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                                January 9, 2008

   DA 08-50

   VIA CERTIFIED MAIL

   RETURN RECEIPT REQUESTED AND FACSIMILE (404-872-1622)

   Mr. Arthur R. Scott

   c/o Seth D. Kirschenbaum, Esq.

   Davis Zipperman Kirschenbaum & Lotito

   918 Ponce de Leon Avenue, N.E.

   Atlanta, GA 30306-4212

   E-Mail: skirschenbaum@dzkl.com

   Re: Notice of Debarment, File No. EB-07-IH-7304

   Dear Mr. Scott:

   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 October 18, 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 November 6, 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, you pled guilty to and were
   convicted of conspiracy to defraud the United States and bribery, in
   violation of 18 U.S.C. S:S: 371 and 666(a)(1)(B), for activities in
   connection with your participation in the E-Rate program involving the
   Atlanta Public Schools ("APS"). You conspired with others, including your
   wife Evelyn Myers Scott, to enter into an E-Rate contract on behalf of APS
   in return for personal payoffs. In addition, you admitted to taking bribes
   intending to be influenced and rewarded in connection with the APS E-Rate
   project. 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: Aaron M. Danzig, Esq., Assistant United States Attorney

   Kristy Carroll, Esq., Universal Service Administrative Company (via
   e-mail)

                                October 18, 2007

   DA 07-4336

   VIA CERTIFIED MAIL 

   RETURN RECEIPT REQUESTED AND FACSIMILE (404-872-1622)

   Mr. Arthur R. Scott

   c/o Seth D. Kirschenbaum, Esq.

   Davis Zipperman Kirschenbaum & Lotito

   918 Ponce de Leon Avenue, N.E.

   Atlanta, GA 30306-4212

   E-Mail: skirschenbaum@dzkl.com

   Re: Notice of Suspension and Initiation of Debarment Proceedings,

   File No. EB-07-IH-7304

   Dear Mr. Scott:

   The Federal Communications Commission ("FCC" or "Commission") has received
   notice of your conviction for conspiracy to defraud the United States and
   bribery in violation of 18 U.S.C. S:S: 371 and 666(a)(1)(B) 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 conspiracy to defraud the United States and bribery for activities in
   connection with your participation in the E-Rate program. You admitted
   that while employed as Director of Operational Technology of the Atlanta
   Public Schools ("APS"), you conspired with others, including your wife
   Evelyn Myers Scott ("Myers Scott"), to enter into an E-Rate contract on
   behalf of APS in return for payments to the consulting firm owned by you
   and Myers Scott from the vendor. In addition, you admitted that you, as
   agent of APS, corruptly solicited, demanded, accepted and agreed to accept
   $37,917 in order to be influenced and rewarded in connection with APS's
   participation in the E-Rate program. The loss and the restitution that you
   owed to the E-Rate program resulting from the criminal offenses was
   $300,176.10.

   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: Kristy Carroll, Esq., Universal Service Administrative Company (via
   e-mail)

   Aaron M. Danzig, Esq., Assistant United States Attorney

   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.
   Arthur R. Scott, Notice of Suspension and Initiation of Debarment
   Proceedings, 22 FCC Rcd 18617 (Inv. & Hearings Div., Enf. Bur. 2007)
   (Attachment 1).

   72 Fed. Reg. 62647 (November 6, 2007).

   See Notice of Suspension, 22 FCC Rcd at 18618-19.

   See 47 C.F.R. S: 54.521(e)(3) and (4). That date occurred no later than
   December 6, 2007. See supra note 3.

   See Notice of Suspension, 22 FCC Rcd at 18618.

   See id. The Bureau also debars Mrs. Evelyn Myers Scott from the E-Rate
   program. See Letter from Hillary S. DeNigro, Chief, Investigations and
   Hearings Division, Enforcement Bureau, Federal Communications Commission,
   to Mr. Evelyn Myers Scott, Notice of Debarment, DA 08-49 (Inv. & Hearings
   Div., Enf. Bur. rel. Jan. 9, 2008).

   See id.

   Id. at 18618; 47 C.F.R. S: 54.521(c).

   See Notice of Suspension, 22 FCC Rcd at 18619.

   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 18619.

   Any further reference in this letter to "your conviction" refers to your
   May 2, 2007 guilty plea and subsequent conviction of one count of
   conspiracy to defraud the United States and one count of bribery. United
   States v. Arthur R. Scott, Criminal Docket No. 1:07-CR-139-CC-01, Plea
   Agreement (N.D.Ga. filed May 2, 2007 and entered May 7, 2007) ("Scott Plea
   Agreement"); United States v. Arthur R. Scott, 1:07-CR-139-CC-01, Judgment
   (N.D.Ga. filed and entered Oct. 2, 2007) ("Scott 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).

   See Schools and Libraries Universal Service Support Mechanism, Second
   Report and Order and Further Notice of Proposed Rulemaking, 18 FCC Rcd
   9202, 9225, P: 66 (2003) ("Second Report and Order"). 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 generally United States v. Arthur R. Scott and Evelyn Myers Scott
   a/k/a Evelyn M. Myers, Criminal Docket No. 1:07-CR-139, Information
   (N.D.Ga.. filed Apr. 30, 2007 and entered May 3, 2007) (" Scott and Myers
   Scott Information"); Scott Plea Agreement at 1.

   Scott and Myers Scott Information at 1-9. See also Letter from Hillary S.
   DeNigro, Chief, Investigations and Hearings Division, Enforcement Bureau,
   to Evelyn M. Scott, DA 07-4335, dated October 18, 2007.

   See Scott Judgment at 5; see also Scott Plea Agreement at 4.

   47 C.F.R. S: 54.521(a)(4). See Second Report and Order, 18 FCC Rcd at
   9225-9227, P:P: 67-74 (2003).

   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.

   Arthur R. Scott

   January 9, 2008

   Page 2 of 2

                       Federal Communications Commission

                               Enforcement Bureau

                      Investigations and Hearings Division

                       445 12th Street, SW, Suite 4-C330

                             Washington, D.C. 20554

   Mr. Arthur R. Scott

   October 18, 2007

   Page 4 of 4

                                  Attachment 1

                       Federal Communications Commission

                               Enforcement Bureau

                      Investigations and Hearings Division

                       445 12th Street, SW, Suite 4-C330

                             Washington, D.C. 20554