80 FR 39429 - Notice of Suspension and Commencement of Proposed Debarment Proceedings; Federal Lifeline Universal Service Support Mechanism

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 80, Issue 131 (July 9, 2015)

The Enforcement Bureau (Bureau) gives notice of Icon Telecom, Inc.'s (Icon or Company) suspension from the federal Lifeline universal service support mechanism (Lifeline program) and the commencement of debarment proceedings against the Company. Suspension immediately excludes Icon from activities associated with or related to the Lifeline program pending completion of the debarment process. Icon, or any person who has an existing contract with or intends to contract with the Company to provide or receive services in matters arising out of activities associated with or related to the Lifeline program, may contest this suspension or its scope by filing an opposition and any relevant documentation.

[Federal Register Volume 80, Number 131 (Thursday, July 9, 2015)]
[Notices]
[Pages 39429-39430]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-16777]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 15-627]


Notice of Suspension and Commencement of Proposed Debarment 
Proceedings; Federal Lifeline Universal Service Support Mechanism

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Enforcement Bureau (Bureau) gives notice of Icon Telecom, 
Inc.'s (Icon or Company) suspension from the federal Lifeline universal 
service support mechanism (Lifeline program) and the commencement of 
debarment proceedings against the Company. Suspension immediately 
excludes Icon from activities associated with or related to the 
Lifeline program pending completion of the debarment process. Icon, or 
any person who has an existing contract with or intends to contract 
with the Company to provide or receive services in matters arising out 
of activities associated with or related to the Lifeline program, may 
contest this suspension or its scope by filing an opposition and any 
relevant documentation.

DATES: Any opposition must be received within 30 days from the receipt 
of the suspension letter or July 9, 2015, whichever comes first. The 
Bureau will decide any opposition within 90 days of its receipt.

ADDRESSES: Federal Communications Commission, Enforcement Bureau, 
Investigations and Hearings Division, Room 4-A422, 445 12th Street SW., 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Ms. Celia Lewis, Paralegal Specialist, 
Federal Communications Commission, Enforcement Bureau, Investigations 
and Hearings Division, Room 4-A422, 445 12th Street SW., Washington, DC 
20554. Celia Lewis may be contacted by telephone at (202) 418-7456 or 
email at [email protected]. If Ms. Lewis is unavailable, you may 
contact Mr. Kalun Lee, Deputy Chief, Investigations and Hearings 
Division, by telephone at (202) 418-0796 or email at [email protected].

SUPPLEMENTARY INFORMATION: The Bureau has suspension and debarment 
authority pursuant to 47 CFR 54.8 and 0.111(a)(14). Icon's conviction 
for making a false statement in violation of 18 U.S.C. 1002(a)(2), in 
connection with fraudulent claims against the Lifeline program, 
requires the Bureau to suspend the Company from participating in 
activities associated with the Lifeline program. Attached is the notice 
of suspension and initiation of debarment proceeding (Notice of 
Suspension), DA 15-627, which was mailed to Icon and released on May 
26, 2015. The complete text of the Notice of Suspension 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.

Federal Communications Commission.
Jeffrey J. Gee,
Chief, Investigations and Hearings Division, Enforcement Bureau.

May 26, 2015
DA 15-627

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

Mr. Wes Yui Chew, President, Icon Telecom, Inc., c/o Daniel G. 
Webber, Jr., Ryan Whaley Coldiron Shandy PLLC, 119 N. Robinson 
Avenue, Suite 900, Oklahoma City, OK 73102

Re: Notice of suspension and initiation of debarment proceeding File 
No. EB-IHD-15-00019108

