******************************************************** 
                      NOTICE
********************************************************

This document was converted from Microsoft Word.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
Microsoft Word or Adobe Acrobat version.

*****************************************************************



                               September 4, 2008

   DA 08-2041

   VIA CERTIFIED MAIL

   RETURN RECEIPT REQUESTED AND E-MAIL

   Mr. Joseph E. Mello

   c/o Michael O. Sheehan, Esq.

   Sheehan & Reeve

   139 Orange St., Suite 301

   New Haven, CT 06510

   Re: Notice of Suspension and Initiation of Debarment Proceedings,

   File No. EB-08-IH-1615

   Dear Mr. Mello:

   The Federal Communications Commission ("FCC" or "Commission") has received
   notice of your conviction of mail fraud, in violation of 18 U.S.C. S:
   1341, and subscribing a false tax return, in violation of 26 U.S.C. S:
   7206(1), 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 mail fraud and income tax fraud in connection with your participation
   in the E-Rate program involving telecommunications upgrade projects in
   four Connecticut school districts. While employed as Vice President of
   Operations for Innovative Network Solutions ("INS"), a first-tier
   subcontractor of Southwestern Bell Communications ("SBC") for performing
   E-Rate funded telecommunications upgrades, you and former SBC employees
   Richard E. Brown and Keith J. Madeiros participated in a scheme to defraud
   the E-Rate program. In your position at INS, you agreed to accept invoices
   submitted by fictitious companies created by Mr. Madeiros and Mr. Brown
   for work allegedly performed in the Connecticut school districts. INS made
   payments totaling $608,505 on those fictitious invoices and then passed
   the costs on to SBC as legitimately reimbursable services under the E-Rate
   program.

   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 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 54.8(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
   Rebekah Bina, 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
   Rebekah Bina, 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 rebekah.bina@fcc.gov and to vickie.robinson@fcc.gov.

   If you have any questions, please contact Ms. Bina via mail, by telephone
   at (202) 418-7931 or by e-mail at rebekah.bina@fcc.gov. If Ms. Bina 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)

   Any further reference in this letter to "your conviction" refers to your
   guilty plea and subsequent conviction of one count of mail fraud and one
   count of subscribing a false tax Return. United States v. Joseph E. Mello,
   Criminal Docket No. 3:07-CR-00224 (RNC-1), Plea Agreement (D.Conn. filed
   and entered Oct. 9, 2007) ("Mello Plea Agreement"); United States v.
   Joseph E. Mello, 3:07-CR-00224 (RNC-1), Judgment (D.Conn. filed June 26,
   2008 and entered June 30, 2008) ("Mello Judgment"). See also United States
   v. Joseph E. Mello, Criminal Docket No. 3:07-CR-00224 (RNC-1), Information
   (D. Conn. filed and entered Oct. 9, 2007) ("Mello Information").

   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)).

   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: 54.8(a)(6).

   See Mello Information at 2; Mello Plea Agreement at 1-2, 5; Mello Judgment
   at 1.

   Mello Information at 3. The Bureau has debarred Richard E. Brown and Keith
   Madeiros from the E-Rate Program. See Letter from Hillary S. DeNigro,
   Chief, Investigations and Hearings Division, Enforcement Bureau, to
   Richard E. Brown, Notice of Debarment, 22 FCC Rcd 20569 (Inv. & Hearings
   Div., Enf. Bur. 2007); Letter from Hillary S. DeNigro, Chief,
   Investigations and Hearings Division, Enforcement Bureau, to Keith J.
   Madeiros, Notice of Debarment, 23 FCC Rcd 7959 (Inv. & Hearings Div., Enf.
   Bur. 2008).

   Mello Information at 2-4. See also Department of Justice, Press Release
   (Oct. 9, 2007)(available at
   http://www.usdoj.gov/usao/ct/Press2007/20071009.html)(last accessed Feb.
   5, 2008)("DOJ October 9 Press Release").

   Mello Information  at 4.

   47 C.F.R. S: 54.8(a)(4). See Second Report and Order, 18 FCC Rcd at
   9225-27, P:P: 67-74.

   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:
   54.8(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." 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
   mechanism." 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.

   Joseph E. Mello

   September 4, 2008

   Page 2 of 5

                       Federal Communications Commission

                               Enforcement Bureau

                      Investigations and Hearings Division

                       445 12th Street, SW, Suite 4-C330

                             Washington, D.C. 20554