[Federal Register Volume 72, Number 236 (Monday, December 10, 2007)]
[Notices]
[Pages 69650-69652]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-5987]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges; XU WEIBO, a/k/a ``KEVIN XU''; 
HAO LI CHEN, a/k/a ``ALI CHAN''; XIU LING CHEN, a/k/a ``LINDA CHEN'' 
and KWAN CHUN CHAN, a/k/a ``JENNY CHAN''

    In the Matter of: Xu Weibo, a/k/a ``Kevin Xu'', 21 Wood View 
Drive, Mt. Laurel, NJ 08504, Respondent: and Hao Li Chen, a/k/a 
``Ali Chan'' currently incarcerated at: 40922-050 FCI Fairton, 
Federal Correctional Institution, P.O. Box 420, Fairton, NJ 08320 
and with an address at: 11 Long Bridge Avenue, Mount Laurel, NJ 
08504 and Xiu Ling Chen, a/k/a ``Linda Chen'', 21 Wood View Drive, 
Mount Laurel, NJ 08504 and Kwan Chun Chan, a/k/a ``Jenny Chan'', 11 
Long Bridge Avenue, Mount Laurel, NJ 08504, Related Persons

Ordering Denying Export Privileges

A. Denial of Export Privileges of Xu Weibo, a/k/a Kevin Xu

    On May 4, 2006, in the District Court for the District of New 
Jersey, Xu Weibo, a/k/a ``Kevin Xu'' (``Xu'') pled guilty to knowingly 
and willfully ordering, buying, removing, concealing, storing, using, 
selling, loaning, disposing of, transferring, transporting, financing, 
forwarding and otherwise servicing, in whole or in part, items exported 
and to be exported from the U.S., specifically, certain Gallium 
Arsenide Monolithic Microwave Integrated Circuits to the People's 
Republic of China, with knowledge that a violation of the Act, the 
Regulations and any order, license and authorization issued thereunder, 
had occurred, was about to occur or was intended to occur in connection 
with the items, in violation of the International Emergency Economic 
Powers Act (50 U.S.C. 1701-1706 (2000)) (``IEEPA''). The involved 
Commerce controlled items were classified under Export Control 
Classification Number 3A001 on the

[[Page 69651]]

Commerce Control List and controlled for National Security (NS) and 
Anti-Terrorism (AT) reasons. Xu also pled guilty to knowingly and 
willfully exporting to the People's Republic of China defense articles, 
designated as ``military electronics'' on the United States Munitions 
list, namely, U.S. military-grade Monolithic Microwave Integrated 
Circuits, without first obtaining the required license for such export, 
in violation of Section 38 of the Arms Export Control Act (22 U.S.C. 
2778 (2000)) (``AECA''). In addition, Xu also pled guilty to conspiring 
to violate the export control laws in violation of 18 U.S.C. 371. Xu 
was sentenced to 44 months of imprisonment for each of the three 
counts, to run concurrently, followed by two years of supervised 
release for each of three counts, to run concurrently.
    Section 11(h) of the Export Administration Act of 1979, as amended 
(currently codified at 50 U.S.C. app. 2401-2420 (2000)) (the ``Act'') 
\1\ and Section 766.25 of the Export Administration Regulations 
(``Regulations'') \2\ provide, in pertinent part, that ``[t]he Director 
of Exporter Services, in consultation with the Director of the Office 
of Export Enforcement, may deny export privileges of any person who has 
been convicted of a violation of * * * IEEPA and AECA,'' for a period 
not to exceed 10 years from the date of conviction. 15 CFR 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.
    I have received notice of Xu's conviction for violating the IEEPA 
and AECA, and have provided notice and an opportunity for Xu to make a 
written submission to the Bureau of Industry and Security as provided 
in Section 766.25 of the Regulations. Having received no submission 
from Xu, I, following consultations with the Office of Export 
Enforcement, including its Director, have decided to deny Xu's export 
privileges under the Regulations for a period of 10 years from the date 
of Xu's conviction. I have also decided to revoke all licenses issued 
pursuant to the Act of Regulations in which the Related Persons had an 
interest at the time of Xu's conviction.
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    \1\ 50 U.S.C. app. Sec. Sec.  2401-2420. 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 15, 2007 (72 FR 46137, Aug. 16, 2007), has 
continued the Regulations in effect under the International 
Emergency Economic Powers Act (50 U.S.C. 1701-1706 (2000)) 
(``IEEPA'').
    \2\ The Regulations are currently codified at 15 CFR parts 730-
774 (2007).
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B. Denial of Export Privileges of Related Persons

