[Federal Register Volume 75, Number 133 (Tuesday, July 13, 2010)]
[Notices]
[Pages 39943-39945]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-17029]
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
[DA 10-1113]
Notice of Debarment; Schools and Libraries Universal Service
Support Mechanism
AGENCY: Federal Communications Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Federal Communications Commission (the ``Commission'')
debars Mr. Soled from the schools and libraries universal service
support mechanism for a period of three years.
DATES: Debarment commences on the date Mr. Jay H. Soled receives the
debarment letter or July 13, 2010, whichever date comes first, for a
period of three years.
FOR FURTHER INFORMATION CONTACT: Mindy Littell, Federal Communications
Commission, Enforcement Bureau, Investigations and Hearings Division,
Room 4-A331, 445 12th Street, SW., Washington, DC 20554. Mindy Littell
may be contacted by phone at (202) 418-0789 or e-mail at
Mindy.Littell@fcc.gov. If Ms. Littell is unavailable, you may contact
Mr. Trent Harkrader, Deputy Chief, Investigations and Hearings
Division, by telephone at (202) 418-2955 and by e-mail at
Trent.Harkrader@fcc.gov.
SUPPLEMENTARY INFORMATION: The Commission debarred Mr. Soled from the
schools and libraries universal service support mechanism for a period
of three years pursuant to 47 CFR 521 and 47 CFR 0.111(a)(14). Attached
is the debarment letter, DA 10-1113, which was mailed to Mr. Soled and
released on June 23, 2010. The complete text of the notice of debarment
is available for public inspection 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
inspection and copying during regular business hours at the contractor,
Best Copy and Printing, Inc., Portal II, 445 12th Street, SW., Room CY-
B420, 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.
Hillary S. DeNigro,
Chief, Investigations and Hearings Division, Enforcement Bureau.
The debarment letter follows:
June 23, 2010
DA 10-1113
VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED AND E-MAIL (law.com">mdm@monico-law.com) AND FACSIMILE (312) 853-2187
Mr. Jay H. Soled,
c/o Monico, Pavich & Spevack
Attn: Michael D. Monico
20 South Clark Street, Suite 700
Chicago, IL 60603
Re: Notice of Debarment
File No. EB-10-IH-2080
Dear Mr. Soled:
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.\1\
---------------------------------------------------------------------------
\1\ 47 CFR 54.8(g) (2008). See also 47 CFR 0.111(a)(14).
---------------------------------------------------------------------------
On April 7, 2010, the Enforcement Bureau (the ``Bureau'') sent you
a Notice of Suspension and Initiation of Debarment Proceedings (the
``Notice of Suspension'').\2\ That Notice of Suspension was published
in the Federal Register on April 21, 2010.\3\ 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.\4\
---------------------------------------------------------------------------
\2\ Letter from Hillary S. DeNigro, Chief, Investigations and
Hearings Division, Enforcement Bureau, Federal Communications
Commission, to Mr. Jay H. Soled, Notice of Suspension and Initiation
of Debarment Proceedings, 25 FCC Rcd 3517 (Inv. & Hearings Div.,
Enf. Bur. 2010) (Attachment 1) (``Notice of Suspension'').
\3\ 75 FR 20844 (April 21, 2010).
\4\ See Notice of Suspension, 25 FCC Rcd at 3518-21.
---------------------------------------------------------------------------
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.\5\ The
Commission did not receive any such opposition.
---------------------------------------------------------------------------
\5\ See 47 CFR 54.8(e)(3), (4). That date occurred no later than
May 21, 2010. See supra note 3.
---------------------------------------------------------------------------
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.\6\ 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.\7\ You were also
ordered to pay $271,716 in restitution to USAC for your role in the
schemes.\8\ 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.\9\ 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.\10\
---------------------------------------------------------------------------
\6\ See Notice of Suspension, 25 FCC Rcd at 3518. See also
United States v. Jay H. Soled, Criminal Docket No. 1:08-cr-00464-2,
Plea Agreement (N.D. Ill. filed Feb. 4, 2010 and entered Mar. 15,
2010) (``Soled Judgment''); United States v. Jay H. Soled, Criminal
Docket No. 1:08-cr-00464-2, Plea Agreement (N.D. Ill. filed July 10,
2008 and entered July 14, 2008) (``Soled 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'').
\7\ See Notice of Suspension, 25 FCC Rcd at 3518.
\8\ Id.
\9\ 47 CFR 54.8(c). See also 54.8(a)(4), (b)-(e).
\10\ See 47 CFR 54.8(e)(5), (g). See also Notice of Suspension,
25 FCC Rcd at 3520.
---------------------------------------------------------------------------
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
[[Page 39944]]
applicants or service providers regarding the schools and libraries
support mechanism.\11\
---------------------------------------------------------------------------
\11\ See 47 CFR 54.8(a)(1), (a)(5), (d), (g); Notice of
Suspension, 25 FCC Rcd at 3520.
