[Federal Register Volume 78, Number 120 (Friday, June 21, 2013)]
[Notices]
[Pages 37518-37519]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-14838]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Order Denying Export Privileges

    In the Matter of: Lee Roy Perez, Inmate Number 85828-
279, FCI Herlong, Federal Corrections Institution, P.O. Box 800, 
Herlong, CA 96113.

    On December 13, 2011, in the U.S. District Court, Southern District 
of Texas, Lee Roy Perez (``Perez'') was convicted of violating Section 
38 of the Arms Export Control Act (22 U.S.C. 2778 (2006 & Supp. IV 
2010)) (``AECA'').

[[Page 37519]]

Specifically, Perez was convicted of knowingly and willfully exporting 
and causing to be exported and attempting to export and attempting to 
cause to be exported from the United States to Mexico six Century 
International Arms, model AKMS rifles which were designated as defense 
articles on the United States Munitions List, without having first 
obtained from the Department of State a license for such export or 
written authorization for such export. Perez was sentenced to 48 months 
of imprisonment and two years of supervised release, and fined a $100 
assessment. Perez is also listed on the U.S. Department of State 
Debarred List.
    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 Export 
Administration Act (``EAA''), the EAR, or 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. 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. 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 (2013). The Regulations 
issued pursuant to the Export Administration Act (50 U.S.C. app. 
2401-2420 (2000)) (``EAA''). Since August 21, 2001, the 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 15, 2012 (77 Fed. Reg. 49699 (August 16, 2012)), has 
continued the Regulations in effect under the International 
Emergency Economic Powers Act (50 U.S.C. 1701, et seq. (2006 & Supp. 
IV 2010)).
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    I have received notice of Perez's conviction for violating the 
AECA, and have provided notice and an opportunity for Perez to make a 
written submission to BIS, as provided in Section 766.25 of the 
Regulations. I have not received a submission from Perez. 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 Perez's export privileges under the Regulations for a period of 
10 years from the date of Perez's conviction. I have also decided to 
revoke all licenses issued pursuant to the Act or Regulations in which 
Perez had an interest at the time of his conviction.
    Accordingly, it is hereby

Ordered

    I. Until December 13, 2021, Lee Roy Perez, with a last known 
address at: Inmate Number 85828-279, FCI Herlong, Federal 
Corrections Institution, P.O. Box 800, Herlong, CA 96113, and when 
acting for or on behalf of Perez, his representatives, assigns, agents 
or employees (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, 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, 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 Perez by affiliation, ownership, 
control or position of responsibility in the conduct of trade or 
related services may also be 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 December 13, 2021.
    VI. In accordance with Part 756 of the Regulations, Perez 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 the Perez. This 
Order shall be published in the Federal Register.

    Issued this 17th day of June 2013.
Bernard Kritzer,
Director, Office of Exporter Services.
[FR Doc. 2013-14838 Filed 6-20-13; 8:45 am]
BILLING CODE P