[Federal Register Volume 75, Number 63 (Friday, April 2, 2010)]
[Notices]
[Pages 16735-16737]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-7437]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
[09-BIS-005]
Action Affecting Export Privileges; Bob Rahimzadeh
In the Matter of: Bob Rahimzadeh, 116 Hopper Lane, Folsom, CA
95630, Respondent; Order Relating to Bob Rahimzadeh.
The Bureau of Industry and Security, U.S. Department of Commerce
(``BIS''), initiated this administrative proceeding against Bob
Rahimzadeh (``Rahimzadeh'') 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 and filing of a charging letter as to Rahimzadeh
that alleges that Rahimzadeh has committed four violations of the
Regulations (``Charging Letter''). Specifically, these charges are:
---------------------------------------------------------------------------
\1\ The Regulations are currently codified in the Code of
Federal Regulations at 15 CFR parts 730-774 (2009). The violations
occurred in 2004 and 2005. The Regulations governing the violation
at issue are found in the 2004 and 2005 versions of the Code of
Federal Regulations (15 CFR parts 730-774 (2004-2005)). The 2009
Regulations establish the procedures that apply to this matter.
\2\ 50 U.S.C. app. Sec. Sec. 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. p. 783 (2002)),
which has been extended by successive Presidential Notices, the most
recent being that 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.) (``IEEPA'').
---------------------------------------------------------------------------
Charge 1 15 CFR 764.2(b)--Causing, Aiding or Abetting
Between on or about July 26, 2004, and on or about September 28,
2004, Rahimzadeh caused, aided or abetted the doing of an act
prohibited by the Regulations by facilitating or coordinating the
export of approximately 174 rolls of hog hair filter media, part number
HH60130 and valued at approximately $11,687.76, items which are subject
to the Regulations and designated as EAR99 items,\3\ through the United
Arab Emirates (``U.A.E.'') to Iran without the required U.S. Government
authorization. Pursuant to Section 560.204 of the Iranian Transactions
Regulations (``ITR'') \4\ maintained by the U.S. Department of the
Treasury's Office of Foreign Assets Control (``OFAC''), an export to a
third country intended for transshipment to Iran is a transaction that
requires OFAC authorization. Pursuant to Section 746.7 of the
Regulations, no person may engage in the exportation of an item subject
to both the Regulations and the ITR without authorization from OFAC. No
OFAC authorization was sought or obtained for the transaction described
herein. Rahimzadeh took this action after having been asked by Parto
Abgardan Cooling Towers Co. (``Parto Abgardan''), an Iranian company,
to arrange for the export of the items to Iran ``via Dubai.'' Parto
Abgardan did not have a location in the U.A.E., and the address to
which Rahimzadeh arranged for the items to be exported, ``do Parto
Abgardan,'' was in fact subsequently added to the BIS Unverified List
of entities involved in transactions in which BIS is unable to verify
the existence or authenticity of the end-user or other party to the
transaction, published in the Federal Register on October 19, 2006. 71
FR 61706 (Oct. 19, 2006).
---------------------------------------------------------------------------
\3\ EAR99 is a designation for items subject to the Regulations
but not listed on the Commerce Control List. 15 CFR 734.3(c).
\4\ 31 CFR part 560.
---------------------------------------------------------------------------
In so doing, Rahimzadeh committed one violation of Section 764.2(b)
of the Regulations.
Charge 2 15 CFR 764.2(e)--Acting With Knowledge of a Violation
Between on or about July 26, 2004, and on or about September 28,
2004, Rahimzadeh ordered or financed items to be exported from the
United States with knowledge that a violation of the Regulations was
occurring, was about to occur or was intended to occur in connection
with the items. Specifically, between on or about July 26, 2004, and on
or about September 28, 2004, Rahimzadeh ordered or financed
approximately 174 rolls of hog hair filter media, part number HH60130
and valued at approximately $11,687.76, items which are subject to the
Regulations and designated as EAR99, which Rahimzadeh knew would be
exported to Iran via the U.A.E. without the required U.S. Government
authorization. Pursuant to Section 560.204 of the ITR, an export to a
third country intended for transshipment to Iran is a transaction that
requires OFAC authorization. Pursuant to Section 746.7 of the
Regulations, no person may engage in the exportation of an item subject
to both the Regulations and the ITR without authorization from OFAC.
Rahimzadeh knew that no OFAC authorization was sought or obtained for
the transaction described herein.
Rahimzadeh had knowledge that a violation was occurring, was about
to occur or was intended to occur in connection with the items because
he was aware of the U.S. embargo of Iran and had knowledge that
exporting items through the U.A.E. to Iran was a violation of U.S. law.
Rahimzadeh stated to a BIS Office of Export Enforcement special agent
in an interview on or about October 14, 2005, that approximately three
years earlier he had become aware of sanctions barring the shipment of
items to Iran and that he understood that knowingly shipping items to
Iran through a third country was illegal. Rahimzadeh referred to this
type of activity as ``diverting'' items to Iran. Moreover, on or about
September 23, 1997, Rahimzadeh had issued a letter to Parto Abgardan
stating, ``I am trying to find a way to send the components that I
promised to you. Unfortunately after many unsuccessful attempts, I came
to a conclusion that the only way to open this channel is what you were
thinking, and if I understood
[[Page 16736]]
correctly, you are going to have some kind of agent or office in one of
the Gulf countries. I tell you this that I would have no problem
getting a container to my place and loading to a steam ship toward
Dubai. * * * Many shipping companies express that you shouldn't have
any major problem getting the goods to Tehran from Dubai.''
