September 10, 2012 DA 12-1467 SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED AND EMAIL Mr. Jonathan M. Slaughter, No. 13660-002 FCI Yazoo City Low Federal Correctional Institution P.O. Box 5000 Yazoo City, MS 39194 Re: Notice of Debarment File No. EB-12-IH-0050 Dear Mr. Slaughter: The Federal Communications Commission (Commission) hereby notifies you that, pursuant to Section 54.8 of its rules, you are prohibited from participating in activities associated with or relating to 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).1 On May 9, 2012, the Commission’s Enforcement Bureau (Bureau) sent you a Notice of Suspension and Initiation of Debarment Proceeding (Notice of Suspension)2 that was published in the Federal Register on May 24, 2012.3 The Notice of Suspension suspended you from participating in activities associated with or relating to the E-Rate program. It also 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, on September 29, 2011, you pled guilty to converting approximately $892,000 in E-Rate checks, payable to six schools and 14 school 1 47 C.F.R. § 54.8(g); see also 47 C.F.R. § 0.111 (delegating authority to the Enforcement Bureau to resolve universal service suspension and debarment proceedings). 2 Letter from Theresa Z. Cavanaugh, Chief, Investigations and Hearings Division, Enforcement Bureau, Federal Communications Commission, to Jonathan M. Slaughter, Notice of Suspension and Initiation of Debarment Proceeding, 27 FCC Rcd 5091 (Enf. Bur. 2012) (Attachment 1). 3 77 Fed. Reg. 31010 (May 24, 2012). WASHINGTON, DC 20554 FEDERAL COMMUNICATIONS COMMISSION Enforcement Bureau Investigations and Hearings Division Jonathan M. Slaughter September 10, 2012 Page 2 districts located in 13 states, to your personal use while you were the owner and president of E- Rate Consulting Services, LLC (ECS).4 Between May 2006 and January 2009, you deposited those E-Rate funds into your ECS bank account for your personal use instead of transmitting them to your clients.5 Pursuant to Section 54.8(c) of the Commission’s rules, your conviction of criminal conduct in connection with the E-Rate program is the basis for this debarment.6 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.7 The Commission did not receive any such opposition from you. For the foregoing reasons, you are debarred from participating in activities associated with or related to the E-Rate program for three years from the Debarment Date.8 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.9 Sincerely, Theresa Z. Cavanaugh, 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) Andrew O. Schiff, Assistant United States Attorney, United States Department of Justice (via e-mail) 4 United States v. Jonathan Slaughter, Case No. 2:11cr162-MEF-01, Plea Agreement at 3–5 (M.D. Ala. 2011) (Plea Agreement); see Appendix. 5 Id. at 4–5. 6 47 C.F.R. § 54.8(c). 7 47 C.F.R. §§ 54.8 (e)(3), (4). Any opposition had to be filed no later than June 13, 2012. 8 Id. §§ 54.8(e)(5), (g). 9 Id. §§ 54.8(a)(1), (5), (d). Appendix ECS’ CLIENTS STATE TOTAL AMOUNT CONVERTED Dermott Public School District Arkansas $6,809.24 Citrus County School District Florida $678,288.69 Eckerd Halfway House/E-Ku Sumee Florida $5,670 Hendry County School District Florida $39,031.19 Kuna Joint School District Idaho $3,523.67 Middleton School District #134 Idaho $4,299.25 The Winchendon School Massachusetts $8,316.00 Northwood Children's Services Minnesota $24,797.66 Prairie Academy Minnesota $4,673.99 Poplar Bluff School District Missouri $7,672.77 Red Cloud Community School District Nebraska $2,254.52 SAU 41—Hollis Brookline Schools New Hampshire $1,765.18 Beaufort County School District North Carolina $9,730.00 Middle Ohio Education Ohio $23.01 Penns Valley Area School District Pennsylvania $10,966.83 Bedford County School District Tennessee $23,215.94 Banquete Independent School District Texas $18,655.72 Cleburne Independent School District Texas $7,231.32 Leander Independent School District Texas $31,872.31 Teague Independent School District Texas $3,190.56 TOTAL $891,987.85