[Federal Register Volume 72, Number 167 (Wednesday, August 29, 2007)]
[Notices]
[Pages 49701-49702]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-4228]



[[Page 49701]]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[Docket No. 06-BIS-13]


Action Affecting Export Privileges; Norman Spector; In the Matter 
of: Norman Spector, 27 Bethpage Drive, Monroe Township, NJ 08831, 
Respondent

Order Relating to Norman Spector

    The Bureau of Industry and Security, U.S. Department of Commerce 
(``BIS'') has initiated an administrative proceeding against Norman 
Spector (``Spector'') pursuant to Section 766.3 of the Export 
Administration Regulations (currently codified at 15 CFR parts 730-774 
(2007)) (the ``Regulations''),\1\ and Section 13(c) of the Export 
Administration Act of 1979, as amended (50 U.S.C. app. Sec.  2401-2420 
(2000)) (the ``Act''),\2\ through issuance of a charging letter to 
Spector that alleged that Spector committed 44 violations of the 
Regulations. Specifically, the charges are:
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    \1\ The violations charged occurred between 2000 and 2003. The 
Regulations governing the violation at issue are found in the 2000 
through 2003 version of the Code of Federal Regulations (15 CFR 
parts 730-774 (2000-2003)). The 2007 Regulations govern the 
procedural aspects of this case.
    \2\ 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 successive Presidential 
Notices, the most recent being that of August 3, 2006 (71 Fed. Reg. 
44,551 (Aug. 7, 2006)), has continued the Regulations in effect 
under the International Emergency Economic Powers Act (50 U.S.C. 
Sec.  1701-1706 (2000)).
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Charges 1-14 15 CFR 764.2(a)--Export of Microwave Amplifers Without the 
Required Licenses

    On 14 occasions, between on or about November 9, 2000 and January 
9, 2003, Spector engaged in conduct prohibited by the Regulations by 
exporting or causing to be exported microwave amplifiers, items subject 
to the Regulations and classified under Export Control Classification 
Number (``ECCN'') 3A001.b.4, to the People's Republic of China 
(``China'') without the Department of Commerce license required by 
Sec.  742.4 of the Regulations. In so doing, Spector committed 14 
violations of Sec.  764.2(a) of the Regulations.

Charge 15 15 CFR 764.2(c)--Attempted Export of Microwave Amplifiers 
Without the Required License

    On or about March 13, 2003, Spector attempted a violation of the 
Regulations by attempting to export microwave amplifiers, items subject 
to the Regulations and classified under ECCN 3A001.b.4, to China 
without the Department of Commerce license required by Sec.  742.4 of 
the Regulations. In so doing, Spector committed one violation of Sec.  
764.2(c) of the Regulations.

Charges 16-30 15 CFR 764.2(e)--Selling Microwave Amplifiers With 
Knowledge of a Violation of the Regulations

    With respect to the exports or attempted exports as described in 
Charges 1-15 above, Spector sold microwave amplifiers with the 
knowledge that a violation was about to occur or was intended to occur 
in connection with the microwave amplifiers. At all times relevant 
hereto, Spector knew or had reason to know that the microwave 
amplifiers in question required a Department of Commerce license for 
export to China, and that the required license had not been obtained. 
In so doing, Spector committed 15 violations of Sec.  764.2(e) of the 
Regulations.

Charge 31-44 15 CFR 764.2(g)--False Statement on Shipper's Export 
Declarations as to Authority To Export

    With respect to the exports or attempted exports as described in 
Charges 1-11 and 13-15, above Spector filed or caused to be filed 
Shipper's Export Declarations (``SEDs'') with the United States 
Government that contained false statements of fact. Specifically, 
Spector filed or caused to be filed 14 SEDs that stated that the 
microwave amplifiers that were the subjects of the SEDs did not require 
licenses (``NLR''). This representation is false as at all times 
relevant to this case a Department of Commerce license was required to 
export the microwave amplifiers in question in this case to China. In 
so doing, Spector committed 14 violations of Sec.  764.2(g) of the 
Regulations.
    Whereas, BIS and Spector have entered into a Settlement Agreement 
pursuant to Sec.  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 of the terms of such Settlement Agreement; 
It is Therefore Ordered:
    First, that a civil penalty of $462,000 is assessed against 
Spector. Spector shall pay $22,000 to the U.S. Department of Commerce 
within 30 days from the date of entry of this Order. Payment shall be 
made in the manner specified in the attached instructions. Payment of 
the remaining $440,000 shall be suspended for a period of one year from 
the date of entry of this Order and thereafter shall be waived, 
provided that during the period of suspension, Spector has committed no 
violation of the Act, or any regulation, order, or license issued 
thereunder and has made the payment of $22,000, described above, in a 
timely manner.
    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, 
Spector 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 Spector. Accordingly, if 
Spector should fail to pay the civil penalty in a timely manner, the 
undersigned may enter an Order denying all of Spector's export 
privileges under the Regulations for a period of one year from the date 
of entry of this Order.
    Fourth, that for a period of twenty-five years from the date of 
entry of this Order, Norman Spector, 27 Bethpage Drive, Monroe 
Township, New Jersey 08831, and, when acting for or on behalf of 
Spector, 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 Regulation, 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

[[Page 49702]]

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 
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, after notice and opportunity for comment as provided 
in Section 766.23 of the Regulations, any person, firm, corporation, or 
business organization related to Spector 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.
    Seventh, 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.
    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 21st day of August, 2007.
Wendy L. Wysong,
Acting Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 07-4228 Filed 8-28-07; 8:45 am]
BILLING CODE 3510-DT-M