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.
*****************************************************************
July 27, 2011
DA 11-1270
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FACSIMILE
Mr. Barrett C. White
c/o Mr. H. Thomas Murphy III
H. Thomas Murphy, LLC
1029 Milan Street
New Orleans, LA 70115
Re: Notice of Suspension and Initiation of Debarment Proceedings,
File No. EB-11-IH-1075
Dear Mr. White:
The Federal Communications Commission ("FCC" or "Commission") has received
notice of your conviction of conspiracy to defraud the United States in
violation of 18 U.S.C S: 371 in connection with your participation in the
federal 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 the
Bureau will commence 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 March 3,
2011, you entered a plea agreement and pleaded guilty to intentionally
conspiring with others to defraud and obtain money from the federal E-Rate
Program. Specifically, on behalf of your co-conspirators' company, Global
Network Technologies, Inc. ("GNT"), beginning approximately February 2004
through August 2005 you offered and delivered $28,500 in bribes and
kickbacks to various school officials in exchange for ceding control of
the schools' E-Rate program to GNT and CTA. You also accepted fraudulent
billing invoices from a school employee for services never provided by the
employee, and concealed the source of your payments to school officials by
paying them from a bank account not readily associated with your
co-conspirators or their companies. These actions constitute the conduct
or transactions upon which this suspension notice and proposed debarment
proceeding is based.
On June 9, 2011, you were sentenced to serve one year and one day in
prison, followed by a two year period of supervised release, for
conspiring to defraud the federal E-Rate program in multiple states. You
also were ordered to pay a $4,000 fine for your role in the conspiracy
scheme.
Pursuant to section 54.8(b) of the Commission's rules, upon your
conviction, the Bureau is required to suspend you from participating in
any 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 fund mechanism, or consulting with,
assisting, or advising applicants or service providers regarding the
schools and libraries support mechanism. Your suspension becomes effective
upon receipt of this letter, or publication of the notice in the Federal
Register, whichever comes first.
In accordance with the Commission's debarment rules, you may contest this
suspension or the scope of this suspension by filing arguments, along with
any relevant documents, within 30 calendar days after receipt of 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 to reverse or modify a suspension within 90
calendar days of its receipt of such request.
II. Initiation of Debarment Proceedings
As discussed above, your guilty plea and conviction of criminal conduct in
connection with the E-Rate program serves as a basis for immediate
suspension from the program, as well as a basis to commence debarment
proceedings against you. Conviction of criminal fraud is a cause for
debarment as defined in section 54.8(c) of the Commission's rules.
Therefore, pursuant to section 54.8(b) of the rules, your conviction
requires the Bureau to commence debarment proceedings against you.
As with the suspension process, you may contest the debarment or the scope
of the proposed debarment by filing arguments and any relevant
documentation within 30 calendar days of receipt of this letter or
publication in the Federal Register, whichever comes first. The Bureau, in
the absence of extraordinary circumstances, will notify you of its
decision to debar within 90 calendar days of receiving any information you
may have filed. If the Bureau decides to debar you, its decision will
become effective upon either your receipt of a debarment notice or
publication of the decision in the Federal Register, whichever comes
first.
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 set a longer debarment period if necessary to protect the
public interest.
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 Joy M.
Ragsdale, Attorney Advisor, Investigations and Hearings Division,
Enforcement Bureau, Room 4-A236, with a copy to Theresa Z. Cavanaugh,
Acting Division Chief, Investigations and Hearings Division, Enforcement
Bureau, Room 4-C322, Federal Communications Commission. All messenger or
hand-delivery filings must be submitted without envelopes. If sent by
commercial overnight mail (other than U.S. Postal Service (USPS) Express
Mail and Priority Mail), the response must be sent to the Federal
Communications Commission, 9300 East Hampton Drive, Capitol Heights,
Maryland 20743. If sent by USPS First Class, Express Mail, or Priority
Mail, the response should be addressed to Joy Ragsdale, Attorney Advisor,
Investigations and Hearings Division, Enforcement Bureau, Federal
Communications Commission, 445 12th Street, S.W., Room 4-A236, Washington,
D.C. 20554, with a copy to Theresa Z. Cavanaugh, Acting Division Chief,
Investigations and Hearings Division, Enforcement Bureau, Federal
Communications Commission, 445 12th Street, S.W., Room 4-C322, Washington,
D.C. 20554. You shall also, to the extent practicable, transmit a copy of
the response via email to Joy M. Ragsdale, joy.ragsdale@fcc.gov and to
Theresa Z. Cavanaugh, Terry.Cavanaugh@fcc.gov.
