[Federal Register Volume 78, Number 61 (Friday, March 29, 2013)]
[Notices]
[Pages 19192-19193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-07277]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Nexiant, LLC, 2531 West Maryland Avenue, Tampa, FL 33629; Order
Denying Export Privileges
On October 18, 2012, in the U.S. District Court, Middle District of
Florida, Tampa Division, Nexiant, LLC (``Nexiant'') was convicted of
violating the International Emergency Economic Powers Act (50 U.S.C.
1701, et seq. (2006 & Supp. IV 2010)) (``IEEPA''). Specifically,
Nexiant was convicted of one count of violating IEEPA by knowingly and
willfully conspiring with other individuals to violate IEEPA and the
Iranian Transactions Regulations (31 CFR 560.203 and 560.204) by
exporting computer and related equipment from the United States through
the U.A.E. to Iran without first having obtained the required license
from the Office of Foreign Assets Control. Nexiant was sentenced to 12
months of unsupervised probation and a fine of $400.00.
Section 766.25 of the Export Administration Regulations (``EAR'' or
``Regulations'') \1\ provides, in pertinent part, that ``[t]he Director
of the Office of Exporter Services, in consultation with the Director
of the Office of Export Enforcement, may deny the export privileges of
any person who has been convicted of a violation of the Export
Administration Act (``EAA''), the EAR, or any order, license or
authorization issued thereunder; any regulation, license, or order
issued under the International Emergency Economic Powers Act (50 U.S.C.
1701-1706); 18 U.S.C. 793, 794 or 798; section 4(b) of the Internal
Security Act of 1950 (50 U.S.C. 783(b)), or section 38 of the Arms
Export Control Act (22 U.S.C. 2778).'' 15 CFR 766.25(a); see also
Section 11(h) of the EAA, 50 U.S.C. app. 2410(h). The denial of export
privileges under this provision may be for a period of up to
[[Page 19193]]
10 years from the date of the conviction. 15 CFR 766.25(d); see also 50
U.S.C. app. 2410(h). In addition, Section 750.8 of the Regulations
states that the Bureau of Industry and Security's Office of Exporter
Services may revoke any Bureau of Industry and Security (``BIS'')
licenses previously issued in which the person had an interest in at
the time of his conviction.
---------------------------------------------------------------------------
\1\ The Regulations are currently codified in the Code of
Federal Regulations at 15 CFR parts 730-774 (2012). The Regulations
issued pursuant to the Export Administration Act (50 U.S.C. app.
2401-2420 (2000)) (``EAA''). Since August 21, 2001, the EAA has been
in lapse and the President, through Executive Order 13222 of August
17, 2001 (3 CFR, 2001 Comp. 783 (2002)), which has been extended by
successive Presidential Notices, the most recent being that of
August 15, 2012 (77 FR 49699 (August 16, 2012)), has continued the
Regulations in effect under the IEEPA.
---------------------------------------------------------------------------
I have received notice of Nexiant's conviction for violating the
IEEPA, and have provided notice and an opportunity for Nexiant to make
a written submission to BIS, as provided in Section 766.25 of the
Regulations. I have not received a submission from Nexiant. Based upon
my review and consultations with BIS's Office of Export Enforcement,
including its Director, and the facts available to BIS, I have decided
to deny Nexiant's export privileges under the Regulations for a period
of 10 years from the date of Nexiant's conviction. I have also decided
to revoke all licenses issued pursuant to the Act or Regulations in
which Nexiant had an interest at the time of its conviction.
Accordingly, it is hereby ordered
I. Until October 18, 2022, Nexiant, LLC (``Nexiant''), with a last
known address at: 2531 West Maryland Avenue, Tampa, FL 33629, and when
acting for or on behalf of Nexiant, its successors or assigns, agents
or employees (the ``Denied Person''), 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, 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. Benefitting 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 other person, firm, corporation,
or business organization related to Nexiant 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 if
necessary to prevent evasion of the 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 October 18, 2022.
VI. In accordance with Part 756 of the Regulations, Nexiant may
file an appeal of this Order with the Under Secretary of Commerce for
Industry and Security. The appeal must be filed within 45 days from the
date of this Order and must comply with the provisions of Part 756 of
the Regulations.
VII. A copy of this Order shall be delivered to Nexiant. This Order
shall be published in the Federal Register.
Issued this 22nd day of March, 2013.
Bernard Kritzer,
Director, Office of Exporter Services.
[FR Doc. 2013-07277 Filed 3-28-13; 8:45 am]
BILLING CODE 3510-DT-P