[Federal Register Volume 79, Number 191 (Thursday, October 2, 2014)]
[Notices]
[Pages 59474-59475]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-23459]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Order Denying Export Privileges; In the Matter of: Demetrio
Cortez-Salgado, 317 South G Street, #102, Madera, CA 93637
On September 11, 2013, in the U.S. District Court, Eastern District
of California, Demetrio Cortez-Salgado (``Salgado''), was convicted of
violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778
(2012)) (``AECA''). Specifically, Cortez-Salgado knowingly and
willfully exported and caused to be exported and attempted to export
and attempted to cause to be exported from the United States to Mexico
caliber rifles, defense articles which were on the United States
Munitions List, without having first obtained from the Department of
State a license for such export or written authorization for such
export. Cortez-Salgado was sentenced to 24 months imprisonment, 36
months of supervised release and a $100 assessment. Cortez-Salgado was
released from prison on November 15, 2013. Cortez-Salgado is also
listed on the U.S. Department of State Debarred List.
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 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.
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\1\ The Regulations are currently codified in the Code of
Federal Regulations at 15 CFR parts 730-774 (2014). 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 7, 2014 (79 FR 46959 (August 11, 2014)), has continued the
Regulations in effect under the International Emergency Economic
Powers Act (50 U.S.C. 1701, et seq. (2006 & Supp. IV 2010)).
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I have received notice of Cortez-Salgado's conviction for violating
the AECA, and have provided notice and an opportunity for Cortez-
Salgado to make a written submission to BIS, as provided in Section
766.25 of the Regulations. I have not received a submission from
Cortez-Salgado.
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 Cortez-Salgado's export privileges under the
Regulations for a period of 10 years from the date of Cortez-Salgado's
conviction. I have also decided to revoke all licenses issued pursuant
to the Act or Regulations in which Cortez-Salgado had an interest at
the time of his conviction.
Accordingly, it is hereby
ORDERED
I. Until September 11, 2023, Demetrio Cortez-Salgado, with a last
known address at: 317 South G Street, #102, Madera, CA 93637,
and when acting for or on behalf of Cortez-Salgado, his
representatives, 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
[[Page 59475]]
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 Cortez-Salgado 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 is effective immediately and shall remain in effect
until September 11, 2023.
V. In accordance with part 756 of the Regulations, Cortez-Salgado
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.
VI. A copy of this Order shall be delivered to the Cortez-Salgado.
This Order shall be published in the Federal Register.
Issued this day of September 25, 2014.
Karen H. Nies-Vogel,
Acting Director, Office of Exporter Services.
[FR Doc. 2014-23459 Filed 10-1-14; 8:45 am]
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