Action Affecting Export Privileges; Kenneth Broder; Order Amending the Order Denying Permission To Apply for or Use Export Licenses

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; Kenneth Broder; Order

Amending the Order Denying Permission To Apply for or Use Export

Licenses

In the Matter of: Kenneth Broder, Calle Rafael Agusto Sanchez

No. 22 Torre, Don Roberto Ens. Piantini, Apartado (Post Office Box)

30298, Santo Domingo, Dominican Republic.

On February 2, 1999, I entered an order against Kenneth Broder

(Broder) denying his export privileges until February 2, 2007, based

upon his February 2, 1998, conviction in the United States District

Court for the Southern District of Florida of violating the

International Emergency Economic Powers Act (50 U.S.C.A.

Sec. Sec. 1701-1706 (1991 & Supp. 1999)) (IEEPA). The Order was issued

under the authority of Section 11(h) of the Export Administration Act

of 1979, as amended (currently codified at 50 U.S.C.A. app.

Sec. Sec. 2401-2420 (1991 & Supp. 1999)) (the Act),\1\ and Sections

766.25 and 750.8(a) of the Export Administration Regulations (currently

codified at 15 CFR Parts 730-774 (1999)) (the Regulations).

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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)), August 13, 1997 (3 CFR, 1997 Comp. 306

(1998)), and August 13, 1998 (3 CFR, 1998 Comp. 294 (1999)),

continued the Export Administration Regulations in effect under

IEEPA.

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On March 19, 1999, Broder, through counsel, filed an appeal from

the Order with the Under Secretary for Export Administration (Under

Secretary), pursuant to Part 756 of the Regulations. On June 10, 1999,

the Under Secretary issued his final decision on that appeal and

granted partial relief from the terms of the Order by allowing Border

to participate in transactions involving EAR99 items for use or

consumption in the Dominican Republic. In order to give effect to his

decision, the Under Secretary directed that I amend my February 2, 1999

Order to suspend its application to EAR99 items that are exported or

reexported to the Dominican Republic by Broder or on his behalf for use

or consumption there.

Accordingly, the February 2, 1999 Order is hereby amended to read

as follows:

Ordered

I. Until February 2, 2007, Kenneth Broder, Calle Rafael Agusto

Sanchez No. 22 Torre, Don Roberto Ens. Piantini, Apartado (Post Office

Box) 30298, Santo Domingo, Dominican Republic, 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 Untied 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:

[[Page 34634]]

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 Broder by affiliation, ownership,

control, or position of responsibility in the conduct of trade or

related services may also be subject to the provision 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. As directed by the Under Secretary in his decision on Broder's

appeal, all of the provisions denying Broder's export privileges set

forth above are suspended with respect to Broder's participation,

directly or indirectly, in any transaction involving any item

classified as EAR99 that is exported or reexported to the Dominican

Republic for use or consumption therein, from the date of entry of this

order until February 2, 2007, and shall thereafter be waived, provided

that, during the period of suspension, Broder has committed no

violation of the Act, or any regulation, order, or license thereunder.

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

until February 2, 2007.

VII. A copy of this Order shall be delivered to Broder. This Order

shall be published in the Federal Register.

Dated: June 18, 1999.

Hillary Hess,

Acting Director, Office of Exporter Services.

[FR Doc. 99-16267 Filed 6-25-99; 8:45 am]

BILLING CODE 3510-DT-M