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

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; Kenneth Broder; 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, Aparto (Post Office Box)

30298, Santo Domingo, Dominican Republic.

On February 2, 1998, Kenneth Broder (Broder) was convicted in the

United States District Court for the Southern District of Florida on,

inter alia, one count of violating the International Emergency Economic

Powers Act (50 U.S.C.A. Secs. 1701-1706 (1991 & Supp. 1998)) (IEEPA).

Broder was convicted of knowingly, willfully, and unlawfully exporting

and causing to be exported 18 containers of goods to Ria Haina,

Dominican Republic, which were then transshipped to Havana, Cuba,

without the required export licenses.

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 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 Administrations

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

(1998)), and August 13, 1998 (63 Fed. Reg. 44121, August 17, 1998),

continued the Export Administration Regulations in effect under the

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 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 Broder's conviction for violating the

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

Enforcement, I have decided to deny Broder 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 nine years

from the date of his conviction. The nine-year period ends on February

2, 2007. I have also decided to revoke all licenses issued pursuant to

the Act in which Broder had an interest at the time of his conviction.

Accordingly, it is hereby 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 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 Broder 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 February 2, 2007.

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

shall be published in the Federal Register.

Dated: February 2, 1999.

Eileen M. Albanese,

Director, Office of Exporter Services.

[FR Doc. 99-3275 Filed 2-9-99; 8:45 am]

BILLING CODE 3510-DT-M