If you have any questions, please contact Ms. Ragsdale via U.S. postal
mail, e-mail, or telephone at (202) 418-7931. You may contact me at (202)
418-1420 or at the email addressed noted above if Ms. Ragsdale is
unavailable.
Sincerely yours,
Theresa Z. Cavanaugh
Acting Chief
Investigations and Hearings Division
Enforcement Bureau
cc: Johnnay Schrieber, Universal Service Administrative Company (via
e-mail)
Rashann Duvall, Universal Service Administrative Company (via email)
Juan Rodriguez, Antitrust Division, United States Department of Justice
(via e-mail)
Stephanie Toussaint, Antitrust Division, United States Department of
Justice (via e-mail)
Any further reference in this letter to "your conviction" refers to your
conviction of count one in Case No. 10-324-L. United States v. Barrett C.
White, Criminal Docket No. 10-324-L, Judgment (E.D.LA. filed June 9, 2011)
("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; Rural
Health Care 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")
(section 54.521 of the universal service debarment rules was renumbered as
section 54.8 and subsections (a)(1), (5), (c), (d), (e)(2)(i), (3),
(e)(4), and (g) were amended.)
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).
United States v. Barrett C. White, Criminal Case No. 10-324-L, Judgment
at 2 (E.D.LA. filed June 9, 2011).
By letter, the Bureau will serve notice of suspension and initiation of
debarment proceedings to Tyrone D. Pipkin, a partner in CTA, who pleaded
guilty and was convicted on June 21, 2011 for his role in the conspiracy.
The Bureau will also serve notice of suspension and initiation of
debarment proceedings to Gloria F. Harper, who pleaded guilty to
conspiracy on June 2, 2011, and awaits sentencing. See Justice News, Dep't
of Justice, Owner of Illinois Technology Company Sentenced to Serve 12
Months and a Day in Prison for Role in Conspiracy to Defraud the Federal
E-Rate Program, June 9, 2011, at
http://www.justice.gov/opa/pr/2011/June/11-at-755.html ("Press Release").
United States v. Barrett C. White, Criminal Case No. 10-324-L, Factual
Basis at 2 (E.D.LA. filed Mar. 3, 2011) ("Factual Basis"). CTA and GNT
marketed and provided E-Rate services to schools in Arkansas and
Louisiana. Id.; United States v. Barrett C. White, Criminal Case No.
10-324-L, Information at 2 (E.D.LA. filed Nov. 18, 2011) ("Information").
Information at 4.
Factual Basis at 2-3.
Second Report and Order, 18 FCC Rcd at 9226, P: 70; 47 C.F.R. S:
54.8(e)(2)(i).
Press Release at 1; Judgment at 3.
Judgment at 5. You were also ordered to immediately pay a Special
Assessment of $100. Id.
47 C.F.R. S: 54.8(b). See Second Report and Order, 18 FCC Rcd at
9225-9227, P:P: 67-74.
47 C.F.R. S: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(f).
Second Report and Order, 18 FCC Rcd at 9226, P: 70; 47 C.F.R. S:S:
54.8(e)(5), (f).
"Causes for suspension and debarment are 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). Associated 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).
Second Report and Order, 18 FCC Rcd at 9226, P: 70; 47 C.F.R. S:
54.8(e)(3).
Id., 18 FCC Rcd at 9226, P: 70; 47 C.F.R. S: 54.8(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: 54.8(f).
Second Report and Order, 18 FCC Rcd at 9225, P: 67; 47 C.F.R. S:S:
54.8(d), (g).
Id.
See FCC Public Notice, DA 09-2529 for further filing instructions (rel.
Dec. 3, 2009).
Barrett C. White
July 27, 2011
Page 5 of 5
Federal Communications Commission
Enforcement Bureau
Investigations and Hearings Division
445 12th Street, SW, Suite 4-C330
Washington, D.C. 20554