E6-1339. Bureau of Political-Military Affairs; Statutory Debarment Under the International Traffic in Arms Regulations

ACTION:

Notice.

SUMMARY:

Notice is hereby given that the Department of State has imposed statutory debarment pursuant to Section 127.7(c) of the International Traffic in Arms Regulations (“ITAR”) (22 CFR parts 120 to 130) on persons convicted of violating or conspiring to violate Section 38 of the Arms Export Control Act (“AECA”) (22 U.S.C. 2778).

EFFECTIVE DATE:

Date of conviction as specified for each person.

FOR FURTHER INFORMATION CONTACT:

David Trimble, Director, Office of Defense Trade Controls Compliance, Bureau of Political-Military Affairs, Department of State [phone].

SUPPLEMENTARY INFORMATION:

Section 38(g)(4) of the AECA, 22 U.S.C. 2778, prohibits licenses and other approvals for the export of defense articles or defense services to be issued to persons, or any party to the export, who have been convicted of violating certain statutes, including the AECA.

In implementing this section of the AECA, the Assistant Secretary for Political-Military Affairs is authorized by § 127.7 of the ITAR to prohibit any person who has been convicted of violating or conspiring to violate the AECA from participating directly or indirectly in the export of defense articles, including technical data or in the furnishing of defense services for which a license or other approval is required. This prohibition is referred to as “statutory debarment.”

Statutory debarment is based solely upon conviction in a criminal proceeding, conducted by a United States Court, and as such the administrative debarment proceedings outlined in part 128 of the ITAR are not applicable.

The period for debarment will be determined by the Assistant Secretary for Political-Military Affairs based on the underlying nature of the violations, but will generally be for three years from the date of conviction. At the end of the debarment period, licensing privileges may be reinstated only at the request of the debarred person following the necessary interagency consultations, after a thorough review of the circumstances surrounding the conviction, and a finding that appropriate steps have been taken to mitigate any law enforcement concerns, as required by Section 38(g)(4) of the AECA. Unless licensing privileges are reinstated, however, the person remains debarred.

Department of State policy permits debarred persons to apply to the Director, Office of Defense Trade Controls Compliance, for reinstatement beginning one year after the date of the debarment, in accordance with Section 38(g)(4) of the AECA and § 127.11(b) of the ITAR. Any decision to grant reinstatement can be made only after the statutory requirements under Section 38(g)(4) of the AECA have been satisfied.

Exceptions, also known as transaction exceptions, may be made to this debarment determination on a case-by-base basis at the discretion of the Assistant Secretary of State for Political-Military Affairs. However, such an exception would be granted only after a full review of all circumstances, paying particular attention to the following factors: whether an exception is warranted by overriding U.S. foreign policy or national security interests; Whether an exception would further law enforcement concerns that are consistent with the foreign policy or national security interests of the United States; or whether other compelling circumstances exist that are consistent with the foreign policy or national security interests of the United States, and that do not conflict with law enforcement concerns. Even if exceptions are granted, the debarment continues until subsequent reinstatement.

Pursuant to Section 38 of the AECA and § 127.7 of the ITAR, the Assistant Secretary of State for Political-Military Affairs has statutorily debarred the following persons for a period of three years following the date of their AECA conviction:

(1) Bernardo Gonzalez-Martinez, October 24, 2003, U.S. District Court, Southern District of Texas (Brownsville), Case #: 1:03CR00455-003.

(2) Maria Silvia Elizalde de Nuñez, October 10, 2003, U.S. District Court, Southern District of Texas (Brownsville), Case #: 1:03CR00455-002.

(3) Kwonhwan Park (a.k.a. Howard Park), August 30, 2005, U.S. District Court, District of Connecticut (Bridgeport), Case #: 3:04cr123(MRK).

(4) Mehrdad Zar (a.k.a. Tony Zar), October 27, 1998, U.S. District Court, Eastern District of Virginia, Case #: 2:98CR00064-001.

(5) Constantinos Katsaras, November 25, 2003, U.S. District Court, Southern District of Florida (Ft. Lauderdale), Case #: 03-60096-Cr-Marra.

(6) Edgar Semprun, March 14, 2005, U.S. District Court, Southern District of Florida (Miami), Case #: 04-20605-CR-LENARD 004.

