[Federal Register: March 22, 2006 (Volume 71, Number 55)]
[Notices]
[Page 14527-14529]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22mr06-74]
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FEDERAL COMMUNICATIONS COMMISSION
[DA 06-489]
Notice of Debarment; Schools and Libraries Universal Service
Support Mechanism
AGENCY: Federal Communications Commission.
ACTION: Notice.
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SUMMARY: The Federal Communications Commission (``FCC'' or
``Commission'') has received notice of the conviction of Premio, Inc.,
f/k/a Premio Computers, Inc. (``Premio'') for conspiracy to suppress
and eliminate competition in violation of the Sherman Antitrust Act, 15
U.S.C. 1, and for mail fraud and aiding and abetting in violation of 18
U.S.C. 1341 and 2. Consequently, pursuant to 47 CFR 54.521, this letter
constitutes official notice of Premio's suspension from the schools and
libraries universal service support mechanism (``E-rate program''). In
addition, the Enforcement Bureau (``Bureau'') hereby notifies Premio
that we are commencing debarment proceedings against it.
DATES: Within 90 days of receipt of any opposition to Premio's
suspension and proposed debarment, the Bureau, in the absence of
extraordinary circumstances, will provide Premio with notice of its
decision to debar. If the Bureau decides to debar Premio, its decision
will become effective upon the earlier of Premio's receipt of a
debarment notice or publication of the decision in the Federal
Register. March 22, 2006, Premio's request must be received within 30
days after it receives this letter or after notice is published in the
Federal Register, whichever comes first.
FOR FURTHER INFORMATION CONTACT: Diana Lee, Federal Communications
Commission, Enforcement Bureau, Investigations and Hearings Division,
Room 4-C330, 445 12th Street, SW., Washington, DC 20554. Diana Lee may
be contacted by phone at (202) 418-0843 or e-mail at diana.lee@fcc.gov.
If Ms. Lee is unavailable, you may contact Eric Bash by phone at (202)
418-1188 or e-mail at eric.bash@fcc.gov.
SUPPLEMENTARY INFORMATION: These actions constitute the conduct or
transactions upon which this debarment proceeding is based. Moreover,
Premio's conviction on the basis of these acts falls within the
categories of causes for debarment defined in section 54.521(c) of the
Commission's rules. Therefore, pursuant to Sec. 54.521(a)(4) of the
Commission's rules, Premio's conviction requires the Bureau to commence
debarment proceedings against it. The complete text of the suspension
letter is available for public inspections and copying during regular
business hours at the FCC Reference Information Center, Portal II, 445
12th Street, SW., Room CY-A257, Washington, DC 20554. In addition, the
complete text is available on the FCC's Web site at http://www.fcc.gov.
The text may also be purchased from the Commission's duplicating
contractor, Best Copy and Printing, Inc., Portals II, 445 12th Street,
SW., Room CY-B402,
[[Page 14528]]
Washington, DC 20554, telephone (202) 488-5300 or (800) 378-3160,
facsimile (202) 488-5563, or via e-mail http://www.bcpiweb.com.
Federal Communications Commission.
William H. Davenport,
Chief, Investigations and Hearings Division, Enforcement Bureau.
The notice of suspension and of proposed debarment letter follows:
February 28, 2006.
[DA 06-489]
Via Certified Mail
Return Receipt Requested
Mr. Tom Tsao, Vice President, Premio, Inc., 918 Radecki Court, City
of Industry, CA 91748.
Re: Notice of Suspension and of Proposed Debarment, File No. EB-
06-IH-0853
Dear Mr. Tsao: The Federal Communications Commission (``FCC'' or
``Commission'') has received notice of the conviction of Premio,
Inc., f/k/a Premio Computers, Inc. (``Premio'') for conspiracy to
suppress and eliminate competition in violation of the Sherman
Antitrust Act, 15 U.S.C. 1, and for mail fraud and aiding and
abetting in violation of 18 U.S.C. 1341 and 2.\1\ Consequently,
pursuant to 47 CFR 54.521, this letter constitutes official notice
of Premio's suspension from the schools and libraries universal
service support mechanism (``E-rate program''). In addition, the
Enforcement Bureau (``Bureau'') hereby notifies Premio that we are
commencing debarment proceedings against it.\2\
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\1\ Any further reference in this letter to ``your conviction''
refers to Premio's February 22, 2006 guilty plea and conviction of
these counts. United States v. Premio, Inc., Criminal Docket No.
3:06-CR-06-0086 MMC, Plea Agreement (N.D.Cal. filed Feb. 22, 2006)
(``Premio Plea Agreement''). The Order accepting this plea agreement
was signed by the Court on February 22, 2006 and entered on February
23, 2006, and the Plea Agreement was entered on February 24, 2006.
\2\ 47 CFR 54.521; 47 CFR 0.111(a)(14) (delegating to the
Enforcement Bureau authority to resolve universal service suspension
and debarment proceedings pursuant to 47 CFR 54.521).
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Notice of Suspension
Pursuant to section 54.521(a)(4) of the Commission's rules,\3\
Premio's conviction requires the Bureau to suspend it from
participating in any activities associated with or related to the
schools and libraries fund 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.\4\ Premio's suspension becomes effective upon the earlier
of its receipt of this letter or publication of notice in the
Federal Register.\5\
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\3\ 47 CFR 54.521(a)(4). See Schools and Libraries Universal
Service Support Mechanism, Second Report and Order and Further
Notice of Proposed Rulemaking, 18 FCC Rcd 9202, 9225-9227, ]] 67-74
(2003) (``Second Report and Order'').
