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Federal Communications Commission FCC 09-37
Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
In the Matter of
) File No. EB-08-IH-1139
Judy Green
)
)
NOTICE OF DEBARMENT
Adopted: May 11, 2009 Released: May 12, 2009
By the Commission:
I. INTRODUCTION
1. In this Notice, we debar Judy Green ("Ms. Green") from all activities
associated with the schools and libraries universal service support
mechanism (also known as the "E-Rate program"). Ms. Green was
convicted of twenty-two counts of fraud, collusion, aiding and
abetting, and conspiracy to commit wire and mail fraud, in connection
with her leadership of multiple schemes to defraud the E-Rate program.
Based on the record in this proceeding, we debar Ms. Green from
participation in the E-Rate program for ten (10) years from the
effective date of this Notice. We find that the ten-year debarment
period imposed against Ms. Green is necessary to protect the public
interest and guard against waste, fraud, and abuse in the E-Rate
program, consistent with section 254 of the Communications Act of
1934, as amended (the "Act").
II. BACKGROUND
A. The Act and the Commission's Rules
2. The E-Rate program is one of several federal programs designed to
promote and support the goal of universal service, i.e., making
telecommunications available to all Americans. These programs are
funded by the federal Universal Service Fund ("USF"). The Commission
appointed the Universal Service Administrative Company ("USAC") to
administer the USF. The resources for the E-Rate program in particular
are designed to fulfill the principle expressed in section 254(b)(6)
of the Act that "[e]lementary and secondary schools and classrooms, .
. . and libraries should have access to advanced telecommunications
services."
3. As part of an effort to protect the resources of the E-Rate program
from waste, fraud, and abuse, the Commission in 2003 adopted rules for
suspending and debarring persons convicted of, or held civilly liable
for, the commission or attempted commission of fraud and other similar
offenses arising out of participation in the E-Rate program. The
purpose of suspension and debarment is to prevent such persons from
further participation in the E-Rate program for a certain period of
time, and thereby protect the public interest and USF. In 2007, the
Commission extended the debarment rules to apply to all of the federal
universal service mechanisms.
4. Pursuant to our rules, the Commission "shall suspend and debar"
persons convicted of, or held civilly liable for, certain
fraud-related offenses involving any of the USF mechanisms, including
the E-Rate program, "absent extraordinary circumstances." Such
offenses include the "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." Upon learning that a person
has been convicted of or found liable for one of these offenses, our
rules contemplate that the Commission will immediately suspend the
person from the E-Rate program, provide "prompt notice" to that
effect, and initiate debarment proceedings. Thereafter, our rules
provide the suspended person 30 days to contest suspension or the
proposed debarment, or seek to limit its scope, but state that relief
from suspension "will not ordinarily be granted." Once we have
debarred a person, our rules state that the person will be prohibited
from involvement with the E-Rate program for three years, although the
rules contemplate that the Commission might modify the period in
particular circumstances if necessary to protect the public interest,
including setting a longer period of debarment. Further, if multiple
convictions or judgments have been rendered, the Commission shall
determine based on the facts before it whether debarments shall run
concurrently or consecutively.
5. Since the debarment rule became effective, there have been convictions
of twenty individuals and four corporations related to their
participation in the E-Rate program. After each conviction following
the enactment of the rule, the Commission initiated debarment
proceedings against the perpetrators. To date, the Commission has
debarred twenty individuals and four corporations.
B. Judy Green's Criminal Activity and Conviction
6. Judy Green worked as a consultant from 1998 through 2004, advising
school districts on computer network design and obtaining government
funding, including applying for funds through the E-Rate program. Ms.
Green also worked as a sales representative for Video Network
Communications, Inc. ("VNCI") from 1999 until 2002. VNCI manufactured
video teleconferencing switches and provided equipment and services
for E-Rate funded projects. Ms. Green performed marketing for VNCI
products to educational institutions and local school districts,
including those receiving E-Rate funds.
