[Federal Register: June 18, 2009 (Volume 74, Number 116)]
[Notices]
[Page 28910-28911]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18jn09-15]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Action Affecting Export Privileges; TAK Components, Inc.
In the Matter of:
TAK Components, Inc., 2140 Fulham Dr., Apt. 18, Naperville, IL
60564, Respondent.
Mr. Saied Shahsavarani, President, 2140 Fulham Dr., Apt. 18,
Naperville, IL 60564, Related Person.
Order Denying Export Privileges
A. Denial of Export Privileges of TAK Components, Inc.
On October 11, 2007, in the U.S. District Court for the Northern
District of Illinois, TAK Components, Inc. (``TAK'') pled guilty to and
was convicted of 16 counts of violating the International Emergency
Economic Powers Act (50 U.S.C. 1701-1706 (2000)) (``IEEPA'').
Specifically, TAK pled guilty to willfully exporting and transferring,
and causing to be exported and transferred, from the United States to
Iran, via the United Arab Emirates, replacement and service parts and
equipment for agricultural machinery, without first having obtained the
required authorization from the Department of Treasury's Office of
Foreign Assets Control. TAK was sentenced to one year probation per
count (to run concurrently), ordered to pay a special assessment of
$400.00 per count (for a total special assessment of $6,400.00), and
forfeited approximately $181,000 that had been obtained from the
transactions.
Section 766.25 of the Export Administration Regulations (``EAR'' or
``Regulations'') \1\ provides, in pertinent part, that ``[t]he Director
of the Office of Exporter Services, in consultation with the Director
of the Office of Export Enforcement, may deny the export privileges of
any person who has been convicted of a violation of the [Export
Administration Act (``EAA'')], the EAR, or any order, license or
authorization issued thereunder; any regulation, license, or order
issued under the International Emergency Economic Powers Act (50 U.S.C.
1701-1706); 18 U.S.C. 793, 794 or 798; section 4(b) of the Internal
Security Act of 1950 (50 U.S.C. 783(b)), or section 38 of the Arms
Export Control Act (22 U.S.C. 2778).'' 15 CFR 766.25(a); see also
Section 11(h) of the EAA, 50 U.S.C. app. 2410(h). The denial of export
privileges under this provision may be for a period of up to 10 years
from the date of the conviction. 15 CFR 766.25(d); see also 50 U.S.C.
app. 2410(h). In addition, Section 750.8 of the Regulations states that
the Bureau of Industry and Security's Office of Exporter Services may
revoke any Bureau of Industry and Security (``BIS'') licenses
previously issued in which the person had an interest in at the time of
his conviction.
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\1\ The Regulations are currently codified in the Code of
Federal Regulations at 15 CFR Parts 730-774 (2009). The Regulations
issued pursuant to the EAA, which is currently codified at 50 U.S.C.
app. 2401-2420 (2000). Since August 21, 2001, the EAA has been in
lapse and the President, through Executive Order 13222 of August 17,
2001 (3 CFR, 2001 Comp. 783 (2002)), which has been extended by
successive Presidential Notices, the most recent being that of July
23, 2008 (73 FR 43603, July 25, 2008), has continued the Regulations
in effect under the International Emergency Economic Powers Act (50
U.S.C. 1701-1706 (2000)).
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I have received notice of TAK's conviction for violating the IEEPA,
and have provided notice and an opportunity for TAK to make a written
submission to BIS, as provided in Section 766.25 of the Regulations. I
have not received a submission from TAK. Based upon my review and
consultations with BIS's Office of Export Enforcement, including its
Director, and the facts available to BIS, I have decided to deny TAK's
export privileges under the Regulations for a period of five years from
the date of TAK's conviction. I have also decided to revoke all
licenses issued pursuant to the Act or Regulations in which TAK had an
interest at the time of its conviction.
B. Denial of Export Privileges of Related Person
Pursuant to Sections 766.25(h) and 766.23 of the Regulations, the
Director of BIS's Office of Exporter Services, in consultation with the
Director of BIS's Office of Export Enforcement, may take action to name
persons related to a Respondent by ownership, control, position of
responsibility, affiliation, or other connection in the conduct of
trade or business in order to prevent evasion of a denial order. Saied
Shahsavarani (``Shahsavarani'') was the corporate president and
registered agent of TAK responsible for all aspects of TAK's day-to-day
operations. Shahsavarani pled guilty to Count 17 of the information,
18.U.S.C. 1960(a), for knowingly aiding and abetting the operation of
an unlicensed money transmitting business. Shahsavarani is related to
TAK by ownership, control, position of responsibility, affiliation, or
other
[[Page 28911]]
connection in the conduct of trade or business. BIS believes that
naming Shahsavarani as a person related to TAK is necessary to avoid
evasion of the denial order against TAK.