\4\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 U.S.C.
254; 47 CFR 54.502-54.503; 47 CFR 54.521(a)(4).
\5\ Second Report and Order, 18 FCC Rcd at 9226, ] 69; 47 CFR
54.521(e)(1).
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Suspension is immediate pending the Bureau's final debarment
determination. Premio may contest this suspension or the scope of
this suspension by filing arguments in opposition to the suspension,
with any relevant documentation. Premio's request must be received
within 30 days after it receives this letter or after notice is
published in the Federal Register, whichever comes first.\6\ Such
requests, however, will not ordinarily be granted.\7\ The Bureau may
reverse or limit the scope of suspension only upon a finding of
extraordinary circumstances.\8\ Absent extraordinary circumstances,
the Bureau will decide any request for reversal or modification of
suspension within 90 days of its receipt of such request.\9\
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\6\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR
54.521(e)(4).
\7\ Second Report and Order, 18 FCC Rcd at 9226, ] 70.
\8\ 47 CFR 54.521(e)(5).
\9\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47
CFR 54.521(e)(5), 54.521(f).
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I. Notice of Proposed Debarment
A. Reasons for and Cause of Debarment
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.\10\ Premio pled guilty to antitrust, mail fraud and aiding
and abetting charges for activities in connection with its
participation in the E-rate program with two school districts in
California.
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\10\ Second Report and Order, 18 FCC Rcd at 9225, ] 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 CFR 54.521(a)(6).
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In connection with the antitrust crime charged against Premio,
the company admitted that it conspired with one or more vendors of
equipment and services related to telecommunications, Internet
access and/or internal connections to suppress and eliminate
competition for E-rate projects in the West Fresno Elementary School
District by allocating contracts and submitting fraudulent and non-
competitive bids. More specifically, the company discussed
prospective bids for the E-rate project with its co-conspirators,
agreed with them who would serve as lead contractor and
subcontractor on the project, and worked with consultants who
awarded, or influenced the award of, contracts to the conspirators,
and disqualified bids from non-conspirators.\11\ In connection with
the mail fraud charged against Premio, the company admitted that it
sought payment of more than $1 million in E-rate funding for
telecommunications servers and related installation and maintenance
it was purportedly going to provide to the Highland Park School
District in California, when in fact it actually delivered
ineligible video conferencing equipment.\12\
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\11\ See Premio Plea Agreement at 5.
\12\ See Premio Plea Agreement at 5-7.
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These actions constitute the conduct or transactions upon which
this debarment proceeding is based.\13\ Moreover, Premio's
conviction on the basis of these acts falls within the categories of
causes for debarment defined in section 54.521(c) of the
Commission's rules.\14\ Therefore, pursuant to section 54.521(a)(4)
of the Commission's rules, Premio's conviction requires the Bureau
to commence debarment proceedings against it.
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\13\ Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47 CFR
54.521(e)(2)(i).
\14\ ``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 CFR
54.521(c). 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 schools and libraries support mechanism
described in this section ([47 CFR] Sec. 54.500 et seq.).'' 47 CFR
54.521(a)(1).
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B. Debarment Procedures
Premio 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.\15\ Absent extraordinary
circumstances, the Bureau will debar Premio.\16\ Within 90 days of
receipt of any opposition to Premio's suspension and proposed
debarment, the Bureau, in the absence of extraordinary
circumstances, will provide Premio with notice of its decision to
debar.\17\ If the Bureau decides to debar Premio, its decision will
become effective upon the earlier of Premio's receipt of a debarment
notice or publication of the decision in the Federal Register.\18\
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\15\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; 47
CFR 54.521(e)(2)(i), 54.521(e)(3).
\16\ Second Report and Order, 18 FCC Rcd at 9227, ] 74.
\17\ See id., 18 FCC Rcd at 9226, ] 70; 47 CFR 54.521(e)(5).
\18\ 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 CFR 54.521(f).
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C. Effect of Debarment
If and when Premio's debarment becomes effective, it will be
prohibited from participating in activities associated with or
related to the schools and libraries support mechanism for some
period of time.\19\
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\19\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR
54.521(d), 54.521(g).
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Please direct any responses to the following address: Diana Lee,
Federal Communications Commission, Enforcement Bureau,
Investigations and Hearings Division, Room 4-C443, 445 12th Street,
SW., Washington, DC 20554.
[[Page 14529]]
If Premio submits its response via hand-delivery or non-United
States Postal Service delivery (e.g., Federal Express, DHL, etc.),
please send the response to Ms. Lee at the following address:
Federal Communications Commission, 9300 East Hampton Drive, Capitol
Heights, MD 20743.
If Premio has any questions, please contact Ms. Lee via mail, by
telephone at (202) 418-1420 or by e-mail at diana.lee@fcc.gov. If
Ms. Lee is unavailable, you may contact Eric Bash by telephone at
(202) 418-1188 and by e-mail at eric.bash@fcc.gov.
Sincerely yours,
William H. Davenport,
Chief, Investigations and Hearings Division, Enforcement Bureau.
cc: Paul J. Loh, Esq., Willenken Wilson Loh & Lieb, LLP.
Michael F. Wood, Esq., United States Department of Justice,
Antitrust Division.
Sara Winslow, Esq., Assistant United States Attorney.
Alicia Bentley, Esq., United States Department of Justice, Civil
Division.
Kristy Carroll, Esq., USAC.
[FR Doc. E6-4138 Filed 3-21-06; 8:45 am]
BILLING CODE 6712-01-P