Action Affecting Export Privileges; Walton W. McCarthy

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; Walton W. McCarthy

In the Matter of: Walton W. McCarthy 138-1 Blakes Hill Road,

Northwood, New Hampshire 03261.

Order Denying Permission To Apply for or Use Export Licenses

On February 12, 1996, Walton W. McCarthy (McCarthy) was convicted

in the United States District Court for the District of Massachusetts

of violating the International Emergency Economic Powers Act (50

U.S.C.A. 1701-1706 (1991 & Supp. 1996) (IEEPA). McCarthy was convicted

of willfully, knowingly, and unlawfully dealing and attempting to deal

in property intended for exportation to Iraq, specifically, an

underground shelter known as an ``S30 Remote Tactical Base,'' and

engaging and attempting to engage in activity intended to promote such

dealing, in violation of the embargo against Iraq.

Section 11(h) of the Export Administration Act of 1979, as amended

(50 U.S.C.A. app. Secs. 2401-2420 (1991 & Supp. 1996)) (the Act),\1\

provides that, at the discretion of the Secretary of

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Commerce,\2\ no person convicted of violating IEEPA, or certain other

provisions of the United States Code, shall be eligible to apply for or

use any license, including any License Exception, issued pursuant to,

or provided by, the Act or the Export Administration Regulations

(currently codified at 15 C.F.R. Parts 768-799 (1996), as amended (61

FR 12714, March 25, 1996)) (the Regulations),\3\ 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.

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\1\ The Act expired on August 20, 1994. Executive Order 12924 (3

C.F.R., 1994 Comp. 917 (1995)), extended by Presidential Notices of

August 15, 1995 (3 C.F.R., 1995 Comp. 501 (1996)) and August 14,

1996 (61 FR 42527, August 15, 1996), continued the Regulations in

effect under IEEPA.

\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.

\3\ The March 25, 1996 Federal Register publication

redesignated, but did not republish, the existing Regulations as 15

C.F.R. Parts 768A-799A. In addition, the March 25 Federal Register

publication restructured and reorganized the Regulations,

designating them as an interim rule at 15 C.F.R. Parts 730-774,

effective April 24, 1996.

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Pursuant to Sections 766.25 and 750.8(a) of the Regulations, upon

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

Director, Office of Exporter Services, in consultation with the

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

that person permission to apply for or use any license, including any

License Exception, issued pursuant to, or provided by, the Act and the

Regulations, and shall also determine whether to revoke any license

previously issued to such a person.

Having received notice of McCarthy's conviction for violating

IEEPA, and following consultations with the Acting Director, Office of

Export Enforcement, I have decided to deny McCarthy permission to apply

for or use any license, including any License Exception, 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 12, 2006. I have also decided to revoke all licenses issued

pursuant to the Act in which McCarthy had an interest at the time of

his conviction.

Accordingly, it is hereby Ordered:

I. Until February 12, 2006, Walton W. McCarthy, 138-1 Blakes Hill

Road, Northwood, New Hampshire 03261, 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,\4\ License

Exception, or export control document;

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\4\ For purposes of this Order, ``license'' includes any general

license established in 15 C.F.R. Parts 768A-799A.

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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 EAR, or in any other activity

subject to the EAR; 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 EAR, or in any other activity subject to the EAR.

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 EAR;

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 EAR 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 EAR that has been exported from the United States;

D. Obtain from the denied person in the United States any item

subject to the EAR 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 EAR

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 EAR 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 McCarthy 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 12, 2006.y

VI. A copy of this Order shall be delivered to McCarthy.

This Order shall be published in the Federal Register.

Dated: October 11, 1996.

Eileen M. Albanese,

Director, Office of Exporter Services.

[FR Doc. 96-27259 Filed 10-23-96; 8:45 am]

BILLING CODE 3510-DT-M