As provided in Section 766.23 of the Regulations, I gave notice to
Shahsavarani that his export privileges under the Regulations could be
denied for up to 10 years due to his relationship with TAK and that BIS
believes naming him as a person related to TAK would be necessary to
prevent evasion of a denial order imposed against TAK. In providing
such notice, I gave Shahsavarani an opportunity to oppose his addition
to the TAK Denial Order as a related party. Having received no
submission from Shahsavarani, I have decided, following consultations
with BIS's Office of Export Enforcement, including its Director, to
name Shahsavarani as a Related Person to the TAK Denial Order, thereby
denying him export privileges for five years from the date of TAK's
conviction.
I have also decided to revoke all licenses issued pursuant to the
Act or Regulations in which the Related Person had an interest at the
time of TAK's conviction. The five-year denial period will end on
October 11, 2012.
Accordingly, it is hereby ordered
I. Until October 11, 2012, TAK Components, Inc., 2140 Fulham Dr.,
Apt. 18, Naperville, IL 60564, when acting for or on behalf of TAK, its
successors or assigns, agents or employees, (``the Denied Person'') and
the following person related to the Denied Person as defined by Section
766.23 of the Regulations: Saied Shahsavarani, President, 2140 Fulham
Dr., Apt. 18, Naperville, IL 60564, and when acting for or on his
behalf, employees, agents or representatives, (``the Related Person'')
(together, the Denied Person and the Related Person are ``Persons
Subject to This Order'') may not, directly or indirectly, participate
in any way in any transaction involving any commodity, software or
technology (hereinafter collectively referred to as ``item'') exported
or to be exported from the United States that is subject to the
Regulations, or in any other activity subject to the Regulations,
including, but not limited to:
A. Applying for, obtaining, or using any license, License
Exception, or export control document;
B. Carrying on negotiations concerning, or ordering, buying,
receiving, using, selling, delivering, storing, disposing of,
forwarding, transporting, financing, or otherwise servicing in any way,
any transaction involving any item exported or to be exported from the
United States that is subject to the Regulations, or in any other
activity subject to the Regulations; or
C. Benefitting in any way from any transaction involving any item
exported or to be exported from the United States that is subject to
the Regulations, or in any other activity subject to the Regulations.
II. No person may, directly or indirectly, do any of the following:
A. Export or reexport to or on behalf of the Persons Subject To
This Order any item subject to the Regulations;
B. Take any action that facilitates the acquisition or attempted
acquisition by the Persons Subject To This Order of the ownership,
possession, or control of any item subject to the Regulations that has
been or will be exported from the United States, including financing or
other support activities related to a transaction whereby the Persons
Subject To This Order acquires or attempts to acquire such ownership,
possession or control;
C. Take any action to acquire from or to facilitate the acquisition
or attempted acquisition from the Persons Subject To This Order of any
item subject to the Regulations that has been exported from the United
States;
D. Obtain from the Persons Subject To This Order in the United
States any item subject to the Regulations with knowledge or reason to
know that the item will be, or is intended to be, exported from the
United States; or
E. Engage in any transaction to service any item subject to the
Regulations that has been or will be exported from the United States
and which is owned, possessed or controlled by the Persons Subject To
This Order, or service any item, of whatever origin, that is owned,
possessed or controlled by the Persons Subject To This Order if such
service involves the use of any item subject to the Regulations that
has been or will be exported from the United States. For purposes of
this paragraph, servicing means installation, maintenance, repair,
modification or testing.
III. In addition to the Related Person named above, after notice
and opportunity for comment as provided in section 766.23 of the
Regulations, any other person, firm, corporation, or business
organization related to the Denied Person by affiliation, ownership,
control, or position of responsibility in the conduct of trade or
related services may also be made subject to the provisions of this
Order if necessary to prevent evasion of the Order.
IV. This Order does not prohibit any export, reexport, or other
transaction subject to the Regulations where the only items involved
that are subject to the Regulations are the foreign-produced direct
product of U.S.-origin technology.
V. This Order is effective immediately and shall remain in effect
until October 11, 2012.
VI. In accordance with Part 756 of the Regulations, TAK may file an
appeal of this Order with the Under Secretary of Commerce for Industry
and Security. The appeal must be filed within 45 days from the date of
this Order and must comply with the provisions of Part 756 of the
Regulations.
VII. In accordance with Part 756 of the Regulations, the Related
Person may also file an appeal of this Order with the Under Secretary
of Commerce for Industry and Security.
VIII. A copy of this Order shall be delivered to the Denied Person
and the Related Person. This Order shall be published in the Federal
Register.
Entered this 10th day of June 2009.
Bernard Kritzer,
Director, Office of Exporter Services.
[FR Doc. E9-14315 Filed 6-17-09; 8:45 am]
BILLING CODE 3510-DT-P