[Federal Register Volume 61, Number 207 (Thursday, October 24, 1996)]
[Notices]
[Pages 55130-55131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27259]


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DEPARTMENT OF COMMERCE
Bureau of Export Administration


Action Affecting Export Privileges; Walton W. McCarthy

    In the Matter of: Walton W. McCarthy 138-1 Blakes Hill Road, 
Northwood, New Hampshire 03261.

Order Denying Permission To Apply for or Use Export Licenses

    On February 12, 1996, Walton W. McCarthy (McCarthy) was convicted 
in the United States District Court for the District of Massachusetts 
of violating the International Emergency Economic Powers Act (50 
U.S.C.A. 1701-1706 (1991 & Supp. 1996) (IEEPA). McCarthy was convicted 
of willfully, knowingly, and unlawfully dealing and attempting to deal 
in property intended for exportation to Iraq, specifically, an 
underground shelter known as an ``S30 Remote Tactical Base,'' and 
engaging and attempting to engage in activity intended to promote such 
dealing, in violation of the embargo against Iraq.
    Section 11(h) of the Export Administration Act of 1979, as amended 
(50 U.S.C.A. app. Secs. 2401-2420 (1991 & Supp. 1996)) (the Act),\1\ 
provides that, at the discretion of the Secretary of

[[Page 55131]]

Commerce,\2\ no person convicted of violating IEEPA, 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 C.F.R. Parts 768-799 (1996), as amended (61 
FR 12714, March 25, 1996)) (the Regulations),\3\ 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.
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    \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)) and August 14, 
1996 (61 FR 42527, August 15, 1996), continued the Regulations in 
effect under IEEPA.
    \2\ Pursuant to appropriate delegations of authority that are 
reflected in the Regulations, 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.
    \3\ The March 25, 1996 Federal Register publication 
redesignated, but did not republish, the existing Regulations as 15 
C.F.R. Parts 768A-799A. In addition, the March 25 Federal Register 
publication restructured and reorganized the Regulations, 
designating them as an interim rule at 15 C.F.R. Parts 730-774, 
effective April 24, 1996.
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    Pursuant to Sections 766.25 and 750.8(a) of the Regulations, upon 
notification that a person has been convicted of violating IEEPA, 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 and the 
Regulations, and shall also determine whether to revoke any license 
previously issued to such a person.
    Having received notice of McCarthy's conviction for violating 
IEEPA, and following consultations with the Acting Director, Office of 
Export Enforcement, I have decided to deny McCarthy 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 10 years from the date of his conviction. The 10-year period ends on 
February 12, 2006. I have also decided to revoke all licenses issued 
pursuant to the Act in which McCarthy had an interest at the time of 
his conviction.
    Accordingly, it is hereby Ordered:
    I. Until February 12, 2006, Walton W. McCarthy, 138-1 Blakes Hill 
Road, Northwood, New Hampshire 03261, 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,\4\ License 
Exception, or export control document;
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    \4\ For purposes of this Order, ``license'' includes any general 
license established in 15 C.F.R. Parts 768A-799A.
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    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 EAR, or in any other activity 
subject to the EAR; 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 EAR, or in any other activity subject to the EAR.
    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 EAR;
    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 EAR 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 EAR that has been exported from the United States;
    D. Obtain from the denied person in the United States any item 
subject to the EAR 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 EAR 
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 EAR 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 McCarthy 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-produced direct 
product of U.S.-origin technology.
    V. This Order is effective immediately and shall remain in effect 
until February 12, 2006.y
    VI. A copy of this Order shall be delivered to McCarthy.
    This Order shall be published in the Federal Register.

    Dated: October 11, 1996.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 96-27259 Filed 10-23-96; 8:45 am]
BILLING CODE 3510-DT-M