    Dear Mr. Chew: The Federal Communications Commission 
(Commission) has received notice of the conviction of Icon Telecom, 
Inc. (Icon or Company) for making a false statement in violation of 
18 U.S.C. 1002(a)(2), in connection with fraudulent claims against 
the federal Lifeline telephone program (Lifeline program).\1\ 
Pursuant to its rules, the Enforcement Bureau (Bureau) hereby 
suspends Icon from participating in activities associated with the 
Lifeline program.\2\ The Bureau is also commencing a proceeding to 
debar Icon from future participation in the Lifeline program.\3\
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    \1\ Any further reference in this letter to ``your conviction'' 
refers to your guilty plea and subsequent sentencing in United 
States v. Icon Telecom, Criminal Docket No. 5:14-cr-00170-D, Plea 
Agreement (W.D. Okla. filed June 12, 2014) (Plea Agreement). See 
also Lifeline and Link Up Reform and Modernization, WC Docket No. 
11-42, CC Docket No. 96-45, WC Docket No. 03-109, Report and Order 
and Further Notice of Proposed Rulemaking, 27 FCC Rcd 6656 (2012) 
(Lifeline Reform Order).
    \2\ 47 CFR 54.8.
    \3\ Id.; 47 CFR 0.111 (delegating to the Bureau authority to 
resolve universal service suspension and debarment proceedings). In 
2007, the Commission extended the debarment rules to apply to all 
federal universal service support mechanisms, including Lifeline. 
See Comprehensive Review of the Universal Service Fund Management, 
Administration, & Oversight, 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), (a)(5), (c), (d), (e)(2)(i), (e)(3), 
(e)(4), and (g)).
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I. Notice of Suspension

    Any corporation that has ``defrauded the government or engaged 
in similar acts through activities associated with or related to the 
[Lifeline program]'' may be prohibited from receiving the benefits 
associated with that program.\4\ The Lifeline program is a 
government program that provides support to eligible 
telecommunications carriers (ETCs) that in turn offer discounts on 
telephone service for eligible low-income consumers.\5\

[[Page 39430]]

An ETC may receive reimbursement in connection with the Lifeline 
program only if it certifies as part of its reimbursement request 
that it is in compliance with the Lifeline rules.\6\
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    \4\ Program Management Order, 22 FCC Rcd at 16387, para. 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 CFR 54.8(a)(6).
    \5\ See Lifeline Reform Order, 27 FCC Rcd at 6662-67, paras. 11-
18; see also 47 CFR 54.400-54.422.
    \6\ See 47 CFR 54.407(d).
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    Icon participated in the Lifeline program from July 2011 until 
September 2013.\7\ On June 12, 2014, Icon pled guilty to knowingly 
making a false statement to the Universal Service Administrative 
Company \8\ through its submission of 58 fabricated customer 
recertification forms, which included fictitious signatures, in 
response to an audit request.\9\
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    \7\ United States v. Icon Telecom, Criminal Docket No. 5:14-cr-
00170-D, Information at 4 (W.D. Okla. filed June 3, 2014) 
(Information).
    \8\ The Universal Service Administrative Company (USAC) is an 
independent, not-for-profit corporation designated by the Commission 
as the administrator of the Lifeline program. See About USAC, http://www.usac.org/about/.
    \9\ Information at 8; Plea Agreement at 2; see also United 
States Attorney's Office, Western District of Oklahoma, Press 
Release, Icon Telecom and Its Owner Plead Guilty And Agree To 
Forfeit More Than $27 Million In Connection With Federal Wireless 
Telephone Subsidy Program, June 12, 2014, available at http://www.justice.gov/usao-wdok/pr/icon-telecom-and-its-owner-plead-guilty-and-agree-forfeit-more-27-million-connection.
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    Pursuant to section 54.8(b) of the Commission's rules,\10\ 
Icon's conviction requires the Bureau to suspend it from 
participating in any activities associated with or related to the 
Lifeline program, including receiving funds or discounted services 
through the Lifeline program, or consulting with, assisting, or 
advising applicants or service providers regarding the Lifeline 
program.\11\ Icon's suspension becomes effective upon either its 
receipt of this letter or publication of the suspension in the 
Federal Register, whichever comes first.\12\
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    \10\ 47 CFR 54.8(a)(4); see Program Management Order, 22 FCC Rcd 
at 16387, para. 32.
    \11\ 47 CFR 54.8(a)(1), (d).
    \12\ Id. Sec.  54.8(e)(1).
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    In accordance with the Commission's suspension and debarment 
rules, Icon may contest this suspension or its scope by filing 
arguments, with any relevant documents, within thirty (30) calendar 
days of its receipt of this letter or publication of the suspension 
in the Federal Register, whichever comes first.\13\ Such requests, 
however, will not ordinarily be granted.\14\ The Bureau may reverse 
or limit the scope of a suspension only upon a finding of 
extraordinary circumstances.\15\ The Bureau will decide any request 
to reverse or modify a suspension within ninety (90) calendar days 
of its receipt of such request.\16\
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    \13\ Id. Sec.  54.8(e)(4).
    \14\ Id.
    \15\ Id. Sec.  54.8(f).
    \16\ Id. Sec. Sec.  54.8(e)(5), (f).
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II. Initiation of Debarment Proceedings

