Action Affecting Export Privileges; James L. Stephens

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; James L. Stephens

In the matter of: James L. Stephens, President, Weisser's

Sporting Goods, 1018 National City Boulevard, National City,

California 92050, with an address at 16208 Orchard Bend Road, Poway,

California 92064, Respondent.

Order

The Office of Export Enforcement, Bureau of Export Administration,

United States Department of Commerce (hereinafter, the ``Department'',

having notified James L. Stephens, in his capacity as president of

Weisser's Sporting Goods (hereinafter, ``Stephens''), of its intention

to initiate an administrative proceeding against him pursuant to

Section 13(c) of the Export Administration Act of 1979, as amended (50

U.S.C.A. app. Secs. 2401-2420 (1991 & Supp. 1995)) (hereinafter, the

``Act''),\1\ and Part 788 of the Export Administration Regulations

(currently codified at 15 CFR Parts 768-799 (1995)) (hereinafter, the

``Regulations''),\2\ based on allegations that:

\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.

Secs. 1701-1706 (1991 & Supp. 1994)) (hereinafter ``IEEPA'').

Executive Order 12924 was extended by Presidential Notice of August

15, 1995 (60 FR 42767, August 17, 1995).

\2\The Regulations governing the violations at issue are found

in the 1990 version of the Code of Federal Regulations. Those

Regulations are codified at 15 CFR Parts 768-799 (1990). Between

October 1, 1990 and March 27, 1993, the Regulations were continued

in effect by Executive Order No. 12730 (55 FR 40373, October 2,

1990), issued pursuant to IEEPA.

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1. Between mid-1990 and early 1992, Stephens conspired with Karl

Cording, individually and doing business as A. Rosenthal (PTY) Ltd.,

Windhoek, Namibia, with offices in Linden, South Africa and Cape Town,

South Africa, and Ian Ace, manager of A. Rosenthal, Cape Town, South

Africa, to export U.S.-origin shotguns, from the United States to

Namibia and South Africa, without applying for and obtaining from the

Department the validated export licenses that the Stephens knew were

required by Section 772.1(b) of the Regulations, in violation of

Section 787.3(b) of the Regulations;

2. In furtherance of the conspiracy described above, on two

separate occasions on or about November 27, 1990, Stephens exported

U.S.-origin shotguns, from the United States to Namibia and South

Africa, without obtaining from the Department the validated export

licenses Stephens knew or had reason to know were required by Section

772.1(b) of the Regulations, in violation of Sections 787.4(a) and

787.6 of the Regulations; and

3. In furtherance of the conspiracy described above, on two

separate occasions on or about November 27, 1990, Stephens made false

or misleading representations of material fact to a U.S. agency in

connection with the preparation, submission, or use of export control

documents, in violation of Section 787.5(a) of the Regulations; and

[[Page 62385]]

The Department and Stephens having entered into a Consent Agreement

whereby the Department and Stephens have agreed to settle this matter

in accordance with the terms and conditions set forth therein, and the

terms of the Consent Agreement having been approved by me;

It is therefore ordered,

First, that a civil penalty of $60,000 shall be assessed against

Stephens, $10,000 of which shall be paid to the Department on or before

January 5, 1996, and the remaining $50,000 to be paid in four equal

installments of $12,500 each, the first of which is due on or before

March 29, 1996; the second, on or before June 28, 1996; the third, on

or before September 27, 1996; and the fourth, on or before December 27,

1996. Payment shall be made in a manner specified in the attached

instructions.

Second, James L. Stephens, President, Weisser's Sporting Goods,

1018 National City Boulevard, National City, California 92050, with an

address at 16208 Orchard Bend Road, Poway, California 92064, shall, for

a period of 15 years from the date of entry of this Order, 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. All outstanding individual validated export licenses in which

Stevens 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 Stevens's privileges of

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

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

hereby revoked.

B. 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.

C. 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 Stephens 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.

D. As provided by Section 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 reexport thereof; or (c) in any other transaction which is

subject to the Regulations, if the person denied export privileges may

obtain any benefit or have any interest in, directly or indirectly, any

of these transactions.

Third, the proposed Charging Letter, the Consent Agreement, and

this Order shall be made available to the public, and this Order shall

be published in the Federal Register.

This order is effective immediately.

Dated: November 27, 1995.

John Despres,

Assistant Secretary for Export Enforcement.

[FR Doc. 95-29683 Filed 12-5-95; 8:45 am]

BILLING CODE 3510-DT-M