[Federal Register Volume 67, Number 171 (Wednesday, September 4, 2002)]
[Notices]
[Pages 56530-56531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-22549]



[[Page 56530]]

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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; Tetrabal Corporation, Inc., 
and Ihsan Medhat ``Sammy'' Elashi, also known as I. Ash, Haydee Herrera 
and Abdulah Al Nasser and doing business as Kayali Corp.; Maysoon Al 
Kayali, Mynet.Net Corp.; Renewal of Order of Temporarily Denying Export 
Privileges

In the matter of: Tetrabal Corporation, Inc., 605 Trail Lake Drive, 
Richardson, Texas 75081, and Ihsan Medhat ``Sammy'' Elashi, also 
known as: I. Ash, Haydee Herrera, and Abdulah Al Nasser, and doing 
business as Kayali Corp., 605 Trail Lake Drive, Richardson, Texas 
75081; Respondents. Maysoon Al Kayali, 605 Trail Lake Drive, 
Richardson, Texas 75081; Mynet.Net Corp., 605 Trail Lake Drive, 
Richardson, Texas 75081; Related persons.

    Through the Office of Export Enforcement (``OEE''), the Bureau of 
Industry and Security (``BIS''), United States Department of Commerce, 
has asked me to renew in part the order pursuant to section 766.24 of 
the Export Administration Regulations (currently codified at 15 CFR 
parts 730774 (2002)) (``EAR'' or ``Regulations''),\1\ temporarily 
denying all United States export privileges to Infocom Corporation, 
Inc., Tetrabal Corporation, Inc. (``Tetrabal''), and Ihsan Medhat 
``Sammy'' Elashi (``Ihsan Elashi'') that was issued on September 6, 
2001, and renewed and modified on March 4, 2002. BIS has asked that I 
continue the order as to Tetrabal and Ihsan Elashi and continue to name 
Maysoon Al Kayali and Mynet.Net Corp as related persons.\2\
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    \1\ The Regulations were issued pursuant to the Export 
Administration Act of 1979 (``Act''), 50 U.S.C. app. 24012420 (1994 
& Supp. IV 1998), as reauthorized by Act of November 13, 2000, Pub. 
L. No. 106508, 114 Stat. 2360. The Act lapsed on August 20, 2001. 
Pursuant to the International Emergency Powers Act (50 U.S.C. 
17011706 (1994 & Supp. IV 1998)), the President, through Executive 
Order 13222 of August 17, 2001 (66 FR 44025 (August 22, 2001)) as 
extended by the Notice of August 14, 2002 (67 FR 53721 (August 16, 
2002)), has continued the Regulations in force.
    \2\ BIS has indicated that further investigation has revealed 
that Abdulah Al Nasser is a name that Ihsan Elashi has used to 
conduct export business but that the Abdulah Al Nasser in question 
is not related to Ihsan Elashi. Consequently, Adbulah Al Nasser is 
no longer a related person but the public is advised that Ihsan 
Elashi has used that name.
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    In its request BIS states that, based upon the evidence previously 
adduced and events occurring since the March 4 renewal of the order, 
BIS believes that Tetrabal and Ihsan Elashi have violated the 
Regulations by shipping and attempting to ship goods to Libya and Syria 
without obtaining the necessary authorizations from BIS, and further 
violated the Regulations by shipping goods in contravention of the 
original denial order. After the September 6 order, Ihsan Elashi made 
at least 10 exports of computer equipment that violated the order. 
Maysoon Al Kayali assisted Ihsan Elashi in making some of these exports 
in violation of the denial order. Additionally, Ihsan Elashi used 
Mynet.Net as the exporter for at least one of the shipments. In several 
of these exports, Ihsan Elashi used concealment and subterfuge in an 
attempt to hide his exports which violated the terms of the September 6 
order.
    Since the issuance of the March 4 order, Ihsan Elashi has pled 
guilty to violating the September 6 order. On June 17, in U.S. District 
Court in Dallas, Texas, Ihsan Elashi pled guilty to charges of 
violating the TDO, access device fraud, money laundering, and wire 
fraud. Superseding Indictment, CR. NO. 3:02CR033L, NDTX, returned Feb. 
7, 2002 (``Indictment''); Plea Agreement, CR. NO. 3:02CR033L, filed 
Jun. 17, 2002 (``Plea Agreement''). The export control charge that 
Ihsan Elashi pled guilty to alleged that, on September 22, 2001, he and 
Tetrabal exported computers and monitors to Saudi Arabia while subject 
to the TDO in violation of the International Emergency Economic Powers 
Act, 50 U.S.C. 1702 and 1705(b). Indictment at page 4. Sentencing is 
set for September 9. Currently, Ihsan Elashi is free on bail.
    The Assistant Secretary for Export Enforcement previously found 
that TDO was necessary and consistent with the public interest in order 
to preclude future violations of the Regulations. Temporary Denial 
Order of September 6, 2001, 66 FR 47630, 47631 (Sept. 13, 2001). The 
acting Assistant Secretary made the same finding upon renewal of the 
order. Temporary Denial Order of March 4, 2002, 67 FR 10890, 10891 
(Sept. 13, 2001). I find that the need for the TDO continues as to 
Ihsan Elashi and Tetrabal. Ihsan Elashi and his firm, Tetrabal, 
committed repeated violations of the Regulations that were deliberate 
and covert, and they actively sought to engage in further export 
transactions that, given the nature of the items shipped, could go 
undetected. Id. Ihsan Elashi has pled guilty to a criminal charge of 
violating the original TDO and faces the possibility of a lengthy term 
of imprisonment.\3\ The risk that he and his firm, Tetrabal, would 
violate the Regulations continues. It is necessary to give notice to 
companies in the United States and abroad that they should cease 
dealing with the respondents in export transactions involving U.S.-
origin items. The need for the continuation of the TDO as to Ihsan 
Elashi and Tetrabal as denied persons is also established by the 
flagrant violations of the order that have occurred more recently and 
by Ihsan Elashi's continuing ability to violate the Regulations while 
free on bail pending sentencing.
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    \3\ According to a June 19, 2002 press release of the United 
States Attorney for the Northern District of Texas, Ihsan Elashi 
faces a maximum penalty of 50 years imprisonment, a fine of $1.25 
million or twice the monetary gain to the defendant or twice the 
financial loss to the victims, as well as a $400 mandatory special 
assessment on the charges to which he pled guilty.
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    Accordingly, I am renewing this order with the amendments requested 
by BIS because I have concluded that a TDO is necessary, in the public 
interest, to prevent an imminent violation of the Regulations.
    It is therefore ordered:
    First, that Tetrabal Corporation, Inc., 605 Trail Lake Drive, 
Richardson, Texas 75081 and Ihsan Medhat ``Sammy'' Elashi, also known 
as I, Ash, Haydee Herrera, and Abdulah Al Nasser, and doing business as 
Kayali Corp., 605 Trail Lake Drive, Richardson, Texas 75081 
(collectively, ``the denied persons''), and the following persons 
subject to the order by their relationship to the denied persons, 
Maysoon, Al Kayali and Mynet.Net Corp, both at 605 Trail Lake Drive, 
Richardson, Texas 75081 (``the related persons'') (together, the denied 
persons and the related persons are ``persons subject to this order'') 
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 Export 
Administration Regulations (EAR), or in any other activity subject to 
the Ear, 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 EAR, or in any other activity 
subject to the EAR; 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 Ear, or in any other activity subject to the Ear.
    Second, that no person may, directly or indirectly, do any of the 
following:

[[Page 56531]]

    A. Export or reexport to or on behalf of a person subject to this 
order any item subject to the Ear;
    B. Take any action that facilitates that acquisition or attempted 
acquisition by a person subject to this order 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 a person subject to 
this order 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 a person subject to this order of any 
item subject to the Ear that has been exported from the United States;
    D. Obtain from a person subject to this order 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 a person subject to this order, or 
service any item, of whatever origin, that is owned, possessed or 
controlled by a person subject to this order 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.
    Third, that, in addition to the related persons named above, after 
notice and opportunity for comment as provided in section 766.23 of the 
Ear, any other person, firm, corporation, or business organization 
related to the denied person 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 Ear where the only items involved that 
are subject to the Ear are the foreign-produced direct product of U.S.-
origin technology.
    In accordance with the provisions of section 766.24(e) of the 
Regulations, the denied persons may, at any time appeal this Order by 
filing a full written statement in support of the appeal with the 
Office of the Administrative Law Judge, U.S. Coast Guard ALJ Docketing 
Center, 40 South Gay Street, Baltimore, Maryland 212024022. A related 
person may appeal to the Administrative Law Judge at the aforesaid 
address in accordance with the provisions of section 766.23(c) of the 
Regulations.
    This Order is effective on August 30, 2002 and shall remain in 
effect for 180 days.
    In accordance with the provisions of section 766.24(d) of the 
Regulations, BIS may seek renewal of this Order by filing a written 
request not later than 20 days before the expiration date. Tetrabal, or 
Ihsan Elashi may oppose a request to renew this Order by filing a 
written submission with the Assistant Secretary for Export Enforcement, 
which must be received not later than seven days before the expiration 
date of the Order.
    A copy of this Order shall be served on Tetrabal and Ihsan Elashi 
and each related person and shall be published in the Federal Register.

    Entered this 28th day of August, 2002.
Michael J. Garcia,
Assistant Secretary for Export Enforcement.
[FR Doc. 02-22549 Filed 9302; 8:45 am]
BILLING CODE 3510DTM