Notice of Suspension and Initiation of Debarment, Denisa Babcock
FEDERAL COMMUNICATIONS COMMISSION
WASHINGTON, DC 20554
Enforcement Bureau
Investigations and Hearings
Division
October 10, 2012
c/o Leon Fred Spies
Mellon & Spies
312 E. College Street, Suite 216
Iowa City, IA 52240
FCC File No. EB-12-IH-1396
Dear Ms. Babcock:
The Federal Communications Commission (Commission) has received notice of your
conviction, under 18 U.S.C. § 666(a)(1)(A) and (b), for theft of, among other amounts, funds
associated with the federal schools and libraries universal service support mechanism (E-Rate
program).1 Consequently, pursuant to 47 C.F.R. § 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 the Bureau will commence E-Rate program debarment proceedings against you.2
government or engaged in similar acts through activities associated with or related to the [E-Rate
1 Any further reference in this letter to “your conviction” refers to your guilty plea in United States v.
Babcock, Criminal Docket No. 3:10-cr-00074-RP-TJS-1, Plea Agreement (S.D. Iowa, May 11, 2011) (Plea
Agreement).
2 47 C.F.R. § 54.8; 47 C.F.R. § 0.111 (delegating to the Bureau authority to resolve universal service
suspension and debarment proceedings). The Commission adopted debarment rules for the E-Rate program
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 to suspend and debar parties from the E-Rate program). In 2007, the Commission extended
the debarment rules to apply to all 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; Rural Health Care 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), (a)(5), (c), (d), (e)(2)(i), (e)(3), (e)(4), and (g).)
Ms. Denisa Babcock
October 10, 2012
Page 2
program]” from receiving the benefits associated with that program.3 The Commission’s rules are
designed to ensure that all E-Rate funds are used for their intended purpose.4
On May 11, 2011, you pled guilty to converting more than $1,000,000 belonging to various
school districts for your personal use from November 2005 through December 2009.5 That amount
included approximately $49,000 in E-Rate checks that had been payable to school districts you
represented through your E-Rate consulting company, Camanche Consulting Services (CCS).6
According to your Plea Agreement, you knowingly deposited E-Rate checks payable to these
school districts into your personal bank accounts without the authority to do so.7 Along with the
other funds stolen from the various school districts, you used these stolen E-Rate funds to help pay
off your home mortgage, fund retirement plans, and purchase vehicles, real property, a boat, travel,
and personal items.8
On October 14, 2011, the United States District Court for the Southern District of Iowa
sentenced you to serve 64 months in prison followed by a three-year period of supervised release.9
In addition, the court ordered you to pay $1,330,215.96 in restitution and a $100 special
assessment.10
Pursuant to Section 54.8(b) of the Commission’s rules,11 upon your conviction for theft of
E-Rate funds, the Bureau is required to suspend you 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
3 Second Report and Order, 18 FCC Rcd at 9225, para. 66; 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 C.F.R. § 54.8(a)(6).
4 NEC-Business Network Solutions, Inc., Notice of Debarment and Order Denying Waiver Petition, 21 FCC
Rcd 7491, 7493, para. 7 (2006).
5 Plea Agreement at 1, 17–18; see also UNITED STATES ATTORNEY’S OFFICE, SOUTHERN DISTRICT OF IOWA,
News, Former Clinton Community School District Employee Pleads Guilty to Theft of Federal Funds, May
11, 2011, at http://www.justice.gov/usao/ias/news/2011/Babcock%20-%20plea%20-
%20media%20release%20-%205-10-11.pdf (Press Release).
6 Plea Agreement at 17.
7 Id.
8 Id. at 18.
9 United States v. Babcock, Criminal Docket No. 3:10-cr-00074-RP-TJS-1, Amended Judgment at 2 (S.D.
Iowa, entered Jan. 23, 2012) (Amended Judgment).
10 Amended Judgment at 4–5. This restitution order includes: $8,061.77 payable to Bement Community
School District Five; $2,231.28 payable to the Chester Area School District; $21,789.40 payable to the Lena-
Winslow School District; $17,933.80 payable to North Boone School District 200; $1,852.03 payable to
Oldham Public Library; and $4,270.64 payable to West Carroll Community School District No. 314. Id. at 4.
In addition, you were ordered to forfeit, among other items, E-Rate checks that FBI agents had seized from
your residence. Plea Agreement at 6–7.
11 47 C.F.R. § 54.8(a)(4); see Second Report and Order, 18 FCC Rcd at 9225–27, paras. 67–74.
