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July 14, 2009
DA 09-1528
VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED
AND E-MAIL (robertbonsib@marcusbonsib.com) AND FACSIMILE (301) 441-3003
Andre J. Hornsby
c/o Robert C. Bonsib
Marcus and Bonsib
6411 Ivy Lane, Suite 116
Greenbelt, MD 20770
Re: Notice of Suspension and Initiation of Debarment Proceedings,
File No. EB-09-IH-0408
Dear Mr. Hornsby:
The Federal Communications Commission ("FCC" or "Commission") has received
notice of your conviction of federal crimes, including honest services
wire fraud, witness and evidence tampering, and obstruction of justice, 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. On November 25,
2008, the United States District Court for the District of Maryland
sentenced you to six years in prison, to be followed by three years of
supervised release, following your conviction on federal crimes, including
honest services wire fraud, witness and evidence tampering, and
obstruction of justice, in connection with your activities related to the
E-Rate program. In addition, you were ordered to pay a $20,000 fine and
$70,000 in restitution to the Prince George's County Public School System
("PGCPS").
You were employed as Chief Executive Officer, Secretary and Treasurer for
the Board of Education for Prince Georges County ("Board"). As Chief
Executive Officer of the Board, you were responsible for overall
administration of PGCPS from June 2003 until June 2005. Beginning in
November 2003, you devised schemes to defraud PGCPS for your personal
financial gain. You directed PGCPS employees to seek proposals from
outside E-Rate consulting companies for assistance with PGCPS' E-Rate
applications. Despite late filings and other disqualifications, you
ultimately steered the bidding process and directed contracts be awarded
for E-Rate consulting services to Erate Managers, LLC ("Erate Managers"),
a non-existent company purportedly operated by an individual who had
worked for you in other school districts ("Former Employee"). You, in
turn, were to receive more than $100,000 from the Former Employee for your
role in securing the E-Rate consulting contracts with PGCPS, and accepted
$1,000 in cash as a down payment. Further, you made materially false
representations, destroyed records and otherwise hid your associations
with the Former Employee to conceal your role in the fraudulent conduct at
issue.
Pursuant to section 54.8 of the Commission's rules, your conviction on
criminal offenses arising out of consulting activities associated with or
related to the schools and libraries support mechanism requires the Bureau
to suspend you from continuing to participate in any activities associated
with or related to the schools and libraries support mechanism. Activities
arising out of or related to the schools and libraries support mechanism
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 the schools and
libraries support mechanism.
Your suspension becomes immediately effective upon the earlier of your
receipt of this letter or publication of notice in the Federal Register,
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. The Bureau
will decide any request for the reversal or modification of suspension
within 90 days of its receipt of such request.
II. Initiation of Debarment Proceedings
Your conviction for 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 suspension and debarment defined in section 54.8(c) of the
Commission's rules. Therefore, pursuant to section 54.8 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. The Bureau will decide any request for reversal
or limitation of debarment within 90 days of receipt of such request. 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 Michele Levy Berlove,
Acting 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 Michele
Levy Berlove, Acting 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
Michele.Berlove@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. Michele Levy Berlove, Acting Assistant
Chief, Investigations and Hearings Division, by telephone at (202)
418-1477 and by e-mail at Michele.Berlove@fcc.gov.
Sincerely yours,
Hillary S. DeNigro
Chief
Investigations and Hearings Division
Enforcement Bureau
cc: Michael R. Pauze, Assistant United States Attorney, Department of
Justice (via e-mail)
Kristy Carroll, Esq., Universal Service Administrative Company (via
e-mail)
See 18 U.S.C. S:S: 1343, 1346 (honest services wire fraud), 1512(b)
(attempted evidence tampering), and 1503 (obstruction of Justice). Any
further reference in this letter to "your conviction" refers to your six
count conviction. United States v. Andre Jose Hornsby, Criminal Docket No.
8:06CR00376-PJM-1, Judgment (D. Md. filed and entered Dec. 5, 2008)
("Hornsby Judgment"). See also United States v. Andre Jose Hornsby,
Criminal Docket No. 8:06CR00376-PJM-1, Superseding Indictment (D. Md filed
and entered Apr. 23, 2008) ("Hornsby Indictment").
47 C.F.R. S: 54.8 (2008). See also 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 of the
Commission's rules 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).
Hornsby Judgment at 1-5. See also Hornsby Indictment at 1-21, 24-27,
29-30. (Discussion of your convictions in this notice is limited to those
activities related to the E-Rate program).
Hornsby Judgment at 6-7. PGCPS was one of the 20 largest school districts
in the nation in 2004, with a budget of more than $1 billion. See
Department of Justice Press Release (Nov. 25, 2008), available at
http://baltimore.fbi.gov/dojpressrel/pressrel08/ba112508.htm (DOJ November
2008 Press Release).
Hornsby Indictment at 2. See also DOJ November 2008 Press Release at 1.
The Board was responsible for oversight of PGCPS. See Hornsby Indictment
at 1. Responsibility for the overall administration of PGCPS was entrusted
to the Chief Executive Officer, who reported to the Board. See Hornsby
Indictment at 2.
Hornsby Indictment at 2.
Id. at 14-19. See also DOJ November 2008 Press Release at 1.
Hornsby Indictment at 6, 15.
Id. at 4-8. You directed PGCPS personnel not to award contracts to the
company with the highest overall score, and stalled the bidding process
past the deadline in favor of waiting for a proposal from Erate Managers.
Hornsby Indictment at 6-7. See also DOJ November 2008 Press Release at
1-2.
Hornsby Indictment at 8, 14-15. See also DOJ November 2008 Press Release
at 1-2.
Hornsby Indictment at 14-18, 24-27, 29-30. See also DOJ November 2008
Press Release at 3.
47 C.F.R. S: 54.8(b)-(e); see also S: 54.8(a)(4).
47 C.F.R. S: 54.8(a)(1); see also S: 54.8(a)(3).
47 C.F.R. S: 54.8(a)(7), (e)(1); see also Second Report and Order, 18 FCC
Rcd at 9226, P: 69.
47 C.F.R. S: 54.8(e)(4).
Id.
Id.
47 C.F.R. S: 54.8(f); see also Second Report and Order, 18 FCC Rcd at
9226, P: 70.
47 C.F.R. S: 54.8(e)(5), (f); see also Second Report and Order, 18 Fcc Rcd
at 9226, P: 70.
"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). You were convicted for obstruction of
justice, attempted evidence tampering for falsification or destruction of
records, and wire fraud. See supra note 4.
See 47 C.F.R. S: 54.8(b), (c).
47 C.F.R. S: 54.8(e)(3), (5); see also Second Report and Order, 18 FCC
Rcd at 9226, P: 70.
47 C.F.R. S: 54.8(e)(5); see also Second Report and Order, 18 FCC Rcd at
9227, P: 74.
47 C.F.R. S: 54.8(e)(5), (f); see also Second Report and Order, 18 FCC
Rcd at 9226, P: 70.
47 C.F.R. S: 54.8(e)(5). 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).
47 C.F.R. S: 54.8(a)(1), (d), (g); see also Second Report and Order, 18
FCC Rcd at 9225, P: 67.
47 C.F.R. S: 54.8(g).
Mr. Andre J. Hornsby
July 14, 2009
Page 2 of 5
Federal Communications Commission
Enforcement Bureau
Investigations and Hearings Division
445 12th Street, SW, Suite 4-C330
Washington, D.C. 20554