[Federal Register Volume 61, Number 207 (Thursday, October 24, 1996)]
[Notices]
[Pages 55130-55131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27259]
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DEPARTMENT OF COMMERCE
Bureau of Export Administration
Action Affecting Export Privileges; Walton W. McCarthy
In the Matter of: Walton W. McCarthy 138-1 Blakes Hill Road,
Northwood, New Hampshire 03261.
Order Denying Permission To Apply for or Use Export Licenses
On February 12, 1996, Walton W. McCarthy (McCarthy) was convicted
in the United States District Court for the District of Massachusetts
of violating the International Emergency Economic Powers Act (50
U.S.C.A. 1701-1706 (1991 & Supp. 1996) (IEEPA). McCarthy was convicted
of willfully, knowingly, and unlawfully dealing and attempting to deal
in property intended for exportation to Iraq, specifically, an
underground shelter known as an ``S30 Remote Tactical Base,'' and
engaging and attempting to engage in activity intended to promote such
dealing, in violation of the embargo against Iraq.
Section 11(h) of the Export Administration Act of 1979, as amended
(50 U.S.C.A. app. Secs. 2401-2420 (1991 & Supp. 1996)) (the Act),\1\
provides that, at the discretion of the Secretary of
[[Page 55131]]
Commerce,\2\ no person convicted of violating IEEPA, or certain other
provisions of the United States Code, shall be eligible to apply for or
use any license, including any License Exception, issued pursuant to,
or provided by, the Act or the Export Administration Regulations
(currently codified at 15 C.F.R. Parts 768-799 (1996), as amended (61
FR 12714, March 25, 1996)) (the Regulations),\3\ for a period of up to
10 years from the date of the conviction. In addition, any license
issued pursuant to the Act in which such a person had any interest at
the time of conviction may be revoked.
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\1\ The Act expired on August 20, 1994. Executive Order 12924 (3
C.F.R., 1994 Comp. 917 (1995)), extended by Presidential Notices of
August 15, 1995 (3 C.F.R., 1995 Comp. 501 (1996)) and August 14,
1996 (61 FR 42527, August 15, 1996), continued the Regulations in
effect under IEEPA.
\2\ Pursuant to appropriate delegations of authority that are
reflected in the Regulations, the Director, Office of Exporter
Services, in consultation with the Director, Office of Export
Enforcement, exercises the authority granted to the Secretary by
Section 11(h) of the Act.
\3\ The March 25, 1996 Federal Register publication
redesignated, but did not republish, the existing Regulations as 15
C.F.R. Parts 768A-799A. In addition, the March 25 Federal Register
publication restructured and reorganized the Regulations,
designating them as an interim rule at 15 C.F.R. Parts 730-774,
effective April 24, 1996.
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Pursuant to Sections 766.25 and 750.8(a) of the Regulations, upon
notification that a person has been convicted of violating IEEPA, the
Director, Office of Exporter Services, in consultation with the
Director, Office of Export Enforcement, shall determine whether to deny
that person permission to apply for or use any license, including any
License Exception, issued pursuant to, or provided by, the Act and the
Regulations, and shall also determine whether to revoke any license
previously issued to such a person.
Having received notice of McCarthy's conviction for violating
IEEPA, and following consultations with the Acting Director, Office of
Export Enforcement, I have decided to deny McCarthy permission to apply
for or use any license, including any License Exception, issued
pursuant to, or provided by, the Act and the Regulations, for a period
of 10 years from the date of his conviction. The 10-year period ends on
February 12, 2006. I have also decided to revoke all licenses issued
pursuant to the Act in which McCarthy had an interest at the time of
his conviction.
Accordingly, it is hereby Ordered:
I. Until February 12, 2006, Walton W. McCarthy, 138-1 Blakes Hill
Road, Northwood, New Hampshire 03261, 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,\4\ License
Exception, or export control document;
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\4\ For purposes of this Order, ``license'' includes any general
license established in 15 C.F.R. Parts 768A-799A.
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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 EAR, or in any other activity
subject to the EAR; 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 EAR, or in any other activity subject to the EAR.
II. 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 EAR;
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 EAR 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 EAR that has been exported from the United States;
D. Obtain from the denied person in the United States any item
subject to the EAR 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 EAR
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 EAR 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. After notice and opportunity for comment as provided in
Section 766.23 of the Regulations, any person, firm, corporation, or
business organization related to McCarthy by affiliation, ownership,
control, or position of responsibility in the conduct of trade or
related services may also be subject to the provisions of this 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 February 12, 2006.y
VI. A copy of this Order shall be delivered to McCarthy.
This Order shall be published in the Federal Register.
Dated: October 11, 1996.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 96-27259 Filed 10-23-96; 8:45 am]
BILLING CODE 3510-DT-M
