[Federal Register Volume 60, Number 146 (Monday, July 31, 1995)]
[Notices]
[Pages 38985-38987]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18696]
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DEPARTMENT OF COMMERCE
Export Administration
[Docket No. 5101-01]
Lucach Corporation, Respondent and Golamreza Zandianjazi, Also
Known as Reza Zandian
Related Parties; Final Decision and Order
Respondent Lucach Corporation (``Lucach'') is charged with
violating Sec. 787.5(a) and Sec. 787.6 of the Export Administration
Regulations (currently codified at 15 CFR Parts 768-799 (1995)) (``the
Regulations''), issued pursuant to the Export Administration Act of
1979, as amended (50 U.S.C.A. app. Secs. 2401-2410 (1991, Supp. 1993,
and Public Law 103-277, July 5, 1994)) (``the Act''). Specifically, the
Office of Export Enforcement, Bureau of Export Administration, U.S.
Department of Commerce (Department) alleges that Lucach exported a
U.S.-origin computer system (an IBM RISC System 6000 Model 520H) from
the United States to Iran without the required validated export
license. In addition, Lucach is alleged to have made a false or
misleading statement of material fact in connection with the
preparation and use of a Shipper's Export Declaration.
On June 29, 1995, the Administrative Law Judge (ALJ) issued his
recommended Decision and Order, a copy of which is attached hereto and
made a part hereof. On the basis of the Department's default submission
and all of the supporting evidence presented, the ALJ found that Lucach
committed the violations alleged in the Charging Letter issued against
it on December 6, 1993. The ALJ also found that Golamreza Zandianjazi,
also known as Reza Zandian, is related to Lucach by affiliation,
ownership, control, or position of responsibility in the conduct of
trade or related services. Accordingly, the ALJ ordered, inter alia,
that Lucach and Zandian be denied all export privileges for a period of
ten years. Having examined the record, including the submissions by the
Respondent and by the Department, I hereby affirm the Decision and
Order of the ALJ in all respects.
This Order constitutes the final Agency action in this matter.
Dated: July 24, 1995.
William A. Reinsch,
Under Secretary for Export Administration.
In the matter of: Lucach Corporation, 17526 Von Karmen, Irvine,
California 92714, Respondent.
Recommended Decision and Order
On December 6, 1993, the Office of Export Enforcement, Bureau of
Export Administration, U.S. Department of Commerce (Department), issued
a Charging Letter to Lucach Corporation (Lucach), addressed to the
attention of Golamreza Zandianjazi, also known as Reza Zandian,
President, alleging that Lucach violated Sec. 787.5(a) and 787.6 of the
Export Administration Regulations (currently codified at 15 CFR Parts
768-799 (1995)) (the Regulations), issued pursuant to the Export
Administration Act of 1979, as amended (50 U.S.C.A. app. Secs. 2401-
2410 (1991, Supp. 1993, and Public Law 103-277, July 5, 1994)) (the
Act). On February 1, 1994, the Charging Letter was accepted by Amin
Daghig as agent for Reza Zandian.
On March 1, 1994, Lucach, through counsel, entered an appearance
and requested an extension of time to answer the Charging Letter. In
that submission, counsel also acknowledged service of the Charging
Letter on Lucach. On April 7, 1994, an answer and demand for hearing
were filed by counsel.
On April 17, 1995, I issued an Order setting this matter for
hearing on May 23, 1995 and directing the parties to report to me on
the progress of settlement discussions. On April 21, 1995 and on May 9,
1995, in accordance with my order of April 17, 1995, the parties filed
joint submissions on settlement discussions Also on May 9, 1995,
shortly after authorizing counsel for the Department to execute the
Joint Submission on Settlement Discussions on his behalf and to file
the Submission with the Administrative Law Judge, counsel for Lucach
filed a Motion to Withdraw Representation.\1\ On May 10, 1995, I
granted counsel's request to withdraw.
\1\ In that Motion, counsel represented, inter alia, that
Zandian told counsel that he (Zandian) ``had sold his stock in
Respondent [Lucach] in 1989 and had at no time thereafter been a
director, officer or employee of Respondent.''
