[Federal Register Volume 63, Number 96 (Tuesday, May 19, 1998)]
[Notices]
[Pages 27561-27562]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13286]
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DEPARTMENT OF COMMERCE
Bureau of Export Administration
Action Affecting Export Privileges; Sanford B. Groetzinger; Order
Denying Permission to Apply for or Use Export Licenses
In the Matter of: Sanford B. Groetzinger currently incarcerated
at: Federal Correction Institute, Number 21423038, P.O. Box 7000,
Fort Dix, New Jersey 08640, and with an address at: 82 Dennison
Street, Gloucester, Massachusetts 01930.
On September 26, 1997, Sanford B. Groetzinger (Groetzinger) was
convicted in the United States District Court for the District of
Massachusetts on four courts of violating Section 38 of the Arms Export
Control Act (currently codified at 22 U.S.C.A. 2778 (1990 & Supp.
1998)) (the AECA). Specifically, Groetzinger was convicted of knowingly
and willfully exporting and attempting to export defense articles to
France, for transshipment to Iran, without obtaining the required
export licenses from the Department of State.
Section 11(h) of the Export Administration Act of 1979, as amended
(currently codified at 50 U.S.C.A. app. Secs. 2401-2420 (1991 & Supp.
1998)) (the Act),\1\ provides that, at the discretion of the Secretary
of Commerce,\2\ no person convicted of violating the AECA, 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 CFR Parts 730-774 (1997)) (the
Regulations), for a period of up to 10 years from the date of the
conviction. In addition, any license
[[Page 27562]]
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
CFR 1994 Comp. 917 (1995)), extended by Presidential Notices of
August 15, 1995 (3 CFR, 1995 comp. 501 (1996)), August 14, 1996 (3
CFR, 1196 Comp. 298 (1997)), and August 13, 1997 (62 FR 43629,
August 15, 1997), continued the Export Administration Regulations in
effect under the International Emergency Economic Powers Act (50
U.S.C.A. Secs. 1701-1706 (1991 & Supp. 1998)).
\2\ Pursuant to appropriate delegations of authority, 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.
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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 the AECA,
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 or the
Regulations, and shall also determine whether to revoke any license
previously issued to such a person.
Having received notice of Groetzinger's conviction for violating
the AECA, and following consultations with the Acting Director, Office
of Export Enforcement, I have decided to deny Groetzinger 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 eight years from the date of his conviction. The eight-year period
ends on September 26, 2005. I have also decided to revoke all licenses
issued pursuant to the Act in which Groetzinger had an interest at the
time of his conviction.
Accordingly, it is hereby
Ordered
I. Until September 26, 2005, Sanford B. Groetzinger, currently
incarcerated at Federal Correction Institute, Number 21423038, P.O. Box
7000, Fort Dix, New Jersey 08640 and with an address at 82 Dennison
Street, Gloucester, Massachusetts 01930, 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, 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. Benefiting 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.
II. No person may do, directly or indirectly, 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 a 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 a 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.
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 Groetzinger 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-producted direct
product of U.S.-origin technology.
V. This Order is effective immediately and shall remain in effect
until September 26, 2005.
VI. A copy of this Order shall be delivered to Groetziner. This
Order shall be published in the Federal Register.
Dated: May 11, 1998.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 98-13286 Filed 5-18-98; 8:45 am]
BILLING CODE 3510-DT-M
