[Federal Register Volume 67, Number 33 (Tuesday, February 19, 2002)]
[Notices]
[Pages 7352-7354]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3853]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration

[Docket No.: 99-BXA-06]


Action Affecting Export Privileges: Jerry Vernon Ford

    In the matters of: Thane-Coat, Inc., Jerry Vernon Ford, and 
Preston John Engebretson, Respondents.

Order Relating to Respondent, Jerry Vernon Ford

    The Bureau of Export Administration, United States Department of 
Commerce

[[Page 7353]]

(``BXA''), having initiated an administrative proceeding against Jerry 
Vernon Ford (``Ford'') pursuant to section 13(c) of the Export 
Administration Act of 1979, as amended (50 U.S.C. Secs. 2401-2420 (1991 
& Supp. V 1999)) (the ``Act''),\1\ and the Export Administration 
Regulations (currently codified at 15 CFR parts 730-774 (2001)) (the 
``Regulations''),\2\ based on allegations that Ford committed 112 
violations of the former Regulations--one violation of section 
787.3(b), 32 violations of section 787.4, five violations of section 
787A.4, 32 violations of section 787.5(a), five violations of section 
787A.5(a), 32 violations of section 787.6, and five violations of 
section 787A.6 of the former Regulations. Specifically the charges are:
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    \1\ From August 21, 1994, through November 12, 2000, the Act was 
in lapse. During that period, the President, through Executive Order 
12924, which had been extended by successive Presidential Notices, 
the last of which was August 3, 2000 (3 CFR, 2000 Comp. 397 (2001)), 
continued the Regulations in effect under the International 
Emergency Economic Powers Act (50 U.S.C. 1701-1706 (1994 & Supp. V 
1999)) (``IEEPA''). On November 13, 2000, the Act was reauthorized 
by Public Law 106-508 and it remained in effect through August 20, 
2001. Since August 21, 2001, the Act has been in lapse and the 
President, through Executive Order 13222 of August 17, 2001 (66 FR 
44025 (August 22, 2001)), has continued the Regulations in effect 
under IEEPA.
    \2\ The violations at issue occurred from 1994 through 1996. The 
Regulations governing the violations at issue are found in the 1994 
through 1996 versions of the Code of Federal Regulations (15 CFR 
parts 768-799 (1994-1995), and 15 CFR parts 768-799 (1996), as 
amended (61 FR 12714, March 25, 1996)) (the ``former Regulations''). 
The March 25, 1996 Federal Register publication redesignated, but 
did not republish, the then-existing Regulations as 15 CFR parts 
768A-799A. In addition, the March 25, 1996, Federal Register 
publication restructured and reorganized the Regulations, 
designating them as an interim rule at 15 CFR parts 730-774, 
effective April 24, 1996. The former Regulations define the various 
violations that BXA alleges occurred and the Regulations establish 
the procedures that apply to this matter.
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    1. One Violation of 15 CFR 787.3(b): Conspiracy: Beginning in June 
1994 and continuing through July 1996, Ford conspired with Thane-Coat, 
Inc., Preston John Engebretson, TIC, Ltd. and Export Materials, Inc., 
to violate the former Regulations by devising and employing a scheme to 
export and by exporting polyurethane (isocyanate/polyol) and polyether 
polyurethane (collectively referred to as ``pipe coating materials''), 
items subject to the former Regulations, from the United States through 
the United Kingdom to Libya, a country subject to comprehensive 
economic sanctions, without applying for and obtaining the required 
export authorizations from the U.S. Government.
    2. 37 Violations of 15 CFR 787.6 and 787A.6: Exports Without the 
Required Licenses: Between on or about February 12, 1995 and on or 
about April 25, 1996, on 37 separate occasions, Ford exported or caused 
to be exported pipe coating materials from the United States to Libya 
without obtaining validated export licenses from the Department of 
Commerce as required by sections 772.1(b), 772A.1(b), 785.7, and 785A.7 
of the former Regulations.
    3. 37 Violations of 15 CFR 787.4 and 787A.4: Acting with Knowledge 
of a Violation: In connection with each of the exports described in 
paragraph 2 above, on 37 separate occasions, Ford acted with knowledge 
or had reason to know that validated licenses were required from the 
Department of Commerce before the pipe coating materials could be sold 
to Libya.
    4. 37 Violations of 15 CFR 787.5(a) and 787A.5(a): 
Misrepresentation and Concealment: In connection with the exports 
described in paragraph 2 above, Ford, on 37 separate occasions, filed 
or caused to be filed Shipper's Export Declarations or bills of lading, 
export control documents as defined in sections 770.2 and 770A.2 of the 
former Regulations, which represented that the ultimate end-use of the 
pipe coating materials was in the United Kingdom. These statements of 
material fact were false as the ultimate end-use of the pipe coating 
materials was in Libya. The false statements were made, directly or 
indirectly, to an official of the U.S. Government.
    BXA and Ford having entered into a Settlement Agreement pursuant to 
Section 766.18(b) of the Regulations whereby they agreed to settle this 
matter in accordance with the terms and conditions set forth therein, 
and the terms of the Settlement Agreement having been approved by me;
    It is therefore ordered:
    First, that, for a period of 25 years from the date of this Order, 
Ford, and when acting for or on behalf of Ford, his representatives, 
agents, assigns, or employees (``denied persons''), 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. Benefitting 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.
    Second, that no person may, directly or indirectly, do any of the 
following:
    A. Export or reexport to or on behalf of the denied persons any 
item subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by the denied persons 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 persons acquire 
or attempt 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 persons of any item subject to 
the Regulations that has been exported from the United States;
    D. Obtain from the denied persons 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 persons, or 
service any item, of whatever origin, that is owned, possessed or 
controlled by the denied persons if such service involves the use of 
any item 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.
    Third, that after notice and opportunity for comment as provided in 
Section 766.23 of the Regulations, any person, firm, corporation, or 
business organization related to Ford 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.
    Fourth, that this Order does not prohibit any export, reexport, or 
other transaction subject to the Regulations

[[Page 7354]]

where the only items involved that are subject to the Regulations are 
the foreign-produced direct product of U.S.-origin technology.
    Fifth, that a copy of this Order shall be delivered to the United 
States Coast Guard ALJ Docketing Center, 40 Gay Street, Baltimore, 
Maryland 21202-4022, notifying that office that this case is withdrawn 
from adjudication, as provided by Section 766.18 of the Regulations.
    Sixth, that, the charging letter, the Settlement Agreement, and 
this Order shall be made available to the public.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Entered this 24th day of January, 2002.
Michael J. Garcia,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 02-3853 Filed 2-15-02; 8:45 am]
BILLING CODE 3510-DT-M