[Federal Register Volume 74, Number 23 (Thursday, February 5, 2009)]
[Notices]
[Pages 6134-6136]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-2319]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges: Theresa Huei-Min Chang

    In the Matter of: Theresa Huei-Min Chang, 11816 Pine Brook 
Court, Cupertino, California 95014 Respondent.

Order Relating to Theresa Huei-Min Chang

    The Bureau of Industry and Security, U.S. Department of Commerce 
(``BIS'') has notified Theresa Huei-Min Chang (hereinafter referred to 
as ``Chang''), of

[[Page 6135]]

its intention to initiate an administrative proceeding against her 
pursuant to Section 766.3 of the Export Administration Regulations 
(``Regulations'') \1\ and Section 13(c) of the Export Administration 
Act of 1979, as amended (``Act'') \2\, through issuance of a proposed 
charging letter to Chang that alleged that she committed three 
violations of the Regulations. Specifically, these charges are:
---------------------------------------------------------------------------

    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR Parts 730-774 (2008). The charged 
violation occurred in 2003 through 2006. The Regulations governing 
the violation at issue are found in the 2003 through 2006 versions 
of the Code of Federal Regulations (15 CFR Parts 730-774 (2003-
2006)). The 2008 Regulations govern the procedural aspects of this 
case.
    \2\ 50 U.S.C. app. section 240 1-2420 (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)), which 
has been extended by successive Presidential Notices, the most 
recent being that of July 23, 2008 (73 FR 43,603 (July 25, 2008)), 
has continued the Regulations in effect under the International 
Emergency Economic Powers Act (50 U.S.C. 1701-1706 (2000)).
---------------------------------------------------------------------------

Charge 1: 15 CFR 764.2(d)--Conspiracy To Export Items From the United 
States to Taiwan Without the Required License

    Beginning in or about 2003 and continuing through on or about July 
29, 2006, Chang conspired and acted in concert with others, known and 
unknown, to violate the Regulations and to bring about an act that 
constitutes a violation of the Regulations. The purpose of the 
conspiracy was to export items from the United States to Taiwan without 
the required U.S. Government authorization. Pursuant to Sections 742.2 
or 742.3 of the Regulations, authorization was required from the 
Department of Commerce before certain chemicals, metals, and electronic 
components, items subject to the Regulations and classified under 
Export Control Classification Numbers (``ECCNs'') 1C227, 1C299, 1C230, 
1C231, 1C234, 1C240, 1C350, and 3A201, could be exported from the 
United States to Taiwan. In furtherance of the conspiracy, the 
conspirators, including Chang, participated in a scheme in which a 
Taiwan company requested that an affiliated U.S. company, managed by 
Chang, procure specific items from U.S. suppliers and export them to 
Taiwan. The Taiwan company instructed the affiliated U.S. company not 
to tell U.S. suppliers that the affiliated U.S. company would export 
the items. Pursuant to this instruction, the affiliated U.S. company 
procured the items and exported them to Taiwan without the required 
license. In so doing, Chang committed one violation of Section 764.2(d) 
of the Regulations.

Charge 2: 15 CFR 764.2(e)--Acting With Knowledge of a Violation

    On one occasion, on or about October 29, 2005, Chang ordered, 
bought, stored, sold, and forwarded nickel powder, an item that is 
subject to the Regulations and classified under ECCN 1 C240, with 
knowledge that a violation of the Regulations was occurring. 
Specifically, Chang ordered, bought, stored, sold, and forwarded ten 
kilograms of nickel powder with a value of approximately $551.00. Chang 
had knowledge that said item required a license for export to Taiwan 
and that it was being exported without the required license because 
Chang had been told by an employee of her company that an export of 
nickel powder to Taiwan required a license. In doing so, Chang 
committed one violation of Section 764.2(e) of the Regulations.

Charge 3: 15 CFR 764.2(g)--Misrepresentation or Concealment of Facts

    On or about May 26, 2006, Chang made a false or misleading 
statement to officials of the U.S. Government in the course of an 
investigation subject to the Regulations. Specifically, in the course 
of an interview conducted by Special Agents of BIS's Office of Export 
Enforcement regarding unlicensed exports to Taiwan, Chang stated that, 
other than receiving payments for rent, she did not receive 
compensation from the Taiwanese company Gredmann/Well Being Enterprise 
Co., Ltd. (``Well Being'') for running Elecmat, a U.S. company, and 
that she ran Elecmat as a ``favor.'' This statement was false or 
misleading, as Chang knew that Well Being transferred approximately 
$6,500 per month into a United Commercial Bank account held in the name 
of Chang's brother, over which account Chang exercised complete 
control, which funds represented compensation for Chang's management of 
Elecmat. In so doing, Chang committed one violation of Section 764.2(g) 
of the Regulations.
    Whereas, BIS and Chang have entered into a Settlement Agreement 
pursuant to Section 766.18(a) 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 for a period of two years from the date of entry of 
this Order, Theresa Huei-Min Chang, (``Chang''), her representatives, 
assigns, or agents (``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 and listed on the Commerce Control List, set 
forth in Supplement No. ito 15 CFR part 774, or in any other activity 
subject to the Regulations that involves an item listed on the Commerce 
Control List, including, but not limited to:
    A. Applying for, obtaining, or using any license, License 
Exception, or export control document that involves an item that is 
subject to the Regulations and listed on the Commerce Control List;
    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 and listed on the 
Commerce Control List, or in any other activity subject to the 
Regulations that involves an item listed on the Commerce Control List; 
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 and listed on the Commerce Control List, or in any 
other activity subject to the Regulations that involves an item listed 
on the Commerce Control List.
    Second, that no person may, directly or indirectly, do any of the 
actions described below with respect to an item that is subject to the 
Regulations and listed on the Commerce Control List that has been, will 
be, or is intended to be exported or reexported from the United States:
    A. Export or reexport to or on behalf of a Denied Person any item 
subject to the Regulations and listed on the Commerce Control List;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by a Denied Person of the ownership, possession, or control 
of any item subject to the Regulations and listed on the Commerce 
Control List that has been or will be exported from the United States, 
including financing or other support activities related to a 
transaction whereby a 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 a Denied Person of any

[[Page 6136]]

item subject to the Regulations and listed on the Commerce Control List 
that has been exported from the United States;
    D. Obtain from a Denied Person in the United States any item 
subject to the Regulations and listed on the Commerce Control List 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 and listed on the Commerce Control List that has been or 
will be exported from the United States and that is owned, possessed or 
controlled by a Denied Person, or service any item, of whatever origin, 
that is owned, possessed or controlled by a Denied Person if such 
service involves the use of any item subject to the Regulations and 
listed on the Commerce Control List 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, after notice and opportunity for comment as provided 
in Section 766.23 of the Regulations, any person, firm, corporation, or 
business organization related to Chang 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.
    Fourth, that the proposed charging letter, the Settlement 
Agreement, and this Order shall be made available to the public.
    Fifth, 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 28th day of January 2009.
Kevin Delli-Colli,
Acting Assistant Secretary for Export Enforcement.
[FR Doc. E9-2319 Filed 2-4-09; 8:45 am]
BILLING CODE 3510-DT-M