[Federal Register Volume 60, Number 122 (Monday, June 26, 1995)] [Notices] [Pages 32940-32942] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 95-15587] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Bureau of Export Administration [Docket Nos. 5109-01, 5109-02, 5110-01, 5110-02, 5110-03] Decision and Order In the Matter of: Sidhartha Bose, also known as Dr. Bose individually and doing business as Perfect Technologies, Ltd. with an address at 211 Golders Green Road, London, NW11 9BY, England and Thirunavukkarasu Ragunathan individually and doing business as W.K. Agencies and as Computer Focus Services Pte. Ltd. with an address at 18 Jalan Kechil, #06-22 Eastern Mansion, Singapore 1543, Respondents On May 31, 1995, the Administrative Law Judge (ALJ) entered his Recommended Decision and Default Order in the above-referenced matters. The Recommended Decision and Default Order, a copy of which is attached hereto and made a part hereof, has been referred to me for final action. After describing the facts of the case and his findings based on those facts, the ALJ found that the Respondents had violated Sections 787.3(a) and 787.3(b) of the Export Administration Regulations (EAR) by conspiring with others to bring about acts that constituted violations of the EAR, by exporting or attempting to export U.S.-origin computers or computer parts from the United States, either directly or through Canada and/or Singapore, for ultimate destination in the then- Union of Soviet Socialist Republics, without the validated export licenses required by Section 772.1 of the EAR. The ALJ found that the appropriate penalty for the violations should be that the Respondents and all successors, assignees, officers, representatives, agents and employees be denied for a period of ten years from this date all privileges of participating, directly or indirectly, in any manner or capacity, in any transaction in the United States or abroad involving commodities or technical data exported or to be exported from the United States and subject to the Export Administration Regulations. Based on my review of the entire record, I affirm the Recommended Decision and Default Order of the Administrative Law Judge. This constitutes final agency action in this matter. Dated: June 16, 1995. William A. Reinsch, Under Secretary for Export Administration. Recommended Decision and Default Order On July 20, 1994, the Office of Export Enforcement, Bureau of Export Administration, United States Department of Commerce (Department), issued separate charging letters initiating administrative proceedings against Sidhartha Bose, also known as Dr. Bose, individually and doing business as Perfect Technologies, Ltd.; and Thirunavukkarasu Ragunathan, individually and doing business as W.K. Agencies and as Computer Focus Services Pte. Ltd. (hereinafter ``Bose'' or ``Ragunathan'' or collectively referred to as respondents). Each charging letter alleged that the named respondent committee two violations of the Export Administration Regulations (currently codified at 15 CFR Parts 768-799 (1995)) (the Regulations),\1\ issued [[Page 32941]] pursuant to the Export Administration Act of 1979, as amended (currently codified at 50 U.S.C.A. app. Secs. 2401-2420 (1991, Supp. 1993, and Pub. L. No. 103-277, July 5, 1994)) (the Act).\2\ \1\The alleged violations occurred between 1987 and 1989. The Regulations governing the violations are found in the 1987 version of the Code of Federal Regulations, codified at 15 CFR Parts 368-399 (1987); the 1988 version of the Code of Federal Regulations, codified at 15 CFR Parts 368-399 (1988); and the 1989 version of the Code of Federal Regulations, codified at 15 CFR Parts 768-799 (1989). Effective October 1, 1988, the Regulations were redesignated as 15 CFR Parts 768-799 (53 FR 37751, September 28, 1988). The transfer merely changed the first number of each Part from ``3'' to ``7.'' \2\The Act expired on August 20, 1994. Executive Order 12924 (59 FR 43437, August 23, 1994) continued the Regulations in effect under the International Emergency Economic Powers Act (50 U.S.C.A. 1701- 1706 (1991)). --------------------------------------------------------------------------- Specifically, each charging letter alleged that the named respondents conspired with a network of business associates to bring about acts that constituted violations of the Regulations. The purpose of the conspiracy was to acquire U.S.-origin computers or computer parts which the conspirators would then export, or attempt to export, from the United States, either directly or through Canada, to India and/or Singapore, for ultimate destination in the then-Union of Soviet Socialist Republics (U.S.S.R.), without the validated export licenses required by Section 772.1 of the Regulations. Accordingly, the Department alleged that each respondent committed one violation of Section 787.3(a) and one violation of Section 787.3(b) of the Regulations. On April 19, 1995, in light of the fact that neither Bose nor Ragunathan had answered the charging letter in accordance with the requirements of Section 788.7 of the Regulations, I ordered the Department to file separate default submissions, together with supporting evidence for the allegations made, by May 19, 1995. Because the two actions arose out of the same transactions or occurrences and the evidence supporting the Department's allegations in both cases is substantially the same, the Department moved on May 9, 1995 that I consolidate the proceedings and authorize the Department to file a single default submission. On May 10, 1995, I granted the Department's request. On May 18, 1995, the Department requested and I granted permission for the Department to file its default submission on or before May 24, 1995. On