Decision and Order

DEPARTMENT OF COMMERCE

Bureau of Export Administration

[Docket Nos. 5103-01; 5104-01; 5105-01]

Decision and Order

In the matter of: Waldemar Znamierowski, Krzwinska Str., 16/1,

03-324, Warsaw, Poland; Paul A. Prandecki a/k/a Paul Prand, 3178 El

Centro Circle, Las Vegas, Nevada 89121 and Beta Computer Trading

Pte. Limited, One Rockor Canal Road, Sim Lin Square #06-67,

Singapore 0718; Respondents.

On May 31, 1955, the Administrative Law Judge (ALJ) entered his

Recommended Decision and Order in the above-referenced matters. The

Recommended Decision and Order, a copy of which is attached hereto and

made a part hereof, has been referred to me for final action. After

describing the facts of the case and his findings based on those facts,

the ALJ found that the Respondents Znamierowski and Prandecki had

violated Section 787.2 of the Export Administration Regulations (EAR)

by causing, aiding and abetting the export of three U.S.-origin Apollo

computer workstations from the United States through Singapore to

Poland without obtaining the validated export licenses required by

Section 772.1 of the EAR. The ALJ also found that the Respondent Beta

Computer Trading PTE, Limited reexported three U.S.-origin Apollo

computer workstations from Singapore to Poland without obtaining from

the Department of Commerce the reexport authorization required by

Section 774.1 of the EAR.

The ALJ found that the appropriate penalty for the violations

should be that the Respondents and all successors, assignees, officers,

representatives, agents and employees be denied for a period of ten

years from this date all privileges of participating, directly or

indirectly, in any manner or capacity, in any transaction in the United

States or abroad involving commodities or technical data exported or to

be exported from the United States and subject to the Export

Administration Regulations.

Based on my review of the entire record, I affirm the Recommended

Decision and Order of the Administrative Law Judge.

This constitutes final agency action in this matter.

Dated: June 13, 1995.

William A. Reinsch,

Under Secretary for Export Administration.

Recommended Decision and Order

On December 9, 1993, the Office of Export Enforcement, Bureau of

Export Administration, U.S. Department of Commerce (Department), issued

separate charging letters against Paul A. Prandecki, also known as Paul

Prand (Prandecki); Beta Computer Trading Pte. Limited (Beta Computer);

and Waldemar Znamierowski (Znamierowski) (hereinafter collectively

referred to as respondents). None of the respondents

[[Page 32301]] answered or otherwise responded to the charging letters.

On April 17, 1995, I issued an Order finding that Znamierowski was

in default for failing to file an answer to the charging letter and

directing the Department to make the submission required by Section

788.8 of the Export Administration Regulations (currently codified at

15 C.F.R. Parts 768-799 (1995)) (the Regulations), by May 17, 1995. On

April 18, 1995, I issued separate Orders against Prandecki and Beta

Computer, finding both of them in default for failing to answer the

charging letters issued against them and directing the Department to

make the submission required by Section 788.8 of the Regulations by May

18, 1995. On April 19, 1995, I issued Corrected Orders in Prandecki and

Beta Computer directing the Department to make its submissions by May

19, 1995.

On May 5, 1995, the Department filed a motion to consolidate these

matters and requested that it be provided to May 19, 1995 to file a

single default submission addressing the allegations against all three

respondents in a single pleading. On May 8, 1995, I granted the

Department's motion. In accordance with that Order, on May 19, 1995,

the Department submitted its Default Submission, together with

supporting evidence.

Background

In the December 9, 1993 charging letters, the Department alleged

that Prandecki and Znamierowski caused, aided, and abetted the export

of three U.S.-origin Apollo computer workstations from the United

States through Singapore to Poland without obtaining from the

Department the validated export license required by Section 772.1(b) of

the Regulations. The Department charged that, by causing, aiding, and

abetting the doing of an act prohibited by the Export Administration

Act of 1979, as amended (50 U.S.C.A. app. Secs. 2401-2420 (1991, Supp.

1993, and Pub. L. No. 103-277, July 5, 1994)) (the Act),\1\ or any

regulation, order, or license issued under the Act, Prandecki and

Znamierowski each committed one violation of Section 787.2 of the

Regulations, involving commodities controlled for reasons of national

security under Section 5 of the Act.

\1\The Act expired on August 20, 1994. Executive Order No. 12924

(59 FR 43437, August 23, 2994) continued the Regulations in effect

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

Secs. 1701-1706 (1991)).

