The Federal Communications Commission ("FCC" or "Commission") has received
   notice of your conviction of collusion and aiding and abetting, in
   violation of 15 U.S.C S: 1 and 18 U.S.C. S: 2, 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: 54.8,
   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 collusion and aiding and abetting a scheme to defraud the E-Rate
   program. You admitted that, as a former branch manager of Inter-Tel
   Technologies, you entered into and engaged in a conspiracy with other
   defendants and co-conspirators to suppress and restrain competition by
   submitting collusive, noncompetitive, and rigged bids for an E-Rate
   project at the West Fresno Elementary School District in Fresno,
   California.

   Pursuant to section 54.8(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 and conviction of 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 54.8(c) of the Commission's rules.
   Therefore, pursuant to section 54.8(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.govand 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: Kristy Carroll, Esq., Universal Service Administrative Company (via
   e-mail)

   Michael Wood, Antitrust Division, United States Department of Justice
   (vial mail)

   Any further reference in this letter to "your conviction" refers to your
   guilty plea and subsequent conviction of collusion and aiding and
   abetting. United States v. Earl Nelson, Criminal Docket No.
   3:05-CR-00208-CRB-011, Judgment (N.D.Cal. filed and entered Mar. 21, 2008)
   ("Earl Nelson Judgment"). See United States v. Video Network
   Communications, Inc. et al., Criminal Docket No. 3:05-CR-00208-CRB,
   Superseding Indictment at P:P: 79-80 (N.D.Cal. filed Dec. 8, 2005 and
   entered Dec. 12, 2005); http://www.usdoj.gov/atr/cases/f213600/213626.htm
   (accessed May 1, 2008) ("VNCI Superseding Indictment").

   47 C.F.R. S: 54.8; 47 C.F.R. S: 0.111 (delegating to the Enforcement
   Bureau authority to resolve universal service suspension and debarment
   proceedings). The Commission adopted debarment rules for the schools and
   libraries universal service support mechanism in 2003. See Schools and
   Libraries Universal Service Support Mechanism, Second Report and Order and
   Further Notice of Proposed Rulemaking, 18 FCC Rcd 9202 (2003) ("Second
   Report and Order")  (adopting section 54.521 to suspend and debar parties
   from the E-rate program). In 2007, the Commission extended the debarment
   rules to apply to all of the Federal universal service support mechanisms.
   Comprehensive Review of the Universal Service Fund Management,
   Administration, and Oversight; Federal-State Joint Board on Universal
   Service; Schools and Libraries Universal Service Support Mechanism;
   Lifeline and Link Up; Changes to the Board of Directors for the National
   Exchange Carrier Association, Inc., Report and Order, 22 FCC Rcd 16372,
   16410-12 (2007) (Program Management Order) (renumbering section 54.521 of
   the universal service debarment rules as section 54.8 and amending
   subsections (a)(1), (5), (c), (d), (e)(2)(i), (3), (e)(4), and (g)).

   See Second Report and Order, 18 FCC Rcd at 9225, P: 66; Program Management
   Order, 22 FCC Rcd at 16387, P: 32. 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: 54.8(a)(6).

   VNCI Superseding Indictment at P:P: 79-80.

   See id. The Commission debarred Inter-Tel Technologies, Inc. in 2006 for
   the company's conviction for mail fraud and conspiracy to suppress and
   eliminate competition. See Inter-Tel Technologies, Inc., Notice to
   Debarment, 21 FCC Rcd 7506 (2006); 71 Fed. Reg. 42397 (2006). The
   following four individuals, who were also charged in the VNCI Superseding
   Indictment, have pled guilty or been found guilty and subsequently
   sentenced: Judy Green, George Marchelos, William Holman, and Allan Green.
   We are sending separate notices of suspension and initiation of debarment
   proceedings to these individuals.

   47 C.F.R. S: 54.8(a)(4). See Second Report and Order, 18 FCC Rcd at
   9225-9227, P:P: 67-74.

   47 C.F.R. S:S: 54.8(a)(1), (d).

   Second Report and Order, 18 FCC Rcd at 9226, P: 69; 47 C.F.R. S:
   54.8(e)(1).

   47 C.F.R. S: 54.8(e)(4).

   Id.

   47 C.F.R. S: 54.8(e)(5).

   See Second Report and Order, 18 FCC Rcd at 9226, P: 70; 47 C.F.R. S:S:
   54.8(e)(5), 54.8(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,
   the high-cost support mechanism, the rural healthcare support mechanism,
   and the low-income support mechanism." 47 C.F.R. S: 54.8(c). Such
   activities "include the receipt of funds or discounted services through
   [the Federal universal service] support mechanisms, or consulting with,
   assisting, or advising applicants or service providers regarding [the
   Federal universal service] support mechanisms." 47 C.F.R. S: 54.8(a)(1).

   See Second Report and Order, 18 FCC Rcd at 9226, P: 70; 47 C.F.R. S:
   54.8(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: 54.8(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: 54.8(f).

   Second Report and Order, 18 FCC Rcd at 9225, P: 67; 47 C.F.R. S:S:
   54.8(d), 54.8(g).

   Id.

   Mr. Earl Nelson

   May 19, 2008

   Page 2 of 4

                       Federal Communications Commission

                               Enforcement Bureau

                      Investigations and Hearings Division

                       445 12th Street, SW, Suite 4-C330

                             Washington, D.C. 20554