[Federal Register Volume 72, Number 19 (Tuesday, January 30, 2007)]
[Notices]
[Pages 4238-4239]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-390]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Acting Affecting Export Privileges; Fernando Sero, a/k/a Ferdie 
Resada; Order Denying Export Privileges

A. Denial of Export Privileges of Fernando Sero, a/k/a Ferdie Resada

    On December 15, 2005, in the U.S. District Court for the Southern 
District of New York, following a plea of guilty, Fernando Sero, a/k/a 
Ferdie Resada (``Sero'') was convicted of violating Section 38 of the 
Arms Export Control Act (22 U.S.C. Sec. Sec.  2778 (2000)) (``AECA''). 
Sero pled guilty to knowingly and willfully causing to be exported from 
the United States to a location on the Island of Mindanao, in the 
Southern Philippines, U.S. defense articles to wit, weapons parts, 
which were designated as defense articles on the United States 
Munitions List, without having first obtained a valid license from the 
Department of State for such export, or written authorization for such 
an export. Sero was sentenced to 40 months imprisonment followed by 
three years of supervised release.
    Section 11(h) of the Export Administration Act of 1979, as amended 
(currently codified at 50 U.S.C. app. Sec. Sec.  2401-2420 (2000)) 
(``Act'') \1\ and Section 766.25 of the Export Administration 
Regulations\2\ (``Regulations'') provide, in pertinent part, that 
``[t]he Director of Exporter Services, in consultation with the 
Director of the Office of Export Enforcement, may deny the export 
privileges of any person who has been convicted of a violation of * * * 
Section 38 of the Arms Export Control Act (22 U.S.C. 2778),'' for a 
period not to exceed 10 years from the date of conviction. 15 CFR 
Sec. Sec.  766.25(a) and (d). In addition, Section 750.8 of the 
Regulations states that BIS's Office of Exporter Services may revoke 
any BIS licenses previously issued in which the person had an interest 
in at the time of his conviction.
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    \1\ 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 by the Notice of August 3, 2006 
(71 FR 44551, Aug. 7, 2006), has continued the Regulations in effect 
under the International Emergency Economic Powers Act (50 U.S.C. 
Sec. Sec.  1701-1706 (2000)) (``IEEPA'').
    \2\ The Regulations are currently codified at 15 CFR Parts 730-
774 (2006).
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    I have received notice of Sero's conviction for violating the AECA, 
and have provided notice and an opportunity for Sero to make a written 
submission to the Bureau of Industry and Security as provided in 
Section 766.25 of the Regulations. I have also received a written 
submission from Sero explaining why he does not believe a 10 year 
denial is appropriate and have decided, following consideration of his 
submission and consultations with the Export Enforcement, including the 
Director, Office of Export Enforcement, to deny Sero's conviction.
    Accordingly, it is hereby ordered:
    I. Until December 15, 2015, Fernando Sero, a/k/a Ferdie Resada, 
Inmate No. 84301-054, FCI Loretto, Federal Correction Institute, P.O. 
Box 1000, Loretto, PA 15940, and with an address at: 37 Rugby Road, 
Yonkers, NY 10710, and when acting for or on behalf of Sero, his 
representatives, assigns, agents, or employees, (collectively referred 
to hereinafter as the ``Denied Person'') 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.
    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,

[[Page 4239]]

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 other person, firm, corporation, 
or business organization related to Fernando Sero 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 
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 December 15, 2015.
    VI. In accordance with Part 756 of the Regulations, Sero may file 
an appeal of this Order with the Under Secretary of Commerce for 
Industry and Security. 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 Sero. This Order 
shall be published in the Federal Register.

    Dated: January 22, 2007.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 07-390 Filed 1-29-07; 8:45 am]
BILLING CODE 3510-DT-M