    In addition to Icon's immediate suspension from the Lifeline 
program, its conviction is cause for debarment as defined in section 
54.8(c) of the Commission's rules.\17\ Therefore, pursuant to 
section 54.8(b) of the Commission's rules, Icon's conviction 
requires the Bureau to commence debarment proceedings against 
it.\18\
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    \17\ ``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.'' Id. Sec.  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.'' Id. Sec.  
54.8(a)(1).
    \18\ Id. Sec.  54.8(b).
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    As with the suspension process, Icon may contest the proposed 
debarment or its scope by filing arguments and any relevant 
documentation within thirty (30) calendar days of receipt of this 
letter or its publication in the Federal Register, whichever comes 
first.\19\ The Bureau, in the absence of extraordinary 
circumstances, will notify Icon of its decision to debar within 
ninety (90) calendar days of receiving any information it may have 
filed.\20\ If the Bureau decides to debar the Company, its decision 
will become effective upon either Icon's receipt of a debarment 
notice or publication of the decision in the Federal Register, 
whichever comes first.\21\
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    \19\ Id. Sec.  54.8(e)(3).
    \20\ Id. Sec.  54.8(e)(5).
    \21\ 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. Id. Sec.  
54.8(f).
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    If and when Icon's debarment becomes effective, it will be 
prohibited from participating in activities associated with or 
related to the Lifeline program for three years from the date of 
debarment.\22\ The Bureau may set a longer debarment period or 
extend an existing debarment period if necessary to protect the 
public interest.\23\
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    \22\ Id. Sec.  54.8(d), (g).
    \23\ Id. Sec.  54.8(g).
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    Please direct any response, if sent by messenger or hand 
delivery, to Marlene H. Dortch, Secretary, Federal Communications 
Commission, 445 12th Street SW., Room TW-A325, Washington, DC 20554 
and to the attention of Celia Lewis, Paralegal Specialist, 
Investigations and Hearings Division, Enforcement Bureau, Room 4-
A422, Federal Communications Commission, 445 12th Street SW., 
Washington, DC 20554 with a copy to Kalun Lee, Deputy Chief, 
Investigations and Hearings Division, Enforcement Bureau, Room 4-
C237, Federal Communications Commission, 445 12th Street SW., 
Washington, DC 20554. All messenger or hand delivery filings must be 
submitted without envelopes.\24\ 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 Celia Lewis, 
Paralegal Specialist, Investigations and Hearings Division, 
Enforcement Bureau, Federal Communications Commission, 445 12th 
Street SW., Room 4-A422, Washington, DC 20554, with a copy to Kalun 
Lee, Deputy Chief, Investigations and Hearings Division, Enforcement 
Bureau, Federal Communications Commission, 445 12th Street SW., Room 
4-C237, Washington, DC 20554. You shall also transmit a copy of your 
response via email to Celia Lewis, [email protected], and Kalun 
Lee, [email protected].
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    \24\ See FCC Public Notice, DA 09-2529 for further filing 
instructions (rel. Dec. 3, 2009).
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    If you have any questions, please contact Ms. Lewis via U.S. 
postal mail, email, or by telephone at (202) 418-7456. If Ms. Lewis 
is unavailable, you may contact Kalun Lee, Deputy Chief, 
Investigations and Hearings Division, by telephone at (202) 418-0796 
or at the email address noted above.

 Sincerely yours,

Jeffrey J. Gee
Chief Investigations and Hearings Division Enforcement Bureau

cc: Johnnay Schrieber, Universal Service Administrative Company (via 
email); Rashann Duvall, Universal Service Administrative Company 
(via email); Chris M. Stevens, United States Attorney's Office, 
Western District of Oklahoma (via email); Scott E. Williams, United 
States Attorney's Office, Western District of Oklahoma (via email)

[FR Doc. 2015-16777 Filed 7-8-15; 8:45 am]
 BILLING CODE 6712-01-P