[Federal Register Volume 75, Number 46 (Wednesday, March 10, 2010)]
[Notices]
[Pages 11112-11113]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-5109]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Action Affecting Export Privileges; Robert Kraaipoel
In the Matter of: Robert Kraaipoel, P.O. Box 418, Heerhugowaard,
Netherlands 1700AK.
and
Flemming Straat 36, Heerhugowaard, Netherlands 1700AK.
Respondent.
Order Relating to Robert Kraaipoel
The Bureau of Industry and Security, U.S. Department of Commerce
(``BIS''), has notified Robert Kraaipoel, in his individual capacity,
of its intention to initiate an administrative proceeding against him
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 the issuance of a
Proposed Charging Letter to Robert Kraaipoel 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
violations occurred between 2005 and 2007. The Regulations governing
the violations at issue are found in the 2005 through 2007 versions
of the Code of Federal Regulations (15 CFR Parts 730-774 (2005-
2007)). 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. However, 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 13, 2009 (74 FR 41,325 (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 October 1, 2005, and continuing through on or
about October 30, 2007, Robert Kraaipoel conspired and acted in concert
with others, known and unknown, to violate the Regulations and to bring
about acts that constitute violations of the Regulations. The purpose
of the conspiracy was to export U.S.-origin items including aircraft
parts, electronic components, and polymide film on multiple occasions,
from the United States to Iran, via the Netherlands, Cyprus, and the
United Arab Emirates (``UAE''), without the required U.S. Government
authorization. Pursuant to section 746.7 of the Regulations,
authorization was required from OFAC before the aircraft parts,
electronic components, and polymide film, items
[[Page 11113]]
subject to the Regulations \3\ and the Iranian Transactions
Regulations, 31 CFR Part 560 (``ITR''), could be exported from the
United States to Iran. Pursuant to Section 560.204 of the ITR, an
export to a third country intended for transshipment to Iran is a
transaction subject to the ITR. In furtherance of the conspiracy,
Robert Kraaipoel and his co-conspirators devised and employed a scheme
to purchase these items from the United States on behalf of Iranian
customers and give U.S. manufacturers false information regarding the
ultimate destination, end user, and end use of the items, thereby
causing false export control documents to be submitted to the U.S.
Government listing countries other than Iran as the ultimate
destination for the items. These acts were taken to export U.S.-origin
items to Iran without the required U.S. Government authorization and
avoid detection by law enforcement. By engaging in this activity,
Robert Kraaipoel committed one violation of section 764.2(d) of the
Regulations.
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\3\ The items were classified as Export Control Classification
Numbers (``ECCNs'') 9A991, 1C008.a.3, and 5A991. Additionally, some
of the aircraft parts were designated EAR99, which is a designation
for items subject to the Regulations but not listed on the Commerce
Control List. (2005-2007).
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Whereas, BIS and Robert Kraaipoel 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, Robert Kraaipoel shall be assessed a civil penalty in the
amount of $250,000. Payment of the $250,000 penalty shall be suspended
for a period of three (3) years from the date of this Order, and
thereafter shall be waived, provided that during the period of
suspension, Robert Kraaipoel has committed no violation of the Act, or
any regulation, order, or license issued thereunder.
Second, for a period of seven (7) years from the date of this
Order, Robert Kraaipoel, P.O. Box 418, Heerhugowaard, Netherlands
1700AK and Flemming Straat 36, Heerhugowaard, Netherlands 1700AK, his
representatives, assigns or agents (hereinafter collectively referred
to as ``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.
Third, that no person may, directly or indirectly, do any of the
following:
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
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.
Fourth, 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 Robert Kraaipoel 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.
Fifth, 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.
Sixth, that the Proposed Charging Letter, the Settlement Agreement,
and this Order shall be made available to the public.
Seventh, that this Order shall be served on the Denied Person, and
shall be published in the Federal Register.
This Order, which constitutes the final agency action in this
matter, is effective immediately.
Issued this 2nd day of March 2010.
David W. Mills,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2010-5109 Filed 3-9-10; 8:45 am]
BILLING CODE 3510-DT-P