U.S. Department of Transportation Federal Highway Administration	Notice Subject
	DEBARMENT FROM FEDERAL NONPROCUREMENT PROGRAMS
	Classification Code	Date	Office of Primary Interest
	N 2000.540	April 7, 2005	HCC-30

1. What is the purpose of this notice? This notice serves to advise that the Federal Highway Administration (FHWA) has made decisions concerning the proposed debarments of the following individuals as stated in paragraph 2a.

   William Gelson
   66 North Grove Street
   Valley Stream, New York 11580

   Charles Kupfer
   66 North Grove Street
   Valley Stream, New York 11580

2. What actions have been taken?

   1. The FHWA has decided to debar the individuals cited above for a period of three years. These debarments are retroactive from the date of their suspensions by the FHWA; DEBARMENTS EXPIRE: January 18, 2008.
      
      
   2. The individuals cited above have been notified in writing of this decision.
   
   
   

3. What is the scope of these actions?

   1. The individuals cited in paragraph 1 are prohibited from being participants or principals in any covered transaction, as defined in 49 CFR Part 29, Subpart B. Generally, these individuals are prohibited from submitting a proposal for, or entering into, a covered transaction, or participating in a covered transaction as an officer, director, owner, partner, key employee, or other person with primary management or supervisory responsibilities, or one who has critical influence on or substantive control over the transaction, whether employed by a person who submits a proposal for, or enters into a covered transaction, including any procurement and nonprocurement transaction between an agency and a person. These debarments shall be effective throughout the Executive Branch of the Federal government.
      
      
   2. As stated in 49 CFR 29.110, these debarments are consistent with the Federal government's policy of using the discretionary action of debarment to conduct business only with responsible persons and companies, and to protect the public interest, the Federal government, and the integrity of Federal programs.
   
   
   

4. What is the cause for debarment?

   1. On or about August 6, 2004, in the United States District Court for the Eastern District of New York, William Gelson and Charles Kupfer pled guilty to conspiracy to defraud the United States in violation of 18 U.S.C. 371. William Gelson's and Charles Kupfer's activities under their conspiracy involved establishing a disadvantaged business enterprise (DBE) front company to circumvent the requirements of the DBE program.

   2. Pursuant to 49 CFR Part 29, William Gelson and Charles Kupfer have committed acts that are cause for debarment. Specifically, their convictions for conspiracy to defraud the United States constitute cause for debarment pursuant to 49 CFR 29.800(a)(4), the commission of an offense indicating a lack of business integrity and business honesty that seriously and directly affects the persons' present responsibility. Because William Gelson and Charles Kupfer failed to respond to the FHWA's notice proposing debarment within thirty (30) days, they have waived their rights to contest their debarment actions.

   3. After considering the serious nature of these acts, the FHWA has decided that William Gelson and Charles Kupfer pose a risk to the Federal government and that it is in the best interests of the Federal government that they be debarred for a period of three years from the date of their suspensions. As stated above, their debarments will expire on January 18, 2008.

   4. These debarments have been taken in accordance with 49 CFR Part 29.

King W. Gee Suspending Official

Related Sites:
Executive Order 12549
FHWA Order 2000.2A