Action Affecting Export Privileges; David Irwin Portnoy; Order Denying Permission To Apply for or Use Export Licenses

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; David Irwin Portnoy; Order

Denying Permission To Apply for or Use Export Licenses

In the matter of: David Irwin Portnoy, 2315 W. 5th Street,

Irving, Texas 75060.

On August 1, 1997, David Irwin Portnoy (Portnoy) was convicted in

the United States District Court for the Northern District of Texas,

Dallas Division, on three counts of violating the International

Emergency Economic Powers Act (50 U.S.C.A. Secs. 1701-1706 (1991 &

Supp. 1998)) (IEEPA). Specifically, Portnoy was convicted of knowingly

and willfully exporting and causing to be exported from the United

States to Switzerland, for trans-shipment to Libya, shipments of

electronic components and telecommunications equipment.

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

(currently codified at 50 U.S.C.A. app.

[[Page 26775]]

Secs. 2401-2420 (1991 & Supp. 1998)) (the Act),\1\ provides that, at

the discretion of the Secretary of Commerce,\2\ no person convicted of

violating the 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 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 IEEPA.

\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 Secs. 766.25 and 750.8(a) of the Regulations, upon

notification that a person has been convicted of violating the 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 or the

Regulations, and shall also determine whether to revoke any license

previously issued to such a person.

Having received notice of Portnoy's conviction for violating the

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

Export Enforcement, I have decided to deny Portnoy 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

August 1, 2007. I have also decided to revoke all licenses issued

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

conviction.

Accordingly, it is hereby Ordered.

I. Until August 1, 2007, David Irwin Portnoy, 2315 W. 5th Street,

Irving, Texas 75060, 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 the 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 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 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 Portnoy 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 August 1, 2007.

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

shall be published in the Federal Register.

Dated: May 5, 1998.

Eileen M. Albanese,

Director, Office of Exporter Services.

[FR Doc. 98-12786 Filed 5-13-98; 8:45 am]

BILLING CODE 3510-DT-M