[Federal Register Volume 75, Number 200 (Monday, October 18, 2010)]
[Notices]
[Pages 63801-63802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-26118]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Action Affecting Export Privileges; Joseph Piquet and Related
Person Alphatronx, Inc.
In the Matter of: Joseph Piquet, 76067-004, currently
incarcerated at FCI Miami, Federal Correctional Institution, P.O.
Box 779800, Miami, FL 33177, and 1258 SW. Maplewood Dr., Port St.
Lucie, FL 34986, Respondent, Alphatronx, Inc., 1258 SW. Maplewood
Drive, Port St. Lucie, FL 34986, Related Person.
Order Making Order Denying Export Privileges of Joseph Piquet
Applicable to Related Person Alphatronx, Inc.
Pursuant to Sections 766.25(h) and 766.23 of the Export
Administration Regulations \1\ (``EAR''), the Bureau of Industry and
Security (``BIS''), U.S. Department of Commerce, through its Office of
Export Enforcement (``OEE''), has requested that I make the Denial
Order that was imposed against the individual Joseph Piquet
(``Piquet'') on May 28, 2010 (75 FR 32742, June 9, 2010) applicable to
Alphatronx, Inc. (``Alphatronx''), 1258 SW. Maplewood Dr., Port St.
Lucie, FL, 34986, (hereinafter, the ``Related Person''), as a person
related to Piquet.
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\1\ The EAR are currently codified at 15 CFR Parts 730-774
(2010).
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Section 766.23 of the EAR provides that ``[i]n order to prevent
evasion, certain types of orders under this part may be made applicable
not only to the respondent, but also to other persons then or
thereafter related to the respondent by ownership, control, position of
responsibility, affiliation, or other connection in the conduct of
trade or business. Orders that may be made applicable to related
persons include those that deny or affect export privileges * * *.'' 15
CFR 766.23(a).
On May 28, 2010, I issued an Order pursuant to Section 11(h) of the
Export Administration Act of 1979, as amended (currently codified at 50
U.S.C. app. sections 2401-2420 (2000)) (``Act'') \2\ and Section 766.25
of the EAR denying the export privileges under the Regulations of
Piquet for 10 years. The Order was based on Piquet's conviction of
violating the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq. (2000)) (``IEEPA'') and Section 38 of the Arms Export
Control Act (22 U.S.C. 2778 (2000)). Piquet was convicted based on his
role in a conspiracy to purchase high-tech military and dual-use
electronic components from a domestic corporation and to then ship the
items from the United States to Hong Kong and the People's Republic of
China without first obtaining the required export licenses. Among the
commodities involved in this conspiracy were high power amplifiers
designed for use by the U.S. military in early warning radar and
missile target acquisition systems, and low noise amplifiers that have
both commercial and military use.
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\2\ 50 U.S.C. app. sections 2401-2420 (2000). Since August 21,
2001, the Act 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 August 12, 2010 (75 FR 50,681 (Aug. 16, 2010)),
has continued the Regulations in effect under the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq. (2000)).
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BIS has presented evidence that indicates that Alphatronx is
related to Piquet by ownership, control, position of responsibility,
affiliation, or other connection in the conduct of trade or business,
and that it is necessary to add this entity to the Piquet Denial Order
in order to avoid evasion of that Order. The basis for naming
Alphatronx to the Piquet Denial Order is that Piquet is the owner and
President of Alphatronx and that Piquet made the decisions to utilize
his company Alphatronx to carry out the conspiracy and subsequent
violations of the AECA and IEEPA.
As provided in Section 766.23 of the EAR, I gave notice to
Alphatronx that its export privileges under the EAR could be denied for
up to 10 years due to its relationship with Piquet and that BIS
believes naming Alphatronx as a related party to Piquet would be
necessary to prevent evasion of a denial order imposed against Piquet.
In providing such notice, I gave Alphatronx an opportunity to oppose
its addition to the Piquet Denial Order as a related party. Having
received no submission, I have decided, following consultations with
BIS's Office of Export Enforcement, including its Director, to name
Alphatronx as a Related Person to the Piquet Denial Order, thereby
denying Alphatronx export privileges for 10 years from the date of
Piquet's conviction.
I have also decided to revoke all licenses issued pursuant to the
Act or EAR in which Alphatronx had an interest at the time of Piquet's
conviction. The 10-year denial period will end on May 14, 2019.
Accordingly, it is hereby ordered:
First, that having been provided notice and opportunity for comment
as provided in Sections 766.25 and 766.23 of the Export Administration
Regulations (the ``Regulations''), the following entity, Alphatronx,
Inc., with a last known address at 1258 SW. Maplewood Dr., Port St.
Lucie, FL,
[[Page 63802]]
34986, has been determined to be related to Piquet by affiliation,
ownership, control, or position of responsibility in the conduct of
trade or related services, and it has been deemed necessary to make the
Order denying the export privileges of Piquet applicable to Alphatronx
in order to prevent evasion of the Piquet Denial Order.
Second, that the denial of export privileges described in the
Piquet Denial Order, which was published in the Federal Register on
June 9, 2010 at 75 FR 32742, shall be made applicable to Alphatronx
until its expiration on May 14, 2019, as follows:
I. Alphatronx, with a last known address at 1258 SW. Maplewood Dr.,
Port St. Lucie, FL, 34986, and when acting for or on behalf of
Alphatronx, its successors or assigns, employees or agents
(collectively, ``Related Person'') may not participate, directly or
indirectly, 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. Benefiting 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 Related Person any
item subject to the Regulations;
B. Take any action that facilitates the acquisition or attempted
acquisition by the Related Person 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 Related Person 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 Related Person of any item subject to
the Regulations that has been exported from the United States;
D. Obtain from the Related Person 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 Related Person, or
service any item, of whatever origin, that is owned, possessed or
controlled by the Related Person 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.
Third, that in accordance with the provisions of Section 766.23(c)
of the Regulations, the Related Person may, at any time, make an appeal
related to this Order by filing a full written statement in support of
the appeal with the Office of the Administrative Law Judge, U.S. Coast
Guard ALJ Docketing Center, 40 South Gay Street, Baltimore, Maryland
21202-4022.
Fourth, that 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.
Fifth, that this Order is effective immediately and shall remain in
effect until May 14, 2019.
Sixth, that this Order shall be published in the Federal Register
and a copy served on the Related Person.
Issued this 7th day of October 2010.
Bernard Kritzer,
Director, Office of Exporter Services.
[FR Doc. 2010-26118 Filed 10-15-10; 8:45 am]
BILLING CODE 3510-DT-P