7. Ms. Green used her positions as both an independent school consultant
and sales representative at VNCI to perpetrate a massive fraud on the
E-Rate program, involving more than 25 separate E-Rate projects in
schools located throughout seven states, with an impact of more than
$57 million on the E-Rate fund. She was a ring leader and orchestrater
of three separate and overlapping schemes that originated in 1998 and
continued until 2004. On March 19, 2008, Ms. Green was convicted of 22
counts of fraud, collusion, aiding and abetting, and conspiracy to
commit wire and mail fraud in connection with her participation in the
E-Rate program, in the United States District Court in San Francisco
("District Court"). She was sentenced to serve seven and a half years
in prison. Specifically, the schemes that formed the basis of Ms.
Green's conviction involved conspiring with various individuals and
businesses for the purpose of fraudulently obtaining funds for
unlawful enrichment by assessing unauthorized fees and receiving
payments for such fees, submission of materially false information to
USAC regarding the cost and eligibility of equipment and services,
intentionally misrepresenting schools' ability and willingness to pay
their portion of the E-Rate projects, and allocating fraudulently
obtained funds among co-conspirators. The schemes also involved
conspiracy for the purpose of engaging in conduct in restraint of
competition by submitting collusive, noncompetitive, or rigged bids
for telecommunications services eligible for E-Rate subsidies and
ensuring telecommunications services contracts were awarded to
conspirators and bids from non-conspirators were disqualified.
8. Ms. Green was convicted on four counts of fraud and conspiracy for her
involvement in the first set of schemes that took place between 1998
and 2001 and involved a total of two separate school districts, four
individuals, and three companies. During this time Ms. Green used her
position as a consultant and as an employee with VNCI, along with
several co-conspirators, to defraud the USF by, among other things,
including costs of ineligible equipment, marketing fees, and
management fees in E-Rate applications for the two school districts.
Additionally, Ms. Green engaged her co-conspirators in persuading
district officials to award contracts to designated entities in
exchange for a fee. Finally, Ms. Green also made material
misrepresentations and provided fraudulent invoices to the Commission
and USAC, resulting in overpayments from the USF. These payments were
used to fund the school districts' E-Rate projects over and above the
allowed amounts and in violation of the Commission's rules. These
funds were also allocated among Ms. Green and the co-conspirators.
9. Ms. Green was convicted on fifteen counts of fraud and conspiracy for
her involvement in the second set of schemes that took place from 1999
through 2001 and involved eight additional school districts, four
individuals, and two corporations. During this time, and with the help
of her co-conspirators, Ms. Green continued overstating invoices and
invoicing for ineligible equipment, steering bids toward
co-conspirators, and allocating payments among conspirators at the
expense of school districts across the country.
10. Ms. Green was convicted on three counts of fraud and conspiracy for
her involvement in the third set of schemes, which took place between
2000 and 2004. These schemes impacted fifteen school districts and
involved four individuals and five companies. During the course of
these schemes Ms. Green marketed herself to school districts as a
consultant and expert in network solutions and obtaining government
funding. Through her employment at VNCI and her work as a consultant,
Ms. Green continued her fraudulent schemes and controlled bidding,
prepared fraudulent applications and invoices, obtained and
distributed ineligible funds for equipment, and created sham
foundations for the purpose of misleading the Commission and USAC.
C. Procedural History
11. On May 19, 2008, consistent with the Commission's debarment rule, the
Enforcement Bureau ("Bureau") issued a Notice of Suspension and
Proposed Debarment to Ms. Green, which immediately suspended her from
participating in the E-Rate program, and initiated the instant
debarment proceedings. The Notice of Suspension was published in the
Federal Register on June 25, 2008. The Notice of Suspension suspended
Ms. Green from the schools and libraries universal service support
mechanism and described the basis for initiation of debarment
proceedings against Ms. Green, the applicable debarment procedures,
and the effect of debarment. Pursuant to the Commission's rules, any
opposition to Ms. Green's suspension or its scope or to the proposed
debarment of Ms. Green or its scope had to be filed with the
Commission no later than 30 calendar days from the earlier date of Ms.
Green's receipt of the Notice of Suspension or publication of the
Notice of Suspension in the Federal Register. No such opposition was
filed.
