[Federal Register Volume 65, Number 176 (Monday, September 11, 2000)]
[Notices]
[Pages 54837-54838]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-23168]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; Earl Edwin Pitts

Order Denying Export Privileges

    On June 23, 1997, Earl Edwin Pitts (Pitts) was convicted in the 
United States District Court for the Eastern District of Virginia of 
violating Section 794(a) and (c) of the Espionage Act (currently 
codified at 18 U.S.C.A. 792-799 (1976 & Supp. 2000)). Pitts was 
convicted of knowingly and unlawfully combining, conspiring, 
confederating, and agreeing with other persons, both known and unknown 
to the Grand Jury, including officers of the Komitet Gosudarstvennoy 
Bezopasnosty (KGB) and the Sluzhba Vneshney Rasvedi Rossii (SVVR), to 
knowingly and unlawfully communicate, deliver, and transmit information 
relating to the national defense of the United States, with intent and 
reason to believe that the same would be used to the injury of the 
United States and to the advantage of the then Union of Soviet 
Socialist Republics (USSR), and of knowingly and unlawfully attempting 
to communicate, deliver and transmit, directly and indirectly to the 
Russian Federation, a document relating to the national defense of the 
United States, classified SECRET, entitled ``Counterintelligence 
Techniques: Identifying and Intelligence Officer'' dated September 
1989, with reason to believe that it would be used to the injury of the 
United States and to the advantage of the Russian Federation.
    Section 11(h) of the Export Administration Act of 1979, as amended 
(currently codified at 50 U.S.C.A. app; 2401-2420 (1991 & Supp. 2000)) 
(the Act),\1\ provides that, at the discretion of the Secretary of 
Commerce,\2\ no person convicted of violating Section 794 of the 
Espionage Act, or certain other provisions of the United States Code, 
shall be eligible to apply for or use any export license issued 
pursuant to, or provided by, the Act or the Export Administration 
Regulations (currently codified at 15 CFR Parts 730-774 (2000), as 
amended (65 FR 14862, March 20, 2000)) (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.
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    \1\ The Act expired on August 20, 1994. Executive Order 12924 (3 
C.F.R., 1994 Comp. 917 (1995)), which has been extended by 
successive Presidential Notices, the most recent being that of 
August 3, 2000 (65 FR 48347, August 8, 2000), continued the 
Regulations in effect under the International Emergency Economic 
Powers Act (50 U.S.C.A. 1701-1706 (1991 & Supp. 2000)).
    \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.
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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 Section 794 
of the Espionage Act, the Director, Office of Exporter Services, in 
consultation with the Director, Office of Export Enforcement, shall 
determine whether to deny that person's export privileges for a period 
of up to 10 years from the date of conviction and shall also determine 
whether to revoke any license previously issued to such a person.
    Having received notice of Pitt's conviction for violating Section 
794(a) and (c) of the Espionage Act, and after providing notice and an 
opportunity for Pitts to make a written submission to the Bureau of 
Export Administration before issuing an Order denying his export 
privileges, as provided in Section 766.25 of the Regulations, I, 
following consultations with the Director, Office of Export 
Enforcement, have decided to deny Pitts' export privileges for a period 
of 10 years from the date of his conviction. The 10-year period ends on 
June 23, 2007. I have also decided to revoke all licenses issued 
pursuant to the Act in which Pitts had an interest at the time of his 
conviction.
    Accordingly, it is hereby Ordered.
    I. Until June 23, 2007, Earl Edwin Pitts, currently incarcerated 
at: FCI Butner, Number 49408083, P.O. Box 1000, Butner, North Carolina 
27509-1000, 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, 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 Regulations;
    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 Regulations 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 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,

[[Page 54838]]

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 Pitts 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 June 23, 2007.
    VI. In accordance with Part 756 of the Regulations, Pitts may file 
an appeal from this Order with the Under Secretary for Export 
Administration. The appeal must be filed within 45 days from the date 
of this Order and must comply with the provisions of Part 756 of the 
Regulations.
    VII. A copy of this Order shall be delivered to Pitts. This Order 
shall be published in the Federal Register.

    Dated: August 29, 2000.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 00-23168 Filed 9-8-00; 8:45 am]
BILLING CODE 3510-DT-M