Click here for Adobe Acrobat version
Click here for Microsoft Word version

******************************************************** 
                      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.

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



                                 June 23, 2010

   DA 10-1112

   VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED

   AND E-MAIL (Ben@Rowner.com)

   Mr. Benjamin Rowner

   c/o Federal Correctional Institution

   Otisville, NY Satellite Prison Camp

   P.O. Box 1000

   Otisville, NY 10963

   Re: Notice of Debarment

   File No. EB-10-IH-2079

   Dear Mr. Rowner:

   Pursuant to section 54.8 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 April 7, 2010, 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 April 21, 2010. The Notice of Suspension suspended you from
   participating in activities associated with or relating to 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 pleaded guilty to and were
   sentenced to serve twenty-seven months in federal prison, to be followed
   by twenty-four months of supervised release for federal crimes in
   connection with your participation in a scheme to defraud the E-Rate
   program. You held yourself out as an E-Rate salesperson and installer and
   admitted that you and others devised schemes to defraud school districts
   and the E-Rate program by having your co-conspirators steer E-rate related
   contracts to various companies that directly benefited you, your
   conspirators, and your company. You were also ordered to pay $271,716 in
   restitution to USAC for your role in the schemes. Such conduct constitutes
   the basis for your debarment, and your conviction falls within the
   categories of causes for debarment under section 54.8(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: Marietta Parker, United States Attorney's Office, Department of
   Justice (via e-mail)

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

                                 April 7, 2010

   DA 10-584

   VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED

   AND E-MAIL (jmontana@vedderprice.com) AND FACSIMILE (312) 609-5005

   Mr. Benjamin Rowner

   c/o Vedder Price P.C.

   Attn: James S. Montana, Jr.

   222 North LaSalle Street, Suite 2600

   Chicago, IL 60601

   Re: Notice of Suspension and Initiation of Debarment Proceedings,

   File No. EB-10-IH-2079

   Dear Mr. Rowner:

   The Federal Communications Commission ("FCC" or "Commission") has received
   notice of your guilty plea for conspiracy to defraud the United States in
   violation of 18 U.S.C. S: 371 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 July 10,
   2008, you, Benjamin Rowner, entered a plea agreement and pleaded guilty to
   knowingly and intentionally conspiring with others to defraud and obtain
   money from the E-Rate Program through submission of materially false
   representations, concealment of material facts, mail fraud, wire fraud,
   and intentional manipulation of the competitive bidding process.
   Specifically, from Fall 1999 to at least November 2003, you held yourself
   out as an E-Rate salesperson and installer for the purpose of defrauding
   the E-Rate Program. You admitted that you and others devised schemes to
   defraud school districts and the E-Rate program by having your
   co-conspirators steer E-rate related contracts to various companies that
   directly benefited you, your conspirators, and your company, primarily
   DeltaNet, Inc. In furtherance of the schemes, you submitted misleading,
   fraudulent and false documents to the Universal Service Administrative
   Company ("USAC") claiming schools were paid or would pay their co-pay,
   submitted other materially false and fraudulent documents to USAC, and
   concealed from the school districts relationships with co-conspirators in
   order to induce schools to select your companies as service providers in
   violation of E-Rate Program rules. Ultimately, your conspiracy was
   comprised of two closely related schemes that affected at least thirteen
   different schools in eight different states across the United States.

   On February 4, 2010, you were sentenced to serve twenty-seven months in
   prison, to be followed by twenty-four months of supervised release for
   your role in the scheme to defraud the E-Rate program. You were also
   ordered to pay $271,716 in restitution to USAC for your role in the
   schemes.

   Pursuant to section 54.8 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 support mechanism.
   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 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, 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 reversal or modification of suspension within
   90 days of its receipt of such request.

   II. Initiation of Debarment Proceedings

   Your guilty plea and 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 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, 445 12th Street,
   S.W., Room TW-A325, Washington, D.C. 20554, 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,

   Hillary S. DeNigro

   Chief

   Investigations and Hearings Division

   Enforcement Bureau

   cc: United States Attorney's Office, Department of Justice (via e-mail)

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

   47 C.F.R. S: 54.8(g) (2008). See also 47 C.F.R. S: 0.111(a)(14).

   Letter from Hillary S. DeNigro, Chief, Investigations and Hearings
   Division, Enforcement Bureau, Federal Communications Commission, to Mr.
   Benjamin Rowner, Notice of Suspension and Initiation of Debarment
   Proceedings, 25 FCC Rcd 3512 (Inv. & Hearings Div., Enf. Bur. 2010)
   (Attachment 1) ("Notice of Suspension").

   75 Fed. Reg. 20846  (April 21, 2010).

   See Notice of Suspension, 25 FCC Rcd at 3513-15.