III. DISCUSSION
12. Basis for Debarment. Based on the record in these proceedings, we
debar Ms. Green from participation in the E-Rate program. Under
section 54.8(c) of the Commission's rules, conviction for commission
of criminal fraud, theft, forgery, bribery, falsification, making
false statements, making false claims and other fraud or criminal
offense arising out of an association with the E-Rate program is
justification for immediate suspension from participation in the
E-Rate program and initiation of debarment proceedings. As previously
noted, the District Court sentenced Ms. Green to serve seven and a
half years in prison following her conviction on 22 counts of fraud,
collusion, aiding and abetting, and conspiracy to commit wire and mail
fraud in association with her involvement in the E-Rate program. Based
on the conviction, the Bureau immediately suspended Ms. Green from
participation in the E-Rate program and commenced debarment
proceedings against her. No parties contested the proposed debarment.
We find that Ms. Green's convictions unequivocally constitute the
basis for her debarment from the E-Rate program under section 54.8(c).
13. Period of Debarment. We also find that several factors provided in the
record establish that an extended debarment period is warranted in the
instant matter. While the Commission's rules include a three-year
debarment period, the Commission may set a longer period of debarment
where it is necessary to protect the public interest, and where
multiple convictions or judgments have been rendered, the Commission
may determine that debarments will run consecutively rather than
concurrently. We conclude that the scope and breadth of Ms. Green's
conduct, including her orchestration of multiple schemes to defraud
the E-Rate program, the $57 million impact on the program, her
subsequent conviction on multiple counts of violating federal criminal
statutes, and the resulting prison term, justify the imposition of a
ten-year debarment period.
14. In determining the period for debarment for this case, we consider the
best means to protect the E-Rate program in the future. A number of
factors inform our decision, including the magnitude of the harm Ms.
Green inflicted on the program, the scope and duration of her criminal
enterprise, and her pivotal role as architect of the fraudulent
schemes involving multiple school districts and service providers. Ms.
Green's criminal conduct here plainly demonstrates that she poses a
greater danger to the E-Rate program in the future than any other
individual or corporate entity debarred from the program to date. For
these reasons, and based on the facts before us, we find that the
public interest supports debarring Ms. Green for ten years.
15. Ms. Green's pivotal role as architect of the fraudulent schemes is
demonstrated by the evidence presented at trial resulting in her
conviction on 22 counts of fraud-related offenses. Although multiple
other companies and individuals played a role in these schemes as
co-conspirators, Ms. Green was the catalyst in all of them. Ms. Green
is therefore capable of concocting and carrying out multiple schemes
simultaneously to defraud the E-Rate program on a widespread basis.
Ms. Green used her positions and contacts to take an active role in
bringing together the individuals and companies necessary to
effectuate the fraudulent schemes for her personal financial gain. In
total, her schemes directly involved 25 school districts throughout
California, Michigan, Arkansas, South Carolina, Wisconsin,
Pennsylvania, and New York. Ms. Green knowingly defrauded the E-Rate
program with intentional disregard for Commission rules and the E-Rate
program requirements on multiple occasions over an extended period of
time. As previously noted, her actions defrauded the E-Rate program of
more than $57 million.
16. Further, our decision here is also guided by the number of federal
criminal violations Ms. Green has been convicted of, as well as the
District Court's sentencing of Ms. Green to a substantial term of
imprisonment in connection with the fraudulent schemes discussed
herein. It is our goal to protect the program from future fraud by Ms.
Green. For the foregoing reasons, we find that imposition of a
ten-year debarment period is necessary to protect the E-Rate program,
its participants, and the public interest against future risk of
fraud.
17. Additional Conditions to Debarment. We also propose additional
conditions restricting Ms. Green's participation in the E-Rate
program. Ms. Green will be subject to a three-year probationary period
following the expiration of the specified ten-year debarment period as
a further protection against waste, fraud and abuse of the E-Rate
program. Should Ms. Green seek to participate in the E-Rate program in
any capacity during the probationary period, she must first notify the
Commission and USAC of her intention. Moreover, USAC shall review with
heightened scrutiny any applications in which Ms. Green is involved
during her probation period, and shall conduct automatic annual audits
on Ms. Green's E-Rate activities during each of the first three
funding years, upon her re-entry into the E-Rate program.
