[Federal Register Volume 77, Number 114 (Wednesday, June 13, 2012)]
[Notices]
[Pages 35351-35353]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-14424]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security




    In the Matter of: Mohammad Reza Vaghari, a/k/a Mitch Vaghari, 
currently incarcerated at: Inmate Number: 63541-066, CI

[[Page 35352]]

Moshannon Valley, Correctional Institution, 555 Geo Drive, 
Philipsburg, PA 16866, and with an address at: 116 Moore Road, 
Downington, PA 19335-1831, Respondent; Saamen Company, LLC, 3405 
West Chester Pike Ste B105, Newtown Square, PA 19073-4250, Related 
Person.

Order Denying Export Privileges

A. Denial of Export Privileges of Mohammad Reza Vaghari

    On June 3, 2011, in the U.S. District Court, Eastern District of 
Pennsylvania, Mohammad Reza Vaghari, a/k/a Mitch Vaghari (``Vaghari'') 
was convicted of crimes relating to his participation in illegal 
business transactions with Iran between 2005 and 2008. Specifically, 
Vaghari was convicted of two counts of violating the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq. (2000)) 
(``IEEPA'') by willfully and knowingly aiding and abetting in the 
illegal export of ultrasonic liquid processors, stimulus isolators and 
laboratory equipment to Iran via the United Arab Emirates without 
obtaining the required Office of Foreign Assets Control approval.
    Vaghari was also convicted of one count of conspiracy to violate 
IEEPA (18 U.S.C. 371) and one count of naturalization fraud stemming 
from his attempt to procure U.S. citizenship (18 U.S.C. 1425). Vaghari 
was sentenced to 33 months in prison followed by three years supervised 
release and a special assessment of $400.
    Section 766.25 of the Export Administration Regulations (``EAR'' or 
``Regulations'') \1\ provides, in pertinent part, that ``[t]he Director 
of the Office 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 the EAA, the EAR, 
of any order, license or authorization issued thereunder; any 
regulation, license, or order issued under the International Emergency 
Economic Powers Act (50 U.S.C. 1701-1706); 18 U.S.C. 793, 794 or 798; 
section 4(b) of the Internal Security Act of 1950 (50 U.S.C. 783(b)), 
or section 38 of the Arms Export Control Act (22 U.S.C. 2778).'' 15 CFR 
766.25(a); see also Section 11(h) of the EAA, 50 U.S.C. app. Sec.  
2410(h). The denial of export privileges under this provision may be 
for a period of up to 10 years from the date of the conviction. 15 CFR 
766.25(d); see also 50 U.S.C. app. Sec.  2410(h). In addition, Section 
750.8 of the Regulations states that the Bureau of Industry and 
Security's Office of Exporter Services may revoke any Bureau of 
Industry and Security (``BIS'') licenses previously issued in which the 
person had an interest in at the time of his conviction.
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2012). The Regulations 
issued pursuant to the EAA (50 U.S.C. app. Sec. Sec.  2401-2420 
(2000)). Since August 21, 2001, the Export Administration Act 
(``EAA'') 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 August 12, 2011 (765 FR 50661, August 16, 
2011), has continued the Regulations in effect under IEEPA.
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    I have received notice of Vaghari's conviction for violating the 
IEEPA, and have provided notice and an opportunity for Vaghari to make 
a written submission to BIS, as provided in Section 766.25 of the 
Regulations. I have not received a submission from Vaghari. Based upon 
my review and consultations with BIS's Office of Export Enforcement, 
including its Director, and the facts available to BIS, I have decided 
to deny Vaghari's export privileges under the Regulations for a period 
of 10 years from the date of Vaghari's conviction. I have also decided 
to revoke all licenses issued pursuant to the Act or Regulations in 
which Vaghari had an interest at the time of his conviction.

B. Denial of Export Privileges of Related Person

    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. 
Because Vaghari is the president of Saamen Company LLC (``Saamen''), 
Saamen is related to Vaghari by ownership, control, position of 
responsibility, affiliation, or other connection in the conduct of 
trade or business. BIS believes that naming Saamen as a related person 
to Vaghari is necessary to avoid evasion of the denial order against 
Vaghari.
    As provided in Section 766.23 of the Regulations, I gave notice to 
Saamen that its export privileges under the Regulations could be denied 
for up to 10 years due to its relationship with Vaghari and that BIS 
believes naming it as a person related to Vaghari would be necessary to 
prevent evasion of a denial order imposed against Vaghari. In providing 
such notice, I gave Saamen an opportunity to oppose its addition to the 
Vaghari Denial Order as a related party. Having received no submission, 
I have decided, following consultations with BIS's Office of Export 
Enforcement, including its Director, to name Saamen as a Related Person 
to the Vaghari Denial Order, thereby denying its export privileges for 
10 years from the date of Vaghari's conviction.
    I have also decided to revoke all licenses issued pursuant to the 
Act or Regulations in which the Related Person had an interest at the 
time of Vaghari's conviction. The 10-year denial period will end on 
June 3, 2021.
    Accordingly, it is hereby ordered
    I. Until June 3, 2021 Mohammad Reza Vaghari, a/k/a Mitch Vaghari 
with last known addresses at: Currently incarcerated at: Inmate Number: 
63541-066, CI Moshannon Valley, Correctional Institution, 555 Geo 
Drive, Philipsburg, PA 16866 and 116 Moore Road, Downington, PA 19335-
1831, and when acting for or on behalf of Vaghari, his representatives, 
assigns, agents or employees (collectively referred to hereinafter as 
the ``Denied Person''), and the following person related to the Denied 
Person as defined by Section 766.23 of the Regulations: Saamen Company 
LLC, with a last known address at: 3405 West Chester Pike Ste B105, 
Newtown Square, PA 19073-4250, and when acting for or on behalf of 
Saamen, its successors or assigns, agents, or employees (``the Related 
Person'') (together, the Denied Person and the Related Person 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 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:

[[Page 35353]]

    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 acquire or attempt to acquire such ownership, 
possession or control;
    C. Take any action to acquire from or to facilitate the acquisition 
or attempted 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 the Denied Person 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 June 3, 2021.
    VI. In accordance with Part 756 of the Regulations, Vaghari 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 
Person may also 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.
    VIII. A copy of this Order shall be delivered to the Denied Person 
and the Related Person. This Order shall be published in the Federal 
Register.

    Issued this 6th day of June, 2012.
Bernard Kritzer,
Director, Office of Exporter Services.
[FR Doc. 2012-14424 Filed 6-12-12; 8:45 am]
BILLING CODE P