Action Affecting Export Privileges; Robert E. Mahler; Order Denying Permission To Apply for or Use Export Licenses

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; Robert E. Mahler; Order

Denying Permission To Apply for or Use Export Licenses

In the Matter of: ROBERT E. MAHLER 1115 Madison Street NE Salem,

Oregon 97303

On June 12, 1995, following a plea of guilty to one count of an

information, Robert E. Mahler (Mahler) was convicted in the United

States District Court for the District of Oregon of violating Section

38 of the Arms Export Control Act (22 U.S.C.A. Sec. 2778 (1990 & Supp.

1998)) (the AECA). Mahler was convicted of willfully and knowingly

exporting and attempting to export a defense article, specifically a

40-foot container containing handguns, rifles and ammunition, to the

Republic of South Africa without having first obtained the required

export license from the U.S. Department of State.

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

(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 Untied Stares 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 (1998)) (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. Secs. 1701-1706 (1991 & Supp. 1998)) (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.

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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 and the

Regulations, and shall also determine whether to revoke any license

previously issued to such a person.

Having received notice of Mahler's conviction for violating the

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

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

on June 12, 2001. I have also decided to revoke all licenses issued

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

conviction.

Accordingly, it is hereby Ordered

I. Until June 12, 2001, Robert E. Mahler, 1115 Madison Street NE,

Salem, Oregon 97303, 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 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 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 Mahler 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 June 12, 2001.

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

shall be published in the Federal Register.

Dated: August 18, 1998.

Eileen M. Albanese,

Director, Office of Exporter Services.

[FR Doc. 98-23652 Filed 9-1-98; 8:45 am]

BILLING CODE 3510-DT-M