IV. CONCLUSION
18. Based on the foregoing and to protect the integrity of the E-Rate
program, Judy Green is hereby debarred from the E-Rate program for ten
years, effective upon the earlier date of Ms. Green's receipt of this
Notice of Debarment or its publication date in the Federal Register.
Debarment excludes Ms. Green, for the debarment period, from engaging
in 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."
Consistent with this Notice, Ms. Green is also subject to the
additional, probationary actions specified herein.
V. ORDERING CLAUSES
19. Accordingly, IT IS ORDERED, pursuant to section 54.8 of the
Commission's rules, 47 C.F.R. S: 54.8, that Judy Green, IS DEBARRED
from the schools and libraries universal service support mechanism for
ten (10) years, effective upon the earlier of receipt of this Notice
of Debarment or publication in the Federal Register.
20. IT IS FURTHER ORDERED that Judy Green will serve PROBATION from the
schools and libraries service support mechanism for three (3) years,
effective upon the expiration of the specified debarment period. Judy
Green must notify the Chief, Investigations and Hearings Division,
Enforcement Bureau, at the Commission, and the Vice President, Schools
& Libraries Division, Universal Service Administrative Company, of her
intention to participate in the E-Rate program in any capacity during
the probationary period. In the event Judy Green participates in the
E-Rate program during the three-year probationary period, USAC shall
review with heightened scrutiny Ms. Green's applications submitted and
shall conduct automatic annual audits of Ms. Green's E-Rate
activities, during the first three funding years upon her re-entry
into the E-Rate program.
21. IT IS FURTHER ORDERED that the Enforcement Bureau staff shall send, by
certified mail/return receipt requested, a copy of this Notice of
Debarment to Philip H. Stillman, Esq., 224 Birmingham Drive, Suite 2A,
Cardiff, CA 92007.
22. IT IS FURTHER ORDERED, pursuant to section 54.8 of the Commission's
rules, 47 C.F.R. S: 54.8, that this Notice SHALL BE PUBLISHED in the
Federal Register.
FEDERAL COMMUNICATIONS COMMISSION
Marlene H. Dortch
Secretary
See 47 C.F.R. S:S: 0.111(a), 54.8.
Any further reference in this letter to "Green's conviction" refers to the
judgment on conviction of twenty-two counts entered in Federal District
Court earlier this year. United States v. Judy Green, Criminal Docket No.
3:05-CR-00208-WHA-007, Judgment (N.D. Cal. Filed and entered March 19,
2008) ("Judy Green Judgment").
47 U.S.C. S: 254. The Telecommunications Act of 1996 amended the
Communications Act of 1934. See Telecommunications Act of 1996, Pub. L.
No. 104-104, 110 Stat. 56 (1996).
See id. S:S: 254(b), (h)(1)(B).
Id.
47 U.S.C. S: 254(b)(6).
47 C.F.R. S: 54.8(c). 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").
Second Report and Order, 18 FCC Rcd at 9225, P: 66.
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)).
47 C.F.R. S: 54.8(b). The rule defines a "person" as any individual, group
of individuals, corporation, partnership, association, unit of government
or legal entity, however organized. 47 C.F.R. S: 54.8(a)(6). Opting for a
stringent debarment rule, the Commission explicitly rejected a
government-wide standard providing that an entity "may" be debarred based
on a conviction or civil judgment. See Second Report and Order, 18 FCC Rcd
at 9227, P: 74.
47 C.F.R. S: 54.8(c).
47 C.F.R. S: 54.8(e).
47 C.F.R. S: 54.8(e)(4).
47 C.F.R. S: 54.8(g) (providing that the debarment period set forth in the
rule may be lengthened or extended if necessary to protect the public
interest).
47 C.F.R. S: 54.8(g).
See FCC, Universal Service Fund Enforcement, at
http://www.fcc.gov/eb/usfc/ (providing links to all Universal Service Fund
suspension and debarment actions).