(7) Rafael Alberto Samper, February 28, 2005, U.S. District Court, Southern District of Florida (Miami), Case #: 04-20605-CR-LENARD 003.

(8) Antonio Tarrab, March 8, 2005, U.S. District Court, Southern District of Florida (Miami), Case #: 04-20605-CR-LENARD 005.

(9) Bilmer Alberto Paz, March 21, 2005, U.S. District Court, Southern District of Florida (Miami), Case #: 04-20605-CR-LENARD 006.

(10) Raul Demolina, May 5, 2005, U.S. District Court, Southern District of Florida (Miami), Case #: 04-20605-CR-LENARD(s).

(11) Sotaro Inami, April 28, 2005, U.S. District Court, Eastern District of Pennsylvania, Case #: 04-429.

(12) Luis Hector Margaillon-Drabos (a.k.a. Pedro Marquez-Monreal; a.k.a. Luis Hector Margaillon; a.k.a. Jose Olivarez-Martinez), April 18, 2005, U.S. District Court, District of Arizona (Tucson), Case #: CR 04-00208-001-PHX-FJM.

(13) Hemant Lakhani (a.k.a. Hemad Lakhani), September 12, 2005, U.S. District Court, District of New Jersey (Newark), Case #: 03-880-01.

(14) Interaero, Inc., December 16, 2004, U.S. District Court, District of Columbia, Case #: CR 04-317.

(15) Renald Etienne, December 17, 1999, U.S. District Court, Middle District of Florida (Tampa), Case #: 99-31-CR-FTM-26D.

(16) David Tomkins, October 8, 2004, U.S. District Court, Southern District of Florida (Miami), Case #: 94-204-CR-JORDAN.

(17) Tanzeem A. Khan, September 11, 2001, U.S. District Court, District of Maryland (Baltimore), Case #: JFM-01-085.

(18) Tauquir A. Khan, September 11, 2001, U.S. District Court, District of Maryland (Baltimore), Case #: JFM-01-085.

(19) Eduardo Marin Mejias, November 23, 2005, U.S. District Court, Southern District of Florida (Miami), Case #: 05-60128-CR-ALTONAGA.

(20) Neuro Enrique Gonzalez, November 8, 2005, U.S. District Court, Southern District of Florida (Miami), Case #: 05-60128-CR-ALTONAGA(s).

(21) Randy Reyes, January 14, 2000, U.S. District Court, Eastern District of Wisconsin, Case #: 98-CR-189.

(22) Fermin Revuelta, December 14, 2000, U.S. District Court, Northern District of California, Case #: CR-99-0117 CAL.

(23) Fernando Sero (a.k.a. Ferdie Resada), December 15, 2005, U.S. District Court, Southern District of New York, Case # 05 CR 00340-01 (CLB).

As noted above, at the end of the three-year period, the above named persons/entities remain debarred unless licensing privileges are reinstated.

Debarred persons are generally ineligible to participate in activity regulated under the ITAR (see e.g., §§ 120.1(c) and (d), and 127.11(a)). The Department of State will not consider applications for licenses or requests for approvals that involve any person who has been convicted of violating or of conspiring to violate the AECA during the period of statutory debarment. Persons who have been statutorily debarred may appeal to the Under Secretary for Arms Control and International Security for reconsideration of the ineligibility determination. A request for reconsideration must be submitted in writing within 30 days after a person has been informed of the adverse decision, in accordance with 22 CFR 127.7(d) and 128.13(a).

This notice is provided for purposes of making the public aware that the persons listed above are prohibited from participating directly or indirectly in any brokering activities and in any export from or temporary import into the United States of defense articles, related technical data, or defense services in all situations covered by the ITAR. Specific case information may be obtained from the Office of the Clerk for the U.S. District Courts mentioned above and by citing the court case number where provided.

This notice involves a foreign affairs function of the United States encompassed within the meaning of the military and foreign affairs exclusion of the Administrative Procedure Act. Because the exercise of this foreign affairs function is discretionary, it is excluded from review under the Administrative Procedure Act.

Dated: January 24, 2006.

John Hillen,

Assistant Secretary for Political-Military Affairs, Department of State.