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In the December 9, 1993 charging letter issued against Beta

Computer, the Department alleged that Beta Computer reexported three

U.S.-origin Apollo computer workstations from Singapore to Poland

without obtaining from the Department the reexport authorization

required by Section 774.1 of the Regulations. The Department charged

that, by reexporting commodities to any person or destination in

violation of or contrary to the terms of the Act, or any regulation,

order, or license issued under the Act, Beta Computer committed one

violation of Section 787.6 of the Regulations, involving commodities

controlled for reasons of national security under Section 5 of the Act.

On the basis of the Department's submission and all of the

supporting evidence presented, I have determined that Prandecki,

Znamierowski, and Beta Computer committed the violations alleged in the

separate charging letters issued against them.

For those violations, the Department urged as a sanction that the

export privileges of Prandecki, Znamierowski, and Beta Computer be

denied for 10 years. In light of the nature of the violations, I concur

in the Department's recommendation.

Accordingly, it is Therefore Ordered,

First, that all outstanding individual validated licenses in which

Waldemar Znamierowski, Krzwinska Str., 16.1, 03-32, Warsaw, Poland;

Paul A. Prandecki, a/k/a Paul Prand, 3178 El Centro Circle, Las Vegas,

Nevada 89121; and Beta Computer Trading Pte. Limited, One Rockor Canal

Road, Sim Lim Square #06-67, Singapore 0718, appear or participate, in

any manner or capacity, are hereby revoked and shall be returned

forthwith to the Office of Exporter Services for cancellation. Further,

all of the privileges of Prandecki, Znamierowski, and Beta Computer to

participate, in any manner or capacity, in any special licensing

procedure, including, but not limited to, distribution licenses, are

hereby revoked.

Second, that Waldemar Znamierowski, Krzwinska Str., 16/1, 03-32,

Warsaw, Poland; Paul A. Prandecki, a/k/a Paul Prand, 3178 El Centro

Circle, Las Vegas, Nevada 89121; and Beta Computer Trading Pte.

Limited, One Rockor Canal Road, Sim Lim Square #06-67, Singapore 0718

(collectively referred to as respondents), and all of their successors,

assigns, officers, representatives, agents, and employees, shall for a

period of 10 years from the date of final agency action, be 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, and subject to the Regulations.

A. 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.

B. After notice and opportunity for comment as provided in Section

788.3(c) of the Regulations, any person, firm, corporation, or business

organization related to any of the respondents by affiliation,

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

trade related services may also be subject to the provisions of this

Order.

C. As provided by Section 787.12(a) of the Regulations, without

prior disclosure of the facts to and specific authorization of the

Office of Exporter Services, 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 reexport 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. [[Page 32302]]

Third, that a copy of this Order shall be served on each of the

respondents and on the Department.

Fourth, that this Order, as affirmed or modified, shall become

effective upon entry of the final action by the Under Secretary for

Export Administration, in accordance with the Act (50 U.S.C.A. app.

Sec. 2412(c)(1)) and the Regulations (15 CFR 788.23).

Dated: May 31, 1995.

Edward J. Kuhlmann,

Administrative Law Judge.

To be considered in the 30 day statutory review process which is

mandated by Section 13(c) of the Act, submissions must be received in

the Office of the Under Secretary for Export Administration, U.S.

Department of Commerce, 14th & Constitution Ave., N.W., Room 3898B,

Washington, D.C., 20230, within 12 days. Replies to the other party's

submission are to be made within the following 8 days. 15 CFR

788.23(b), 50 FR 53134 (1985). Pursuant to Section 13(c)(3) of the Act,

the order of the final order of the Under Secretary may be appealed to

the U.S. Court of Appeals for the District of Columbia within 15 days

of its issuance.

Certificate of Mailing

I certify that I have sent the attached document by first class

U.S. mail, postage prepaid, to the following persons:

By Registered Mail to:

R 861 601 782

Waldemar Znamierowski, Krzwinska Str., 16/1, 03-324, Warsaw, Poland

By Registered Mail to:

R 861 601 783

Beta Computer Trading Pte. Limited, One Rockor Canal Road, Sim Lim

Square #06-67, Singapore 0718, attn: Kelvin C.S. Teo, Managing Director

By Certified Mail to:

P 067 861 636

Paul A. Prandecki a/k/a Paul Prand, 3178 El Centro Circle, Las Vegas,

Nevada 89121

By Certified Mail to:

P 067 861 637

Thomas C. Barbour, Senior Trial Attorney, Office of Chief Counsel for

Export Administration, U.S. Department of Commerce, Room H-3839, 14th &

Constitution Avenue NW., Washington, D.C. 20230.

Dated: May 31, 1995.

Williemae Waddell,

Support Services Assistant.

[FR Doc. 95-15126 Filed 6-20-95; 8:45 am]

BILLING CODE 3510-DT-M