Id. Several debarments involved individuals connected to the fraudulent
schemes described in the instant proceeding. See Letter from Maureen F.
Del Duca, Chief, Investigations and Hearings Division, Enforcement Bureau,
to Duane Maynard, Howe Electric, Inc., Notice of Debarment, 18 FCC
Rcd 26729, (Inv..& Hearings Div., Enf. Bur. 2003); Letter from Hillary S.
DeNigro, Chief, Investigations and Hearings Division, Enforcement Bureau,
to Allan Green, Notice of Debarment, 23 FCC Rcd 11960 (Inv. & Hearings
Div., Enf. Bur. 2008); Letter from Hillary S. DeNigro, Chief,
Investigations and Hearings Division, Enforcement Bureau, to Earl Nelson,
23 FCC Rcd 11966, Notice of Debarment (Inv. & Hearings Div., Enf. Bur.
2008); Letter from Hillary S. DeNigro, Chief, Investigations and Hearings
Division, Enforcement Bureau, to George Marchelos, Notice of Debarment 23
FCC Rcd 11972 (Inv. & Hearings Div., Enf. Bur. 2008); Letter from Hillary
S. DeNigro, Chief, Investigations and Hearings Division, Enforcement
Bureau, to William Holman, 23 FCC Rcd 11978, Notice of Debarment (Inv. &
Hearings Div., Enf. Bur. 2008). Ms. Green has been suspended from
participation in the E-Rate program in connection with her involvement in
these schemes, and her debarment will become final upon the effective date
of this Notice. See infra note 40.
See NEC-Business Network Solutions, Inc., Notice of Debarment and Order
Denying Waiver Petition, 21 FCC Rcd 7491 (2006) ("NEC Debarment Order");
Inter-Tel Technologies, Inc., Notice of Debarment, 21 FCC Rcd 7506 (2006)
("Inter-Tel Debarment Order"); NextiraOne, LLC., Notice of Debarment and
Order Denying Waiver Petition, 22 FCC Rcd. 1005 (2007); Premio, Inc.,
Notice of Debarment, 22 FCC Rcd 1019 (2007) ("Premio Debarment Order").
Three of the four corporate debarments have been issued against companies
involved in the fraudulent schemes described in the instant proceeding.
See infra note 23.
See United States v. Video Network Communications, Inc. et al., Criminal
Docket No. 3:05-CR-00208-CRB, Superseding Indictment (N.D. Cal. filed Dec.
8, 2005 and entered Dec. 12, 2005), also available at
http://www.usdoj.gov/atr/cases/f213600/213626.htm (accessed May 1, 2008)
("VNCI Superseding Indictment")(Ms. Green was joint owner, along with her
husband, Allan Green, of ADJ Consultants, Inc. where she provided
consulting services to schools and vendors looking to participate in the
E-Rate program.)
See VNCI Superseding Indictment at P:P: 4-5, 15. VNCI was formerly known
as Objective Communications and was a Delaware corporation with its
principal place of business in Portsmouth, New Hampshire. Id.
Id.
Id.
The schemes targeted California, Michigan, Arkansas, South Carolina,
Wisconsin, Pennsylvania, and New York. See VNCI Superseding Indictment at
P:P: 138,150 (Counts 21 and 22).
VNCI Superseding Indictment. See also Department of Justice, Press Release
(March 19, 2008), available at
http://www.usdoj.gov/opa/pr/2008/March/08_at_219.html (last accessed Oct.
6, 2008) ("DOJ March 19, 2008 Judy Green Sentencing Press Release"). As
previously noted, we have debarred several individuals in connection with
their roles in these schemes. See supra note 17. The Commission may
initiate debarment proceedings against an additional individual in
connection with its role in these schemes, following the commencement of
pending criminal proceedings. See United States v. Video Network
Communications, Inc. et al., Criminal Docket No. 3:05-CR-00208-CRB-10,
Steven Newton (Commission action is pending the outcome of sentencing
scheduled for Feb. 4, 2009). We have also debarred various companies
involved in these schemes. See NEC Debarment Order, 21 FCC Rcd 7491;
Inter-Tel Debarment Order, 21 FCC Rcd 7506; Premio Debarment Order, 22 FCC
Rcd 1019. The Commission may initiate debarment proceedings against an
additional company for its role in these schemes, following the
commencement of pending criminal proceedings. See United States v. Video
Network Communications, Inc. et al., Criminal Docket No.