the basis of the Department's submission and all of the supporting evidence presented, I have determined that Bose and Ragunathan violated Sections 787.3(a) and 787.3(b) of the Regulations by conspiring with others to bring about acts that constituted violations of the Regulations, by exporting or attempting to export from the United States, either directly or through Canada, to India and/or Singapore, for ultimte destination in the then-U.S.S.R. without the validated export licenses, as the Department alleges. For those violations, the Department urges as a sanction that respondent's export privileges be denied for 10 years. I concur in the Department's recommendation. Accordingly, it is therefore ordered, First, that all outstanding individual validated licenses in which Sidhartha Bose, also known as Dr. Bose, individually and doing business at Perfect Technologies, Ltd., or Thirunavukkarasu Ragunathan, individually and doing business as W.K. Agencies and as Computer Focus Services, Pte. Ltd., appears or participates, in any manner or capacity, are hereby revoked and shall be returned forthwith to the Office of Exporter Services for cancellation. Further, all of Bose and Ragunathan's privileges of participating, in any manner or capacity, in any special licensing procedure, including, but not limited to, distribution licenses, are hereby revoked. Second, Sidhartha Bose, also known as Dr. Bose, individually and doing business as Perfect Technologies, Ltd., with an address at 211 Golders Green Road, London, NW11 9BY, England; and Thirunavukkarasu Ragunathan, individually and doing business as W.K. Agencies and as Computer Focus Services Pte. Ltd, with an address at 18 Jalan Kechil, #06-22 Eastern Mansion, Singapore 1543 (collectively referred to as ``Bose and ``Ragunathan''), and all successors, assigns, officers, representatives, agents, and employees, assigns, officers, representatives, agents, and employees, shall, for a period of 10 years from the date of final agency action, be denied all privileges of participating, directly or indirectly, in any manner or capacity, in any transaction in the United States or abroad involving any commodity or technical data exported or to be exported from the United States, and subject to the Regulations. A. Without limiting the generality of the foregoing, participating, either in the United States or abroad, shall include participation, directly or indirectly, in any manner or capacity: (i) as a party or as a representative of a party to any export license application submitted to the Department; (ii) in preparing or filing with the Department any export license application or request for reexport authorization, or any document to be submitted therewith; (iii) in obtaining from the Department or using any validated or general export license, reexport authorization, or other export control document; (iv) in carrying on negotiations with respect to, or in receiving, ordering, buying, selling, delivering, storing, using, or disposing of, in whole or in part, any commodities or technical data exported or to be exported from the United States and subject to the Regulations; and (v) in financing, forwarding, transporting, or other servicing of such commodities or technical data. B. After notice and opportunity for comment as provided in Section 788.3(c) of the Regulations, any person, firm, corporation, or business organization related to either Bose or Ragunathan 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. C. As provided by Section 787.12(a) of the Regulations, without prior disclosure of the facts to and specific authorization of the Office of Exporter Services, in consultation with the Office of Export Enforcement, no person may directly or indirectly, in any manner or capacity: (i) Apply for, obtain, or use any license, Shipper's Export Declaration, bill of lading, or other export control document relating to an export or reexport of commodities or technical data by, to, or for another person then subject to an order revoking or denying his export privileges or then excluded from practice before the Bureau of Export Administration; or (ii) order, buy, receive, use, sell, deliver, store, dispose of, forward, transport, finance, or otherwise service or participate: (a) in any transaction which may involve any commodity or technical data exported or to be exported from the United States; (b) in any reexport thereof; or (c) in any other transaction which is subject to the Export Administration Regulations, if the person denied export privileges may obtain any benefit or have any interest in, directly or indirectly, any of these transactions. Third, that a copy of this Order shall be served on Bose and Ragunathan and on the Department. Fourth, that this Order, as affirmed or modified, shall become effective upon entry of the final action by the Under Secretary for Export Administration, in accordance with the Act (50 U.S.C.A. app. Sec. 2412(c)(1)) and the Regulations (15 CFR 788.23). [[Page 32942]] To be considered in the 30 day statutory review portion which is mandated by Section 13(c) of the Act, submissions must be received in the Office of the Under Secretary for Export Administration, U.S. Department of Commerce, 14th & Constitution Ave., N.W., Room 3898B, Washington, D.C., 20230, within 12 days. Replies to the other party's submission are to be made within the following 8 days. 15 CFR 788.23(b), 50 FR 53134(1985). Pursuant to Section 13(c)(3) of the Act, the order of the final order of the Under Secretary may be appealed to the U.S. Court of Appeals for the District of Columbia within 15 days of its issuance. Dated: May 31, 1995. Edward J. Kuhlmann, Administrative Law Judge. [FR Doc. 95-15587 Filed 6-23-95; 8:45 am] BILLING CODE 3510-DT-M