Ms. Denisa Babcock
October 10, 2012
Page 3
regarding the E-Rate program.12 Your suspension becomes effective upon either your receipt of
this letter or its publication in the Federal Register, whichever comes first.13
In accordance with the Commission’s suspension and debarment rules, you may contest this
suspension or the scope of this suspension by filing arguments, with any relevant documents, within
thirty (30) calendar days of your receipt of this letter or its publication in the Federal Register,
whichever comes first.14 Such requests, however, will not ordinarily be granted.15 The Bureau may
reverse or limit the scope of a suspension only upon a finding of extraordinary circumstances.16
The Bureau will decide any request to reverse or modify a suspension within ninety (90) calendar
days of its receipt of such request.17
conviction is cause for debarment as defined in Section 54.8(c) of the Commission’s rules.18
Therefore, pursuant to Section 54.8(b) of the Commission’s rules, your conviction requires the
Bureau to commence debarment proceedings against you.19
As with the suspension process, you may contest the proposed debarment or the scope of the
proposed debarment 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.20 The
Bureau, in the absence of extraordinary circumstances, will notify you of its decision to debar
within ninety (90) calendar days of receiving any information you may have filed.21 If the Bureau
decides to debar you, its decision will become effective upon either your receipt of a debarment
notice or publication of the decision in the Federal Register, whichever comes first.22
12 47 C.F.R. §§ 54.8(a)(1), (d).
13 Second Report and Order, 18 FCC Rcd at 9226, para. 69; 47 C.F.R. § 54.8(e)(1).
14 47 C.F.R. § 54.8(e)(4).
15 Id.
16 47 C.F.R. § 54.8(f).
17 Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47 C.F.R. §§ 54.8(e)(5), (f).
18 “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.” 47 C.F.R. § 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. § 54.8(a)(1).
19 Id. § 54.8(b).
20 Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47 C.F.R. § 54.8(e)(3).
21 Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47 C.F.R. § 54.8(e)(5).
22 47 C.F.R. § 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. Id. § 54.8(f).
Ms. Denisa Babcock
October 10, 2012
Page 4
If and when your debarment becomes effective, you will be prohibited from participating in
activities associated with or related to the E-Rate program for three years from the date of
debarment.23 The Bureau may set a longer debarment period or extend an existing debarment
period if necessary to protect the public interest.24
Please direct any response, if sent by messenger or hand delivery, to Marlene H. Dortch,
Secretary, Federal Communications Commission, 445 12th Street, S.W., Room TW-A325,
Washington, D.C. 20554 and to the attention of Joy M. Ragsdale, Attorney Advisor, Investigations
and Hearings Division, Enforcement Bureau, Room 4-C330, Federal Communications
Commission, 445 12th Street, S.W., Washington, D.C. 20554 with a copy to Theresa Z. Cavanaugh,
Division Chief, Investigations and Hearings Division, Enforcement Bureau, Room 4-C330, Federal
Communications Commission, 445 12th Street, S.W., Washington, D.C. 20554. All messenger or
hand delivery filings must be submitted without envelopes.25 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 Joy Ragsdale, Attorney Advisor, Investigations and Hearings Division, Enforcement
Bureau, Federal Communications Commission, 445 12th Street, S.W., Room 4-C330, Washington,
D.C. 20554, with a copy to Theresa Z. Cavanaugh, Chief, Investigations and Hearings Division,
Enforcement Bureau, Federal Communications Commission, 445 12th Street, S.W., Room 4-C330,
Washington, D.C. 20554. You shall also transmit a copy of your response via e-mail to Joy M.
Ragsdale, Joy.Ragsdale@fcc.gov and to Theresa Z. Cavanaugh, Terry.Cavanaugh@fcc.gov.
If you have any questions, please contact Ms. Ragsdale via U.S. postal mail, e-mail, or by
telephone at (202) 418-1697. You may contact me at (202) 418-1553 or at the e-mail address noted
above if Ms. Ragsdale is unavailable.
Sincerely yours,
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)
Maureen McGuire, United States Attorney’s Office, Southern District of Iowa (via e-mail)
Richard Westphal, United States Attorney’s Office, Southern District of Iowa (via e-mail)
23 Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47 C.F.R. § 54.8(d), (g).
24 47 C.F.R. § 54.8(g).
