00-15993. Action Affecting Export Privileges; David Sheldon Boone

Order Denying Export Privileges

In the Matter of David Sheldon Boone currently incarcerated at: FCI Manchester, #43671-083, P.O. Box 3000, Manchester, Kentucky 40962.

On February 26, 1999, David Sheldon Boone (Boone) was convicted in the United States District Court for the Eastern District of Virginia on one count of violating Section 794(a) and (c) of the Espionage Act (18 U.S.C.A. 792-799) (1976 & Supp. 2000)). Boone was convicted of unlawfully and knowingly combining, conspiring, confederating and agreeing with other persons, both known and unknown, including officers of the Komitet Gosudarstvennoy Bezopasnosty (KGB), to knowingly and unlawfully communicate, deliver, and transmit, and attempt to communicate, deliver and transmit, to representatives and agents of a foreign government, specifically the U.S.S.R. and the Russian Federation, directly and indirectly, documents and information relating to the national defense of the United States, with the intent and reason to believe that the same would be used to the injury of the United States and to the advantage of the U.S.S.R. and the Russian Federation.

Section 11(H) of the Export Administration Act of 1979, as amended (currently codified at 50 U.S.C.A. app. sections 2401-2420 (1991 & Supp. 2000)) (the Act),^[1] provides that, at the discretion of the Secretary of Commerce,^[2] no person convicted of violating Section 794 of the Espionage Act, or certain other provisions of the United States Code, shall be eligible to apply for or use any export license issued pursuant to, or provided by, the Act or the Export Administration Regulations (currently codified at 15 CFR Parts 730-774 (1999), as amended (65 FR 14862, March 20, 2000)) (the Regulations), 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.

Pursuant to Sections 766.25 and 750.8(a) of the Regulations, upon notification that a person has been convicted of violating Section 794 of the Espionage Act, the Director, Office of Exporter Services, in consultation with the Director, Office of Export Enforcement, shall determine whether to deny that person's export privileges for a period of up to 10 years form the date of conviction and shall also determine whether to revoke any license previously issued to such a person.

Having received notice of Boonee's conviction for violating Section 794(a) and (c) of the Espionage Act, and after providing notice and an opportunity for Boone to make a written submission to the Bureau of Export Administration before issuing an Order denying his export privileges, as provided in Section 766.25 of the Regulations, I, following consultations with the Director, Office of Export Enforcement, have decided to deny Boone's export privileges for a period of 10 years from the date of his conviction. The 10-year period ends on February 26, 2009. I have also decided to revoke all licenses issued pursuant to the Act in which Boone had an interest at the time of his conviction.

Accordingly, it is hereby ordered:

I. Until February 26, 2009, David Sheldon Boone, currently incarcerated at: FCI Manchester, #43671-083, P.O. Box 3000, Manchester, Kentucky 40962, 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 order, 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 Untied 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, 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.

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 Boone 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 26, 2009.

VI. In accordance with Part 756 of the Regulations, Boonee may file an appeal from this Order with the Under Secretary for Export Administration. The appeal must be filed within 45 days from the date of this Order and must comply with the provisions of Part 756 of the Regulations.

VII. A copy of this Order shall be delivered to Boonee. This Order shall be published in the Federal Register.

Dated: June 13, 2000.

Eileen M. Albanese,

Director, Office of Exporter Services.

Footnotes

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 1996 Comp. 298 (1997)), August 13, 1997 (3 CFR 1997 Comp. 306 (1998)), August 13, 1998 (3 CFR 1998 Comp. 294 (1999)) and August 10, 1999 (3 CFR 1999 Comp. 302 (2000)), continued the Export Administration Regulations in effect under the International Emergency Economic Powers Act (50 U.S.C.A 1701-1706 (1991 & Supp. 2000)).

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.