Action Affecting Export Privileges; Michel V. Diago; Order Denying Permission To Apply for or Use Export Licenses

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; Michel V. Diago; Order

Denying Permission To Apply for or Use Export Licenses

On February 25, 1993, following a plea of guilty to one count of a

superseding information, Michel V. Diago (Diago) was convicted in the

U.S. District Court for the Northern District of California of

violating the Export Administration Act of 1979, as amended (50

U.S.C.A. app. 2401-2420 (1991, Supp. 1993, and Pub. L. No. 103-277,

July 5, 1994)) (the Act).\1\ Diago was convicted of attempting to

export U.S.-origin computer parts from the United States to Cuba

without the validated export license required by the Export

Administration Regulations (currently codified at 15 CFR Parts 768-799

(1994)) (the Regulations).

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\1\The Act expired on August 20, 1994. Executive Order 12924 (59

FR 43437, August 23, 1994) continued the Regulations in effect under

the International Emergency Economic Powers Act (50 U.S.C.A. 1701-

1706 (1991)).

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Section 11(h) of the Act provides that, at the discretion of the

Secretary of Commerce,\2\ no person convicted of violating the 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 Regulations for a period of up to 10 years from the

date of the conviction. In addition, any export 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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\2\Pursuant to appropriate delegations of authority that are

reflected in the Regulations, the Director, Office of Export

Licensing, 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 Secs. 770.15 and 772.1(g) of the Regulations, upon

notification that a person has been convicted of violating the Act, the

Director, Office of Export Licensing, in consultation with the

Director, Office of Export Enforcement, shall determine whether to deny

that person permission to apply for or use any export license issued

pursuant to, or provided by, the Act and the Regulations, and shall

also determine whether to revoke any export license previously issued

to such a person.

Having received notice of Diago's conviction for violating the Act,

and following consultations with the Director, Office of Export

Enforcement, I have decided to deny Diago permission to apply for or

use any export license, including any general license, 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 25, 2003. I have also decided to revoke all export licenses

issued pursuant to the Act in which Diago had an interest at the time

of his conviction.

Acccordingly, it is hereby ordered:

I

All outstanding individual validated licenses in which Diago

appears or participates, in any manner or capacity, are hereby revoked

and shall be returned forthwith to the Office of Export Licensing for

cancellation. Further, all of Diago's privileges of participating, in

any manner or capacity, in any special licensing procedure, including,

but not limited to, distribution licenses, are hereby revoked.

II

Until February 25, 2003, Michel V. Diago, 1183 Calle del Arroyo,

Sonoma, California 95476, hereby is denied all privileges of

participating, directly or indirectly, in any manner or capacity, in

any transaction in the United States or abroad involving any commodity

or technical data exported or to be exported from the United States, in

whole or in part, and subject to the Regulations. Without limiting the

generality of the foregoing, participation, either in the United States

or abroad, shall include participation, directly or indirectly, in any

manner or capacity: (i) As a party or as a representative of a party to

any export license application submitted to the Department; (ii) in

preparing or filing with the Department any export license application

or request for reexport authorization, or any document to be submitted

therewith; (iii) in obtaining from the Department or using any

validated or general export license, reexport authorization or other

export control document; (iv) in carrying on negotiations with respect

to, or in receiving, ordering, buying, selling, delivering, storing,

using, or disposing of, in whole or in part, any commodities or

technical data exported or to be exported from the United States, and

subject to the Regulations; and (v) in financing, forwarding,

transporting, or other servicing of such commodities or technical data.

III

After notice and opportunity for comment as provider in

Sec. 770.15(h) of the Regulations, any person, firm, corporation, or

business organization related to Diago by affiliation, ownership,

control, or position of responsibility in the conduct of trade or

related services may also be subject to the provision of this Order.

IV

As provided in Sec. 787.12(a) of the Regulations, without prior

disclosure of the facts to and specific authorization of the Office of

Export Licensing, in consultation with the Office of Export

Enforcement, no person may directly or indirectly, in any manner or

capacity: (i) apply for, obtain, or use any license, Shipper's Export

Declaration, bill of lading, or other export control document relating

to an export or reexport of commodities or technical data by, to, or

for another person then subject to an order revoking or denying his

export privileges or then excluded from practice before the Bureau of

Export Administration; or (ii) order, buy, receive, use, sell, deliver,

store, dispose of, forward, transport, finance, or otherwise service or

participate: (a) in any transaction which may involve any commodity or

technical data exported or to be exported from the United States; (b)

in any eexport thereof; or (c) in any other transaction which is

subject to the Export Administration Regulations, if the person denied

export privileges may obtain any benefit or have any interest in,

directly or indirectly, any of these transactions.

V

This Order is effective immediately and shall remain in effect

until February 25, 2003.

VI

A copy of this Order shall be delivered to Diago. This Order shall

be published in the Federal Register.

Dated: September 7, 1994.

Charles M. Guernieri,

Acting Director, Office of Export Licensing.

[FR Doc. 94-22769 Filed 9-14-94; 8:45 am]

BILLING CODE 3510-DT-M