Action Affecting Export Privileges; FADI BOUTROS, Also Known as Fadi E. Sitto, Fadi Jirjis, and Fred Boutros; Order Denying Permission To Apply for or Use Export Licenses

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; FADI BOUTROS, Also Known as

Fadi E. Sitto, Fadi Jirjis, and Fred Boutros; Order Denying Permission

To Apply for or Use Export Licenses

On April 29, 1999, Fadi Boutros, also known as Fadi E. Sitto, Fadi

Jirjis, and Fred Boutros (Boutros), was convicted in the United States

District Court for the District of Connecticut on one court of

violating Section 38 of the Arms Export Control Act (currently codified

at 22 U.S.C.A. Sec. 2778 (1990 & Supp. 1999)) (AECA) and one count of

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

Secs. 1701-1706 (1991 & Supp. 1999)) (IEEPA). Specifically, Boutros was

convicted of willfully attempting to export defense articles on the

U.S. Munitions List from the United States to Iraq via Jordan, namely,

ITT Aviator Night Vision GEN II AN/AVS 6 systems, without first having

obtained the required export license from the United States Department

of State, and of willfully dealing and attempting to deal in defense

articles on the U.S. Munitions List intended for exportation to Iraq

via

[[Page 43982]]

Jordan, specifically, ITT Aviator Night Vision GEN III AN/AVS 6

systems, and engaging and attempting to engage in activity intended to

promote such dealing, without first having obtained the authorization

of the United States Department of Treasury, in violation of the

embargo against Iraq contained in the Office of Foreign Assets

Control's Iraqi Sanctions Regulations.

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.

1999)) (the Act),\1\ provides that, at the discretion of the Secretary

of Commerce,\2\ no person convicted of violating the AECA or 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

(1999)) (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.

---------------------------------------------------------------------------

\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.

\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.

---------------------------------------------------------------------------

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

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

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 and

the Regulations, and shall also determine whether to revoke any license

previously issued to such a person.

Having received notice of Boutros's conviction for violating the

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

of Export Enforcement, I have decided to deny Boutros 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

April 29, 2009. I have also decided to revoke all licenses issued

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

conviction.

Accordingly, it is hereby Ordered

I. Until April 29, 2009, Fadi Boutros, also known as Fadi E. Sitto,

Fadi Jirjis, and Fred Boutros, currently incarcerated at: Federal

Correction Institute, P.O. Box 9999, Milan, Michigan 48160, and with an

address at: 1491 Fueta Heights Lane, El Cajon, California 92019, 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 Boutros 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 April 29, 2009.

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

shall be published in the Federal Register.

Dated: August 3, 1999.

Eileen M. Albanese,

Director, Office of Exporter Services.

[FR Doc. 99-20911 Filed 8-11-99; 8:45 am]

BILLING CODE 3510-DT-M