3:05-CR-00208-CRB-2, Howe Electric, Inc. Plea Agreement (N.D. Cal. filed
and entered June 18, 2008) (Commission action is pending the outcome of
sentencing scheduled for June 23, 2010). The Department of Justice dropped
charges against the following defunct companies involved in the instant
proceeding: Video Network Communications, Inc., ADJ Consultants, Inc.,
Digital Connect Communications, Inc., and SEMA4, Inc. See Department of
Justice, Federal Bureau of Investigation Press Release (Sept. 14, 2007),
available at http://sanfrancisco.fbi.gov/dojpressrel/2007/sf091407.htm
(accessed Sept. 8, 2008) ("FBI Sept. 14, 2007 Press Release"). An
additional company, Expedition Networks, Ltd., pled guilty and was
sentenced to a fine of $5 million. Id. Shortly thereafter, this company
filed Chapter 7 Bankruptcy. See United States v. Expedition Networks Inc.,
Bankruptcy Docket No. 1:05-bk-14931-KT, Voluntary Petition Chapter 7 (C.D.
Cal. filed and entered July 20, 2005).
See Judy Green Judgment at 2 (ordering Judy Green to be committed to the
custody of the United States Bureau of Prisons for a total term of 90
months). See generally VNCI Superseding Indictment (imposing convictions
for violation of 15 U.S.C. S: 1 and 18 U.S.C. S:S: 2, 371, 1343). See also
DOJ March 19, 2008 Judy Green Sentencing Press Release at 1.
These misrepresentations included inflating the costs of eligible
telecommunications equipment and services in applications to cover the
cost of ineligible equipment and services. See VNCI Superseding
Indictment at P:P: 12-78. See also DOJ March 19, 2008 Judy Green
Sentencing Press Release at 1.
See VNCI Superseding Indictment at P:P: 8-11, 79-82, 124-26, 140-43,
150-51; see also DOJ March 19, 2008 Judy Green Sentencing Press Release.
See VNCI Superseding Indictment at P:P: 79-151. See also DOJ March 19,
2008 Judy Green Sentencing Press Release at 1.
See VNCI Superseding Indictment at P:P: 12-30, 79-93 (Counts 1, 2, 12, and
13: The West Fresno and Highland Park Schemes and Conspiracies). These
schemes involved the following individuals and companies: Judy Green;
George Marchelos; Earl Nelson; Steven Newton; ADJ Consultants, Inc.; Video
Network Communications, Inc.; Howe Electric, Inc. Id.
See VNCI Superseding Indictment at P:P: 12-30, 79-93 (Counts 1, 2, 12, and
13).
Id.
Id.; See also 47 C.F.R. S:S: 54.500-523 (setting forth rules governing the
schools and libraries universal service support mechanism).
Id.
See VNCI Superseding Indictment at P:P: 31-61, 62-71, 94-131 (Counts 3, 4,
5, 6, 7, 8, 9, 10, 14, 15, 16, 17, 18, 19 and 20: The Covert, Lee County,
Jasper County, Ecorse, Ceria Travis, San Francisco, and W.E.B. Dubois
Schemes and Conspiracies). These schemes involved the following
individuals and companies: Judy Green; William Holman; George Marchelos;
Earl Nelson; Video Network Communications, Inc.; Howe Electric, Inc. Id.
See VNCI Superseding Indictment at P:P: 31-61, 62-71, 94-131 (Counts 3, 4,
5, 6, 7, 8, 9, 10, 14, 15, 16, 17, 18, 19 and 20).
See VNCI Superseding Indictment at P:P: 72-78, 132-151 (Counts 11, 21, and
22: The Luther Burbank Scheme, and The 2003-2004 Projects Conspiracies).