---------------------------------------------------------------------------
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 10-585
VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED AND E-MAIL (law.com">mdm@monico-law.com) AND FACSIMILE (312) 853-2187
Mr. Jay H. Soled
c/o Monico, Pavich & Spevack
Attn: Michael D. Monico
20 South Clark Street, Suite 700
Chicago, IL 60603
Re: Notice of Suspension and Initiation of Debarment Proceedings,
File No. EB-10-IH-2080
Dear Mr. Soled:
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. 371 in connection with your
participation in the schools and libraries universal service support
mechanism (``E-Rate program'').\12\ Consequently, pursuant to 47 CFR
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.\13\
---------------------------------------------------------------------------
\12\ 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. Jay H. Soled,
Criminal Docket No. 1:08-cr-00464-2, Plea Agreement (N.D. Ill. filed
Feb. 4, 2010 and entered Mar. 15, 2010) (``Soled Judgment''); United
States v. Jay H. Soled, Criminal Docket No. 1:08-cr-00464-2, Plea
Agreement (N.D. Ill. filed July 10, 2008 and entered July 14, 2008)
(``Soled 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'').
\13\ 47 CFR 54.8; see also 47 CFR 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)).
---------------------------------------------------------------------------
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.\14\ On July 10, 2008, you, Jay H. Soled, 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.\15\ 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.\16\ 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.\17\
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.\18\ 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.\19\
---------------------------------------------------------------------------
\14\ 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 54.8(a)(6).
\15\ Soled 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'').
\16\ Soled Plea at 3-8; see also Rowner and Soled Information at
5-12.
\17\ Soled 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'').
\18\ Soled Plea at 3-8; see also Rowner and Soled Information at
5-12.
\19\ Soled 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.
---------------------------------------------------------------------------
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.\20\
You were also ordered to pay $271,716 in restitution to USAC for your
role in the schemes.\21\
---------------------------------------------------------------------------
\20\ Soled Judgment at 2-3; see also DOJ February 2010 Press
Release at 1.
\21\ Soled Judgment at 4-5 (You were also ordered to pay a $100
assessment); see also DOJ February 2010 Press Release at 1.
---------------------------------------------------------------------------
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.\22\ 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.\23\
---------------------------------------------------------------------------
\22\ 47 CFR 54.8(b)-(e); see also 47 CFR 54.8(a)(4); Second
Report and Order, 18 FCC Rcd at 9225-27, ]] 67-74.
\23\ 47 CFR 54.8(a)(1); see also 47 CFR 54.8(a)(3).
---------------------------------------------------------------------------
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.\24\ 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.\25\ 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.\26\
Such requests, however, will not ordinarily be granted.\27\ The Bureau
may reverse or limit the scope of suspension only upon a finding of
extraordinary
[[Page 39945]]
circumstances.\28\ The Bureau will decide any request for reversal or
modification of suspension within 90 days of its receipt of such
request.\29\
---------------------------------------------------------------------------
\24\ 47 CFR 54.8(a)(7), (e)(1); see also Second Report and
Order, 18 FCC Rcd at 9226, ] 69.
\25\ 47 CFR 54.8(e)(4).
\26\ Id.
\27\ Id.
\28\ 47 CFR 54.8(e)(5).
\29\ See Second Report and Order, 18 FCC Rcd at 9226, ] 70; see
also 47 CFR 54.8(e)(5), (f).
---------------------------------------------------------------------------
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.\30\ Therefore, pursuant to section
54.8 of the Commission's rules, your conviction requires the Bureau to
commence debarment proceedings against you.\31\
---------------------------------------------------------------------------
\30\ ``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
54.8(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 CFR 54.8(a)(1).
\31\ See 47 CFR 54.8(b), (c).
---------------------------------------------------------------------------
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.\32\ Absent
extraordinary circumstances, the Bureau will debar you.\33\ The Bureau
will decide any request for reversal or limitation of debarment within
90 days of receipt of such request.\34\ 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.\35\
---------------------------------------------------------------------------
\32\ See 47 CFR 54.8(e)(3), (e)(5); see also Second Report and
Order, 18 FCC Rcd at 9226, ] 70.
\33\ 47 CFR 54.8(e)(5); see also Second Report and Order, 18 FCC
Rcd at 9227, ] 74.
\34\ See 47 CFR 54.8(e)(5), (f); see also Second Report and
Order, 18 FCC Rcd at 9226, ] 70.
\35\ 47 CFR 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 CFR
54.8(f).
---------------------------------------------------------------------------
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.\36\ The Bureau may, if necessary to protect the
public interest, extend the debarment period.\37\
\36\ Second Report and Order, 18 FCC Rcd at 9225, ] 67; 47 CFR
54.8(d), (g).
\37\ 47 CFR 54.8(g).
---------------------------------------------------------------------------
Please direct any response, if by messenger or hand delivery, to
Marlene H. Dortch, Secretary, Federal Communications Commission, 445
12th Street, SW., Room TW-A325, Washington, DC 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, SW., 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, SW., Room
4-C330, Washington, DC 20554. You shall also transmit a copy of the
response via e-mail 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)
[FR Doc. 2010-17029 Filed 7-12-10; 8:45 am]
BILLING CODE 6712-01-P