[Federal Register Volume 62, Number 108 (Thursday, June 5, 1997)]
[Notices]
[Pages 30841-30842]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14636]
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DEPARTMENT OF COMMERCE
Export Administration
Karl Cording; Decision and Order
In the Matter of: Karl Cording, with Addresses at Anzstrasse 8,
Windhoek, Namibia, A. Rosenthal (PTY) Ltd., P.O. Box 97, 292
Independence Avenue, Windhoek, Namibia, A. Rosenthal (PTY) Ltd.,
P.O. Box 3721, 13 Loop Street, Cape Town, South Africa, and A.
Rosenthal (PTY) Ltd., P.O. Box 44198, 65 7th Street, Denmyr
Building, 2104 Linden, South Africa, Respondent.
Decision and Order
On November 27, 1995, the Office of Export Enforcement, Bureau of
Export Administration, United States Department of Commerce
(hereinafter ``BXA''), issued a charging letter initiating an
administrative proceeding against Karl Cording. The charging letter
alleged that Cording committed seven violations of the Export
Administration Regulations (61 FR 12734-13041, March 25, 1996, to be
codified at 15 CFR parts 730-774) (hereinafter the ``Regulations''),\1\
issued pursuant to the Export Administration Act of 1979, as amended
(50 U.S.C.A. app. 2401-2420 (1991 & Supp. 1997)) (hereinafter the
``Act'').\2\
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\1\ The violations at issue occurred between mid-1990 and early
1992. The Regulations governing those violations are found in the
1990, 1991, and 1992 versions of the Code of Federal Regulations (15
CFR parts 768-799 (1990, 1991, and 1992)) and are referred to
hereinafter as the former Regulations. Since that time, the
Regulations have been reorganized and restructed; the restructured
Regulations, to be codified at 15 CFR Parts730-774, establish the
procedures that apply to the matters set forth in this Decision and
Order.
\2\ 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)) and August 14, 1996
(61 FR 42527, August 15, 1996), continued the Regulations in effect
under International Emergency Economic Powers Act (currently
codified at 50 U.S.C.A. 1701-1706 (1991 & Supp. 1997)).
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Specifically, the charging letter alleged that, between mid-1990
and early 1992, Cording conspired with James L. Stephens, president and
co-owner of Weisser's Sporting Goods, National City, California, and
Ian Ace, manager of A. Rosenthal, Cape Town, South Africa, to export
and, on two separate occasions, actually exported U.S.-origin shotguns,
with barrel lengths 18 inches and over, to Namibia and South Africa,
without applying for and obtaining from the Department the validated
export licenses Cording knew or had reason to know were required under
the Act and Regulations. In addition, BXA alleged that, in furtherance
of the conspiracy, and in connection with each of those exports,
Cording made false or misleading representations of material fact to a
U.S. Government agency in connection with the preparation, submission,
or use of export control documents. BXA alleged that, in so doing,
Cording committed one violation of section 787.3(b), two violations of
section 787.4(a), two violations of section 787.5(a), and two
violations of section 787.6 of the former Regulations, for a total of
seven violations of the former Regulations.
The charging letter was served on Cording during December 1995.
Cording failed to answer the charging letter. Thus, on April 18, 1997,
pursuant to section 766.7 of the Regulations, BXA moved that the
Administrative Law Judge find the facts to be as alleged in the
charging letter and render a Recommended Decision and Order.
Following BXA's motion, on May 1, 1997, Chief Administrative Law
Judge Joseph A. Ingolio issued a Recommended Decision and Order in
which he found the facts to be as alleged in the charging letter, and
concluded that those facts constituted violations of the Act and
Regulations, as BXA alleged. The Administrative Law Judge also
concurred with BXA's recommendation that the appropriate penalty to be
imposed for those violations is a denial, for a period of 20 years, of
all of Cording's export privileges. As provided by section 766.22(a) of
the Regulations, the Recommended Decision and Order has been referred
to me for final action.
Based on my review of the entire record, I affirm the findings of
fact and conclusions of law in the Recommended Decision and Order of
the Administrative Law Judge.
Accordingly, it is therefore Ordered, First, that for a period of
20 years from the date of this Order, Karl Cording, with an address at
Anzstrasse 8, Windhoek, Namibia; with an address c/o A. Rosenthal (PTY)
Ltd., P.O. Box 97, 292 Independence Avenue, Windhoek, Namibia; with an
address c/o A. Rosenthal (PTY) Ltd., P.O. Box 3721, 13 Loop Street,
Cape Town, South Africa; and with an address c/o A. Rosenthal (PTY)
Ltd., P.O. Box 44198, 65 7th Street, Denmyr Building, 2104 Linden,
South Africa, may not, directly or indirectly, participate in any way
in any transaction involving any commodity, software or technology
(hereinafter collectively referred to an ``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.
Second, that 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 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;
[[Page 30842]]
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 that is owned, possessed or controlled by a denied person, or
service any item, of whatever origin, that is owned, possessed or
controlled by a 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.
Third, 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 the denied person 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.
Fourth, that 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.
Fifth, that a copy of this Order shall be served on Cording and
BXA, and shall be published in the Federal Register.
This Decision and Order, which constitutes final agency action in
this matter, is effective immediately.
Dated: May 29, 1997.
William A. Reinsch,
Under Secretary for Export Administration.
[FR Doc. 97-14636 Filed 6-4-97; 8:45 am]
BILLING CODE 3510-DT-M