In so doing, Rahimzadeh committed one violation of Section 764.2(e)
of the Regulations.
Charge 3 15 CFR 764.2(b)--Causing, Aiding or Abetting
Between on or about February 9, 2005, and on or about April 19,
2005, Rahimzadeh caused, aided, or abetted the doing of an act
prohibited by the Regulations by facilitating or coordinating the
export of approximately 185 rolls of hog hair filter media, part number
HHB60130 and valued at approximately $9,838.30, items which are subject
to the Regulations and designated as EAR99 items, through the U.A.E. to
Iran without the required U.S. Government authorization. Pursuant to
Section 560.204 of the ITR maintained by OFAC, an export to a third
country intended for transshipment to Iran is a transaction that
requires OFAC authorization. Pursuant to Section 746.7 of the
Regulations, no person may engage in the exportation of an item subject
to both the Regulations and the ITR without authorization from OFAC. No
OFAC authorization was sought or obtained for the transaction described
herein.
Specifically, after exporting certain hog hair filter media to
Parto Abgardan in Iran, as described in Charges 1-2, Rahimzadeh was
informed by Parto Abgardan that the items were not exactly the same as
a sample Rahimzadeh had previously brought to Parto Abgardan before the
transaction described in Charges 1-2 occurred. Rahimzadeh received from
Parto Abgardan a piece of the original sample as well as a piece of the
items described in Charges 1-2. Rahimzadeh then provided both pieces to
the U.S. distributor, and placed a new order for 185 rolls of hog hair
filter media, part number HHB60130, with the U.S. distributor.
Rahimzadeh arranged for the U.S. distributor to supply the items, which
were destined for Iran, to a freight forwarder for initial shipment to
the U.A.E., ``c/o Parto Abgardan.'' Parto Abgardan did not have a
location in the U.A.E., and the address to which Rahimzadeh arranged
for the items to be exported, ``c/o Parto Abgardan,'' was in fact added
to the BIS Unverified List of entities involved in transactions in
which BIS is unable to verify the existence or authenticity of the end-
user or other party to the transaction, published in the Federal
Register on October 19, 2006. 71 FR 61706 (Oct. 19, 2006).
In so doing, Rahimzadeh committed one violation of Section 764.2(b)
of the Regulations.
Charge 4 15 CFR 764.2(e)--Acting With Knowledge of a Violation
Between on or about February 9, 2005, and on or about April 19,
2005, Rahimzadeh ordered items to be exported from the United States
with knowledge that a violation of the Regulations was occurring, was
about to occur or was intended to occur in connection with the items.
Specifically, between on or about February 9, 2005, and on or about
April 19, 2005, Rahimzadeh ordered approximately 185 rolls of hog hair
filter media, part number HHB60130 and valued at approximately
$9,838.30, items which are subject to the Regulations and designated as
EAR99, which Rahimzadeh knew would be exported to Iran via the U.A.E.
without the required U.S. Government authorization. Pursuant to Section
560.204 of the ITR, an export to a third country intended for
transshipment to Iran is a transaction that requires OFAC
authorization. Pursuant to Section 746.7 of the Regulations, no person
may engage in the exportation of an item subject to both the
Regulations and the ITR without authorization from OFAC. Rahimzadeh
knew that no OFAC authorization was sought or obtained for the
transaction described herein.
Rahimzadeh had knowledge that a violation was occurring, was about
to occur or was intended to occur in connection with the items because
Rahimzadeh was aware of the U.S. embargo of Iran and had knowledge that
exporting items through the U.A.E. to Iran was a violation of U.S. law.
Rahimzadeh stated to a BIS Office of Export Enforcement special agent
in an interview on or about October 14, 2005, that approximately three
years earlier he had become aware of sanctions barring the shipment of
items to Iran and that he understood that knowingly shipping items to
Iran through a third country was illegal. Rahimzadeh referred to this
type of activity as ``diverting'' items to Iran. Moreover, on or about
September 23, 1997, Rahimzadeh had issued a letter to Parto Abgardan
stating, ``I am trying to find a way to send the components that I
promised to you. Unfortunately after many unsuccessful attempts, I came
to a conclusion that the only way to open this channel is what you were
thinking, and if I understood correctly, you are going to have some
kind of agent or office in one of the Gulf countries. I tell you this
that I would have no problem getting a container to my place and
loading to a steam ship toward Dubai. * * * Many shipping companies
express that you shouldn't have any major problem getting the goods to
Tehran from Dubai.''
In so doing, Rahimzadeh committed one violation of Section 764.2(e)
of the Regulations.
Whereas, BIS and Rahimzadeh have entered into a Settlement
Agreement pursuant to Section 766.18(b) 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, Rahimzadeh shall be assessed a civil penalty in the amount
of $100,000, the payment of which shall be suspended for a period of
ten (10) years from the date of this Order, and thereafter shall be
waived, provided that during the period of suspension, Rahimzadeh has
committed no violation of the Act, or any regulation, order, or license
issued thereunder.
Second, that for a period of ten (10) years from the date of this
Order, Rahimzadeh, 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.
Third, that no person may, directly or indirectly, do any of the
following:
[[Page 16737]]
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 Rahimzadeh 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.
Fifth, that the Charging Letter, the Settlement Agreement, and this
Order shall be made available to the public.
Sixth, 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 25th day of March 2010.
David W. Mills,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2010-7437 Filed 4-1-10; 8:45 am]
BILLING CODE 3510-DT-M