Action Affecting Export Privileges; Sanford B. Groetzinger; Order Denying Permission to Apply for or Use Export Licenses

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; Sanford B. Groetzinger; Order

Denying Permission to Apply for or Use Export Licenses

In the Matter of: Sanford B. Groetzinger currently incarcerated

at: Federal Correction Institute, Number 21423038, P.O. Box 7000,

Fort Dix, New Jersey 08640, and with an address at: 82 Dennison

Street, Gloucester, Massachusetts 01930.

On September 26, 1997, Sanford B. Groetzinger (Groetzinger) was

convicted in the United States District Court for the District of

Massachusetts on four courts 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, Groetzinger was convicted of knowingly

and willfully exporting and attempting to export defense articles to

France, for transshipment to Iran, without obtaining the required

export licenses 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. 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 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

[[Page 27562]]

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, 1196 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. Secs. 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 Groetzinger's conviction for violating

the AECA, and following consultations with the Acting Director, Office

of Export Enforcement, I have decided to deny Groetzinger 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 eight years from the date of his conviction. The eight-year period

ends on September 26, 2005. I have also decided to revoke all licenses

issued pursuant to the Act in which Groetzinger had an interest at the

time of his conviction.

Accordingly, it is hereby

Ordered

I. Until September 26, 2005, Sanford B. Groetzinger, currently

incarcerated at Federal Correction Institute, Number 21423038, P.O. Box

7000, Fort Dix, New Jersey 08640 and with an address at 82 Dennison

Street, Gloucester, Massachusetts 01930, 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 a 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 Groetzinger 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-producted direct

product of U.S.-origin technology.

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

until September 26, 2005.

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

Order shall be published in the Federal Register.

Dated: May 11, 1998.

Eileen M. Albanese,

Director, Office of Exporter Services.

[FR Doc. 98-13286 Filed 5-18-98; 8:45 am]

BILLING CODE 3510-DT-M