[Federal Register Volume 61, Number 76 (Thursday, April 18, 1996)]
[Notices]
[Pages 16896-16897]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9535]



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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; James J. Gato

Order

    In the Matter of: James J. Gato individually with an address at 
5 Naumkeag Road, Peabody, Massachusetts 01960, and with an address 
at c/o Mass Computer Group, Inc., 79R Walnut Street, Peabody, 
Massachusetts 01960, Respondent.

    The Office of Export Enforcement, Bureau of Export Administration, 
United States Department of Commerce (Department), having notified 
James J. Gato (Gato) of its intention to initiate an administrative 
proceeding against him pursuant to Section 13(c) of the Export 
Administration Act of 1979, as amended (50 U.S.C. app. 2401-2420 (1991 
& Supp. 1995)) (the Act),\1\ and Part 788 of the Export Administration 
Regulations (currently codified at 15 C.F.R. Parts 768-799 (1995)) (the 
Regulations), based on allegations that, on or about August 9, 1990, 
Gato, a person denied all U.S. export privileges by Order dated April 
3, 1990, resold, transferred and disposed of U.S.-origin commodities to 
a third party, knowing or having reason to know that the third party 
intended to, and in fact did, export the commodities to Australia, in 
violation of section 787.4(a) and Section 787.6 of the Regulations;
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    \1\ The Act expired on August 20, 1994. Executive Order No. 
12924 (59 FR 43437, August 23, 1994), extended by Presidential 
Notice of August 15, 1995 (60 FR 42767, August 17, 1995), continued 
the Regulations in effect under the International Emergency Economic 
Powers Act (50 U.S.C.A. Secs. 1701-1706 (1991)).
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    The Department and Gato having entered into a Consent Agreement 
whereby the Department and Gato have agreed to settle this matter in 
accordance with the terms and conditions set forth therein, and the 
terms of the Consent Agreement having been approved by me;

[[Page 16897]]

It is therefore ordered,

    First, that a civil penalty of $5,000 is assessed against Gato, 
$3,000 of which shall be paid to the Department within 30 days of the 
date of entry of this Order. Payment shall be made in the manner 
specified in the attached instructions. Payment of the remaining $2,000 
shall be suspended for a period of five years from the date from the 
entry of this Order and shall thereafter be waived, provided that, 
during the period of suspension, Gato has committed no violation of the 
Act, or any regulation, order, or license issued thereunder.
    Second, that, James J. Gato, individually with an address at 5 
Naumkeag Road, Peabody, Massachusetts 01960, and with an address at c/o 
Mass Computer Group, Inc., 79R Walnut Street, Peabody, Massachusetts 
01960, shall, for a period of five years from the date of this Order, 
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. All outstanding individual validated export licenses in which 
Gato appears or participates, in any manner or capacity, are hereby 
revoked and shall be returned forthwith to the Office of Export 
Services for cancellation. Further, all of Gato's privileges of 
participating, in any manner or capacity, in any special licensing 
procedure, including, but not limited to, distribution licenses, are 
hereby revoked.
    B. 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.
    C. 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 Gato 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.
    D. 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 the proposed Charging Letter, the Consent Agreement and 
this Order shall be made available to the public. A copy of this Order 
shall be served on Gato and published in the Federal Register.
    This Order is effective immediately.

    Entered this 9th day of April, 1996.
John Despres,
Assistant Secretary for Export Enforcement.
[FR Doc. 96-9535 Filed 4-17-96; 8:45 am]
BILLING CODE 3510-DT-M