Today the FCC issued a Notice of Suspension and Initiation of Debarment Proceedings to Scott Federowicz. Mr. Federowicz pled guilty and was convicted of two counts of mail fraud in connection with the E-rate program. Specifically, Mr. Federowicz has admitted to approving invoices totaling approximately $452,203 for non-existing E-rate services. The suspension begins immediately pending a decision by the FCC regarding debarring Mr. Federowicz from the E-rate program.
Under FCC rules, the suspension and debarment process involves two steps. The first is to issue a public Notice of Suspension and Initiation of Debarment Proceedings upon learning of a conviction involving the E-rate program. If the FCC does not receive any documentation or arguments showing extraordinary circumstances, the FCC will proceed to the second step of the process and issue their debarment decision. This decision can be issued within 90 days of the Notice of Suspension if no evidence of extraordinary circumstance is received. If debarred, Mr. Federowicz could be prohibited from any kind of participation in the E-rate program for 3 years.