These schemes involved the following individuals and companies: Judy
Green; Allan Green; George Marchelos; Steven Newton; ADJ Consultants,
Inc.; Video Network Communications, Inc.; SEMA4, Inc.; Digital Connect
Communications, Inc.; Expedition Networks, Ltd. Id.
VNCI Superseding Indictment at P:P: 72-78, 132-151 (Counts 11, 21, and
22).
Id. See also VNCI Superseding Indictment at P:P: 4-5, 15.
See supra note 35.
Letter from Hillary S. DeNigro, Chief, Investigations and Hearings
Division, Enforcement Bureau, Federal Communications Commission, to Ms.
Judy Green, Notice of Suspension and Initiation of Debarment Proceedings,
23 FCC Rcd 8223 (Inv. & Hearings Div., Enf. Bur. 2008) ("Notice of
Suspension").
73 Fed. Reg. 36084 (June 25, 2008).
See Notice of Suspension, 23 FCC Rcd at 8824-26.
See 47 C.F.R. S:S: 54.8(e)(3) and (4). That date occurred no later than
July 25, 2008. See supra note 26.
47 C.F.R. S: 54.8(c).
See supra para. 7.
47 C.F.R. S: 54.8(g).
We note that the government-wide debarment rules, which the Commission
used for guidance in adopting its own rules for suspension and debarment,
also inform, in part, our decision here. See 2 C.F.R. S:S: 180.800- 880.
These rules set forth several factors that may be considered in debarment
proceedings, including, for example, the actual or potential harm or
impact that results or may result from the wrongdoing, the duration of the
wrongdoing, the positions held by the individual involved in the
wrongdoing, and the extent to which one planned, initiated, or carried out
the wrongdoing. 2 C.F.R. S: 180.860.
See VNCI Superseding Indictment at P:P: 5, 15, 16, 71, 75, 82, 133, 135,
137, 139-42, 151. See also Department of Justice, Press Release at 2
(April 7, 2005), available at
http://www.usdoj.gov/opa/pr/2005/April/05_at_169.htm (last accessed Oct.
10, 2008)("DOJ April 7, 2005 Judy Green Press Release"); see also
Department of Justice, Press Release (June 18, 2008), available at
http://sanfrancisco.fbi.gov/dojpressrel/2008/sf061808a.htm (last accessed
Oct. 6, 2008)("DOJ June 18, 2008 Howe Electric Press Release")(the article
states:
Howe Electric entered into agreements with a co-conspirator, former
education consultant Judy N. Green, whereby Howe Electric was awarded
contracts for the E-Rate projects...in exchange for awarding subcontracts
to other vendors. The co-conspirator vendors had...agreed with Green not
to compete in exchange for the award of the subcontracts. In both
conspiracies, Green arranged for the schools' projects to be awarded to
Howe Electric, which then used the vendors as subcontractors).
See VNCI Superseding Indictment at P:P: 82 and 141 (showing that in some
instances, Ms. Green carved out special awards and set aside extra funds
for her role in organizing and carrying out the schemes). The schemes
involved six companies and six individuals. See DOJ April 7, 2005 Judy
Green Press Release; see also supra notes 17, 18 and 23.
See VNCI Superseding Indictment at P:P: 138,150 (Counts 21 and 22 listing
the areas impacted). See also DOJ April 7, 2005 Judy Green Press Release
at 1-2.
See generally VNCI Superseding Indictment (showing the schemes were
carried out over a six year period).
See supra para. 7.
See DOJ March 19, 2008 Judy Green Sentencing Press Release at 1 (Reporting
that Judy Green was sentenced to seven and a half years in prison). See
also DOJ June 18, 2008 Howe Electric Press Release.
See 47 C.F.R. S:54.8(e)(1),(g). See also Notice of Suspension, 23 FCC Rcd
at 8225.
See 47 C.F.R. S:S: 54.8(a)(1), 54.8(a)(5), 54.8(d); Notice of Suspension,
23 FCC Rcd at 8225-26.
Federal Communications Commission FCC 09-37
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