25 See FCC Public Notice, DA 09-2529 for further filing instructions (rel. Dec. 3, 2009).
WASHINGTON, DC 20554
Enforcement Bureau
Investigations and Hearings
Division
October 10, 2012
DA 12-1620
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND EMAIL
c/o Leon Fred Spies
Mellon & Spies
312 E. College Street, Suite 216
Iowa City, IA 52240
Re:
Notice of Suspension and Initiation of Debarment ProceedingsFCC File No. EB-12-IH-1396
Dear Ms. Babcock:
The Federal Communications Commission (Commission) has received notice of your
conviction, under 18 U.S.C. § 666(a)(1)(A) and (b), for theft of, among other amounts, funds
associated with the federal schools and libraries universal service support mechanism (E-Rate
program).1 Consequently, pursuant to 47 C.F.R. § 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 the Bureau will commence E-Rate program debarment proceedings against you.2
I.
Notice of Suspension
The Commission has established procedures to prevent persons who have “defrauded thegovernment or engaged in similar acts through activities associated with or related to the [E-Rate
1 Any further reference in this letter to “your conviction” refers to your guilty plea in United States v.
Babcock, Criminal Docket No. 3:10-cr-00074-RP-TJS-1, Plea Agreement (S.D. Iowa, May 11, 2011) (Plea
Agreement).
2 47 C.F.R. § 54.8; 47 C.F.R. § 0.111 (delegating to the Bureau authority to resolve universal service
suspension and debarment proceedings). The Commission adopted debarment rules for the E-Rate program
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 to suspend and debar parties from the E-Rate program). In 2007, the Commission extended
the debarment rules to apply to all 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; Rural Health Care 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), (a)(5), (c), (d), (e)(2)(i), (e)(3), (e)(4), and (g).)
Ms. Denisa Babcock
October 10, 2012
Page 2
program]” from receiving the benefits associated with that program.3 The Commission’s rules are
designed to ensure that all E-Rate funds are used for their intended purpose.4
On May 11, 2011, you pled guilty to converting more than $1,000,000 belonging to various
school districts for your personal use from November 2005 through December 2009.5 That amount
included approximately $49,000 in E-Rate checks that had been payable to school districts you
represented through your E-Rate consulting company, Camanche Consulting Services (CCS).6
According to your Plea Agreement, you knowingly deposited E-Rate checks payable to these
school districts into your personal bank accounts without the authority to do so.7 Along with the
other funds stolen from the various school districts, you used these stolen E-Rate funds to help pay
off your home mortgage, fund retirement plans, and purchase vehicles, real property, a boat, travel,
and personal items.8
On October 14, 2011, the United States District Court for the Southern District of Iowa
sentenced you to serve 64 months in prison followed by a three-year period of supervised release.9
In addition, the court ordered you to pay $1,330,215.96 in restitution and a $100 special
assessment.10
Pursuant to Section 54.8(b) of the Commission’s rules,11 upon your conviction for theft of
E-Rate funds, the Bureau is required to suspend you 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
3 Second Report and Order, 18 FCC Rcd at 9225, para. 66; 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 C.F.R. § 54.8(a)(6).
4 NEC-Business Network Solutions, Inc., Notice of Debarment and Order Denying Waiver Petition, 21 FCC
Rcd 7491, 7493, para. 7 (2006).
5 Plea Agreement at 1, 17–18; see also UNITED STATES ATTORNEY’S OFFICE, SOUTHERN DISTRICT OF IOWA,
News, Former Clinton Community School District Employee Pleads Guilty to Theft of Federal Funds, May
11, 2011, at http://www.justice.gov/usao/ias/news/2011/Babcock%20-%20plea%20-
%20media%20release%20-%205-10-11.pdf (Press Release).
6 Plea Agreement at 17.
7 Id.
8 Id. at 18.
9 United States v. Babcock, Criminal Docket No. 3:10-cr-00074-RP-TJS-1, Amended Judgment at 2 (S.D.
Iowa, entered Jan. 23, 2012) (Amended Judgment).
10 Amended Judgment at 4–5. This restitution order includes: $8,061.77 payable to Bement Community
School District Five; $2,231.28 payable to the Chester Area School District; $21,789.40 payable to the Lena-
Winslow School District; $17,933.80 payable to North Boone School District 200; $1,852.03 payable to
Oldham Public Library; and $4,270.64 payable to West Carroll Community School District No. 314. Id. at 4.
In addition, you were ordered to forfeit, among other items, E-Rate checks that FBI agents had seized from
your residence. Plea Agreement at 6–7.
11 47 C.F.R. § 54.8(a)(4); see Second Report and Order, 18 FCC Rcd at 9225–27, paras. 67–74.