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On May 17, 1995, following the withdrawal of counsel, the
Department filed a petition to vacate the April 17, 1995 scheduling
Order. On May 18, 1995, I issued an Order vacating the scheduling Order
and providing the Department until June 16, 1995 ``to indicate whether
[it] intends to proceed with this case.'' On June 16, 1995, the
Department advised me that it intended to proceed with the case and
requested that I set a new scheduling order in the case. On June 19,
1995, I issued an Order stating that ``[t]he appropriate way to resolve
the proceeding under these circumstances is pursuant to
[[Page 38986]]
Sec. 788.8.'' In that Order, I also determined that ``[i]t appears that
respondent does not intend to pursue its interest in this proceeding.''
In accordance with my Order of June 19, 1995, the Department submitted
its Default Submission on June 28, 1995.
Background
In the December 6, 1993 Charging Letter, the Department alleged
that, on or about July 5, 1991, Lucach, through its Computer World USA
Division (also known as the USD Division), and its then-General Manger,
Charles Reger,\2\ exported a U.S.-origin computer from the United
States to Iran without the validated export license required by
Sec. 772.1(b) of the Regulations. The Department alleged that, by
exporting a commodity to any person or destination in violation of or
contrary to the terms of the Act or any regulation, order, or license
issued under the Act, Lucach violated Sec. 787.6 of the Regulations.
The Charging Letter also alleged that, on or about July 5, 1991, Reger,
acting in his capacity as General Manager of Lucach, signed a Shipper's
Export Declaration (SED) representing that the commodities described
thereon, including a U.S.-origin computer, qualified for export from
the Untied States to Iran under general license G-DEST. In fact, the
computer required a validated export license for export from the United
States to Iran. The Department alleged that, by making a false or
misleading statement of material fact in connection with the
preparation and use of an SED, an export control document, Lucach
violated Sec. 787.5(a) of the Regulations.
\2\ The Department also initiated an administrative proceeding
against Reger. However, after receiving information that Reger was
deceased, the Department withdrew the Charging Letter issued against
him.
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Finding
On the basis of the Department's submission and all of the
supporting evidence presented, I have determined that Lucach committed
the violations alleged in the Charging Letter issued against it on
December 6, 1993.
For those violations, the Department urges as a sanction that
Lucach's export privileges be denied for 10 years. In light of the
nature of the violations, I concur in the Department's recommendation.
I also find, as represented by the Department in its submission, that
Golamreza Zandianjazi, also known as Reza Zandian, is related to Lucach
by affiliation, ownership, control, or position of responsibility in
the conduct of trade or related services and that, in order to prevent
evasion, any denial of Lucach's export privileges should also be made
applicable to Zandian.
Accordingly, it is therefore ordered,
First, that all outstanding individual validated licenses in which
Lucach Corporation 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 Lucach'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, that Lucach Corporation, 17526 Von Karmen, Irvine,
California 92714, and all of its successors, 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, participation,
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
Sec. 788.3(c) of the Regulations, any person, firm, corporation, or
business organization related to the respondent 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. Based on the showing made by the Department, I have determined
that the following individual is related to Lucach by affiliation,
ownership, control, or position of responsibility in the conduct of
trade or related services and, accordingly, is hereby made subject to
this order:
Golamreza Zandianjazi, also known as Reza Zandian with addresses at
17526 Von Karmen, Irvine, California 92714
c/o Computer World Europe, Rue Jean-Grandel, BP 12-95102 Argenteuil,
France and
c/o Computer World Middle East, 50 Molla Sadra Avenue, 14357 Tehran,
Iran.
C. As provided by Sec. 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 Lucach,
Zandian, and 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).
To be considered in the 30 day statutory review process 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
[[Page 38987]]
Appeals for the District of Columbia within 15 days of its issuance.
Dated: June 29, 1995.
Edward J. Kuhlmann,
Administrative Law Judge.
[FR Doc. 95-18696 Filed 7-28-95; 8:45 am]
BILLING CODE 3510-DT-M