Action Affecting Export Privileges; Penny Ray, Also Known as Lei Ping; Order Denying Permission To Apply for or Use Export Licenses

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; Penny Ray, Also Known as Lei

Ping; Order Denying Permission To Apply for or Use Export Licenses

In the Matter of: Penny Ray, also known as Lei Ping, 7100

Rainbow Drive #30, San Jose, California 95129.

On January 14, 1998, Penny Ray, also known as Lei Ping (Ray), was

convicted in the United States District Court for the Northern District

of California of violating Section 38 of the Arms Export Control Act

(currently codified at 22 U.S.C.A. 2778 (1990 & Supp. 1998)) (the

AECA). Specifically, Ray was convicted of knowingly and willfully

exporting and attempting to export defense articles to the People's

Republic of China without obtaining the required export license from

the Department of State.

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

(currently codified at 50 U.S.C.A. app. sections 2401-2420 (1991 &

Supp. 1997)) (the Act),\1\ provides that, at the discretion of the

Secretary of Commerce,\2\ no person convicted of violating the AECA, 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 CFR Parts 730-774

(1997)) (the Regulations) 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

CFR, 1994 Comp. 917 (1995)), extended by Presidential Notices of

August 15, 1995 (3 CFR, 1995 Comp. 501 (1996)), August 14, 1996 (3

CFR, 1996 Comp. 298 (1997)), and August 13, 1997 (62 FR 43629,

August 15, 1997), continued the Export Administration Regulations in

effect under the International Emergency Economic Powers Act (50

U.S.C.A. sections 1701-1706 (1991 & Supp. 1998)).

\2\ Pursuant to appropriate delegations of authority, 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.

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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 the AECA,

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 or the

Regulations, and shall also determine whether to revoke any license

previously issued to such a person.

Having received notice of Ray's conviction for violating the AECA,

and following consultations with the Acting Director, Office of Export

Enforcement, I have decided to deny Ray 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 her conviction. The 10-year period ends on January 14,

2008. I have also decided to revoke all licenses issued pursuant to the

Act in which Ray had an interest at the time of her conviction.

Accordingly, it is hereby ordered

I. Until January 14, 2008, Penny Ray, also known as Lei Ping, 7100

Rainbow Drive #30, San Jose, California 95219, 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, 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.

II. No person may do, directly or indirectly, 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 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 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 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 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.

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 Ray 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

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subject to the Regulations where the only items involved that are

subject to the Regulations are the foreign-producted direct product of

U.S.-origin technology.

V. This Order is effective immediately and shall remain in effect

until January 14, 2008.

VI. A copy of this Order shall be delivered to Ray. This Order

shall be published in the Federal Register.

Dated: April 6, 1998

Eileen M. Albanese,

Director, Office of Exporter Services.

[FR Doc. 98-10694 Filed 4-21-98; 8:45 am]

BILLING CODE 3510-DT-M