[Federal Register Volume 71, Number 163 (Wednesday, August 23, 2006)]
[Notices]
[Pages 49416-49417]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-7095]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[05-BIS-09]


Action Affecting Export Privileges; Lawrence Scibetta, In the 
Matter of: Lawrence Scibetta, 137 Southwest Carter Avenue, Port St. 
Lucie, FL 34983; Respondent

Order

    The Bureau of Industry and Security, United States Department of 
Commerce (``BIS'') has initiated an administrative proceeding against 
Lawrence Scibetta (``Scibetta'') pursuant to Section 766.3 of the 
Export Administration Regulations (``Regulations''),\1\ and Section 
13(copyright)) of the Export Administration Act of 1979, as amended (50 
U.S.C. app. 2401-2420 (2000)) (``Act''),\2\ through issuance of a 
charging letter to Scibetta that alleged that Scibetta committed five 
violations of the Regulations. Specifically, the charges are:
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR Parts 730-774 (2006). The alleged 
violations occurred in 2004. The Regulations governing the 
violations at issue are found in the 2004 version of the Code of 
Federal Regulations (15 CFR Parts 730-774 (2004)). The 2006 
Regulations establish the procedures that apply to this matter.
    \2\ 50 U.S.C. app. 2401-2430 (2000). Since August 21, 2001, the 
Act has been in lapse and the President, through Executive Order 
13222 of August 17, 2001 (3 CFR, 2001 Comp. 783 (2002)), as extended 
most recently by the Notice of August 3, 2006 (71 FR 44551 (August 
7, 2006)), has continued the Regulations in effect under the 
International Emergency Economic Powers Act (50 U.S.C. 1701-1706 
(2000)) (``IEEPA'').
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    Charge 1. One Violation of 15 C.F.R. Sec.  764.2(c)--Attempted 
Violation of the Regulations:
    On or about June 9, 2004, Scibetta committed a violation of the 
Regulations by attempting to export two thermal imaging cameras, items 
classified under Export Control Classification Number (``ECCN'') 
6A003.b.4, from the United States to an entity in the United Arab 
Emirates (the ``UAE'') without the Department of Commerce license 
required by Sections 742.4 and 742.6 of the Regulations.
    Charge 2. One Violation of 15 CFR 764.2(e)--Acting with Knowledge 
of a Violation: In connection with the attempted export detailed in 
Charge 1, on or about June 1, 2004, Scibetta bought two thermal imaging 
cameras, items classified under ECCN 6A003.b.4, with the knowledge that 
a violation of the Regulations was about to occur. Specifically, 
Scibetta had knowledge that a Department of Commerce export license was 
required to export the cameras, and Scibetta bought the cameras with 
knowledge that the required export license would not be obtained prior 
to an attempt to export the cameras.
    Charge 3. One Violation of 15 CFR 764.2(f)--Possession With Intent 
to Export Illegally: Charges 1-2 are incorporated herein by reference. 
On or around June 8 and June 9, 2004, Scibetta possessed two thermal 
imaging cameras, items controlled for national security reasons under 
the Act, with the intent to export such items in violation of the 
Regulations. On or around May 16, 2004, Scibetta was told by the U.S. 
supplier of the thermal imaging cameras that the cameras required a 
license for export. On or around June 8, 2004, Scibetta took possession 
of the cameras. From that moment until the moment when Scibetta 
consigned the cameras for shipment, Scibetta held the items with the 
intent to export them to the UAE without a license.
    Charge 4. One Violation of 15 CFR 764.2(g)--Misrepresentation and 
Concealment of Facts: Charges 1-3 are incorporated herein by reference. 
On or about July 23, 2004, in the course of an investigation subject to 
the Regulations, Scibetta made a false statement directly to BIS. 
Specifically, he wrote in an affidavit, ``I was never told that if [the 
camera] needed an export license. Up until today no one has ever told 
me that I need a license to ship this [the camera].'' This statement is 
false because Scibetta was told on a number of occasions prior to the 
day of the affidavit, including a warning by the U.S. company from whom 
Scibetta purchased the cameras, that the cameras needed an export 
license.
    Charge 5. One Violation of 15 CFR 764.2(h)--Evasion: Charges 1-4 
are incorporated herein by reference. Between June 22 and June 25, 
2004, Scibetta acted to arrange for the export of two thermal imaging 
cameras with intent to evade the provisions of the Regulations. 
Specifically, Scibetta continued to arrange for the unlicensed export 
of the cameras even after the cameras required a license to export.
    Whereas Bis and Scibetta have 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
    Whereas, I have approved such Settlement Agreement; It is Therefore 
Ordered:
    First, that a civil penalty is assessed against Scibetta in the 
amount of $30,000.00, of which $5,000.00 shall be paid to the U.S. 
Department of Commerce not later than September 15, 2006; $5,000.00 
shall be paid to the U.S. Department of Commerce not later than 
November 15, 2006; $5,000.00 shall be paid to the U.S. Department of 
Commerce not later than January 15, 2007; $5,000.00 shall be paid to 
the U.S. Department of Commerce not later than March 15, 2007; 
$5,000.00 shall be paid to the U.S. Department of Commerce not later 
than May 15, 2007; and $5,000.00 shall be paid to the U.S. Department 
of Commerce not later than July 15, 2007.
    Second, that, pursuant to the Debt Collection Act of 1982, as 
amended (31 U.S.C. 3701-3720E (2000)), the civil penalty owed under 
this Order accrues interest as more fully described in the attached 
Notice, and, if payment is not made by the due date specified herein,

[[Page 49417]]

Scibetta will be assessed, in addition to the full amount of the civil 
penalty and interest, a penalty charge and an administrative charge, as 
more fully described in the attached Notice.
    Third, that the timely payment of the civil penalty set forth above 
is hereby made a condition to the granting, restoration, or continuing 
validity of any export license, license exception, permission, or 
privilege granted, or to be granted, to Scibetta. Accordingly, if 
Scibetta should fail to pay the civil penalty in a timely manner, the 
undersigned may enter an Order denying Scibetta's export privileges for 
a period of one year from the date of entry of this Order.
    Fourth, that for a period of 20 years from the date of entry of the 
Order, Mr. Lawrence Scibetta, 137 Southwest Carter Avenue, Port St. 
Lucie, Florida 34983, and when acting for or on his behalf, his 
representatives, agents, assigns or employees (``Denied Person'') may 
not participate, directly or indirectly, 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.
    Fifth, that 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 
that is 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.
    Sixth, that 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.
    Seventh, 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 Scibetta by affiliation, ownership, 
control, or position of responsibility in the conduct of trade or 
related services may also be made subject to the provisions of the 
Order.
    Eighth, that the charging letter, the Settlement Agreement, this 
Order, and the record of this case as defined by Section 766.20 of the 
Regulations shall be made available to the public.
    Ninth, that the administrative law judge shall be notified that 
this case is withdrawn from adjudication.
    Tenth, that this Order shall be served on the Denied Person and on 
BIS, and shall be published in the Federal Register.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Entered this 14th day of August 2006.
Wendy L. Wysong,
Acting Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 06-7095 Filed 8-22-06; 8:45am]
BILLING CODE 3510-DT-M