[Federal Register Volume 75, Number 44 (Monday, March 8, 2010)]
[Notices]
[Pages 10462-10463]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-4776]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Action Affecting Export Privileges; Mohamad M. Elkateb; In the
Matter of: Mohamad M. Elkateb, 29256 Marilyn Dr., Canyon Country, CA
91387. Respondent; Order Relating to Mohamad M. Elkateb
The Bureau of Industry and Security, U.S. Department of Commerce
(``BIS'') has notified Mohamad M. Elkateb (``Elkateb'') of its
intention to initiate an administrative proceeding against Elkateb
pursuant to Section 766.3 of the Export Administration Regulations (the
``Regulations''),\1\ and Section 13(c) of the Export Administration Act
of 1979, as amended (the ``Act''),\2\ through issuance of a Proposed
Charging Letter to Elkateb that alleged that he committed one violation
of the Regulations. Specifically, the charge is:
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\1\ The Regulations are currently codified in the Code of
Federal Regulations at 15 CFR Parts 730-774 (2009). The charged
violation occurred in 2004. The Regulations governing the violation
at issue are found in the 2004 version of the Code of Federal
Regulations (15 CFR Parts 730-774 (2004)). The 2009 Regulations set
forth the procedures that apply to this matter.
\2\ 50 U.S.C. app. 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)), as extended
most recently by the Notice of August 13, 2009 (74 FR 41325 (Aug.
14, 2009)), has continued the Regulations in effect under the
International Emergency Economic Powers Act (50 U.S.C. 1701 et
seq.).
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Charge 1 15 CFR 764.2(d)--Conspiracy
Between on or about July 9, 2004, and continuing through on or
about August 16, 2004, Elkateb conspired and acted in concert with
others, known and unknown, to violate the Regulations and to bring
about an act that constituted a violation of the Regulations. The
purpose of the conspiracy was to cause the export of U.S.-origin lab
equipment from the United States to Syria, via Indonesia, without
the required U.S. Government authorization. Pursuant to General
Order No. 2 of May 14, 2004, set forth in Supplement No. 1 to Part
736 of the Regulations, authorization was required from BIS before
the lab equipment, items subject to the Regulations,\3\ could be
exported from the United States to Syria. In furtherance of the
conspiracy, Elkateb and his co-conspirators devised and employed a
scheme to purchase U.S.-origin lab equipment for a customer in Syria
from a foreign distributor of the U.S. manufacturer. This scheme was
developed after Elkateb was informed by the U.S. manufacturer that
there were restrictions on exporting to Syria. By engaging in this
activity, Elkateb committed one violation of Section 764.2(d) of the
Regulations.
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\3\ EAR99 is a designation for items subject to the Regulations
but not listed on the Commerce Control List. 15 CFR 734.3(c) (2004).
Whereas, BIS and Elkateb have entered into a Settlement Agreement
pursuant to Section 766.18(a) of the Regulations whereby they agreed to
settle this matter in accordance with the terms and conditions set
forth therein, and
Whereas, I have approved of the terms of such Settlement Agreement;
It is therefore ordered:
First, that for a period of one year from the date of issuance of
the Order, Mohamad M. Elkateb, 29256 Marilyn Dr., Canyon Country, CA
91387, and when acting on behalf of Elkateb, his representatives,
assigns, or agents (``Denied 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. 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.
Second, that no person may, directly or indirectly, do any of the
actions described below with respect to an item that is subject to the
Regulations and that has been, will be, or is intended to be exported
or reexported from the United States:
A. Export or reexport to or on behalf of the Denied Person any item
subject to the Regulations;
B. Take any action that facilitates the acquisition or attempted
acquisition by the Denied 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 Denied 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 Denied Person of any item subject to
the Regulations that has been exported from the United States;
D. Obtain from the Denied 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 Denied Person, or
service any item, of whatever origin, that is owned, possessed or
[[Page 10463]]
controlled by the Denied 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, after notice and opportunity for comment as provided
in Section 766.23 of the Regulations, any person, firm, corporation, or
business organization related to Elkateb 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 the
Order.
Fourth, that the proposed charging letter, the Settlement
Agreement, and this Order shall be made available to the public.
Fifth, that this Order shall be served on the Denied Person and on
BIS, and shall be published in the Federal Register.
This Order, which constitutes the final agency action in this
matter, is effective immediately.
Issued this 26th day of February 2010.
David W. Mills,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2010-4776 Filed 3-5-10; 8:45 am]
BILLING CODE 3510-DT-P