    Pursuant to Sections 766.25(h) and 766.23 of the Regulations, the 
Director of BIS's Office of Exporter Services, in consultation with the 
Director of BIS's Office of Export Enforcement, may take action to name 
persons related to a Respondent by ownership, control, position of 
responsibility, affiliation, or other connection in the conduct of 
trade or business in order to prevent evasion of a denial order. I gave 
notice to Hao Li Chen (a/k/a ``Ali Chan''), Kwan Chun Chan, (a/k/a 
``Jenny Chan'') and Xiu Ling Chen (a/k/a ``Linda Chen''), notifying 
them that their export privileges under the Regulations could be denied 
for up to 10 years as BIS believes that they are related to Xu and that 
naming them as persons related to Xu would be necessary to prevent 
evasion of a denial order imposed against Xu. These individuals all 
pled guilty to conspiring to violate the export control laws in 
connection with the export of Commerce and State controlled electronic 
components to the People's Republic of China without the required 
license, in violation of 18 U.S.C. 371. Based on this conspiracy, Hao 
Li Chen was sentenced to 30 months imprisonment, followed by two years 
of supervised release. Kwan Chun Chan was sentenced to two years of 
probation. Xiu Ling Chen was sentenced to 18 months of imprisonment, 
followed by two years of supervised release. Hao Li Chen, Kwan Chun 
Chan and Xiu Ling Chen are related to Xu by ownership, control, 
position of responsibility, affiliation, or other connection in the 
conduct of trade or business because they all hold positions of 
responsibility in the same corporation as Xu, which is the corporation 
through which Xu's criminal violations took place.
    Having received no submission from the Related Persons, I have 
decided, following consultations with the Office of Export Enforcement, 
including its Director, to name them as related persons to the Xu 
Denial Order, thereby denying their export privileges for 10 years from 
the date of Xu's conviction.
    I have also decided to revoke all licenses issued pursuant to the 
Act or Regulations in which the Related Persons had an interest at the 
time of Xu's conviction. The 10-year denial period ends on May 4, 2016.
    Accordingly, it is hereby ordered,
    I. Until May 4, 2016, Xu Weibo, a/k/a ``Kevin Xu'', 21 Wood View 
Drive, Mt. Laurel, NJ 08504, and when acting for or on his behalf, his 
employees, agents or representatives, (``the Denied Person'') and the 
following persons related to the Denied Person as defined by Section 
766.23 of the Regulations: Hao Li Chen, a/k/a ``Ali Chan'', currently 
incarcerated at: 40922-050, FCI Fairton, Federal Correctional 
Institution, P.O. Box 420, Fairton, NJ 08320, and with an address at 11 
Long Bridge Avenue, Mount Laurel, NJ 08504; Xiu Ling Chen, a/k/a 
``Linda Chen'', 21 Wood View Drive, Mount Laurel, NJ 08504; and Kwan 
Chun Chan, a/k/a ``Jenny Chan'', 11 Long Bridge Avenue, Mount Laurel, 
NJ 08504, and when acting for or on their behalf, their employees, 
agents or representatives, (``the Related Persons'') (together, the 
Denied Person 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 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 noegotations 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 Persons Subject To 
This Order any item subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by the Persons Subject To This Order 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 Persons 
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

[[Page 69652]]

acquisition from the Persons Subject To This Order of any item subject 
to the Regulations that has been exported from the United States;
    D. Obtain from the Persons Subject To This Order 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 Persons Subject To 
This Order, or service any item, of whatever origin, that is owned, 
possessed or controlled by the Persons Subject To This Order 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. In addition to the Related Person named above, 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 Xu 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 if necessary 
to prevent evasion of the 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 May 4, 2016.
    VI. In accordance with part 756 of the Regulations, Xu 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. In accordance with part 756 of the Regulations, the related 
persons may also file an appeal of this Order with the Under Secretary 
of Commerce for Industry and Security.
    VIII. A copy of this Order shall be delivered to Xu and the Related 
Persons. This Order shall be published in the Federal Register.

    Dated: November 27, 2007.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 07-5987 Filed 12-07-07; 8:45 am]
BILLING CODE 3510-DT-M