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November 18, 2011
DA 11-1912
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND EMAIL
Dr. Dennis L. Bruno
c/o Mr. Arthur T. McQuillan
McQuillan Law Offices
206 Main Street
Johnstown, PA 15901
Re: Notice of Suspension and Initiation of Debarment Proceedings
FCC File No. EB-11-IH-1582
Dear Dr. Bruno:
The Federal Communications Commission ("Commission") has received notice
of your conviction of misappropriating federal education funds in
violation of 18 U.S.C S: 666(a)(1)(A), as well as your admission to
committing an offense related to 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 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 May 9, 2011,
you pled guilty to intentionally misappropriating $49,600 from the
Department of Education's Fund for the Improvement of Education program
from October 2005 to July 2006 in your capacity as Superintendent of the
Glendale School District. In connection with your guilty plea, you
admitted and stipulated in a plea agreement that you were involved in a
conspiracy to commit an offense against the United States related to the
E-Rate program. Specifically, you conspired with others to obtain
$414,421.92 from the E-Rate program. Your stipulation to conspiring to
commit an offense related to the E-Rate program constitutes the conduct or
transaction upon which this suspension notice and debarment proceeding are
based.
Pursuant to section 54.8(b) of the Commission's rules, 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 support mechanism, or consulting with, assisting, or advising
applicants or service providers regarding the schools and libraries
support mechanism. Your suspension becomes effective upon either the date
of your receipt of this notice or of its publication in the Federal
Register, whichever date occurs first.
In accordance with the Commission's debarment rules, you may contest this
suspension or the scope of this suspension by filing arguments, with any
relevant documents, within 30 calendar days after receipt of this letter
or after a 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 stipulation to participating in a
conspiracy 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. Your stipulation to conspiracy is 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, the Bureau is
required to commence debarment proceedings against you.
As with the suspension process, you may contest the proposed 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 or extend an existing
debarment period if necessary to protect the public interest.
Please direct any response, if sent 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 transmit a copy of your response via e-mail 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 by telephone at (202) 418-1697. You may contact me at
(202) 418-1553 or at the email address 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)
Stephanie L. Haines, United States Attorney's Office, Western Pennsylvania
(via email)
Any further reference in this letter to "your conviction" refers to your
conviction in United States v. Dennis L. Bruno, Criminal Docket No. 11-15
J, Information (W.D. Pa. 2011).
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 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 App. C at 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. Dennis L. Bruno, Criminal Docket No. 11-15 J, Arraignment
Plea. See also United States Attorney's Office, Western District of
Pennsylvania, News, Former Superintendent Pleads Guilty to Federal Program
Theft, May 9, 2011, at
http://www.justice.gov/usao/paw/news/2011/2011_may/2011_05_09_05.html
("Press Release").
Press Release at 1.
Id.
Second Report and Order, 18 FCC Rcd at 9226, P: 70; 47 C.F.R. S:
54.8(e)(2)(i).
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: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).
47 C.F.R. S: 54.8(b).
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).
Dr. Dennis L. Bruno
November 18, 2011
Page 2 of 4
Federal Communications Commission
Enforcement Bureau
Investigations and Hearings Division
445 12th Street, SW, Suite 4-C330
Washington, D.C. 20554