   See 47 C.F.R. S:S: 54.8 (e)(3), (4). That date occurred no later than May
   21, 2010. See supra note 3.

   See Notice of Suspension, 25 FCC Rcd at 3513. See also United States v.
   Benjamin Rowner, Criminal Docket No. 1:08-cr-00464-1, Plea Agreement (N.D.
   Ill. filed Feb. 4, 2010 and entered Mar. 15, 2010) ("Rowner Judgment");
   United States v. Benjamin Rowner, Criminal Docket No. 1:08-cr-00464-1,
   Plea Agreement (N.D. Ill. filed July 10, 2008 and entered July 14, 2008)
   ("Rowner Plea"); United States v. Benjamin Rowner and Jay H. Soled,
   Criminal Docket No. 1:08-cr-20047-01-02 CM/JPO, Information (D. Kan. filed
   and entered Apr. 23, 2008) ("Rowner and Soled Information").

   See Notice of Suspension, 25 FCC Rcd at 3513.

   Id.

   47 C.F.R. S: 54.8(c). See also S:S: 54.8(a)(4), (b)-(e).

   See 47 C.F.R. S:S: 54.8(e)(5), (g). See also Notice of Suspension, 25 FCC
   Rcd at 3515.

   See 47 C.F.R. S:S: 54.8(a)(1), (a)(5), (d), (g); Notice of Suspension, 25
   FCC Rcd at 3515.

   Any further reference in this letter to "your conviction" refers to your
   guilty plea and subsequent sentencing for conspiracy to defraud the United
   States. United States v. Benjamin Rowner, Criminal Docket No.
   1:08-cr-00464-1, Plea Agreement (N.D. Ill. filed Feb. 4, 2010 and entered
   Mar. 15, 2010) ("Rowner Judgment"); United States v. Benjamin Rowner,
   Criminal Docket No. 1:08-cr-00464-1, Plea Agreement (N.D. Ill. filed July
   10, 2008 and entered July 14, 2008) ("Rowner Plea"); United States v.
   Benjamin Rowner and Jay H. Soled, Criminal Docket No. 1:08-cr-20047-01-02
   CM/JPO, Information (D. Kan. filed and entered Apr. 23, 2008) ("Rowner and
   Soled Information").

   47 C.F.R. S: 54.8; 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).

   Rowner Plea at 2-3; see also Rowner and Soled Information at 5-12;
   Department of Justice Press Release (Apr. 23, 2008), available at
   http://www.justice.gov/atr/public/press_releases/2008/232526.htm ("DOJ
   April 2008 Press Release").

   Rowner Plea at 3-8; see also Rowner and Soled Information at 5-12.

   Rowner Plea at 3-8; see also Rowner and Soled Information at 5-12;
   Department of Justice Press Release (Feb. 4, 2010), available at
   http://chicago.fbi.gov/dojpressrel/pressrel10/cg020410a.htm ("DOJ February
   2010 Press Release").

   Rowner Plea at 3-8; see also Rowner and Soled Information at 5-12.

   Rowner Plea at 4-6; see also Rowner and Soled Information at 8-11 (Listing
   the schools and states including Wisconsin, Illinois, Kansas, California,
   Oregon, New York, New Jersey, and Arkansas); DOJ February 2010 Press
   Release at 1.

   Rowner Judgment at 2-3; see also DOJ February 2010 Press Release at 1.

   Rowner Judgment at 4-5 (You were also ordered to pay a $100 assessment);
   see also DOJ February 2010 Press Release at 1.

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

   47 C.F.R. S: 54.8(a)(1); see also 47 C.F.R. 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(e)(5).

   See Second Report and Order, 18 FCC Rcd at 9226, P: 70; see also 47 C.F.R.
   S: 54.8(e)(5),(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 47 C.F.R. S: 54.8(b), (c).

   See 47 C.F.R. S: 54.8(e)(3), (e)(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.

   See 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).

   Second Report and Order, 18 FCC Rcd at 9225, P: 67; 47 C.F.R. S:
   54.8(d),(g).

   47 C.F.R. S: 54.8(g).

   Mr. Benjamin Rowner

   June 23, 2010

   Page 3 of 3

                       Federal Communications Commission

                               Enforcement Bureau

                      Investigations and Hearings Division

                       445 12th Street, SW, Suite 4-C330

                             Washington, D.C. 20554

   Mr. Benjamin Rowner

   April 7, 2010

   Page 5 of 5

                                  Attachment 1

                       Federal Communications Commission

                               Enforcement Bureau

                      Investigations and Hearings Division

                       445 12th Street, SW, Suite 4-C330

                             Washington, D.C. 20554