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February 26, 2009
DA 09-471
VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED AND FACSIMILE (510-452-8405)
Mr. Ruben B. Bohuchot
c/o Richard Alan Anderson
Federal Public Defender - Dallas
525 Griffin Street
Suite 629
Dallas, TX 75202
Re: Notice of Suspension and Initiation of Debarment Proceedings,
File No. EB-08-IH-5312
Dear Mr. Bohuchot:
The Federal Communications Commission ("FCC" or "Commission") has received
notice of your conviction of federal crimes, including conspiracy to
commit bribery, conspiracy to launder monetary instruments, multiple
counts of bribery concerning programs receiving federal funds, obstruction
of justice and making false statements on tax returns, 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 12,
2008, the United States District Court in Texas sentenced you to serve
eleven years in prison following your conviction of federal crimes,
including conspiracy to commit bribery involving federal funds, conspiracy
to launder monetary instruments, multiple counts of bribery involving
federal funds, and other related offenses in connection with your
participation the E-Rate program. In addition, you and a co-conspirator
will have to forfeit approximately $1 million as a result of your
conviction.
As the former Chief Technology Officer of the Dallas Independent School
District ("DISD"), you were in charge of procuring technology contracts
for DISD. In this position, you participated in a bribery and money
laundering scheme involving DISD technology projects, including a contract
that involved E-Rate funds for Funding Year 2002 ("E-Rate FY 2002
Contract"). Specifically, you provided assistance to the efforts of your
co-defendant, Frankie Logyang Wong ("Mr. Wong"), former co-owner and
president of Micro Systems Engineering, Inc. ("MSE"), which enabled MSE to
obtain a contract to provide E-Rate services to DISD. In exchange for your
role in helping MSE obtain the E-Rate FY 2002 Contract, you received
bribes that included extensive access to and control of large
sports-fishing vessels, payment for numerous vacations and various
entertainment services, and cash that you attempted to disguise as
repayments from another individual for living expenses. MSE received at
least $35 million in aggregate revenue from DISD and the Universal Service
Administrative Company as a result of its participation in the DISD E-Rate
FY 2002 Contract.
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 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 at least 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: Kristy Carroll, Esq., Universal Service Administrative Company (via
e-mail)
Dayle A. Elieson, U.S. Attorney's Office, United States Department of
Justice (via mail)
See 18 U.S.C. S:S: 371 (conspiracy to bribery involving federal programs),
666(a)(1)(B) and 2 (bribery concerning programs receiving federal funds
and aiding and abetting), 1512(c) (obstructing and impeding an official
proceeding), and 1956(h) (conspiracy to lauder monetary instruments) and
26 U.S.C. S: 7206(1) (false statements on a tax return). Any further
reference in this letter to "your conviction" refers to your thirteen
count conviction. United States v. Ruben B. Bohuchot, Criminal Docket No.
3:07-CR-00167-L -1, Judgment (N.D. Tex. filed Nov. 14, 2008 and entered
Nov. 17, 2008; amended Nov. 25, 2008) ("Ruben Bohuchot Judgment").
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).
See supra note 1. See also
http://dallas.fbi.gov/dojpressrel/pressrel08/dl111208.htm (accessed Dec.
8, 2008) ("DOJ November 12, 2008 Ruben Bohuchot Press Release"); Ruben
Bohuchot Judgment at 1-2.
See DOJ November 12, 2008 Ruben Bohuchot Press Release; Ruben Bohuchot
Judgment at 2 and 8.
See United States v. Ruben B. Bohuchot. et al., Criminal Docket No.
3:07-CR-167-L-2, Indictment at 1,5-6,15 (N.D.Tex. filed May 22, 2007, and
entered May. 24, 2007, under seal; unsealed May 29, 2007). ("DISD
Indictment"); see also DOJ November 12, 2008 Ruben Bohuchot Press Release.
In a separate letter, we also serve notice of suspension and initiation of
debarment proceedings to Frankie Logyang Wong for his role in the DISD
bribery and money laundering scheme, pursuant to his conviction. See
Letter from Hillary S. DeNigro, Chief Investigations and Hearings
Division, Enforcement Bureau, to Frankie Logyang Wong, Notice of
Suspension and Initiation of Debarment Proceedings, DA 09-473 (Inv. &
Hearings Div., Enf. Bur. Feb. 26, 2009). MSE operated as a computer
reseller firm providing computer products and services to large
corporations and school districts. See DISD Indictment at 2.
See DISD Indictment at 5-6; DOJ November 12, 2008 Ruben Bohuchot Press
Release. MSE was able to obtain two contracts with DISD worth
approximately $120 million as a result of information that Mr. Wong
received from Mr. Bohuchot. DISD Indictment at 2-4. In this proceeding, we
only address the contract involving E-Rate services.
DISD Indictment at 4-5, 7-21; DOJ November 12, 2008 Ruben Bohuchot Press
Release.
DISD Indictment at 6. Based on a winning bid proposal prepared utilizing
information that Mr. Wong received from Mr. Bohuchot, MSE received at
least $4 million as a subcontractor under another contract with DISD. See
DISD Indictment at 4; DOJ November 12, 2008 Ruben Bohuchot Press Release
at 2.
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: 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).
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).
Second Report and Order, 18 FCC Rcd at 9225, P: 67; 47 C.F.R. S:S:
54.8(d), 54.8(g).
47 C.F.R. S: 54.8(g).
Mr. Ruben B. Bohuchot
February 26, 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