Click here for Adobe Acrobat 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.
*****************************************************************
February 14, 2012
DA 12-212
VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED
AND E-MAIL
Mr. Jeremy R. Sheets
c/o Mr. Martin E. Crandall
Clark Hill PLC
500 Woodward Ave., Suite 3500
Detroit, MI 48226-3435
Re: Notice of Debarment
File No. EB-11-IH-1122
Dear Mr. Sheets:
The Federal Communications Commission (Commission) hereby notifies you
that, pursuant to Section 54.8 of its rules, you are prohibited from
participating in the schools and libraries universal service support
mechanism (E-Rate program) for three years from either the date of your
receipt of this Notice of Debarment, or of its publication in the Federal
Register, whichever is earlier in time (Debarment Date).
On October 18, 2011, the Commission's Enforcement Bureau (Bureau) sent you
a Notice of Suspension and Initiation of Debarment Proceeding (Notice of
Suspension) that was published in the Federal Register on November 7,
2011. The Notice of Suspension suspended you from participating in
activities associated with or relating to the E-Rate program and described
the basis for initiating debarment proceedings against you, the applicable
debarment procedures, and the effect of debarment.
As discussed in the Notice of Suspension, as president and co-owner of CMS
Internet LLC (CMS), you devised and participated in a scheme to defraud
the E-Rate program, which resulted in a loss to the program of up to
$70,000. Specifically, you made materially false representations that
induced two school districts to steer E-rate contracts to CMS; and you
paid the school applicants' share of E-Rate expenses with purported
"donations" and "leasing payments." Furthermore, you failed to disclose
that you purchased ineligible goods and services with E-Rate funds.
Finally, you obstructed a 2007 federal grand jury investigation by
instructing a CMS employee to testify falsely about receiving gifts and to
destroy computer records. As a result of your conviction for wire fraud,
the United States District Court for the Western District of Michigan
sentenced you to serve 15 months in federal prison, followed by two years
of supervised release for defrauding the E-Rate program. The court also
prohibited you from "having any involvement with any government-backed or
federally-regulated programs during the course of supervision." The court
ordered you to pay a $12,000 criminal fine in addition to paying Universal
Service Administration Company (USAC) $115,534 in restitution. Pursuant to
Section 54.8(c) of the Commission's rules, your conviction of criminal
conduct in connection with the E-Rate program serves as a basis for your
debarment.
In accordance with the Commission's debarment rules, you were required to
file with the Commission any opposition to your suspension or its scope,
or to your proposed debarment or its scope, no later than 30 calendar days
from either the date of your receipt of the Notice of Suspension or of its
publication in the Federal Register, whichever date occurred first. The
Commission did not receive any such opposition.
For the foregoing reasons, you are debarred from participating in the
E-Rate program for three years from the Debarment Date. During this
debarment period, you are excluded from participating in any activities
associated with or related to the E-Rate program, including the receipt of
funds or discounted services through the E-Rate program, or consulting
with, assisting, or advising applicants or service providers regarding the
E-Rate program.
Sincerely,
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 e-mail)
Jason C. Turner, Antitrust Division, United States Department of Justice
(via email)
Jennifer M. Dixton, Antitrust Division, United States Department of
Justice (via email)
Meagan D. Johnson, Antitrust Division, United States Department of Justice
(via email)
47 C.F.R. S: 54.8(g) (2010). See also 47 C.F.R. S: 0.111 (delegating
authority to the Enforcement Bureau to resolve universal service
suspension and debarment proceedings).
Letter from Theresa Z. Cavanaugh, Acting Chief, Investigations and
Hearings Division, Enforcement Bureau, Federal Communications Commission,
to Jeremy R. Sheets, Notice of Suspension and Initiation of Debarment
Proceeding, DA 11-1733, 26 FCC Rcd 14408 (Inv. & Hearings Div., Enf. Bur.
2011) (Attachment 1).
76 Fed. Reg. 68760 (Nov. 7, 2011).
Notice of Suspension, 26 FCC Rcd at 14409.
Id.
Id.
Id.
See United States v. Jeremy R. Sheets, Criminal Case No. 1:10-cr-380,
Judgment (W.D. Mi. 2011).
Id. A condition of your supervised release includes forfeiting all
monetary claims pending under contract with other E-Rate school
applicants. Telephone Conversation with Jason Turner, Lead Counsel, Dep't
of Justice, Antitrust Division (Aug. 10, 2011).
Supra note 5.
47 C.F.R. S: 54.8(c).
Id. S:S: 54.8 (e)(3), (4). Any opposition had to be filed no later than
November 17, 2011.
Id. S:S: 54.8(e)(5), (g).
47 C.F.R. S:S: 54.8(a)(1), (5), (d).
Jeremy R. Sheets
February 14, 2012
Page 3
WASHINGTON, DC 20554
FEDERAL COMMUNICATIONS COMMISSION
Enforcement Bureau
Investigations and Hearings Division