Ms. Denisa Babcock
October 10, 2012
Page 3
regarding the E-Rate program.12 Your suspension becomes effective upon either your receipt of
this letter or its publication in the Federal Register, whichever comes first.13
In accordance with the Commission’s suspension and debarment rules, you may contest this
suspension or the scope of this suspension by filing arguments, with any relevant documents, within
thirty (30) calendar days of your receipt of this letter or its publication in the Federal Register,
whichever comes first.14 Such requests, however, will not ordinarily be granted.15 The Bureau may
reverse or limit the scope of a suspension only upon a finding of extraordinary circumstances.16
The Bureau will decide any request to reverse or modify a suspension within ninety (90) calendar
days of its receipt of such request.17
II.
Initiation of Debarment Proceedings
In addition to requiring your immediate suspension from the E-Rate program, yourconviction is cause for debarment as defined in Section 54.8(c) of the Commission’s rules.18
Therefore, pursuant to Section 54.8(b) of the Commission’s rules, your conviction requires the
Bureau to commence debarment proceedings against you.19
As with the suspension process, you may contest the proposed debarment or the scope of the
proposed debarment 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.20 The
Bureau, in the absence of extraordinary circumstances, will notify you of its decision to debar
within ninety (90) calendar days of receiving any information you may have filed.21 If the Bureau
decides to debar you, its decision will become effective upon either your receipt of a debarment
notice or publication of the decision in the Federal Register, whichever comes first.22
12 47 C.F.R. §§ 54.8(a)(1), (d).
13 Second Report and Order, 18 FCC Rcd at 9226, para. 69; 47 C.F.R. § 54.8(e)(1).
14 47 C.F.R. § 54.8(e)(4).
15 Id.
16 47 C.F.R. § 54.8(f).
17 Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47 C.F.R. §§ 54.8(e)(5), (f).
18 “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.” 47 C.F.R. § 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. § 54.8(a)(1).
19 Id. § 54.8(b).
20 Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47 C.F.R. § 54.8(e)(3).
21 Second Report and Order, 18 FCC Rcd at 9226, para. 70; 47 C.F.R. § 54.8(e)(5).
22 47 C.F.R. § 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. Id. § 54.8(f).
Ms. Denisa Babcock
October 10, 2012
Page 4
If and when your debarment becomes effective, you will be prohibited from participating in
activities associated with or related to the E-Rate program for three years from the date of
debarment.23 The Bureau may set a longer debarment period or extend an existing debarment
period if necessary to protect the public interest.24
Please direct any response, if sent by messenger or hand delivery, to Marlene H. Dortch,
Secretary, Federal Communications Commission, 445 12th Street, S.W., Room TW-A325,
Washington, D.C. 20554 and to the attention of Joy M. Ragsdale, Attorney Advisor, Investigations
and Hearings Division, Enforcement Bureau, Room 4-C330, Federal Communications
Commission, 445 12th Street, S.W., Washington, D.C. 20554 with a copy to Theresa Z. Cavanaugh,
Division Chief, Investigations and Hearings Division, Enforcement Bureau, Room 4-C330, Federal
Communications Commission, 445 12th Street, S.W., Washington, D.C. 20554. All messenger or
hand delivery filings must be submitted without envelopes.25 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 Joy Ragsdale, Attorney Advisor, Investigations and Hearings Division, Enforcement
Bureau, Federal Communications Commission, 445 12th Street, S.W., Room 4-C330, Washington,
D.C. 20554, with a copy to Theresa Z. Cavanaugh, Chief, Investigations and Hearings Division,
Enforcement Bureau, Federal Communications Commission, 445 12th Street, S.W., Room 4-C330,
Washington, D.C. 20554. You shall also transmit a copy of your response via e-mail to Joy M.
Ragsdale, Joy.Ragsdale@fcc.gov and to Theresa Z. Cavanaugh, Terry.Cavanaugh@fcc.gov.
If you have any questions, please contact Ms. Ragsdale via U.S. postal mail, e-mail, or by
telephone at (202) 418-1697. You may contact me at (202) 418-1553 or at the e-mail address noted
above if Ms. Ragsdale is unavailable.
Sincerely yours,
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)
Maureen McGuire, United States Attorney’s Office, Southern District of Iowa (via e-mail)
Richard Westphal, United States Attorney’s Office, Southern District of Iowa (via e-mail)
23 Second Report and Order, 18 FCC Rcd at 9225, para. 67; 47 C.F.R. § 54.8(d), (g).
24 47 C.F.R. § 54.8(g).
25 See FCC Public Notice, DA 09-2529 for further filing instructions (rel. Dec. 3, 2009).
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