19 May 1998
Source: http://www.access.gpo.gov/su_docs/aces/aaces002.html

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

[Federal Register: May 19, 1998 (Volume 63, Number 96)]
[Notices]
[Page 27561-27562]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19my98-51]

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

DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; Sanford B. Groetzinger; Order
Denying Permission to Apply for or Use Export Licenses

    In the Matter of: Sanford B. Groetzinger currently incarcerated
at: Federal Correction Institute, Number 21423038, P.O. Box 7000,
Fort Dix, New Jersey 08640, and with an address at: 82 Dennison
Street, Gloucester, Massachusetts 01930.

    On September 26, 1997, Sanford B. Groetzinger (Groetzinger) was
convicted in the United States District Court for the District of
Massachusetts on four courts of violating Section 38 of the Arms Export
Control Act (currently codified at 22 U.S.C.A. 2778 (1990 & Supp.
1998)) (the AECA). Specifically, Groetzinger was convicted of knowingly
and willfully exporting and attempting to export defense articles to
France, for transshipment to Iran, without obtaining the required
export licenses from the Department of State.
    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 AECA, 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 (1997)) (the
Regulations), for a period of up to 10 years from the date of the
conviction. In addition, any license

[[Page 27562]]

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, 1196 Comp. 298 (1997)), and August 13, 1997 (62 FR 43629,
August 15, 1997), continued the Export Administration Regulations in
effect under the International Emergency Economic Powers Act (50
U.S.C.A. Secs. 1701-1706 (1991 & Supp. 1998)).
    \2\ Pursuant to appropriate delegations of authority, 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 Sections 766.25 and 750.8(a) of the Regulations, upon
notification that a person has been convicted of violating the AECA,
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 or the
Regulations, and shall also determine whether to revoke any license
previously issued to such a person.
    Having received notice of Groetzinger's conviction for violating
the AECA, and following consultations with the Acting Director, Office
of Export Enforcement, I have decided to deny Groetzinger 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 eight years from the date of his conviction. The eight-year period
ends on September 26, 2005. I have also decided to revoke all licenses
issued pursuant to the Act in which Groetzinger had an interest at the
time of his conviction.
    Accordingly, it is hereby

Ordered

    I. Until September 26, 2005, Sanford B. Groetzinger, currently
incarcerated at Federal Correction Institute, Number 21423038, P.O. Box
7000, Fort Dix, New Jersey 08640 and with an address at 82 Dennison
Street, Gloucester, Massachusetts 01930, 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 do, directly or indirectly, 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 a 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 a 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 Groetzinger 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-producted direct
product of U.S.-origin technology.
    V. This Order is effective immediately and shall remain in effect
until September 26, 2005.
    VI. A copy of this Order shall be delivered to Groetziner. This
Order shall be published in the Federal Register.

    Dated: May 11, 1998.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 98-13286 Filed 5-18-98; 8:45 am]
BILLING CODE 3510-DT-M

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

[Federal Register: May 19, 1998 (Volume 63, Number 96)]
[Notices]               
[Page 27560-27561]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19my98-50]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Export Administration

 
Action Affecting Export Privileges; Summit Marketing, Inc., Order 
Denying Permission To Apply for or Use Export Licenses

    In the Matter of: Summit Marketing, Inc., 52 Blackburn Center, 
Gloucester, Massachusetts 01930.

    On September 26, 1997, Summit Marketing, Inc. was convicted in the 
United States District Court for the District of Massachusetts on four 
counts of violating Section 38 of the Arms Export Control Act 
(currently codified at 22 U.S.C.A. Sec. 2778 (1990 & Supp. 1998)) (the 
AECA). Specifically, Summit Marketing, Inc. was convicted of knowingly 
and willfully exporting and attempting to export defense articles to 
France, for transshipment to Iran, without obtaining the required 
export licenses from the Department of State.
    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 AECA, or certain 
other provisions of the United States Code, shall be eligible to apply 
for or use any license, including any

[[Page 27561]]

License Exception, issued pursuant to, or provided by, the Act or the 
Export Administration Regulations (currently codified at 15 C.F.R. 
Parts 730-774 (1997)) (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 
C.F.R., 1994 comp. 917 (1995)), extended by Presidential Notices of 
August 15, 1995 (3 C.F.R., 1995 Comp. 501 (1996)), August 14, 1996 
(3 C.F.R., 1996 Comp. 298 (1997)), and August 13, 1997 (62 Fed. Reg. 
43629, August 15, 1997), continued the Export Administration 
Regulations in effect under the International Emergency Economic 
Powers Act (50 U.S.C.A. Secs. 1701-1706 (1991 & Supp. 1998)).
    \2\ Pursuant to appropriate delegations of authority, 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 Sections 766.25 and 750.8(a) of the Regulations, upon 
notification that a person has been convicted of violating the AECA, 
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 or the 
Regulations, and shall also determine whether to revoke any license 
previously issued to such a person.
    Having received notice of Summit Marketing, Inc.'s conviction for 
violating the AECA, and following consultations with the Acting 
Director, Office of Export Enforcement, I have decided to deny Summit 
Marketing, Inc. 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 eight years from the date of its 
conviction. The eight-year period ends on September 26, 2005. I have 
also decided to revoke all licenses issued pursuant to the Act in which 
Summit Marketing, Inc. had an interest at the time of its conviction.
    Accordingly, it is hereby

Ordered

    I. Until September 26, 2005, Summit Marketing, Inc., 52 Blackburn 
Center, Gloucester, Massachusetts 01930, 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 do, directly or indirectly, 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 a 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 a 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 Summit Marketing, Inc. 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 Regulations are the foreign-produced direct product 
of U.S.-origin technology.
    V. This Order is effective immediately and shall remain in effect 
until September 26, 2005.
    VI. A copy of this Order shall be delivered to Summit Marketing, 
Inc. This Order shall be published in the Federal Register.

    Dated: May 11, 1998.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 98-13288 Filed 5-18-98; 8:45 am]
BILLING CODE 3510-DT-M



