[Federal Register Volume 65, Number 176 (Monday, September 11, 2000)]
[Notices]
[Pages 54836-54837]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-23170]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; Daniel A. Malloy

Order Denying Export Privileges

    On December 13, 1999, Daniel A. Malloy (Malloy) was convicted in 
the United States District Court for the District of New Jersey of 
Violating Section 38 of the Arms Export Control Act (22 U.S.C.A. 2778 
(1990 & Supp. 2000)) (the AECA). Specifically, Malloy was convicted of 
knowingly and willfully engaging, aiding and abetting, and causing 
others to engage in the business of exporting defense articles 
designated by and on the United States Munitions List without 
registering with the United States Department of State, Office of 
Defense Trade Controls.
    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 the AECA, 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 (64 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 the AECA, 
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 Malloy's conviction for violating the 
AECA, and after providing notice and an opportunity for Malloy 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 Malloy's 
export privileges for a period of eight years from the date of his 
conviction. The eight-year period ends on December 13, 2007. I have 
also decided to revoke all licenses issued pursuant to the Act in which 
Malloy had an interest at the time of his conviction.
    Accordingly, it is hereby Ordered.
    I. Until December 13, 2007, Daniel A. Malloy, currently 
incarcerated at: Allenwood Federal Prison Camp, Number 21436-050, P.O. 
Box 1000, Montgomery, Pennsylvania 17752, and with an address at: 811 
Carol Place, Oradell, New Jersey 07649, 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.
    H. 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, 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 Malloy 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

[[Page 54837]]

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 December 13, 2007.
    IV. In accordance with Part 756 of the Regulations, Malloy 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 Malloy. This Order 
shall be published in the Federal Register.

    Dated: August 29, 2000.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 00-23170 Filed 9-8-00; 8:45 am]
BILLING CODE 3510-DT-M